Background

The U.S. will ban imports of all goods made in whole or in part from any good from the Xinjiang Uyghur Autonomous Region in China effective June 21. Companies should be finalizing efforts to ensure their supply chains do not include such goods.

ST&R will be conducting a webinar on this ban, the underlying law, and their impacts on importers. Click here to register or for more information.

President Biden signed into law Dec. 23 the Uyghur Forced Labor Prevention Act, which effectively deems all goods mined, produced, or manufactured in the XUAR to be produced by forced labor in China. Even companies not importing directly from China may have goods detained if the materials used to produce the imported goods in a second country are tied at any level to XUAR or specific entities or commodities associated with forced labor in China.

(It is worth noting that U.S. Customs and Border Protection has requested $70.3 million for fiscal year 2023 to add enforcement personnel, technological capability, training, and other activities to implement this law.)

Under the UFLPA, imports of goods from the XUAR will be banned unless CBP determines that:

  1. the importer of record has fully complied with relevant guidance to be provided by CBP, as well as any regulations issued to implement that guidance;
  2. the importer has completely and substantively responded to all inquiries for information submitted by CBP to ascertain whether the goods were made wholly or in part with forced labor; and
  3. by clear and convincing evidence, the goods were not made wholly or in part by forced labor.

Any good from the XUAR that thus overcomes the rebuttable presumption of being made with forced labor will be included in a public list to be issued by CBP 30 days after making such determination.

Further, an interagency Forced Labor Enforcement Task Force will have to develop a strategy to prevent the importation of forced labor goods from China along with the following lists.

  1. entities in the XUAR that produce goods with forced labor
  2. entities working with the government of the XUAR to recruit, transport, transfer, harbor, or receive forced labor or Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR
  3. products made wholly or in part by such entities
  4. entities that exported products made with forced labor from China to the U.S.
  5. facilities and entities, including the Xinjiang Production and Construction Corps, that source material from the XUAR or persons working with the government of the XUAR or the XPCC for purposes of a poverty alleviation program or pairing-assistance program or any other government labor scheme that uses forced labor

Importantly, the UFLPA calls for the Task Force to provide guidance to importers with respect to the following.

  1. due diligence, effective supply chain tracing, and supply chain management measures to ensure they do not import any goods made with forced labor from mainland China and especially from the XUAR
  2. the type, nature, and extent of evidence that demonstrates that goods originating in mainland China were not made wholly or in part in the XUAR
  3. the type, nature, and extent of evidence that demonstrates that goods originating in mainland China, including goods detained or seized pursuant to Section 307, were not made wholly or in part with forced labor

Sandler, Travis & Rosenberg offers a comprehensive suite of services to help companies address forced labor concerns in China and elsewhere, including supply chain reviews, due diligence strategies, and proactive remediation. ST&R also maintains a frequently updated web page offering a broad range of information on forced labor-related efforts in the U.S. and around the world. For more information, please contact ST&R at supplychainvisibility@strtrade.com.

Copyright © 2022 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.

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