Uyghur Forced Labor Prevention Act (UFLPA)

Uyghur Forced Labor Prevention Act Signed Into Law

The Uyghur Forced Labor Prevention Act (UFLPA) (Public Law No: 117-78) was signed into law on December 23, 2021. The UFLPA aims to address the alleged human rights violations imposed on the Uyghur population and other Muslim minorities in the Xinjiang Autonomous Region (XUAR) in the People’s Republic of China (PRC). Effective June 21, 2022, the UFLPA establishes a rebuttable presumption that goods made in whole or in part in the XUAR are made with forced labor and prohibited from importation unless the importer can provide “clear and convincing evidence” that the goods were not produced with forced labor. This means that finished goods that are produced outside of XUAR (in other parts of China or worldwide), may still be banned from importation if any XUAR raw materials or components are used. There is no de minimis exception.

Forced Labor Enforcement – Targeted Entries

In CBP’s Monthly Operational Update, the Agency has begun to report statistics on entries that were targeted for suspected use of forced labor (under the UFLPA and WROs). While targeting alone does not mean the shipment was detained, these figures indicate that CBP has been active in inspecting shipments for potential indications of forced labor. Below, we provide a summary of entries targeted by CBP to date. CBP also publishes Uyghur Forced Labor Prevention Act enforcement statistics that report the number and value of entries detained, released, and pending for each industry. The statistics are updated at least quarterly.

Month	Entries targeted	value
September 2023	259	$102 million
August 2023	320	$68 million
July 2023	388	$107 million
June 2023	405	$239 million
May 2023	460	$197 million
April 2023	377	$159 million
March 2023	400	$122.7 million
February 2023	481	$109 million
January 2023	282	$69 million
December 2022	310	$59 million
November 2022	444	$128 million
October 2022	398	$129.8 million
September 2022	491	$158.6 million
August 2022	838	$266.5 million

On June 13, 2022, US Customs and Border Protection (CBP) issued its Operational Guidance to assist importers to prepare for UFLPA implementation and enforcement. This guidance should be reviewed in conjunction with the Department of Homeland Security’s (DHS) UFLPA Strategy.

In the event that goods are detained, an importer will have the following options to respond:

• Export: An importer may seek to export a shipment detained under the UFLPA before the merchandise is excluded or seized. The importer must present an Immediate Export in-bond and request permission from the port director to export the shipment.
• Prove No Nexus to XUAR: The importer can respond to CBP’s detention notice by providing evidence that the merchandise at issue has no connection with the XUAR (or an entity on the UFLPA Entity List) and therefore is outside the scope of the UFLPA. To demonstrate that the merchandise is outside the scope of the UFLPA, the importer will need to provide supply chain tracing documentation outlined in CBP’s Guidance and DHS’ UFLPA Strategy. It may be possible that some testing technologies can be used to evidence that the goods have no nexus to XUAR. If CBP agrees that the merchandise is outside the scope of the UFLPA, the importer will not need to obtain an exception to the UFLPA (which requires a public report to Congress) and the goods will be released.
• Request an exception to the UFLPA rebuttable presumption. If merchandise is connected to the XUAR or an entity on the UFLPA Entity List, an importer can seek an exception to the UFLPA’s rebuttable presumption. This request can be made during a detention, after an exclusion, or during the seizure process, and is subject to the corresponding administrative procedures. Importers requesting an exception to the rebuttable presumption may present evidence of the due diligence systems the importer has in place, thorough supply chain tracing documentation from raw materials to the imported goods, supplier labor practices, and information regarding supply chain management measures. CBP has also provided guidance on information that should be submitted for goods originating in China. As a practical matter, it will be very difficult to obtain an exception because it requires access to detailed information regarding supplier labor practices.

CBP has implemented additional forced labor security criteria for Customs Trade Partnership Against Terrorism (C-TPAT) Trade Compliance partners. CBP will attempt to prioritize review of submissions made by CTPAT Trade Compliance members in good standing.

