DHS Adds 5 More Companies to the Forced Labor List (UFLPA)

Trade Update • Aug. 12, 2024

he U.S. Department of Homeland Security (DHS) has added another 5 more companies based in the People’s Republic of China (PRC) to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. These additions build on DHS’s commitment to eradicate forced labor and promote accountability for the PRC’s ongoing genocide and crimes against humanity against Uyghurs and other religious and ethnic minority groups in the Xinjiang Uyghur Autonomous Region (XUAR).

Scope and Impact

The latest addition to the UFLPA Entity List brings the total number of entities on the list to 73. The UFLPA Entity List includes companies that are active in the apparel, agriculture, polysilicon, plastics, chemicals, batteries, household appliances, electronics, and food additives sectors, among others. Identifying these additional entities provides U.S. importers with more information to conduct due diligence and examine their supply chains for risks of forced labor to ensure compliance with the UFLPA.

Details on the Additional 5

Xinjiang Habahe Ashele Copper Co., Ltd. is a company located in the XUAR that mines nonferrous metals, including zinc, copper and silver. Xinjiang Habahe Ashele Copper Co., Ltd. is a subsidiary of one of the world’s largest mining company, and produces approximately 10% of that company’s copper and silver. The United States Government has reasonable cause to believe, based on specific and articulable information, that Xinjiang Habahe Ashele Copper Co., Ltd. works with the government of the XUAR to recruit, transport, transfer, harbor, or receive Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Xinjiang Habahe Ashele Copper Co., Ltd. works with the Habahe County government of the XUAR to recruit Kazakh workers through PRC labor programs to mine metals, such as zinc, copper, and silver in the XUAR.

Kashgar Construction Engineering (Group) Co., Ltd. is a company based in Kashgar, Xinjiang, China, that manufactures structural components and materials for construction, and is engaged in general construction, construction engineering and operations, and real estate development and operations. The United States Government has reasonable cause to believe, based on specific and articulable information, that Kashgar Construction Engineering (Group) Co., Ltd. works with the government of the XUAR to recruit, transport, transfer, harbor, or receive Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Kashgar Construction Engineering (Group) Co., Ltd. has repeatedly participated in the transfer and recruitment of ethnic minorities from Xinjiang, including Uyghurs, through Jiashi County Xinjiang government labor programs.

Century Sunshine Group Holdings, Ltd. is a company based in Hong Kong that manufactures magnesium fertilizer and magnesium alloys. The United States Government has reasonable cause to believe, based on specific and articulable information, that Century Sunshine Group Holdings, Ltd. sources material, specifically magnesium, from the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Century Sunshine Group Holdings, Ltd. has established its magnesium production base in the XUAR through its vertically-integrated subsidiaries, and sources magnesium from the XUAR.

Rare Earth Magnesium Technology Group Holdings, Ltd. is a company based in Hong Kong that manufactures and sells magnesium alloy products. The United States Government has reasonable cause to believe, based on specific and articulable information, that Rare Earth Magnesium Technology Group Holdings, Ltd. sources material, specifically magnesium, from the XUAR.  Information reviewed by the FLETF, including publicly available information, indicates that Rare Earth Magnesium Technology Group Holdings, Ltd., a principal subsidiary of Century Sunshine Group Holdings, Ltd., operates Century Sunshine Group Holdings, Ltd.’s magnesium product business, and sources magnesium from its magnesium production base located in the XUAR.

Xinjiang Tengxiang Magnesium Products Co., Ltd. is a company based in Hami, Xinjiang, China, that manufactures magnesium and magnesium alloy products. The United States Government has reasonable cause to believe, based on specific and articulable information, that Xinjiang Tengxiang Magnesium Products Co., Ltd. works with the government of the XUAR to recruit, transport, transfer, harbor, or receive Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Xinjiang Tengxiang Magnesium Products Co., Ltd. receives Uyghurs or members of other persecuted groups that the local Yizhou District government transfer from Xinjiang. The United States Government also has reasonable cause to believe, based on specific and articulable information, that Xinjiang Tengxiang Magnesium Products Co., Ltd. sources material, specifically the raw materials required to produce magnesium, such as coal and dolomite, from the XUAR.  Information reviewed by the FLETF, including publicly available information, indicates that Xinjiang Tengxiang Magnesium Products Co., Ltd., a wholly-owned subsidiary of Rare Earth Magnesium Technology Group Holdings, Ltd. and a principal subsidiary of Century Sunshine Group Holdings, Ltd., operates a magnesium production facility in the XUAR and sources raw materials from the XUAR, including coal and dolomite, to produce magnesium.

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.

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