• Identify any high-risk imports: Importers should evaluate whether their imports are at heightened risk of enforcement under the UFLPA. CBP has already identified the top high-risk commodities from the XUAR as chemicals, polysilicon, apparel, textiles, and agricultural goods. Importers should also review CBP’s current Withhold Release Orders (WROs), the Department of Labor’s List of Goods Produced by Child Labor or Forced Labor, and the State Department’s Xinjiang Supply Chain Business Advisory to identify any other imports at high risk of being derived by forced labor. Importers of such items should be prepared to request an exception to the rebuttal presumption by providing clear and convincing evidence that its imported merchandise was not mined, produced, or manufactured wholly or in part by forced labor. This is a heavy burden and exceeds the standards applied under current WROs applicable to some items from that region. As noted above, the FLETF is expected to issue additional guidance on the process and evidence required to overcome the rebuttable presumption in the coming weeks.
• Detailed supply chain review: Given the text of the UFLPA’s rebuttable presumption, which applies to items manufactured wholly or in part in the XUAR or produced by certain entities, CBP has verbally advised importers that the UFLPA applies all the way down to an item’s raw materials. It remains to be seen how CBP would apply UFLPA in this manner given practical challenges tracing raw materials. Nonetheless, importers of high-risk goods should conduct a detailed mapping and review of their supply chains, including from where and whom raw materials are sourced, and should begin collecting documentation demonstrating that its items have no connection to XUAR.
• Forced labor screening and certifications: Importers should implement screening procedures to identify any supply chain connections to the XUAR or any connections to entities alleged to be involved with forced labor in China. Because the UFLPA expands the scope of the Uyghur Human Rights Policy Act of 2020 to include the imposition of sanctions for serious human rights abuses in connection with forced labor, supplier due diligence should also include screening against the Specially Designated Nationals and Blocked Persons List (SDN), as well as the Bureau of Industry and Security’s Entity List, which already includes a number of designated entities in the XUAR region due to forced labor concerns. Finally, procurement and sourcing teams should obtain certifications from all suppliers confirming that its products were not mined, produced, or manufactured wholly or in part with forced labor.
• Code of conduct and contractual requirements: Importers should amend their code of conduct to address forced labor and should include a forced labor provision with express reference to the UFLPA in any supplier agreements.
• Notifications from CBP: Importers that have received notification from CBP related to their imports from the XUAR or entities potentially subject to the UFLPA should consider proactively contacting CBP before June 21, 2022. To mitigate the risk of an enforcement action, importers that have received notification from CBP should consider obtaining a binding ruling to determine the applicability of the UFLPA to its imports.

Our International Trade and National Security Team is continuing to monitor the implementation of the UFLPA and related issues with respect to sanctions and export controls. Please contact the authors of this alert if you have questions about how these changes could impact your business.

Client Alert 2022-153