UFLPA: The acronym that has importers on alert
By NNR USA Marketing Team In Insight On 9th February 2023
Do you import anything wholly or in part made in China's Xinjiang Uyghur Autonomous Region (XUAR)?
It's been nearly eight months since the Uyghur Forced Labor Prevention Act (UFLPA) was enacted. In FY 2022, U.S. Customs (CBP) stopped 1,592 entries valued at nearly $500 million under the new law.
What is the Uyghur Forced Labor Prevention Act?
A new U.S. forced labor law implemented on June 21, 2022.
The law establishes a rebuttable presumption that all goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the Xinjiang region of the People's Republic of China or by entities identified by the U.S. on the UFLPA entities list, are prohibited from entry in the U.S.
We expect enforcement to accelerate in 2023 with the implementation of Chinese postal code reporting and as CBP hones its ability to identify goods originating in the XUAR.
Recently, CBP demonstrated collaboration using reports from external sources, among others, to identify jujubes [red dates] harvested in XUAR, but shipped from other areas, essentially masking the true origin. In this case, a logo on the box of jujubes was the giveaway to XUAR roots.
It's clear that forced labor is a priority focus for U.S. Customs.
In January 2023, CBP hosted two forced labor webinars and has announced a 'Save the Date' for a Forced Labor Technical Expo on March 14-15, 2023.
The postal code requirement start date is scheduled for March 18. Importers will need to ensure a valid postal code is notated on their commercial documents for manufacturers and suppliers located in China. If the postal code is located in the XUAR, Customs will pre-notify the filer with a warning message, indicating the goods will be detained upon arrival.
Our best recommendation is to evaluate your supply chain down to the raw materials to verify no forced labor was used to produce the goods. CBP expects importers to provide detailed documentation to support claims of no forced labor and will require this information to release goods detained under UFLPA.
Today, many resources and references are available on the CBP and DHS websites:
UFLPA Entity List | Homeland Security (dhs.gov) Today, the list contains 31 entities found to use forced labor related to XUAR.
UFLPA Operational Guidance for Importers Overview of the enforcement process, how to request an exception, resources for supply chain due diligence, tracing, and management, and type of information that may be required by CBP.
Business Development Manager - Customs & Trade Compliance
NNR GLOBAL LOGISTICS USA - Chicago