The U.S. Department of Homeland Security (DHS) announced in late October it was banning products from four China-based textile companies from being imported into the U.S. The agency added the firms to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, claiming its actions were the result of the companies allegedly using forced labor.
The new companies placed on the ULFPA Entity List were:
- Esquel Group of Hong Kong
- Guangdong Esquel Textile Co. Ltd. of Foshan City
- Turpan Esquel Textile Co. Ltd. of Turpan City
- Changji Esquel Textile Co. Ltd. of Changji Prefecture
Effective November 1, the U.S. Customs and Borders Protection and the DHS have the right to deny entry for any shipments containing goods from these companies. This adds on to the dozen other Chinese firms that were banned by the DHS due to alleged forced labor practice.
“Through today’s expansion of the Entity List, we enable American businesses to better assess their supply chains and ensure they do not profit, directly or indirectly, from the use of forced labor,” says U.S. Secretary of Homeland Security Alejandro N. Mayorkas. “Our department will continue to aggressively enforce the Uyghur Forced Labor Prevention Act and, in doing so, we stand up for human rights, safeguard a free and fair marketplace and hold perpetrators accountable.”
Alejandro N. Mayorkas
Secretary, DHS
Promo Perspective
Promo suppliers and distributors must ensure they’re not doing businesses with the banned firms. Promo companies with relationships with Chinese textile firms should potentially look into auditing these companies due to the “widespread nature of undetected UFLPA violations” within the sector, according to Emma Barss, research manager at Strategy Risks, a consultancy helping companies manage and reduce their risks doing business in China.
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“For businesses worrying about such risks, firms in the promotional products industry should focus first on understanding their supply chain and overall reliance on Chinese textile firms,” says Barss. “For firms with particularly extensive relationships with the Chinese textile industry, it’s recommended to invest in auditing supply chains beforehand, to reduce exposure to Chinese firms at high risk of violating the UFLPA.
“Be aware that due to the UFLPA, Chinese textile companies now actively obscure their exposure to forced labor—and the Chinese government has severely restricted the ability of on-the-ground compliance firms to conduct audits.”
Melissa Nelson
General Counsel, SanMar
Several promo companies say they’re already actively monitoring potential labor issues.
“Our strong, well-trained compliance team at SanMar monitors emerging labor issues in close collaboration with our sourcing department,” says Melissa Nelson, general counsel for SanMar, PPAI 100’s No. 1 supplier. “This partnership is integral to our commitment to our ethical standards and responsible sourcing practices. We anticipate little to no disruption for our customers following these actions, as we have worked to move our supply chain out of this region in recent years.”
Carissa Roepke, social responsibility manager for Koozie Group, PPAI 100’s No. 9 supplier, echoed these sentiments. “Respect for human rights is a fundamental value of Koozie Group, and we aim to identify and address any risks in our supply chain,” says Roepke. “We already have many safeguards to help ensure that forced labor is not used in the production of our products.”
Carissa Roepke
Responsibility Manager, Koozie Group