The CBP Guidance includes a list of documentation to help demonstrate that merchandise is outside the scope of the UFLPA or to request an exception to the rebuttable presumption. This list is not exhaustive and is intended to provide importers with flexibility in accordance with individual business practices. Any documentation and information submitted to CBP must be submitted in English and should be well-organized to facilitate CBP’s review. CBP has identified specific documentation for companies that import products with a high-risk of forced labor, including cotton, polysilicon, and tomatoes.

In accordance with the requirements of the UFLPA, the DHS’s Forced Labor Enforcement Task Force (FLETF) released its Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China (PRC) (Strategy) on June 17,2022. The Strategy includes information regarding high priority sectors, the DHS’s enforcement plan, guidance to importers regarding due diligence and effective supply chain tracing, evidence to demonstrate that goods were not produced in the XUAR, and evidence to demonstrate that a good originating in the PRC was not produced with forced labor. The UFLPA also provides authority for sanctions for XUAR forced labor related activities. Notably, the Strategy also contemplates criminal liability for companies that fail to terminate a relationship with a supplier that uses forced labor or fails to take remedial action. 

Released Entity Lists

In accordance with UFLPA requirements, the DHS has published the UFLPA Entity List, which includes a list of entities the DHS has determined mine, produce, or manufacture merchandise with forced labor. The UFLPA Entity List is a consolidation of the lists that are provided below. As these lists are subject to change at any time, companies should regularly monitor the UFLPA Entity List on the DHS’s website to determine whether they are engaging in business with an entity listed by the DHS.

Entities in Xinjiang that mine, produce, or manufacture wholly or in part any goods, wares, articles and merchandise with forced labor:

• Baoding LYSZD Trade and Business Co., Ltd.
• Changji Esquel Textile Co. Ltd. (and one alias101: Changji Yida Textile)
• Hetian Haolin Hair Accessories Co. Ltd. (and two aliases: Hotan Haolin Hair Accessories; and Hollin Hair Accessories)
• Hetian Taida Apparel Co., Ltd (and one alias: Hetian TEDA Garment)
• Hoshine Silicon Industry (Shanshan) Co., Ltd (including one alias: Hesheng Silicon Industry (Shanshan) Co.) and subsidiaries
• Xinjiang Daqo New Energy, Co. Ltd (including three aliases: Xinjiang Great New Energy Co., Ltd.; Xinjiang Daxin Energy Co., Ltd.; and Xinjiang Daqin Energy Co., Ltd.)
• Xinjiang East Hope Nonferrous Metals Co. Ltd. (including one alias: Xinjiang Nonferrous)
• Xinjiang GCL New Energy Material Technology, Co. Ltd (including one alias: Xinjiang GCL New Energy Materials Technology Co.)
• Xinjiang Junggar Cotton and Linen Co., Ltd.
• Xinjiang Production and Construction Corps (including three aliases: XPCC; Xinjiang Corps; and Bingtuan) and its subordinate and affiliated entities

Entities working with the government of Xinjiang to recruit, transport, transfer, harbor or receive forced labor or Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of Xinjiang:

• Aksu Huafu Textiles Co. (including two aliases: Akesu Huafu and Aksu Huafu Dyed Melange Yarn)
• Hefei Bitland Information Technology Co., Ltd. (including three aliases: Anhui Hefei Baolongda Information Technology; Hefei Baolongda Information Technology Co., Ltd.; and Hefei Bitland Optoelectronic Technology Co., Ltd.)
• Hefei Meiling Co. Ltd. (including one alias: Hefei Meiling Group Holdings Limited)
• KTK Group (including three aliases: Jiangsu Jinchuang Group; Jiangsu Jinchuang Holding Group; and KTK Holding)
• Lop County Hair Product Industrial Park
• Lop County Meixin Hair Products Co., Ltd.
• Nanjing Synergy Textiles Co., Ltd. (including two aliases: Nanjing Xinyi Cotton Textile Printing and Dyeing; and Nanjing Xinyi Cotton Textile)
• No. 4 Vocation Skills Education Training Center (VSETC)
• Tanyuan Technology Co. Ltd. (including five aliases: Carbon Yuan Technology; Changzhou Carbon Yuan Technology Development; Carbon Element Technology; Jiangsu Carbon Element Technology; and Tanyuan Technology Development)
• Xinjiang Production and Construction Corps (XPCC) and its subordinate and affiliated entities

