U.S. Customs and Border Protection (CBP) has issued guidance for importers on rules that will go into effect on June 21 under the Uyghur Forced Labor Prevention Act (UFLPA). The law, which President Biden signed in December, bans all imports from China’s Xinjiang province under the presumption that all goods from the area are produced with forced labor, and imposes sanctions on foreign individuals responsible for forced labor in the region.

The CBP guidance describes the UFLPA enforcement process and provides importers with information about the documentation to present to agency to rebut presumptions that imported goods were produced with forced labor.

The UFLPA

The UFLPA requires the CBP to apply the presumption that:

  • Imports of all goods, wares, articles and merchandise mined, produced or manufactured wholly or in part in China’s Xinjiang Uyghur Autonomous Region or by entities identified by the U.S. government on the UFLPA Entity List, are presumed to be made with forced labor and are prohibited from entry into the U.S.
  • Also, goods made in, or shipped through, China and other countries that include inputs made in Xinjiang, are also subject to the UFLPA.

The laws presumptions are rebuttable, however. To overcome it:

  • Importers must, among other requirements in the UFLPA, respond to all CBP requests for information about merchandise under CBP review and demonstrate by clear and convincing evidence that it is not the product, wholly or in part, of forced labor.
  • CBP may consider evidence other than what is provided by the importer in determining whether there is clear and convincing evidence.

To ensure that no products produced through forced labor in Xinjiang are imported, that importers demonstrate due diligence, effective supply chain tracing and supply chain management measures. This requirement extends throughout the entire supply chain, to include goods that may be shipped from elsewhere in China and to third countries for further processing.

Implementation:

Enforcement of the UFLPA and application of the rebuttable presumption will apply to merchandise imported on or after June 21. The CBP directs importers to consult Importers the Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China (UFLPA Strategy), to be published by the Department of Homeland Security, in its role as the chair of the Forced Labor Enforcement Task Force (FLETF), on June 21 for specific importer guidance as required by the UFLPA.

The FLETF publication includes details on due diligence, supply chain tracing and management, and evidence to demonstrate goods were not mined, produced, or manufactured wholly or in part in the Xinjiang region of China or by forced labor. Importers must comply with the importer guidance in the UFLPA Strategy in order to be eligible for an exception to the rebuttable presumption.

Promo Perspective:

PPAI has been tracking the forced labor issue for a while now and has prepared specific guidance to assist industry companies in tracking where their goods, including components and raw materials, are manufactured. The Associations’ Supply Chain Mapping And Traceability webinar offers a wealth of information to help companies dig deeper into their supply chains and avoid the presence of forced labor. PPAI also has resources on its corporate responsibility page to help industry companies navigate the pending requirements.