Expansion of the UFLPA Entity List: Implications for Importers

Effective Monday, November 25, the Department of Homeland Security (DHS) has added 30 new entities to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, as detailed in the Federal Register notice publication. This marks a substantial increase in the list. DHS will now restrict goods from over 100 PRC-based companies from entering the United States due to forced labor practices. The companies include facilities and entities that source material from the Xinjiang Uyghur Autonomous Region or from persons working with the government of Xinjiang or the Xinjiang Production and Construction Corps for purposes of the “poverty alleviation” program or the “pairing-assistance” program or any other government labor scheme that uses forced labor.

What Does This Mean for Importers?

This expansion of the UFLPA Entity List reflects DHS’ prioritization of combatting the introduction of forced labor into U.S. supply chains. As of Monday, any goods manufactured in whole or in part using inputs from these newly listed entities will be presumed to be made with forced labor and, therefore, banned from entry into the United States. While this presumption can theoretically be rebutted, the bar is exceedingly high. The presumption applies unless the Commissioner of U.S. Customs and Border Protection (CBP) determines, through clear and convincing evidence, that the goods, wares, articles, or merchandise were not produced using forced labor or that UFLPA does not apply to the goods, wares, or merchandise seeking to be entered into the United States. The UFLPA data dashboard statistics on shipments subjected to UFLPA reviews or enforcement actions show that 10,633 shipments have been detained at entry; 4,524 shipments were denied and 4,965 shipments have been released, with the remaining 1,144 shipments pending review.

Scope of Impact

The newly named entities span a wide range of industries, including:

• Food Products such as walnuts, food additives, tomatoes (including paste, sauce, and ketchup), seeds, garlic, ginger, peanuts, kidney beans, raisins, red dates, mango, and dried fruits.
• Pharmaceuticals and nutraceuticals, many tied to Chinese natural medicine practices.

• Various metals including electronic materials and aluminum and alloy products (primarily used in electronic equipment, wires, and cables in a wide range of downstream products, including household appliances, automobiles, and aerospace applications); raw metallic materials, including copper, lithium, beryllium, nickel, manganese, and gold.

This expansion of the list underscores the U.S. government’s commitment to combating forced labor in supply chains. Importers must ensure that their sourcing practices are free from any connection to these newly identified entities or risk significant disruptions, including the potential detention or exclusion of goods at the border.

Preparing for Compliance

Companies should take immediate steps to:

1. 1. Review Supply Chains: Conduct thorough due diligence to trace the origins of all inputs, particularly those related to food products, pharmaceuticals, nutraceuticals, and metals
   2. Update Risk Assessments: Align procurement and compliance strategies with UFLPA requirements to mitigate exposure.
   3. Engage with Legal and Trade Experts: Ensure that any potential risks are addressed and develop strategies for handling goods detained under the rebuttable presumption.