How Does UFLPA Impact Importers?

The Uyghur Forced Labor Prevention Act (UFLPA), signed into law on December 23, 2021, took effect in the United States on June 21, 2022, to prohibit the importation of goods into the United States that were produced by forced labor, especially in the Xinjiang Uyghur Autonomous Region (XUAR) of China. 

As of June 21, 2022, the CBP will apply a rebuttable presumption that goods produced wholly or partially in the region or by entities identified in the enforcement strategy are not allowed to enter the U.S.

An importer may request an exception to the rebuttable presumption from CBP. This will require clear and convincing evidence that its imported merchandise was not mined, produced, or manufactured wholly or partly by forced labor.

If the CBP takes enforcement action under the UFLPA and the importer believes that its importation is outside the scope of the UFLPA. For example, the importer may provide information to CBP, i.e., data showing that the imported goods and their inputs are sourced from outside Xinjiang and have no connection to entities on the UFLPA Entity List. Once the CBP determines that the information provided by the importer demonstrates that the merchandise is outside the scope of the UFLPA because it lacks a connection to Xinjiang or an entity on the UFLPA Entity List, the importer will not need to obtain an exception to the UFLPA presumption. CBP will release such shipments, provided they are otherwise compliant with U.S. law

What should importers do? 

• Establish and maintain a supply chain due diligence program.
• Carefully assess Xinjiang Uyghur Autonomous Region-related supply chain risks. 
• Mitigate exposure to forced labor risks. 
• Be prepared to demonstrate compliance with the UFLPA enforcement strategies. 
• Be ready to respond to CBP inquiries and show that goods are not mined, produced, or manufactured wholly or in part with forced labor.
  

What steps should my company take to ensure that goods from the Xinjiang Uyghur Autonomous Region or listed entities are not in our supply chain?

Your company should exercise due diligence and closely examine your entire supply chain.  Additional information on adequate due diligence may be found in CBP’s UFLPA Operational Guidance for Importers.

How will I know if my product originated in the Xinjiang Uyghur Autonomous Region if my supplier is in another country?

Importers should conduct adequate due diligence, effective supply chain tracing, and supply chain management measures. Importers must know their suppliers and labor sources at all levels of the supply chain. The first step in conducting supply-chain tracing is “mapping” the entire supply chain, up to and including suppliers of raw materials used to produce the imported good or material.

How does this law differ from the process for Withhold Release Orders (WRO)?

Enforcement of the UFLPA and applying the rebuttable presumption will apply to merchandise imported on or after June 21, 2022. CBP will exercise its authority under the customs laws to detain, exclude, or seize and forfeit shipments within the scope of the UFLPA. 

In addition, the UFLPA requires CBP to presume that goods manufactured wholly or in part in Xinjiang or made by entities on the UFLPA Entity List violate 19 U.S.C. § 1307. The UFLPA’s rebuttable presumption thus applies to goods manufactured in or shipped from other countries if any part or input of those goods was manufactured in Xinjiang. 

The UFLPA does not require CBP to issue Withhold Release Orders under regulation 19 U.S.C. § 1307. The evidence needed to overcome the rebuttable presumption under the UFLPA is higher than what a WRO requires. The UFLPA requires clear and convincing evidence that the supply chain of the imported product is free of forced labor.

Does the UFLPA apply to transportation movements in-bond, shipments into and out of Foreign Trade Zones, or warehoused shipments?

Yes. The UFLPA applies to in-bond transportation movements, shipments in or out of Foreign Trade Zones, and goods in or out of a customs-bonded warehouse.