GlobalFair meets Custom Border Protection Guidelines on UFLPA.
Uyghur Forced Labor Prevention Act
The UFLPA was introduced in the U.S. Congress in 2020 and has gained bipartisan support. The primary goal of the bill is to prohibit imports of goods produced using forced labor in the XUAR and to impose sanctions on individuals and entities involved in such practices. It aims to prevent U.S. companies and consumers from inadvertently supporting forced labor and human rights violations in the region.
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Frequently Asked Questions (FAQs)
What is the meaning of forced labor?As per the International Labor Organisation (‘ILO’), presence of any of the indicators mentioned above means existence of forced labor: Abuse of vulnerability, Deception, Restriction of movement, Isolation, Physical and sexual violence, Intimidation and threats, Retention of identity documents, Withholding of wages, Debt bondage, Abusive working and living conditions, Excessive overtime.
Is UFLPA applicable only when goods are procured directly from China / Chinese entities?No. Any goods in the entire supply chain produced in Xinjiang will fall under the ambit of UFLPA. The goods can be exported directly from China or can be exported from any third country to the USA.
Which entities are mentioned under the UFLPA list?List of said entities is available at: https://www.dhs.gov/uflpa-entity-listPlease note that this is a running list and the US Authority keeps on updating it.
What happens if the goods fall under UFLPA?Such goods will not be allowed to be cleared by US Customs. The said goods can be either re-exported or customs can detain such goods as well.
What are the evidence / documents that an importer will have to produce before US Customs if the containers are selected under UFLPA?US Customs assumes that a selected consignment falls under UFLPA. It is the responsibility of the importer to satisfy the US Customs that the imported products are not produced using forced labor in Xinjiang or not procured from the UFLPA-listed entities. List of documents that are generally accepted by US Customs is:1. Flow chart of the supply chain from raw materials to finished goods, stakeholders involved, roles and responsibilities of stakeholders including shippers and exporters, business relationships2. Declaration/ affidavit from entities involved in supply chain - that goods are not procured using forced labor in Xinjiang or not procured from UFLPA entities3. Purchase orders4.Invoices for all suppliers and sub-suppliers5. Packing list6. Certificates of origin7. Payment records8. Seller’s inventory records, including dock/ warehouse receipts9. Buyer’s inventory records, including dock/ warehouse receipts10. Shipping records including manifests, bill of ladings, etc11. Import/ export records12. Manufacturing records13. Information on workers at each entity involved in the production of the goods in China such as wage payment and production output per worker.14. Information on worker recruitment and internal controls to ensure that all workers in China were recruited and are working voluntarily.15. Credible audits to identify forced labor indicators and remediation of these if applicable
What is the procedure for clearance if the container is selected under UFLPA?US Customs will send the notice about detaining goods, which shall be replied within specified days from date examination of goods by US Customs. Importers will have to substantiate that: Final goods/ raw materials are not produced from forced labor in Xinjiang region Final goods/ raw materials are not procured from the entities mentioned in UFLPA list.
Is there an interactive list showing the trade statistics for containers detained or released under the UFLPA?Yes, CBP maintains an interactive dashboard which is updated on a quarterly basis. The said dashboard is available at: https://www.cbp.gov/newsroom/stats/trade/uyghur-forced-labor-prevention-act-statistics