DHS Adds 4 More Companies to the Forced Labor List (UFLPA)

Trade Update • Nov. 5, 2024

he U.S. Department of Homeland Security (DHS) has announced the addition of four textile companies based in the People’s Republic of China (PRC) to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. These additions underscore DHS’s ongoing commitment to eradicating forced labor and promoting accountability for the PRC’s continued genocide and crimes against humanity targeting Uyghurs and other religious and ethnic minority groups in the Xinjiang Uyghur Autonomous Region (XUAR).

Scope and Impact

The recent actions by the U.S. Department of Homeland Security (DHS), effective November 1, 2024, expand the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, applying significant trade restrictions on goods produced by specific textile companies in China. This includes Esquel Group, Guangdong Esquel Textile Co., Ltd., and Turpan Esquel Textile Co., Ltd., which are now presumed to use forced labor in the production of goods, effectively prohibiting their imports into the United States.

Details on the Additional 4

The DHS’s recent inclusion of four textile companies to the UFLPA Entity List targets organizations believed to be associated with forced labor practices within the Xinjiang Uyghur Autonomous Region (XUAR):

Esquel Group (Esquel China Holdings Limited) – A vertically integrated Hong Kong-based company engaged in comprehensive textile and apparel production, from cotton ginning and spinning to knitting and weaving. The company, known for sourcing cotton from XUAR, faces restrictions due to these connections. This entity also includes subsidiaries focused on manufacturing textiles, clothing, and other products, such as Changji Esquel Textile Co., Ltd., Turpan Esquel Textile Co., Ltd., and Guangdong Esquel Textile Co., Ltd.

Guangdong Esquel Textile Co., Ltd. – Based in Foshan City, Guangdong Province, this company is involved in textile and apparel manufacturing. The FLETF cites credible evidence suggesting that Guangdong Esquel sources cotton from XUAR, thus meeting the criteria for forced labor concerns under UFLPA guidelines.

Turpan Esquel Textile Co., Ltd. – Operating from Turpan City in XUAR, Turpan Esquel specializes in the production and sale of cotton and cotton yarn. Its sourcing practices in the region have been identified as indicative of forced labor conditions, qualifying the entity for the UFLPA Entity List.

Changji Esquel Textile Co., Ltd. (also known as Changji Yida Textile Co., Ltd.) – Located in Changji Prefecture, XUAR, Changji Esquel was initially listed under a separate section of the UFLPA Entity List in 2022. While previously under review for different forced labor criteria, it is now included under Section 2(d)(2)(B)(v), which focuses on sourcing from government-influenced labor schemes. Although the specific grounds for inclusion have shifted, the company’s products remain subject to the UFLPA’s rebuttable presumption and are restricted from U.S. entry.

These additions to the UFLPA Entity List are part of DHS’s Textile Enforcement Plan, demonstrating a targeted effort to address forced labor within high-priority sectors. The FLETF’s findings are based on specific and verifiable information, affirming that these entities source from regions associated with forced labor practices under government-mandated programs in XUAR.

Removal of Changji Esquel Textile Co., Ltd

Changji Esquel Textile Co., Ltd. will be removed from one section of the UFLPA Entity Lists and added to another. Goods produced by Changji Esquel Textile Co., Ltd. (also known as Changji Yida Textile Co., Ltd.) will continue to be subject to a rebuttable presumption that they are prohibited from entering the United States.

Since the UFLPA was signed into law in 2021, CBP has enforced a “rebuttable presumption” on goods from identified entities, placing the burden on importers to provide clear and convincing evidence that their products are free of forced labor connections. CBP’s enforcement under the UFLPA has led to over 9,700 shipments reviewed and valued at more than $3.5 billion. This expansion of the UFLPA Entity List provides U.S. businesses with critical guidance to conduct due diligence, bolstering efforts to prevent exploitation within global supply chains. The FLETF’s collaboration with other U.S. agencies, including the Office of the U.S. Trade Representative and the Departments of Commerce, Justice, Labor, and State, reinforces a coordinated approach to upholding human rights.

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.