New Legislation May Increase Enforcement of Uyghur Forced Labor Prevention Act
The Congressional – Executive Commission on China held a hearing on April 18, 2023 regarding the implementation of the Uyghur Forced Labor Prevention Act (UFLPA) and the Global Supply Chain. The UFLPA was signed into law on December 23, 2021 with an effective date of June 21, 2022, and establishes a ‘rebuttable presumption’ that merchandise […]

by | May 2, 2023

The Congressional – Executive Commission on China held a hearing on April 18, 2023 regarding the implementation of the Uyghur Forced Labor Prevention Act (UFLPA) and the Global Supply Chain.

The UFLPA was signed into law on December 23, 2021 with an effective date of June 21, 2022, and establishes a ‘rebuttable presumption’ that merchandise produced in whole or in part in the Xinjiang Uyghur Autonomous Region of China is produced with forced labor and is therefore excluded from entry into the United States as well as any entity listed on the entity list. The presumption applies unless CBP determines, through clear and convincing evidence, that the goods, wares, articles, or merchandise were not produced using forced labor or that UFLPA does not apply. 

In March 2023, CBP published a UFLPA Dashboard which provides details and statistics on shipments that are subject to reviews and/or enforcement.

https://www.cbp.gov/newsroom/stats/trade/uyghur-forced-labor-prevention-act-statistics

The focus of the Congressional – Executive Commission was to further empower the enforcement efforts of UFLPA.

Among the areas that were addressed were:

  1. Expanding and updating the Entity List
  2. Consideration of providing additional resources in the form technology to address problem of transshipment.  (Companies may have their goods detained even if not coming directly from China, in that any ties to the Xinjiang region in the production process invokes the UFLPA prohibition. Therefore even a small input can cause a detention).
  3. More robust reporting of shipments subject to detentions including those that receive an acceptability review.
  4. De Minimis shipments were also addresses as potential loopholes to enforcement of the UFLPA.

Companies should take steps to map, check and verify their supply chains and assess risks therein.

This article is for informational purposes only and does not constitute legal advice.

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