Just as the year started, the Department of Homeland Security (“DHS”) announced the addition of 37 companies to the Uyghur Forced Labor Prevention Act (“UFLPA”) Entity List, bringing the total number of entities on the list to 144. This marks the largest single addition to the Entity List since the enactment of the UFLPA.
The Forced Labor Enforcement Task Force (“FLETF”), chaired by DHS, has continuously voiced its commitment to the eradication of forced labor practices in U.S. supply chains and the promotion of accountability for the reported human rights violations against the Uyghurs and other religious and ethnic minority groups in the Xinjiang Uyghur Autonomous Region (“XUR”).
As such, the DHS periodically analyzes public reports on alleged forced labor practices in the XUR to determine which companies in the People’s Republic of China (“PRC”) should be blacklisted from the U.S. market.
The 37 companies on the latest addition to the list are allegedly either sourcing materials from the XUR or working with the government of Xinjiang to recruit, transport, transfer, receive, or harbor religious and ethnic minority groups out of the XUR for forced labor. Effective January 15, 2025, DHS instructed U.S. Customs and Border Protection (“CBP”) to apply the UFLPA’s rebuttable presumption that goods produced or manufactured, wholly or in part, by the named 37 entities will be detained when presented for entry into the United States.
These 37 entities are involved in the production, processing, and/or manufacturing of various types of products, including cotton, silicon, coal, oil, metals (such as sulfuric acid, gold, silver, iron, copper), and more. The Entity List already covers various industries, such as textiles, automotive, and solar, and enforcement against other industries is on the rise.
It is evident that the United States’ fight against forced labor in XUR is intensifying every year. The incoming Trump Administration is likely to utilize UFLPA enforcement to increase trade restrictions on China. Companies should continue to monitor their supply chain and ensure that their goods are compliant with human rights laws, including the UFLPA. While this addition to the Entity List is the largest to date, it is certainly not the last.
For the full UFLPA Entity List, please visit https://www.dhs.gov/uflpa-entity-list
