Importers Warned of Enforcement Action Over Forced Labor Law

As you are likely aware, Congress recently passed, and the President signed into law, the Uyghur Forced Labor Prevention Act (“the Act”).  The Act, codified under 22 U.S.C. §6901 note, established a rebuttable presumption that any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region (XUAR) of the People’s Republic of China or produced by an entity on a list required by clause (i), (ii), (iv) or (v) of section 2(d)(2)(B) are prohibited under section 307 of the Tariff Act of 1930 (19 U.S.C. §1307) are not entitled to entry at any of the ports of the United States. 

The Act requires CBP to apply the rebuttable presumption unless the importer can overcome the presumption of forced labor by establishing, by clear and convincing evidence, that the good, ware, article, or merchandise was not mined, produced, or manufactured wholly or in part by forced labor.  This elevated standard will require the importer to not only use due diligence in evaluation of its supply chain, but also to respond completely and substantively to CBP requests for information regarding entries it may review..

In anticipation of the rebuttable presumption becoming effective on June 21, 2022, an implementation strategy and guidance for the trade community will be issued to ensure compliance with the Act. CBP is urging importers to be proactive and closely review their supply chains to ensure any goods or materials are not sourced from the XUAR in violation of the Act.  It is incumbent upon you as an importer to apply due diligence, effective supply chain tracing, and supply chain management measures to ensure that such imports are free from any goods mined, produced, or manufactured wholly or in part with forced labor from the People’s Republic of China, especially from the XUAR.

Please review the following links for more information.

Uyghur Forced Labor Prevention Act

https://www.cbp.gov/trade/forced-labor/UFLP

Xinjiang Supply Chain Business Advisory

https://www.state.gov/wp-content/uploads/2021/07/Xinjiang-Business-Advisory-13July2021-1.pdf

Xinjiang Supply Chain Business Advisory

https://www.state.gov/wp-content/uploads/2021/07/Xinjiang-Business-Advisory-13July2021-1.pdf