Despite the Uyghur Forced Labor Prevention Act, which should put a damper on exports in supply chains of goods that are destined for the U.S., exports from Xinjiang are climbing sharply, by nearly 50%, according to a recent report in the South China Morning Post.
CBP issued $19.3 million in commercial fraud penalties for textile and apparel imports in FY 2023, up markedly from only $2.45 million in the previous fiscal year and the most in any fiscal year going back to FY 2018, according to enforcement statistics released by CBP on Oct. 26.
A research paper says that prison camps for Uyghurs were phased out in 2019, and now, labor transfers have become the main mechanism of forced labor, usually for rural people who were never imprisoned. The Uyghur Forced Labor Prevention Act tries to address labor transfers outside of Xinjiang by noting that they, too, are presumed to be forced labor, but the Forced Labor Enforcement Task Force has identified few companies or facilities in Eastern China that have employed Muslim minority workers.
The co-chairs of the Congressional-Executive Commission on China called on DHS to report on actions it has taken to address forced labor in seafood supply chains, noting that the agency already had been informed of the contents of a recent article detailing forced labor in Chinese seafood processing operations before it was published.
CBP in September identified 259 shipments valued at more than $102 million for further examination based on the suspected use of forced labor, including goods subject to the Uyghur Forced Labor Prevention Act and withhold release orders, the agency said in its most recent operational statistics update. The value of those shipments is up from August, when CBP identified 320 shipments worth more than $68 million (see 2309250036). Also in September, CBP seized 1,658 shipments that contained counterfeit goods valued at more than $280 million if the items had been genuine, the agency said.
The Southern Shrimp Alliance announced it has filed a formal allegation with CBP that shrimp harvested in Argentina and processed in China by Qingdao Yize should be barred from entry into the U.S. because, it argues, Uyghur workers have been transferred to processing plants in Shandong province.
A House subcommittee hearing on the government's implementation of the Uyghur Forced Labor Prevention Act zoomed in on de minimis shipments, low incidence of cotton isotopic testing and the slow pace of adding businesses to the UFLPA Entity List, which captures companies that accept labor transfers outside of Xinjiang.
Kharon signed a contract with CBP that will give CBP enforcement officers and investigators "access" to Kharon's "global risk analytics" platform, Kharon said in a news release Oct. 18. The CBP's use of the platform will assist the agency with its "investigations that focus on the networks of foreign actors tied to forced labor and other security threats," Kharon said. CBP did not immediately respond to our request for comment.
Of more than 5,000 shipments stopped by CBP under the Uyghur Forced Labor Prevention Act, CBP has finished its analysis on about 4,600. And for nearly half, or 47%, importers were able to prove there was no link to Xinjiang in their supply chains, said Brian Hoxie, director of CBP's forced labor division.
The European Parliament's Internal Market and International Trade committees adopted a draft regulation that would provide a framework for investigating the use of forced labor in global supply chains and bans all goods using forced labor, the parliament announced. If the investigation of a company reveals the use of forced labor, the European Parliament said, "all import and export of the related goods would be halted at the EU's borders and companies would also have to withdraw goods that have already reached the EU market." Goods that had reached the market would be "donated, recycled or destroyed."