DHS Places Additional China-Based Companies on the UFLPA Entity List

The U.S. Department of Homeland Security (DHS) continues its fight against forced labor in global supply chains by expanding the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. On August 8, 2024, DHS added five new China-based entities to the list, bringing the total to 73. Beginning August 9, 2024, U.S. Customs and Border Protection (CBP) enforces this new list, restricting goods from companies across various sectors, including metals, construction, and magnesium products. These entities are now presumed to use forced labor, and their goods are prohibited from entering the U.S. unless proven otherwise. DHS emphasizes that importers must perform due diligence to ensure their supply chains are free from forced labor, as failure to comply can have serious implications for their operations and reputation.

This move strengthens the UFLPA, which was enacted to address the ongoing genocide and human rights abuses against Uyghurs and other ethnic minorities in the Xinjiang Uyghur Autonomous Region (XUAR). The expansion reflects the U.S. government’s commitment to eradicating forced labor from its supply chains and protecting fair market practices.

Companies importing goods into the U.S. must now navigate a stricter regulatory landscape.  Failure to do so may result in shipment delays, penalties, and damage to brand reputation.  For companies seeking to ensure compliance with the UFLPA and avoid disruptions, conducting thorough due diligence, working with expeirenced legal counsel, and staying informed of updates to the UFLPA Entity List is essential.

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