Products mined, produced, or manufactured wholly or in part by entities on the list required by clause (i) or (ii):

Name of entity listed in clause (i) or (ii)	Products mined, produced, or manufactured wholly or in part by each entity
Aksu Huafu Textiles Co. (including two aliases: Akesu Huafu and Aksu Huafu Dyed Melange Yarn)	Textiles; Clothing
Baoding LYSZD Trade and Business Co., Ltd.	Apparel
Changji Esquel Textile Co. Ltd. (and one alias: Changji Yida Textile)	Textiles; Clothing
Hefei Bitland Information Technology Co., Ltd. (including three aliases: Anhui Hefei Baolongda Information Technology; Hefei Baolongda Information Technology Co., Ltd.; and Hefei Bitland Optoelectronic Technology Co., Ltd.)	Computer parts; Electronics
Hefei Meiling Co. Ltd. (including one alias: Hefei Meiling Group Holdings Limited)	Electronics
Hetian Haolin Hair Accessories Co. Ltd. (and two aliases: Hotan Haolin Hair Accessories; and Hollin Hair Accessories)	Hair Products
Hetian Taida Apparel Co., Ltd (and one alias: Hetian TEDA Garment)	Garments
Hoshine Silicon Industry (Shanshan) Co., Ltd (including one alias: Hesheng Silicon Industry (Shanshan) Co.) and subsidiaries	Silica-Based Products
KTK Group (including three aliases: Jiangsu Jinchuang Group; Jiangsu Jinchuang Holding Group; and KTK Holding)	Rail Transportation Equipment
Lop County Hair Product Industrial Park	Hair Products
Lop County Meixin Hair Products Co., Ltd.	Hair Products
Nanjing Synergy Textiles Co., Ltd. (including two aliases: Nanjing Xinyi Cotton Textile Printing and Dyeing; and Nanjing Xinyi Cotton Textile)	Textiles; Clothing
Tanyuan Technology Co. Ltd. (including five aliases: Carbon Yuan Technology; Changzhou Carbon Yuan Technology Development; Carbon Element Technology; Jiangsu Carbon Element Technology; and Tanyuan Technology Development)	Touch Screens for Handheld Devices and Cars; Other Similar Products. Electronics
Xinjiang Daqo New Energy, Co. Ltd (including three aliases: Xinjiang Great New Energy Co., Ltd.; Xinjiang Daxin Energy Co., Ltd.; and Xinjiang Daqin Energy Co., Ltd.)	Polysilicon, including Solar-Grade Polysilicon
Xinjiang East Hope Nonferrous Metals Co. Ltd. (including one alias: Xinjiang Nonferrous)	Polysilicon, including Solar-Grade Polysilicon
Xinjiang GCL New Energy Material Technology, Co. Ltd (including one alias: Xinjiang GCL New Energy Materials Technology Co.)	Polysilicon, including Solar-Grade Polysilicon
Xinjiang Junggar Cotton and Linen Co., Ltd. Cotton	Cotton; Processed Cotton
Xinjiang Production and Construction Corps (including three aliases: XPCC; Xinjiang Corps; and Bingtuan) and its subordinate and affiliated entities	Cotton and Cotton Products
Yili Zhuowan Garment Manufacturing Co., Ltd.	Apparel

List of entities that exported products described in clause (iii) from the PRC into the United States:

• Entities identified in sections (i) and (ii) above may serve as both manufactures and exporters. The Strategy stated that the FLETF has not identified additional exporters at this time but will continue to investigate and gather information about additional relevant entities.

