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.
The National Association of Foreign-Trade Zones said it will continue to advocate for the use of foreign-trade zones to hold merchandise detained under the Uyghur Forced Labor Prevention Act (see 2308030007), citing a recommendation to that effect adopted by the Commercial Customs Operations Advisory Committee at its Sept. 20 meeting.
The top Republican on the House Select Committee on China asked the Biden administration to determine whether 13 Chinese government officials should be subject to sanctions and 25 entities should be added to the Uyghur Forced Labor Prevention Act Entity List for their ties to human rights abuses in Xinjiang.
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The Commercial Customs Operations Advisory Committee is set to adopt a recommendation urging CBP to allow the use of foreign-trade zones for merchandise detained under the Uyghur Forced Labor Prevention Act, after an August policy change by the agency barred the practice (see 2308030062).
The Uyghur Forced Labor Prevention Act, with importers bearing the burden of proof, is the No. 1 forced labor compliance issue, panelists said, outpacing disclosure and due diligence laws in other countries around the world.
While the Uyghur Forced Labor Prevention Act and other factors have led to uncertainty and a "more complex risk environment" for imports, some companies have found strategies to "effectively navigate" this environment, law firm Bradley said in a new blog post. Some of those strategies included being "proactive" in engaging their original equipment manufacturers (OEMs), in developing "internal protocols" to monitor their supply chains, in incorporating "traceability audits," in finding "backup sourcing" and in shifting risk of "non-performance" to "downstream parties" or OEMs, Bradley said.