Uyghurs Forced Labor Prevention Act Passed By President Biden - Sobel Network Shipping Co., Inc.

Uyghurs Forced Labor Prevention Act Passed By President Biden

President Biden signed a bipartisan bill into law on December 23rd 2021, that ensures goods made with forced labor in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China do not enter the market. This law, called the Uyghur Forced Labor Prevention Act (UFLPA) is a direct response to the reports of Uyghurs and other minorities being subjected to forced labor, amongst other atrocities, preventing the US businesses and consumers from becoming a part of the chain of atrocities. 

Recognizing the atrocities against the Uyghurs as genocide and crimes against humanity, the UFLPA creates a presumption that any goods, wares, articles, and merchandise mined, produced or manufactured wholly or in part in these areas, or produced by an entity on a list, these items are then prohibited under section 307 of the Tariff Act of 1930. 

There is an exception to the Act where the importer has fully complied with the guidance described in said Act, and has completely and substantively responded to all inquiries for information submitted by the Commissioner to understand the origin of the goods, and with “clear convincing evidence” that the cargo was not made “wholly or in part by forced labor”, then it can be transported. 

For importers, there remains a great deal of uncertainty until the notice and comment period has transpired and those comments and public testimony are adjudicated as CBP and other agencies promulgate the enforcement regulations. 

Even during this period of rulemaking, companies can begin asking questions of their suppliers.

  • Is there any raw material, component or manufactured product which comes from the affected area?
  • Are products of the affected area exported to other countries for further assembly or manufacture and then shipped to the United States?
  • Do means exist to verify compliance with the Act, or can suppliers produce documentary evidence of production records or transportation documents that demonstrate conclusively goods were not produced with forced labor?

Collectively, the trade is focused on compliance with the regulation and Sobel stands ready to assist importers to the best of our ability. If asked, Sobel has a network of consultants and attorneys we can refer clients to for work that is outside our area of expertise, including preparing requests for exclusion that will need to be reviewed by CBP and published within 30 days of a determination.

If you would like more information about the resources available to monitor raw materials and components as they make their way through the supply chain, contact your Sobel representative today.