26 Companies Added to Forced Labor List

Trade Update • May 16, 2024

n a significant move, the U.S. Department of Homeland Security (DHS) has added 26 textile companies based in the People’s Republic of China (PRC) to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. This action, effective from May 17, 2024, aims to restrict goods produced by these companies from entering the United States, enhancing efforts to prevent forced labor in supply chains.

Scope and Impact

The latest addition to the UFLPA Entity List is the largest single expansion to date, bringing the total number of entities on the list to 91. This expansion targets cotton manufacturers outside the XUAR who source cotton from the region, increasing transparency and helping responsible companies ensure their products are free from forced labor.

Entities Added

The 26 entities include cotton traders and warehouse facilities across China, with a focus on those operating outside the XUAR but sourcing cotton from it. This makes it easier for U.S. importers to identify and avoid cotton linked to forced labor.

Due Diligence for Importers

U.S. importers now have more information to conduct due diligence and examine their supply chains for forced labor risks. The inclusion of these entities on the UFLPA Entity List helps companies ensure compliance with the UFLPA and avoid purchasing cotton linked to forced labor. The Forced Labor Enforcement Task Force (FLETF) will continue to monitor and consider future designations to the UFLPA Entity List as part of broader forced labor enforcement efforts. This ongoing vigilance supports the U.S. commitment to eliminating forced labor and holding accountable those who exploit vulnerable populations.

Statements from Officials

• Alejandro N. Mayorkas, Secretary of Homeland Security: “Today’s announcement strengthens our enforcement of the UFLPA and helps responsible companies conduct due diligence so that, together, we can keep the products of forced labor out of our country. We will continue to execute on our textile enforcement strategy and hold the PRC accountable for their exploitation and abuse of the Uyghur people.”
• Robert Silvers, DHS Under Secretary for Policy and Chair of the FLETF: “We have shown again through today’s enforcement actions that the United States is taking action to prevent forced labor in U.S. supply chains. Companies must conduct due diligence and know where their products are coming from. The Forced Labor Enforcement Task Force will continue to designate entities known to violate our laws, and U.S. Customs and Border Protection will continue its vigilant enforcement at our ports.”

The UFLPA was signed into law in December 2021 to combat forced labor in U.S. supply chains, particularly targeting the Xinjiang Uyghur Autonomous Region (XUAR). It mandates that goods from the XUAR or produced by listed entities are presumed to be made with forced labor unless proven otherwise. Enforcement began in June 2022, with over 8,000 shipments reviewed by U.S. Customs and Border Protection (CBP) since then.

For more information on the FLETF and the UFLPA, visit DHS UFLPA.

For questions or concerns about if your products are affected please contact us.