Moving manufacturing from China to another Asian country is not the way to "get ahead of the game" in avoiding forced labor detentions, said Amanda Levitt, a Sandler Travis lawyer, while speaking during a virtual Sourcemap conference on supply chain transparency. Levitt said that tracing falls apart for most firms at the Tier 2 level, and that's not enough. Many of the items identified by nongovernmental organizations as being produced with Uyghur forced labor -- cotton, aluminum, PVC -- are raw materials much deeper than tier 2.
In a report that the State Department says highlights "the ongoing, widespread, and pervasive [state-sponsored forced labor] risks" in Xinjiang supply chains, the administration mostly reviewed developments in the last year -- such as CBP guidance on how to write summaries for applicability reviews, or non-governmental organizations' papers identifying sectors with links to Xinjiang.
CBP in August identified 320 shipments valued at more than $68 million for further examination based on the suspected use of forced labor, including goods subject to the Uyghur Forced Labor Prevention Act and withhold release orders, the agency said in its most recent operational statistics update. (CBP told us the update erroneously says the 320 shipments were the July count.) That's down from July, when CBP identified a total of 388 shipments valued at more than $107 million (see 2308210019). Also in August, CBP seized 1,710 shipments that contained counterfeit goods valued at more than $177 million, the agency said.
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DHS will add three more entities to the Uyghur Forced Labor Prevention Act Entity List, it said in a notice released Sept. 26. Xinjiang Tianmian Foundation Textile Co., Ltd.; Xinjiang Tianshan Wool Textile Co. Ltd.; Xinjiang Zhongtai Group 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 Sept. 27.
Imports from a major Chinese PVC, chemical and textile manufacturer and two other textile companies will be barred from the U.S. beginning Sept. 27, after their listings by DHS on the Uyghur Forced Labor Prevention Act Entity List the previous day.
Morgan Lewis attorneys said that although the number of detentions by CBP under suspicion of Xinjiang content in the automotive and aerospace sector don't suggest there's a high risk of exposure to Uyghur labor in supply chains, importers should recognize that the issue of forced labor enforcement in the sector is not going away.
DHS said it will respond to a Sept. 19 letter sent by Rep. Mike Gallagher, R-Wis. -- which asked the agency to determine whether a list of 25 entities should be added to the Uyghur Forced Labor Prevention Act Entity List (see 2309200009) -- through “official channels.” The agency “will continue to respond appropriately to Congressional oversight,” the spokesperson said in a Sept. 21 email response to International Trade Today. When it receives suggestions for additions to the UFLPA List, the person said, DHS’ Forced Labor Enforcement Task Force “considers the source’s methodology, prior publications, degree of familiarity and experience with international labor standards” and “its reputation for accuracy and objectivity,” among other factors.