Forced Labor Law Takes Effect June 21; Apparel Market Prepares for Import Confusion

Importers of products impacted by the Uyghur Forced Labor Prevention Act (UFLPA) are bracing for what could be confusion at best or chaos at worst as the law takes effect on June 21. The law targets goods produced in the Xinjiang Uyghur Autonomous Region of China (XUAR), an area known for dismal human rights, including forced labor.

Any US company sourcing goods from China may be impacted, but US Customs and Border Protection (CBP) has listed “apparel/textiles” as one of the top three commodities, along with chemicals and agricultural products, imported from Xinjiang. Therefore, printers in the apparel/textile space should prepare for supply chain scrutiny and/or be aware that cotton apparel goods arriving from China may be detained at the border beginning on June 21.

The UFLPA establishes a “rebuttal presumption” that goods produced “wholly or in part” in the XUAR region are made with forced labor and thereby not allowed to enter the US. An importer can request an exception, but in order to receive one must provide “clear and convincing evidence” that the imported good in question was not “mined, produced, or manufactured” by forced labor in China. An interagency Forced Labor Enforcement Task Force (FLETC), chaired by the Department of Homeland Security, is tasked with developing and issuing an enforcement strategy. (View more details on UFLPA on CBP Fact Sheet here.)

Industry trade groups supported passage of UFLPA, with the National Retail Federation and American Apparel and Footwear Association, each representing major brands, issuing a joint statement that the [forced labor in XUAR] “situation in this region is of a scale, scope and complexity that is unprecedented in modern supply chains.” The National Association of Manufacturers, too, was vocal in support of the legislation, which initially passed the US House almost unanimously by a vote 428-1 and then was revised in the Senate, which passed its version of the bill by voice vote. President Biden signed UFLPA into law on December 23, 2021.

However, industry has grown frustrated at the lack of information and guidance provided over the past six months and large importers are nearing panic as full implementation date is mere days away. The FLETF released its strategic enforcement plan and related material on June 17. The CBP, for its part, released guidance for importers on June 13 providing an overview of the CBP process for detentions, exclusions, and seizures of goods, an overview of the types of evidence importers will need in order to demonstrate goods are legal, and enforcement guidance specific to the cotton/apparel, tomato, and polysilicon products. CBP has also published a UFLPA resource webpage to provide public education and materials related to the new law. For printers downstream in the apparel/textile supply chain, the wave of new information, guidance and enforcement may delay expected shipments.

CBP and multiple law firms specializing in trade have recommended companies importing finished goods, such as shoes or t-shirts, from China take measures to ensure they are compliant and able to provide a rebuttal to the presumption goods from XUAR were produced using forced labor.

Common recommendations include:

• Conduct Supply Chain Due Diligence: Do a deep dive into your supply chains related to China and consider a third-party audit or assessment to mitigate risk. Supply chain tracing or mapping is recommended.
• Consider Contract Language: Add terms and conditions to contracts with suppliers that outlines your company’s code of conduct and explicitly prohibits sourcing goods that are produced using suspected forced labor.
• Document and Prepare: Be prepared to demonstrate compliance and to respond to potential CBP letters of inquiry. Be aware of any new FLETF enforcement guidance issued.

The bright spot in the current confusion? Once implementation and enforcement issues are operating smoothly, UFLPA will hopefully shine as an example of how government, industry and human rights advocates came together to root out appalling forced labor practices and improved working conditions in UXAR and elsewhere in the world.

Lisbeth Lyons is the Vice President of Government and Political Affairs at PRINTING United Alliance, the most comprehensive member-based printing and graphic arts association in the United States, comprised of the vast communities which it represents. The Alliance serves industry professionals across market segments with pertinent education, training, workshops, events, research, government and legislative representation, safety, and environmental sustainability guidance, as well as resources from the leading media company in the industry – NAPCO Media. Now a division of PRINTING United Alliance, Idealliance is the global leader in standards training and certification for printing and graphic arts operations across the entire industry supply chain.

In this article, Lisbeth addresses the Uyghur Forced Labor Prevention Act (UFLPA). More information can be found at Supply Chain Resources or reach out to Lisbeth should you have additional questions specific to how these issues may affect your business: llyons@printing.org.

To become a member of PRINTING United Alliance and learn more about how PRINTING United Alliance subject matter experts can assist your company with services and resources such as those mentioned in this article, please contact the Alliance membership team: 888-385-3588 / membership@printing.org.