Uyghur Forced Labor Prevention Act Effective June 21

02Jun

Uyghur Forced Labor Prevention Act Effective June 21

Dear Valued Customer,

The Uyghur Forced Labor Prevention Act (UFLPA) was signed into law by President Biden on December 23, 2021 and goes into effect on June 21, 2022.

It establishes a rebuttable presumption that the importation of 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 certain entities, is prohibited by Section 307 of the Tariff Act of 1930 and that such goods, wares, articles, and merchandise are not entitled to entry to the United States. Even those not importing directly from China may have goods detained if the materials used to produce the imported goods in a second country are tied at any level to XUAR or specific entities or commodities associated with forced labor in China.

The presumption applies unless the Commissioner of U.S. Customs and Border Protection determines that the importer of record has complied with specified conditions and, by clear and convincing evidence, that the goods, wares, articles, or merchandise were not produced using forced labor. Any good from the XUAR that thus overcomes the rebuttable presumption of being made with forced labor will be included in a public list to be issued by CBP 30 days after making such determination.

An interagency Forced Labor Enforcement Task Force must provide guidance to importers with respect to the following.

due diligence, effective supply chain tracing, and supply chain management measures to ensure they do not import any goods made with forced labor from mainland China and especially from the XUAR
the type, nature, and extent of evidence that demonstrates that goods originating in mainland China were not made wholly or in part in the XUAR
the type, nature, and extent of evidence that demonstrates that goods originating mainland China, including goods detained or seized pursuant to Section 307, were not made wholly or in part with forced labor.

The Act also requires the government to create a list of entities and products involved with forced labor. But though industry has called for the list to be made public, it’s still an open question whether it will be available as an aid to compliance efforts.

In order to provide the latest information to the trade community, CBP has launched a new UFLPA webpage and inbox to help disseminate UFLPA implementation updates and manage inquiries ahead of implementation on June 21, 2022. CBP anticipates issuing informed compliance guidance to the trade that provides transparency to CBP’s operational approach prior to the presumption entering into force on June 21, 2022. The website will be updated frequently with the latest information and the inbox is consistently monitored for questions from the trade community and public.

CBP has also posted a summary of the Uyghur Forced Labor Prevention Act and forced labor WRO enforcement mechanisms here.

CBP has been using WROs (Withhold Release Orders) on shipments they suspected of being made with forced labor. Simply put, if any shipment received a WRO, that container could not enter the commerce of the United States. Keep in mind that an importer can be issued a WRO if any part of the product, raw materials, sub-assembly, etc. is suspected of involving the use of forced labor. Any companies that are concerned about this Act are encouraged to do due diligence into their own supply chains and should also screen their suppliers to determine whether they have links to Xinjiang, and implement contractual provisions that require suppliers to cooperate with any UFLPA compliance efforts.

Upcoming CBP Webinars on the Uyghur Forced Labor Prevention Act

CBP’s Office of Trade Relations will host webinars on June 1, 7, and 16, 2022, to provide an overview of the Uyghur Forced Labor Prevention Act (UFLPA).
Wednesday, June 1, 2022, 10:00 – 11:00 a.m. EDT – Registration
Tuesday, June 7, 2022, 1:00 – 2:00 p.m. EDT – Registration
Thursday, June 16, 2022, 2:00 – 3:00 p.m. EDT – Registration

Thank you for your attention. If you have any questions, please contact your nearest JJB representative.

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