Forced Labor & Supply Chain Visibility Resources 

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Companies are facing increasing threats to supply chain resiliency as enforcement of the prohibition of importating goods mined, produced or manufactured by forced labor is on the rise. This page gathers together information and resources on preventing forced labor in your supply chain and moving toward supply chain transparency "from earth to hearth." 

Let us help you gain visibility and build resiliency in your supply chain. For a complimentary private consultation on your company's forced labor and supply chain visibility practices, please click here. 

U.S. Forced Labor Enforcement Activity By Country

China

The US is taking a whole-government approach to addressing the human rights violations occurring in the Xinjiang Uyghur Autonomous Region with respect to the Uyghur and other ethnic minorities. While diplomatic channels remain open, the US Government and Congress have taken several actions to prevent the importation of goods that may be made in whole or in part using forced labor in accordance with Section 307 of the Tariff Act of 1930.

Uyghur Forced Labor Prevention Act

The Uyghur Forced Labor Prevention Act effectively deems all goods mined, produced, or manufactured in the XUAR to be produced by forced labor in China. Even those 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. Companies need to use the next 180 days to ensure their supply chains do not include such goods.

• CBP's UFLPA Resource Page 
• UFLPA Entity List (as of June 17, 2022)
• UFLPA Public Law 117-78 Text (December 23, 2021)
• ST&R Trade Report article about the impact of the UFLPA
• UFLPA Timeline
• Industry List from USG notice on XUAR

Documents:

• Uyghur Forced Labor Prevention Act: U.S. Customs and Border Protection Operational Guidance for Importers (June 13, 2022)
• Everybody's Business: The Xinjiang Goods Entering Global Supply Chains (Report from C4ADS)
• Federal Register Notice of Public Hearing on the Use of Forced Labor in the People's Republic of China and Measures to Prevent the Importation of Goods Produced, Mined, or Manufactured, Wholly or in Part, with Forced Labor in the People's Republic of China into the United States (March 18, 2022)
• Financing & Genocide: Development Finance and the Crisis in the Uyghur Region (February 2022) 
  This report by Sheffield Hallam University identifies certain clients of the World Bank's International Finance Corporation as active participants in the human rights violations taking place in the Xinjiang Uyghur Autonomous Region of China.
• Federal Register Notice Seeking Public Comments on Method To Prevent the Importation of Goods Mined, Produced, or Manufactured With Forced Labor in the People's Republic of China, Especially in the Xinjiang Uyghur Autonomous Region, Into the United States (January 24, 2022)
• DHS Advances Biden-Harris Efforts to Stop Flow of Goods Produced by Forced Labor (January 24, 2022)
• US Department of Homeland Security Fact Sheet on Criminal Authorities for Enforcing Against Forced Labor in China (July 30, 2021)
• Xinjiang Supply Chain Business Advisory - joint notice from US Departments of State, Treasury, Commerce, Homeland Security, Labor, and the Office of the US Trade Representative (July 12, 2021 - updates the July 1, 2020 notice)
• Xinjiang Supply Chain Business Advisory - joint notice from US Departments of State, Treasury, Commerce & Homeland Security (July 1, 2020 - updated by above July 12, 2021 notice)

Cambodia

On November 10, 2021, the US Departments of State, Treasury and Commerce issued a joint advisory to US companies that conduct business in Cambodia in key sectors or with certain high risk entities. This advisory addresses the following primary areas of risk exposure for US companies:

• Illicit finance activities in Cambodia and related risks for the financial, real estate, casino, and infrastructure sectors.
• Involvement with Cambodian entities involved in trafficking in persons, wildlife, and narcotics in Cambodia and related risks for the manufacturing and timber sectors.
• Child exploitation, subject to forced labor in brickmaking, rubber plantations, construction and entertainment venues.

