Crowell & Moring international trade lawyer David Stepp advised businesses, on a podcast hosted by his firm, that the Uyghur Forced Labor Prevention Act is requiring importers "to map their supply chains to a level never seen before," and that since CBP is subscribing to services that use AI to uncover connections, "we really think it's important for clients to take this extra step."
There are a number of tools that the U.S. government has yet to fully utilize if it truly wants to tackle China's use of forced labor to manufacture goods, according to panelists speaking June 13 at a Hudson Institute event, “Tackling the Uyghur Forced Labor Challenge.”
The head of the Forced Labor Enforcement Task Force told an audience convened by the Consumer Technology Association that Volkswagen "did the right thing" when it self-reported it had a tiny component made by a company recently added to the Uyghur Forced Labor Prevention Act Entity List. The task force is responsible for adding companies to the list.
Importers and the broader trade industry should expect DHS in the coming months to expand the business sectors under scrutiny for companies’ adherence to forced labor guidelines within the Uyghur Forced Labor Prevention Act, DHS Undersecretary for Policy Robert Silvers said during a June 12 webinar sponsored by Kharon, a risk analytics platform.
Senate Finance Committee Chair Ron Wyden, D-Ore. asked BMW to come clean after what he characterized as "shifting explanations" about its use of components made by a company added to the Uyghur Forced Labor Prevention Act entity list.
DHS has added three more companies to the list of companies cited for using forced labor from the Xinjiang Uyghur Autonomous Region (XUAR), according to a notice.
DHS will add three more entities to the Uyghur Forced Labor Prevention Act Entity List, it said in a notice released June 11. Dongguan Oasis Shoes Co., Ltd. (also known as Dongguan Oasis Shoe Industry Co. Ltd.; Dongguan Luzhou Shoes Co., Ltd.; and Dongguan Lvzhou Shoes Co., Ltd.); Shandong Meijia Group Co., Ltd. (also known as Rizhao Meijia Group); and Xinjiang Shenhuo Coal and Electricity Co., Ltd. are being added for “working with the government of the Xinjiang Uyghur Autonomous Region to recruit, transport, transfer, harbor or receive forced labor or Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the Xinjiang Uyghur Autonomous Region.” The new listings will take effect June 12.
Contradictory language in the Uyghur Forced Labor Prevention Act -- which says the government may list entities that source items from Xinjiang, but says that the rebuttable presumption only applies to goods "produced by an entity on a list" -- may result in more litigation over the entity list, trade mavens say.
Sen. Marco Rubio, co-author of the Uyghur Forced Labor Prevention Act, along with the leaders of the House Homeland Security Committee and the House Select Committee on China, have provided detailed supply chain maps for lithium-ion battery makers CATL (Contemporary Amperex Technology Co.) and Gotion High Tech, linking them to companies that transfer Uyghur workers and companies that mine minerals or make aluminum in Xinjiang.
A Kelley Drye attorney, who used to be part of the Forced Labor Enforcement Task Force due to his role at the U.S. Trade Representative's Office of Labor Affairs, said the recent 26 additions to the FLETF's Uyghur Forced Labor Prevention Act entity list are significant because they are not companies directly employing Uyghurs harvesting cotton or in fabric mills or cut and sew operations.