Video: Supply Chain Tainted by Forced Labor: Nearly $1 Billion in Goods Seized by CBP Since June 2022

Background:

The Uyghur Forced Labor Prevention Act (UFLPA) was signed into law by President Biden on December 23, 2021. UFLPA officially entered into force on June 21, 2022.

UFLPA establishes a rebuttable presumption that “any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region (XUAR) of the People’s Republic of China, or produced by certain entities,” are not allowed to enter the United States based on Section 307 of the Tariff Act of 1930. In other words, generally, importers have to provide evidence demonstrating that the factories or entities involved in the production of their imported products have no connection to XUAR or are not involved in any forced labor practices in XUAR.

UFLPA affects not only US imports directly from China but also products from other countries. Notably, China is a critical textile raw material supplier for many leading apparel exporting countries in Asia, and over 90% of cotton “made in China” comes from XUAR.

According to the US Customs and Border Protection (CBP), from June 2022 to April 2023, about 345 “textiles, apparel and footwear” shipments from mainland China ($13.45 million), 263 shipments from Vietnam ($13.3 million), 4 shipments from Sri Lanka ($1.64 million) and 46 shipments from other countries ($1.16 million) were affected by UFLPA enforcement.

Additional resources: CBP Uyghur Forced Labor Prevention Act Statistics

Discussion questions:

  • What fashion brands and retailers can do to reduce the forced labor risks in apparel sourcing and why?
  • What are the complexity of removing forced labor in the textile and apparel supply chain and why?
  • Any other thoughts or reflections on the video?
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