List of facilities and entities, including the Xinjiang Production and Construction Corps, that source material from Xinjiang or from persons working with the government of Xinjiang or the Xinjiang Production and Construction Corps for purposes of the ‘‘poverty alleviation’’ program or the ‘‘pairing-assistance’’ program or any other government-labor scheme that uses forced labor:

• Baoding LYSZD Trade and Business Co., Ltd.
• Hefei Bitland Information Technology Co. Ltd.
• Hetian Haolin Hair Accessories Co. Ltd.
• Hetian Taida Apparel Co., Ltd.
• Hoshine Silicon Industry (Shanshan) Co., Ltd., and Subsidiaries
• Xinjiang Junggar Cotton and Linen Co., Ltd.
• Lop County Hair Product Industrial Park
• Lop County Meixin Hair Products Co., Ltd.
• No. 4 Vocation Skills Education Training Center (VSETC)
• Xinjiang Production and Construction Corps (XPCC) and its subordinate and affiliated entities
• Yili Zhuowan Garment Manufacturing Co., Ltd

UFLPA Timeline Enforcement under 19 CFR § 151.16

Under the UFLPA, CBP is authorized to detain merchandise pursuant to 19 CFR § 151.16. This regulation provides for a much different timeline for the detention of merchandise than the WRO process. Under this process, if CBP does not make a timely decision regarding admissibility, goods are automatically excluded.

nUMBER OF DAYS	ACTIONS
5 Days from Presentation for Examination	CBP must decide whether to release or detail merchandise. If the merchandise is not released, it is detained
5 Days after Decision to Release or Detain	CBP will issue a notice to the importer setting forth: The initiation of detention Date merchandise examined Reason for detention Anticipated length of detention Nature of tests and inquiries to be conducted Information to accelerate the disposition Upon written request, CBP must provide importer with testing procedures, methodologies used, and testing results for tests performed on the merchandise
Within 30 Days of Examination	CBP will make a final determination as to the admissibility of merchandise If CBP does not make a determination within the 30-day period, the merchandise will be deemed excluded This means any submission to rebut the presumption should be made before this 30-day period (requests for extensions may be granted)
Within 180 Days of CBP Determination/Exclusion	Importers may protest CBP’s final determination
Within 30 Days After Protest Submitted	The protest is deemed denied if CBP does not grant or deny the protest within 30 days
Within 180 Days after the Date the Protest is Denied	The importer may commence a court action contesting the denied protest (28 U.S.C. § 1581(a)) In a court action, CBP must establish by a preponderance of the evidence that an admissibility decision has been reached for good cause Customs can decide to grant the protest after the deemed denial but before a court case is filed

The UFLPA process timeline is much shorter than the WRO process. Importantly, a company contesting CBP’s detention of merchandise pursuant to the UFLPA would be required to submit documentation to rebut the presumption within the 30-day period that CBP is assessing admissibility, whereas the WRO process permits 90 days. Like the WRO process, the importer may also file a protest 180 days after CBP makes its final determination regarding the exclusion.

Impact on Withhold Release Orders

CBP has issued several WRO’s, essentially banning the importation of specified products from XUAR. Effective June 21, 2022, detentions of products originally subject to XUAR-related WROs will be subject to the UFLPA administrative process under 19 CFR § 151.16. Products that are the subject of existing XUAR WROs are expected to be the initial target of detentions under the UFLPA.

• Silica-based products- Hoshine Silicon Industry Co. Ltd. and Subsidiaries
• Cotton, tomatoes, and downstream products- XUAR
• Computer parts- Hefei Bitland Information Technology Co., Ltd.
• Products produced by - No. 4 Vocation Skills Education Training Center (VSETC)
• Hair Products- Lop County Hair Product Industrial Park and Hetian Haolin Hair Accessories Co., Ltd.
• Apparel - Yili Zhuowan Garment Manufacturing Co., Ltd. and Baoding LYSZD Trade and Business Co., Ltd.
• Garments- Hero Vast Group

Products Produced in XUAR

Many finished goods and raw materials are produced in XUAR. Raw material inputs from XUAR may be sent to other regions in China or third countries for production of finished goods. We have obtained trade data from XUAR that lists the products produced in the region. Below is a sample of the products produced in XUAR. Any company with potential exposure to, or connection with the below industries in XUAR should evaluate their supply chains, as these products may be the subject of future WROs or prohibitions under the UFLPA. We can also assist companies to confirm whether their product categories or inputs for their products are produced in XUAR.

