About UFLPA

(Uyghur Forced Labor Prevention Act)

The UFLPA (Uyghur Forced Labor Prevention Act) is a U.S. law aimed at preventing the importation of goods produced using forced labor in the Xinjiang region of China. The act requires companies to prove that their supply chains are not associated with forced labor, particularly in industries such as textiles, electronics, and agriculture. The primary goal of the UFLPA is to ensure transparency and ethics in international trade while protecting human rights.

Our UFLPA Consulting Services

  • Due Diligence System Information
  • Supply Chain Tracing Information
  • Information on Supply Chain Management Measures
  • Evidence Goods Originating in China Were Not Mined, Produced, or Manufactured Wholly or In Part by Forced Labor
  • Evidence Goods Were Not Mined, Produced, or Manufactured Wholly or In Part in the Xinjiang Uyghur Autonomous Region

How we help you achieve UFLPA

A. Due Diligence System Information:

We assist companies in building and maintaining a due diligence system to ensure that all their procurement and production activities are free from forced labor. This includes collecting data on suppliers, production processes, and related factors.

We help companies track their entire supply chain, from raw materials to the final product, to ensure transparency. This enables verification of each step in the production process, minimizing risks associated with forced labor.

We assist businesses in implementing effective supply chain management measures, including risk assessments, auditing processes, and ethical standards, to ensure compliance with UFLPA.

We help companies gather clear evidence that their products are not produced or manufactured in Xinjiang, a region with a high risk of forced labor.

We assist businesses in demonstrating that products originating from China are not associated with forced labor through rigorous supply chain verification processes and supporting documentation.

UFLPA Strategy

  • Risk assessment and evaluation
  • Product traceability
  • Developing a Mitigation Strategy
  • Training and Awareness Raising
  • UFPA Compliance Demonstration
  • Working with international organizations and partners

Industries that we can help with UFLPA legal

Companies in the textile and garment industry

Cotton and textiles from Xinjiang account for a significant portion of the global supply chain, making it crucial for textile companies importing materials or garments from this region to pay close attention to UFLPA.

Companies in the textile and garment industry

Electronics and components are linked to forced labor in factories or supply chains in China, particularly during the production of batteries, chips, or other critical components.

Companies in the solar energy industry

The solar energy industry relies on polysilicon, a critical material for producing solar panels, much of which is manufactured in Xinjiang. Companies in this sector face a high risk of investigation and must comply with UFLPA to ensure their materials are not linked to forced labor.

Company in the field of agriculture and food

Companies importing agricultural products from China, particularly cotton, tomatoes, and farm-derived goods, are also targeted. Xinjiang is a major supplier of cotton and tomatoes, making it essential for companies in this sector to ensure transparency in their supply chains.

Companies in the mining and construction materials industry

Companies importing minerals, metals, and construction materials from China, including those involved in resource extraction in Xinjiang, may be subject to compliance checks under UFLPA.

Companies in the retail and e-commerce industry

Retail companies importing consumer goods from China, especially through e-commerce platforms, must ensure that their supply chains are free from forced labor. This applies to items such as clothing, household goods, electronics, and other consumer products.

Companies in the field of logistics and transportation industry

International shipping and logistics companies may also be affected if they are involved in transporting products from regions suspected of using forced labor.

Companies in high-tech industry

Companies involved in the production and import of high-tech products, such as smartphones, computers, and AI-related devices, may be impacted by UFLPA if their supply chains are connected to the Xinjiang region.

Case Study about UFLPA

Overview

A major U.S. apparel company imports fabric from a supplier in China. After the goods arrive at the port, the company receives a notice from U.S. Customs and Border Protection (CBP) stating that the goods are being detained for investigation under the Uyghur Forced Labor Prevention Act (UFLPA). CBP suspects that the fabric may be linked to forced labor in the Xinjiang Uyghur Autonomous Region, which has been widely reported for forced labor practices.

Issue

CBP detained the company's shipment on suspicions that the Chinese supplier may have used forced labor during the production of materials. Under the UFLPA, goods from Xinjiang or those linked to forced labor are prohibited from being imported into the U.S. unless the company can provide evidence that the products comply with the law.

Settlement Steps

Step 1

Supply chain verification

The company immediately worked with its supplier to gather documentation related to the supply chain, including invoices, purchase contracts, and reports from the supplier. The company must clearly verify the origin of the fabric materials, ensuring that they have no connection to Xinjiang.

Step 2

Collect labor documents

The company also requested the supplier to provide reports on labor conditions, certifications from third-party audits, and documentation proving that no forced labor was used during the production process.

Step 3

Submit documents to CBP

The company submitted documentation proving that the fabric was produced entirely outside of Xinjiang and that the suppliers complied with international labor regulations. Third-party certifications and independent audit reports were key components in demonstrating compliance.

Step 4

Using traceability technology

The company integrated a blockchain-based traceability system into its supply chain, enabling it to provide transparent, accurate information about the origin of materials quickly and efficiently.

Result

After thoroughly reviewing the documents and evidence, CBP accepted that the goods were not linked to forced labor and allowed the shipment to be cleared. The company resumed exporting goods to the U.S. without being subjected to restrictions under the UFLPA.

Learning

Transparency in the supply chain

To avoid risks related to UFLPA, companies must ensure that their supply chains are transparent and that the origin of materials is traceable, especially for products imported from China.

Independent Audit

Businesses should regularly conduct independent audits and require suppliers to provide certifications of compliance with international labor standards to ensure that no forced labor exists in the supply chain.

Respond quickly and completely

When receiving a request from CBP under UFLPA, responding promptly and providing complete supporting documentation is crucial to ensuring a smooth customs clearance process.

Conclusion

UFLPA places significant pressure on businesses importing goods from China, particularly in industries prone to forced labor, such as textiles. To comply with UFLPA, companies must establish a transparent supply chain and be prepared with appropriate documentation and evidence to address investigation requests from CBP.

Meet some of our UFLPA consulting team members

Meet some members of our UFLPA advisory team – seasoned experts in helping businesses comply with the strict regulations of UFLPA. With extensive knowledge in supply chains, risk assessments, and due diligence, they are ready to assist you in overcoming challenges related to forced labor and ensuring transparency in your business operations.