DHS Forced Labor Task Force to Scrutinize 5 More 'High-Priority' Sectors

Identifying these "high-priority" sectors will compel the task force to prioritize the review of potential entities within these sectors for inclusion in the Uyghur Forced Labor Prevention Act Entity List, and it will "send a signal to responsible businesses" to prioritize scrutiny of their supply chains, the report said.

The task force also will continue to scrutinize sectors it previously has flagged, including aluminum, apparel, cotton and cotton products, polyvinyl chloride, seafood, silica-based products (including polysilicon) and tomatoes.

The report, which serves as an update to Congress on FLETF's activities annually since a similar DHS report came out in June 2022, gives the rationale for the inclusion of each new sector.

For caustic soda, the report noted that the World Bank considers China to be the world's largest producer of caustic soda, while Chinese government data says the Xinjiang Uyghur Autonomous Region was the fourth leading producer of caustic soda in 2022.

Caustic soda is also known as sodium hydroxide, which may be used in chemical manufacturing, petroleum refining, cleaning compounds and drain cleaners.

Copper is another sector that will face increased scrutiny, with the report noting that 15 Xinjiang-based companies have been identified. These companies are involved in the mining, smelting or further processing of copper, including the production of copper alloys.

The third sector, jujubes, is on the FLETF list as China produces 40% of the world's output, according to the report. About 20% of the world's jujubes, or red dates, come from the Xinjiang region.

Lithium, the fourth sector, is becoming "increasingly important" in the Xinjiang region, according to the report, particularly as the region has been found to have newly discovered deposits.

Steel, the fifth sector, has been identified by the government in Xinjiang as a key industry, according to the report. As such, the steel sector is receiving targeted investment, and is used in downstream industries such as automotive and shipbuilding, the report said.

The report noted that as CBP identifies and interdicts goods, other DHS offices and components will undertake separate enforcement efforts.

For example, the DHS Center for Countering Human Trafficking may send viable referrals of allegations of forced labor by entities in China, or affiliates of such entities, to Homeland Security Investigations field offices to pursue criminal investigation and federal prosecution, as appropriate, the report said. The center may also collaborate with CBP to leverage ICE and HSI resources "domestically and internationally and provide support and analysis for civil investigations into entities suspected of knowingly using forced labor in the production of goods."

While the task force has participated in stakeholder engagement, including DHS' Commercial Customs Operations Advisory Committee and individual meetings with non-governmental organizations, the report said that "smaller, topic-focused meetings can facilitate more substantive discussions on solutions to challenges in compliance and enforcement."

"The Forced Labor Enforcement Task Force will build on its partnerships with industry and private sector stakeholders to reiterate the importance of effective due diligence and supply chain tracing, as well as address questions and concerns regarding implementation and enforcement of the Uyghur Forced Labor Prevention Act," the report said. "These partnerships have proven successful in encouraging companies to prioritize compliance efforts but also highlight the challenges of the importing community in conducting effective due diligence. Trade associations continue to engage with their membership to provide guidance and information, but they also serve as a liaison to inform the Forced Labor Enforcement Task Force of challenges and provide recommendations to support industry’s compliance efforts and facilitate legitimate trade."

The report, as well as an Aug. 19 announcement about the report's release, noted that as of Aug. 1, CBP has stopped more than 16,700 shipments valued at almost $3.7 billion for further examination under UFLPA. Of these, more than 10,000 shipments valued at almost $900 million have been denied entry, DHS said.

There are 144 entities currently on the UFLPA Entity List.