August 15, 2022

UFLPA Trade Advisory

The Uyghur Forced Labor Prevention Act (UFLPA) was signed into law by President Biden on December 23, 2021, and went 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 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.

The rebuttable presumption will apply, and U.S. Customs and Border Protection (CBP) will ban imports unless an importer can demonstrate that it:

  1. Fully complied with the Forced Labor Enforcement Task Force's (FLETF) guidance (linked below) and any corresponding regulations | Strategy to Prevent the Importation of Good Mined, Produced, or Manufactured with Forced Labor in the People's Republic of China (dhs.gov)
  2. completely and substantively responded to all CBP's inquiries regarding the goods
  3. established by clear and convincing evidence that the goods were not mined, produced, or manufactured wholly or in part from forced labor.

CBP has released importer guidance to assist the trade community in preparing to implement the UFLPA rebuttable presumption.

Uyghur Forced Labor Prevention Act U.S. Customs and Border Protection Operational Guidance for Importers (cbp.gov).

The UFLPA Act also has made an impact on C-TPAT requirements for 2022. The new forced labor requirements for CTPAT Trade Compliance partners are as follows:

  • Risk-based mapping
  • Code of Conduct
  • Evidence of Implementation
  • Due diligence and training
  • Remediation
  • Shared best practices

It is crucial that importers immediately analyze their supply chains and vet their suppliers to showcase that there are no links within their supply chains to the Xinjiang Uyghur Autonomous Region of the People's Republic of China.

If you need any assistance or guidance, please get in touch with our team. Please email us at CWTSConsulting@craneww.com.
 

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