DHS: DHS to Ban Imports from Two Additional PRC-Based Companies as Part of Its Enforcement of the Uyghur Forced Labor Prevention Act (UFLPA)

Friday, June 9, 2023

Executive Summary:

  • The U.S. Department of Homeland Security (DHS) added two China-based companies, Xinjiang Zhongtai Chemical Co., Ltd. and Ninestar Corporation, to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, effective June 12, 2023.
  • These firms are restricted from exporting goods to the U.S. due to suspected use of forced labor practices involving persecuted groups such as Uyghurs.
  • Since its implementation in June 2022, UFLPA has resulted in the review of over 4,000 shipments worth more than $1.3 billion.
  • 22 Chinese companies are now on the UFLPA Entity List.
  • The Forced Labor Enforcement Task Force (FLETF), led by DHS, will continue to revise and publish the UFLPA Entity List.

Unedited Press Release Text:

Nearly One Year After Implementation of the UFLPA, DHS Examined Over $1.3 Billion Worth of Goods Likely Manufactured with Forced Labor

WASHINGTON – Today the U.S. Department of Homeland Security (DHS) announced new actions to keep forced labor practices out of the U.S. supply chain. The interagency Forced Labor Enforcement Task Force (FLETF), led by DHS, added two People’s Republic of China (PRC)-based companies to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. Effective June 12, 2023, goods produced by Xinjiang Zhongtai Chemical Co., Ltd. and Ninestar Corporation and eight of its Zhuhai-based subsidiaries will be restricted from entering the United States as a result of the companies’ participation in business practices that target members of persecuted groups, including Uyghur minorities in the PRC.

The UFLPA, signed into law by President Biden in December 2021, prohibits goods from being imported into the United States that are either produced in Xinjiang, or by entities identified on the UFLPA Entity List, unless the importer can prove, by clear and convincing evidence, the goods were not produced with forced labor. With today’s announcement, 22 Chinese companies are currently designated to the UFLPA Entity List. U.S. Customs and Border Protection (CBP) began enforcing the UFLPA in June 2022. In the first year of enforcement, CBP has reviewed more than 4,000 shipments valued at over $1.3 billion under the new law. 

“This Administration is committed to eradicating forced labor from U.S. supply chains and will do so while facilitating legitimate trade and strengthening the U.S. economy,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Our Department will not tolerate governments abusing human rights and will continue to restrict all goods at our ports of entry that use materials or workers from the Xinjiang Uyghur Autonomous Region where the People’s Republic of China aggressively oppresses and exploits Uyghurs and other Muslim-majority communities.”  

In June 2022, DHS released the Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China. The DHS Office of Strategy, Policy, and Plans; CBP; and U.S. Immigration and Customs Enforcement (ICE) are leading the Department’s efforts to change importers’ behavior and hold perpetrators accountable for egregious forced labor abuses. The FLETF —which also includes the Office of the U.S. Trade Representative and the U.S. Departments of Labor, State, the Treasury, Justice and Commerce— will continue to revise the UFLPA Entity List. DHS will post these revisions and publish the revised UFLPA Entity List as an appendix to a Federal Register notice.

“The Forced Labor Enforcement Task Force will continue to hold companies accountable for perpetuating human rights violations in Xinjiang,” said the Chair of the Forced Labor Enforcement Task Force, Under Secretary for Policy Robert Silvers. “The use of forced labor offends our values and undercuts American businesses and workers. Forced labor is now a top-tier compliance issue, and businesses must know their supply chains. DHS and the Forced Labor Enforcement Task Force will continue their vigilant approach to implementing the Uyghur Forced Labor Prevention Act.”

You can read more about the FLETF by visiting: www.dhs.gov/uflpa.    


SOURCE: https://www.dhs.gov/news/2023/06/09/dhs-ban-imports-two-additional-prc-based-companies-part-its-enforcement-uyghur

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