Recent measures demonstrate that the United States has maintained its commitment to enforcing the Uyghur Forced Labor Prevention Act (UFLPA).
Specifically, the Forced Labor Enforcement Task Force (FLETF) recently added several entities to the UFLPA Entity List, and Congress has taken an increasingly active role in inquiring into UFLPA enforcement and industry due diligence efforts to comply with the UFLPA. Nongovernmental organizations (NGO) also continue to investigate and report on alleged forced labor abuses in the supply chains of several industries.
Recent Forced Labor Updates
- New Companies Added to the UFLPA Entity List – The US Department of Homeland Security (DHS) recently added COFCO Sugar Holding Co. Ltd., Sichuan Jingweida Technology Group Co. Ltd., and Anhui Xinya New Materials Co. Ltd. to the growing UFLPA Entity List. Goods produced in whole or in part by these companies are prohibited from importation into the United States.
- Congressional Inquiries and Oversight – Congress continues to play an integral role in enforcing the UFLPA by exerting pressure on US Customs and Border Protection (CBP) and the FLETF to investigate and hold companies accountable for the alleged use of forced labor in their supply chains.
- New NGO Reports Signal Potential Increased Scrutiny of Various Industries – Various NGOs continue to investigate and report on alleged instances of forced labor in the Xinjiang Uyghur Autonomous Region (XUAR). Most recently, NGO reports have highlighted alleged forced labor abuses in the supply chains of the gold mining, apparel, and solar industries.
UFLPA Entity List Now a Whopping Total of 30 Entities
The FLETF recently expanded the UFLPA Entity List to include 30 entities. On December 11, the FLETF added several entities to the UFLPA Entity List, including COFCO Sugar Holding Co. Ltd, one of the largest sugar traders in China; Sichuan Jingweida Technology Group Co. Ltd., a producer of transformers, network and radio frequency filters, and other devices; and Anhui Xinya New Materials Co. Ltd., a producer of functional fibers and other textiles. Under the UFLPA, goods produced by these companies will be restricted from entering the United States.
This announcement follows other recent actions taken in August and September 2023, when the FLETF added Xinjiang Tianmian Foundation Textile Co. Ltd., Xinjiang Tianshan Wool Textile Wool Co. Ltd., Xinjiang Zhongtai Group Co. Ltd., Camel Group Co. Ltd., and Chenguang Biotech Group Co. Ltd. to the UFLPA Entity List.
The FLETF’s recent updates to the UFLPA Entity List are likely a response to Congressional criticism concerning the lack of additions to the list and an evolution in the FLETF’s enforcement strategy. While the original UFLPA Entity List, issued in June 2022, mostly included entities in high-priority sectors such as cotton, textiles, clothing and apparel, and silica-based products (such as polysilicon), recent additions to the UFLPA Entity List extend beyond those sectors, expanding into industries such as sugar and magnetic device production.
Another indicator of potential future additions to the Entity List is Dr. Laura Murphy’s new consulting role at the DHS. Dr. Murphy, formerly a professor of human rights and contemporary slavery at Sheffield Hallam University’s Helena Kennedy Centre for International Justice, will serve as a policy advisor to Robert P. Silvers, undersecretary of the Office of Strategy, Policy, and Plans at the DHS. The DHS will likely leverage Dr. Murphy’s experience in investigating alleged forced labor abuses in the XUAR for future UFLPA enforcement measures.
Increased Congressional Oversight into UFLPA Enforcement
The FLETF’s recent additions to the UFLPA Entity List coincide with congressional pressure for increased UFLPA enforcement. Congress has taken an active role in overseeing the government’s enforcement of the UFLPA and assessing the steps various companies and industries have taken to ensure that sufficient due diligence measures have been established to prevent potential violations. Congress has sent letters to CBP and the FLETF, as well as companies in several industries, including the apparel, solar, and automotive industries, inquiring into UFLPA enforcement strategies and due diligence efforts. The congressional pressure placed on the FLETF and CBP to enforce the UFLPA, as well as on companies to comply with the UFLPA, further indicates that heightened enforcement in more sectors is likely coming in the near future.
NGO Reports
The US government seemingly depends on NGO reports to assist in its enforcement of the UFLPA. In the last few months, notable reports issued by NGOs have detailed ongoing concerns over the alleged use of forced labor and supply chain connections to XUAR:
There are also reports that other NGO reports alleging forced labor in supply chains outside of XUAR will likely be issued soon.
Next Steps
The recent developments in UFLPA enforcement reinforce the importance of performing due diligence to identify potential risks in an importer’s supply chain. UFLPA enforcement may continue to expand to industries identified by Congress or by the FLETF, as well as the industries outlined in NGO reports or the Xinjiang Supply Chain Business Advisory Addendum.
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