Documents:

• Cambodia Business Advisory on High-Risk Investments & Interactions - joint notice from the US Departments of State, Treasury and Commerce (November 10, 2021)

Burma

On January 26, 2022, a joint agency including the Departments of State, Treasury, Commerce, Labor, Homeland Security and the USTR issued an advisory to US companies doing business in Burma and specifially with the military or associated companis. Additionally, businesses and individuals should be wary of the associated illicit finance risks as well as reputational and legal risks of conducting business in and utilizing supply chains under military control in Burma. The specific entities and sectors of greatest concern within Burma include:

• State-owned enterprises
• Gems and precious metals
• Real estate and construction projects
• Arms, military equipment, and related activity
• A number of goods imported from Burma into the US, including bamboo, beans (green, soy, yellow), bricks, garments, jade, palm thatch, rice, rubber, rubies, sesame, shrimp, sugarcane, sunflowers, and teak, have been tied to labor abuses including child and forced labor

Documents:

• Risks and Considerations for Businesses and Individuals with Exposure to Entities Responsible for Undermining Democratic Processes, Facilitating Corruption, and Committing Human Rights Abuses in Burma (Myanmar) - Joint Notice from the US Departments of State, Treasury, Commerce, Labor, Homeland Security, and the Office of the US Trade Representative (January 26, 2022)

North Korea

CAATSA Section 321 creates a rebuttable presumption that North Korean workers are forced to labor. 

Documents:

• DHS Publication: Countering America's Adversaries Through Sanctions Act FAQs (February 11, 2021)
• Public Law 115-44 - Countering America's Adversaries Through Sanctions Act 

Government Information & Documents

• Request for Comments: Trade Strategy to Combat Forced Labor (July 6, 2022)
• CBP Enforces Countering America's Adversaries Through Sanctions Act Against Li-Ning Sporting Goods (March 15, 2022)
• USTR Announces the Development of a Focused Trade Strategy to Combat Forced Labor (January 25, 2022)
• White House Fact Sheet: President's Interagency Task Force to Monitor and Combat Trafficking in Persons (January 25, 2022)
• White House: The National Action Plan to Combat Human Trafficking (December 2021)
  • Fact Sheet: The National Action Plan to Combat Human Trafficking (December 2021)
• CBP's Withhold Release Order (WRO) List
• Bureau of Industry & Security (BIS) Entity List
• Office of Foreign Assets Control (OFAC)'s Specially Designated Nationals and Blocked Persons (SDN) Lists
• U.S. Department of Labor's List of Goods Produced by Child Labor or Forced Labor
• U.S. Department of Labor's List of Products Produced by Forced or Child Labor
• U.S. Department of State's Trafficking in Persons (TIP) Report
• CBP Forced Labor Page
• CBP Fact Sheet: Forced Labor - Points of Contact
• CBP Fact Sheet: Forced Labor - Importer Due Diligence
• CBP Fact Sheet: Forced Labor Detained Shipments
• United Nations Human Rights Council Joint Communication
• International Labour Organization Indicators of Forced Labour
• UN Guiding Principles on Business and Human Rights

U.S. State Regulations Impacting the Industry

California

• California Transparency in Supply Chains Act

New York

The New York State Assembly is considering a bill introduced October 20, 2021 targeted at apparel and footwear retailers requiring they map at least half of their supply chains, disclose their environmental and social impacts and set binding science-based targets to reduce their greenhouse gas emissions. Companies will be required to release the annual volume of materials produced by type (ex: cotton, polyester, etc.) and their median pay to workers measured against local minimum and living wages. The bill will apply to all retail operators that make at least $100 million in revenue and conduct business in New York. The bill has not yet been passed.

• "The Fashion Act" New York Assembly Bill A8352

Washington

The Washington state legislature introduced an act requiring fashion retail sellers and manufacturers to disclose environmental and social due diligence policies. The bill has not yet been passed.

• Washington State Senate Bill 5904

Latest News From the ST&R Trade Report

• Latest Forced Labor prohibition news

Worldwide Actions to Prevent Forced Labor

Below, find actions taken worldwide to limit forced labor. This list is not exhaustive.

• Canadian Companies Will Soon Be Held Accountable (June 2022)
• Just and sustainable economy: European Commission lays down rules for companies to respect human rights and environment in global value chains (February 23, 2022)
• New EU guidance helps companies to combat forced labour in supply chains (July 13, 2021)
• Canada Border Services Agency: Memorandum D9-1-6 on Goods Manufactured or Produced by Prison or Forced Labour (May 7, 2021)
• Canada, UK, EU & the U.S. Working Together Over Human Rights (March 23, 2021) 
• Canada announces new measures to address human rights abuses in Xinjiang, China (January 12. 2021)
• UK Government announces business measures over Xinjiang human rights abuses (January 12, 2021)
• EU Parliament: Motion for a resolution on forced labour and the situation of the Uyghurs in the Xinjiang Uyghur Autonomous region (December 15, 2020)
• Australia's Modern Slavery Act (2018)