US Customs and Border Protection (CBP) released its enforcement update on the US Uyghur Forced Labor Prevention Act (UFLPA). Here are some highlights related to shipments subjected to UFLPA reviews or enforcement actions:
- Since enforcement begin in June 2022, almost 41% of the covered imports into the US have been denied (3,096 out of 7,566).
- The value of denied shipments in February 2024 alone hit a high of $300 million.
- The total value of denied shipments since June 2022 stands close to $3B.
- Shipments from Malaysia alone make up almost half that, highlighting CBPs concern about the role of third-party countries trans-shipping covered goods/products.
It is evident that CBP is actively reviewing imports and enforcing the law. Remember that the law contains a rebuttable presumption that the importation of any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China, or produced by certain entities, is prohibited and that such goods, wares, articles, and merchandise are not entitled to entry to the United States. The presumption applies unless the CBP determines, through clear and convincing evidence, that the goods, wares, articles, or merchandise were not produced using forced labor or that UFLPA does not apply to the goods, wares, or merchandise seeking importation. For a short reminder/summary of the law – including a discussion on “clear and convincing evidence” – read this.
We’ll be discussing the UFLPA next Tuesday during Day 1 of our PracticalESG.com Virtual Event which is free of charge to attend. To register, or find out more – click here.
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