China - USA Import Ban Advisory

From 21st June 2022 all imports of goods mined, produced or manufactured in the Xinjiang Uyghur Autonomous Region (XUAR) of China will be subject to an import ban into the USA as part of the Uyghur Forced Labor Prevention Act. The act, signed by President Biden, effectively deems all goods from the XUAR region to be produced under forced labour.

The ruling also extends to goods imported indirectly from the region, potentially imported from countries other than China, as materials sourced from the XUAR and used in the production would fall under the latest legislation, potentially leading to a large number of US import businesses having goods detained on entry into the country.

Certain exceptions will allow the movement of goods from the XUAR, provided that the CBP (US Customs and Border Protection) determines that:

1. The importer of record has fully complied with relevant guidance to be provided by CBP, as well as any regulations issued to implement that guidance;
2. The importer has completely and substantively responded to all inquiries for information submitted by CBP to ascertain whether the goods were made wholly or in part with forced labour; and
3. By clear and convincing evidence, the goods were not made wholly or in part by forced labour.

Any goods from the XUAR that overcome the rebuttable presumption of being made by forced labour will be included in a public list to be issued by CBP 30 days after making such determination.

Furthermore, an interagency Forced Labor Enforcement Task Force will look to develop a strategy to prevent the importation of forced labour goods from China along including: 

1. Entities in the XUAR that produce goods with forced labour
2. Entities working with the government of the XUAR to recruit, transport, transfer, harbour, or receive forced labour or Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR
3. Products made wholly or in part by such entities
4. Entities that exported products made with forced labour from China to the U.S.
5. Facilities and entities, including the Xinjiang Production and Construction Corps, that source material from the XUAR or persons working with the government of the XUAR or the XPCC for purposes of a poverty alleviation program or pairing-assistance program or any other government labour scheme that uses forced labour

Importantly, the UFLPA calls for the Task Force to provide guidance to importers with respect to the following:

1. Due diligence, effective supply chain tracing, and supply chain management measures to ensure they do not import any goods made with forced labour from mainland China and especially from the XUAR
2. The type, nature, and extent of evidence that demonstrates that goods originating in mainland China were not made wholly or in part in the XUAR
3. The type, nature, and extent of evidence that demonstrates that goods originating in mainland China, including goods detained or seized pursuant to Section 307, were not made wholly or in part with forced labour

With protocols in place to block forced labour from manufacturing, thus rendering goods produced in these processes inaccessible to the US market, it is a prime time for businesses both in the US and globally to review their supply chains to ensure ethical and efficient sourcing and delivery. 

Woodland Group can help!
Our supply chain health check is supported by our owned locations and customs teams worldwide giving you instant access to the global marketplace and delivering sustainable growth.

For more information, or to speak with us about alternative sourcing options, please contact us here.