DHS Takes Strong Action Against Forced Labor in Supply Chain

DHS Takes Strong Action Against Forced Labor in Supply Chain

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In a firm stance against forced labor practices and to address ongoing human rights violations against Uyghurs and other ethnic and religious minorities in the Xinjiang Uyghur Autonomous Region, the U.S. Department of Homeland Security (DHS) has announced significant enforcement actions. These measures aim to eradicate the use of forced labor within the U.S. supply chain and hold accountable those responsible. The DHS-led interagency Forced Labor Enforcement Task Force (FLETF) has added three People's Republic of China (PRC)-based companies to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, bringing the total number of entities designated to 27.

Secretary of Homeland Security Alejandro N. Mayorkas stated, "We do not tolerate companies that use forced labor, that abuse the human rights of individuals in order to make a profit. The Department of Homeland Security and its partners across the Biden-Harris Administration will continue to prosecute these companies, fight for the rights of the abused, and work towards the elimination of Uyghur forced labor in the People’s Republic of China."

The DHS has also co-sponsored the Xinjiang Supply Chain Business Advisory Addendum, released jointly with the U.S. Department of State, the Office of the U.S. Trade Representative, and the Departments of Treasury, Commerce, and Labor. This addendum provides crucial information on the pervasive risks associated with PRC-sponsored forced labor and other human rights violations in Xinjiang. It also emphasizes the implementation and enforcement of the UFLPA, which holds particular significance for businesses and importers. Since the last Xinjiang Business Advisory in July 2021, new reports have continued to expose human rights abuses in Xinjiang.

Effective September 27, 2023, goods produced by Xinjiang Zhongtai Group Co. Ltd., Xinjiang Tianshan Wool Textile Co. Ltd., and Xinjiang Tianmian Foundation Textile Co. will be restricted from entering the United States. These restrictions come as a consequence of the companies' involvement in business practices that target persecuted groups, including Uyghur minorities in the PRC.

Xinjiang Zhongtai Group Co. Ltd. is headquartered in Xinjiang and is engaged in the production and sale of various products, including polyvinyl chloride (PVC), iconic membrane caustic soda, industrial salt, calcium carbide, viscose fiber, viscose yarn, and other textile, chemical, and building materials. Xinjiang Tianshan Wool Textile Co. Ltd., also based in Xinjiang, specializes in the sale and manufacture of cashmere and wool garments, velvet, and other textile products. Xinjiang Tianmian Foundation Textile Co., headquartered in Xinjiang, produces yarn and textile products. A revised UFLPA Entity List will be published by DHS as an appendix to a Federal Register notice.

The UFLPA, signed into law by President Joseph R. Biden, Jr. in December 2021, prohibits the importation of goods into the United States produced in Xinjiang or by entities identified on the UFLPA Entity List unless it is determined by the Commissioner of U.S. Customs and Border Protection (CBP), based on clear and convincing evidence, that the goods were not produced with forced labor. CBP commenced enforcing the UFLPA in June 2022, reviewing over 5,000 shipments valued at more than $1.74 billion under the UFLPA during this time. The FLETF, which includes the Office of the U.S. Trade Representative, the U.S. Departments of Labor, State, the Treasury, Justice, and Commerce, will continue to consider designations to the UFLPA Entity List.

Under Secretary for Strategy, Policy, and Plans Robert Silvers, who chairs the Forced Labor Enforcement Task Force, emphasized, "The United States does not, and will not, tolerate products made with forced labor coming into our country. Through the enforcement actions taken today, the Forced Labor Enforcement Task Force is again making clear our country’s resolve to keep the global supply chain fair, just, and secure for all."

In August, DHS also released the 2023 Updates to the Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China, reaffirming the federal government's commitment to changing importer behavior and holding perpetrators accountable for egregious forced labor abuses, as outlined in the strategy.