• Agriculture (including such products as raw cotton, hami melons, korla pears, tomato products, and garlic);

• Aluminum;
• Battery Components;

• Cell Phones;

• Cleaning Supplies;

• Construction;

• Cotton, Cotton Yarn, Cotton Fabric, Ginning, Spinning Mills, and Cotton Products;

• Electronics Assembly;

• Extractives (including coal, copper, hydrocarbons, oil, uranium, and zinc);

• Fake hair and human hair wigs, hair accessories;

• Food processing factories;

• Footwear;

• Gloves;

• Hospitality Services;

• Metallurgical grade silicon;

• Noodles;

• Printing Products;

• Rayon;

• Renewable Energy (polysilicon, ingots, wafers, crystalline silicon solar cells, crystalline silicon solar photovoltaic modules);

• Stevia;

• Sugar;

• Textiles (including such products as apparel, bedding, carpets, wool, viscose); and

• Toys.

Key Dates to UFLPA Implementation

• January 24, 2022: The FLETF published a Federal Register Notice soliciting public comments on how best to ensure that goods produced with forced labor are not imported into the United States.
• March 10, 2022: Deadline to submit comments pursuant to the January 24, 2022 Federal Register Notice. 
• April 8, 2022: A public hearing was conducted to discuss the use of forced labor in the PRC and measures to prevent the importation of goods produced with forced labor.
• June 13, 2022: CBP released its UFLPA Operational Guidance for Importers
• June 17, 2022: The FLETF released its Strategy, which was submitted to Congress.
• June 21, 2022: The UFLPA took effect and the Rebuttable Presumption on merchandise from the XUAR began.

Background: Human Rights Abuses in the XUAR Region

According to US government investigations, the XUAR Uyghur population, ethnic Kazakhs, ethnic Kyrgyz, and members of other Muslim minority groups have been the target of human rights abuses and a mass campaign of repression by the government of the PRC.

Specific abuses include arbitrary detention for indefinite periods, severe physical and psychological abuse, forced labor, involuntary collection of biometric data, sterilization, sexual abuse, genetic analyses, religious persecution, and cultural and political indoctrination in re-education camps. These groups have been placed in large internment camps and some are forced to work in Chinese government-owned factories. There are reports of mass transfers of this population and forced to work at factories across China.

The XUAR region has been an important region for trade globally, and many companies rely on the import of products and raw materials from the region. XUAR produces twenty percent of the world’s cotton and an estimated eighty percent of cotton for China, the majority of the world’s supply of polysilicon used to produce solar panels, as well as aluminum, agriculture products, chemicals, minerals, oil, and an array of manufactured products including auto parts, footwear, and electronics.

On July 13, 2021, the US Department of State, in conjunction with the US Department of the Treasury, the US Department of Commerce, and the US Department of Homeland Security, issued an updated XUAR Supply Chain Business Advisory to strengthen its warnings against doing business in the region.

Given the severity and extent of these abuses, including widespread, state-sponsored forced labor and intrusive surveillance taking place amid ongoing genocide and crimes against humanity in XUAR, businesses and individuals that do not exit supply chains, ventures, and/or investments connected to XUAR could run a high risk of violating US law.

Stay up to Date on CBP Guidance on the UFLPA:

We encourage companies to reference the resources below for more information on forced labor, the UFLPA, and supply chain due diligence to ensure forced labor is not being used in your supply chain.

• https://www.cbp.gov/trade/forced-labor/UFLPA
• https://www.cbp.gov/trade/programs-administration/forced-labor/xinjiang-uyghur-autonomous-region-wro-frequently-asked-questions
• https://www.dhs.gov/uflpa-frequently-asked-questions
• US Customs and Border Protection UFLPA website
• US Department of Homeland Security UFLPA website