Homeland Security Adds 26 Chinese Cotton Manufacturers to UFLPA Entity List
The U.S. Department of Homeland Security (DHS) has banned imports from 26 China-based firms under suspicions of forced labor.
DHS on Thursday announced that the companies, which include cotton traders and warehouse facilities located across China, would be added to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. After May 17, goods produced by the named firms will be barred from entering the country.
More from Sourcing Journal
The Forced Labor Enforcement Task Force (FLETF), which is chaired by DHS, is doubling down on its efforts to root out and eradicate forced labor violations from U.S. supply chains. DHS said most of the companies added to the Entity List operate outside of the Xinjiang Uyghur Autonomous Region (XUAR), where Uyghurs and other ethnic and religious minority groups are known to be detained and abused.
“Adding these entities to the UFLPA Entity List will make it easier for responsible companies to ensure that they are not purchasing cotton from entities who are sourcing cotton from the XUAR,” DHS said in a statement. “By identifying these additional entities in the textile sector, U.S. importers have more information to conduct due diligence and examine their supply chains for risks of forced labor to ensure compliance with the UFLPA.”
The FLETF surmised that 21 out of the 26 entities fingered for violations actively source and sell cotton products from Xinjiang on the global wholesale market, while five additional entities also source cotton from the XUAR. DHS said focusing on cotton manufacturers outside of the region would help increase transparency and help responsible companies conduct due diligence.
“The Department of Homeland Security will not tolerate forced labor in our nation’s supply chains,” DHS Secretary Alejandro N. Mayorkas said. “Today’s announcement strengthens our enforcement of the UFLPA and helps responsible companies conduct due diligence so that, together, we can keep the products of forced labor out of our country.”
“We will continue to execute on our textile enforcement strategy and hold the PRC accountable for their exploitation and abuse of the Uyghur people,” he added.
Since December 2021 when the UFLPA was signed into law, 65 entities spanning the apparel, agriculture, polysilicon, plastics, chemicals, batteries, household appliances, electronics and food additives sectors have been added to the list. FLETF—which encompasses the Office of the U.S. Trade Representative and the U.S. Departments of Commerce, Justice, Labor, State, and the Treasury—votes on the additions to the list.
“We have shown again through today’s enforcement actions that the United States is taking action to prevent forced labor in U.S. supply chains,” said DHS Under Secretary for Policy and FLETF Chair Robert Silvers said. “Companies must conduct due diligence and know where their products are coming from. The Forced Labor Enforcement Task Force will continue to designate entities known to violate our laws, and U.S. Customs and Border Protection will continue its vigilant enforcement at our ports.”
The move is a part of DHS’ recently announced Textile Enforcement Plan, spearheaded by Secretary Mayorkas. Released this spring, the plan makes it a priority to examine and review entities in the textile industry for inclusion on the Entity List. Prior to the 26 new additions this week, just 10 textile entities were included.
Cotton and cotton products have been a high priority for regulators under the Strategy to Prevent Importation of Goods Mined, Produced or Manufactured with Forced Labor in the People’s Republic of China, which was issued in June 2022 when the UFLPA came into effect. Since the law’s inception, CBP has sifted through over 8,000 shipments worth more than $3 billion.
Representative Chris Smith (R-N.J.) and Senator Jeff Merkley (D-Ore.), both Chairs of the bipartisan Congressional-Executive Commission on China (CECC), praised the expansion of the Entity List “while recognizing that the current list remains only a fraction of the businesses complicit in forced labor.”
The CECC Chairs said they would like to see DHS take more robust action, including blacklisting certain Chinese companies in the polysilicon, aluminum, PVC and rayon industries.
National Council of Textile Organizations (NCTO) president and CEO Kim Glas commended the additions to the UFLPA Entity List. “Slave labor cotton as well as man-made fibers produced in Xinjiang are feeding into clothing made in China and numerous other countries around the world that is destined for the U.S. market, severely undermining U.S. domestic producers,” she said.
According to Glas, Xinjiang cotton is “flooding the global marketplace,” with 76 percent of all China-made cotton containing traces—or more—of banned XUAR fibers. This contamination is seeping into international supply chains, with producers across the globe using China-grown cotton as an input for their own products.
“Today’s announcement marks an important step forward in following through on anti-forced labor legislation and sends a strong message to known offenders, enterprises and governments that the U.S. government is increasing its enforcement activities and dedication to cracking down on imports of goods made with forced labor,” Glas said.