CBP Shifts UFLPA Enforcement to Auto and Aerospace Industries
CBP has shifted its forced labor enforcement efforts to the automotive and aerospace sectors in the first quarter of FY 2025, according to analysis from Kharon, a risk analytics platform.
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"From October 1 to December 31, CBP inspected 2,501 shipments with potential ties to forced labor, with 82 percent (2,042) coming from the automotive and aerospace industry," the report, dated Jan. 29, said, adding that this was a marked shift from the agency's previous emphasis on electronics. "The shipments inspected last quarter account for 89 percent of all automotive and aerospace shipments detained since the Uyghur Forced Labor Prevention Act (UFLPA) was enacted in June 2022."
CBP's forced labor dashboard defines "automotive and aerospace" as goods entering under Chapters 86 and 87 of the tariff schedule.
Kharon's analysis said that "of the 2,042 shipments [from the auto and aerospace industry], 623 were denied entry to the U.S., a 30 percent denial rate."
This shift is likely the result of last year's Senate Finance Committee report (see 2405200009), which said that "automakers have been slow to adequately watchdog their supply chains to ensure parts originating in Xinjiang and other identified entities are not used in cars and trucks imported to the United States."
At that time, Senate Finance Committee Chair Ron Wyden, D-Ore., called on "Customs and Border Protection to take a number of specific steps to supercharge enforcement and crack down on companies that fuel the shameful use of forced labor in China.”
The CBP data shows that the majority of inspected shipments came from China, Vietnam and Malaysia: "China accounted for 42 percent of shipments inspected, while Vietnam accounted for 24 percent."