The Uyghur Forced Labor Prevention Act or “UFLPA” went into effect on June 21,
2022. If you believe this may affect you, continue reading for guidance on what businesses need to know about this act, and what you can do to prevent supply chain disruptions.
What is the UFLPA?
This new law allows Customs and Border Protection (CBP) to presume that any merchandise imported into the U.S. that was manufactured in the Xinjiang Region or made by any entity that is listed on the UFLPA Entity List, was produced by forced labor. This applies even if the article was produced in another region of China or other country with partial production in Xinjiang or by entity list.
What merchandise is affected?
Currently the highest-risk goods include those imported directly from the Xinjiang Uyghur Autonomous Region, or Xinjiang, into the United States and from entities on the UFLPA Entity List. CBP will also prioritize illegally transshipped goods with inputs from Xinjiang, as well as goods imported into the United States by entities that, although not located in Xinjiang, are related to an entity in Xinjiang (whether as a parent, subsidiary, or affiliate) and likely to contain inputs from that region.DHS.GOV
What happens to this merchandise?
If merchandise is found to meet the conditions above, CBP can detain, exclude, or seize and forfeit it.
How can I respond if my merchandise is held?
There is a “rebuttable presumption” standard and the only way to overcome is to prove that:
- The importer has fully complied with the guidance described in section 2(d)(6) of the UFLPA and any regulations issued to implement that guidance;
- The importer completely and substantively responded to all inquiries for
information submitted by the Commissioner to ascertain whether the goods were mined, produced, or manufactured wholly or in part by forced; and
- By clear and convincing evidence, that the good, ware, article or merchandise was not mined, manufactured or produced, wholly or in part, by forced labor.
Please see this link for CBP guidance on the Uyghur Forced Labor Prevention Act:
What can companies do to prevent interruptions?
Companies can review their supply chains to identify any risks that may be present. These risks include entities on the UFLPA Entity List, or manufacturing facilities in the Xinjiang region.
UPDATE 11/1/2022: Please see updated DOL List: https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods