What is UFLPA & The Scope of the Regulation

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.  

Why Was the UFLPA Implemented?

In the last few years, researchers and the United States government have discovered that the People’s Republic of China (PRC) used and continues to use a forced labor system to control and indoctrinate minority populations in Xinjiang, a western region of China. 

As of 2021, the has detained more than one million Uyghurs, a Turkic and predominantly Muslim ethnic group native to Xinjiang, as well as other ethnic and religious minority groups in the region. According to the U.S. Department of State, there are as many as 1,200 state-run camps across Xinjiang intended to erase ethnic and religious identities, where government authorities threaten detainees with violence, abuse, torture, and more to force them to work at these camps. The Chinese government has denied these allegations, claiming that the detention centers in Xinjiang are vocational training centers aimed at combating extremism and providing job training.

Reports and investigations of China’s forced labor system began to surface in the early 2020s, gaining significant international attention. Human rights groups, investigative journalists, international bodies, and even survivors came forward with evidence of forced labor in the Xinjiang region, leading to widespread concern and calls for action from governments around the world. As a result, the United States launched a campaign against Uyghur forced labor, signing the UFLPA into law in 2021 with UFLPA enforcement officially taking effect in 2022.

What is the scope of the UFLPA?

The UFLPA supports CBP’s enforcement of Section 307 of the Tariff Act of 1930 (19 U.S.C. § 1307), which prohibits the importation of goods made wholly or in part by forced labor. Accordingly, the UFLPA establishes a rebuttable presumption that the importation of goods mined, produced, or manufactured wholly or in part in the PRC's Xinjiang, as well as goods produced by certain entities identified in the UFLPA Strategy on the UFLPA Entity List, is prohibited under 19 U.S.C. § 1307, and may not enter the United States.

What are the high-priority sectors and industries in the UFLPA Strategy?

The U.S. government identified three high priority sectors as part of the original UFLPA strategy: Cotton, tomatoes, and polysilicon. The UFLPA Strategy also identifies apparel and silica-based products, including the raw materials used to make aluminum alloys, silicones, and polysilicon, as high-priority sectors for enforcement. 

In January of 2023, the US Customs and Border Protection (CBP) began expanding UFLPA enforcement, now issuing detention notices against aluminum products and polyvinyl chloride (PVC). CBP is specifically targeting aluminum within the automotive supply chain along with other commodities that fall under Chapter 76 (Aluminum and articles thereof) of the UFLPA. 

The Forced Labor Enforcement Task Force (FLETF) recommends that companies develop due diligence efforts in tracing supply chains and specific guidance relating to these sectors, and it is likely that more high-priority sectors will be added in the future. 

What Industries Are Affected By The ULFPA?

CBP continues to monitor and share UFLPA statistics in real time with the public, identifying exactly how many shipments are subject to reviews or enforcement actions. Additionally, they’ve identified the following industries as most affected by UFLPA enforcement:

• Electronics
• Industrial and Manufacturing Materials
• Apparel, Footwear, and Textiles
• Agriculture and Prepared Products
• Consumer Products and Mass Merchandising
• Pharmaceuticals, Health, and Chemicals
• Base Metals
• Machinery
• Automotive and Aerospace

Additionally, the solar industry has also been affected; out of the $806+ million in imports that have been seized, a majority were said to be solar panels as of 2023. This has led to a reported 17% decrease in additional solar capacity compared to the previous year, which also affects the United State’s recent focus on renewable energy investments. 

What is the “rebuttal” process?

Importers must demonstrate to CBP that they have complied with the enforcement strategy’s due diligence and evidentiary guidance and responded fully to CBP’s requests for information to ascertain whether the goods were made wholly or in part with forced labor. If an importer complies with those requirements and provides clear and convincing evidence showing forced labor was not used in producing the goods, CBP will grant the exception.  

How do existing Withhold Release Orders (WRO) that apply to the Xinjiang Uyghur Autonomous Region relate to the UFLPA?

Enforcement of the UFLPA and application of the rebuttable presumption will apply to merchandise imported on or after June 21, 2022. Shipments subject to existing WROs or findings imported before June 21, 2022, will be adjudicated through the WRO/Findings process.  

Shipments imported on or after June 21, 2022, subject to the UFLPA, which previously would have been subject to a Xinjiang-related WRO, will be processed under UFLPA procedures and detained, excluded, or seized.  

Shipments detained under a Xinjiang-related WRO before June 21, 2022, will continue to be addressed under the WRO process outlined in 19 C.F.R. §§ 12.43-12.44.

UFLPA Statistics Dashboard

CBP published a dashboard in March of 2023, providing statistics on shipments subjected to UFLPA reviews and enforcement actions.