manman01
08.01.2022 kl 18:59
12437
U.S. Targets Imports Benefitting from Uyghur Forced Labor with Blanket Ban on Goods Produced in Xinjiang, China
https://www.jdsupra.com/legalnews/u-s-targets-imports-benefitting-from-8887708/
JANUARY 7, 2022
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Congress passed the UFLPA unanimously in the Senate and with one dissenting vote in the House to reverse the burden of demonstrating that a supply chain is free of forced labor—effectively to issue a WRO covering Xinjiang. Under Section 3(a) of the Act, CBP will affirmatively enforce Section 307 against all goods of Xinjiang, rather than only those it has already determined were made with forced labor. The burden is now on the importer with respect to all imports from Xinjiang to disprove to CBP, by “clear and convincing evidence,” the presence of such labor to rebut the presumption. This exception mirrors Section 302A(a) of the North Korea Sanctions and Policy Enhancement Act of 2016, 22 U.S.C. § 9241a(a), added by Section 321(b) of the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA), aimed at goods made by North Korean nationals.
Although not the first, the UFLPA is the strongest action yet against imports and importers potentially benefitting from the conditions in Xinjiang. In 2021 alone, CBP issued WROs targeting, among other products, tomatoes and cotton on a regional basis, and polysilicon and silica-based products on an entity basis; China and Xinjiang in particular produce a high proportion of the world’s supply of these items. And as we previously reported, a multiagency advisory issued in July 2021 warned of the risks of exposure to entities found to engage in human rights abuses, including by sourcing of goods or labor from Xinjiang, or from other locations connected to forced labor in Xinjiang or that rely on inputs from Xinjiang. These measures are part of a wide range of economic, trade, and diplomatic sanctions and pressure against China and those who do business in or with Chinese entities.
Importers, particularly those that source from China at large should prepare for greater scrutiny upon implementation of the Act, and develop compliance plans to ensure they avoid Xinjiang manufacturers and Xinjiang-derived goods unless they can meet the high clear-and-convincing-evidence standard to rebut its presumption. The goods subject to the ban may be divided into three categories: those produced (1) wholly in Xinjiang, (2) partially in Xinjiang, or (3) by certain entities operating in China or third countries that produce in or export from Xinjiang, or work with the Xinjiang government or Xinjiang Production and Construction Corps to facilitate forced labor. The second and third categories will require examination of not only finished goods but also of materials, components, or other inputs upstream through the supply chain, and the suppliers’ backgrounds. CBP does not apply a de minimis exception to Section 307 violations.
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We expect CBP to enforce the UFLPA strictly, aggressively, and quickly upon its effective date, which will create risks for any companies doing business in China, often in the agriculture, textile, and solar industries.
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https://www.jdsupra.com/legalnews/u-s-targets-imports-benefitting-from-8887708/
JANUARY 7, 2022
"
..
Congress passed the UFLPA unanimously in the Senate and with one dissenting vote in the House to reverse the burden of demonstrating that a supply chain is free of forced labor—effectively to issue a WRO covering Xinjiang. Under Section 3(a) of the Act, CBP will affirmatively enforce Section 307 against all goods of Xinjiang, rather than only those it has already determined were made with forced labor. The burden is now on the importer with respect to all imports from Xinjiang to disprove to CBP, by “clear and convincing evidence,” the presence of such labor to rebut the presumption. This exception mirrors Section 302A(a) of the North Korea Sanctions and Policy Enhancement Act of 2016, 22 U.S.C. § 9241a(a), added by Section 321(b) of the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA), aimed at goods made by North Korean nationals.
Although not the first, the UFLPA is the strongest action yet against imports and importers potentially benefitting from the conditions in Xinjiang. In 2021 alone, CBP issued WROs targeting, among other products, tomatoes and cotton on a regional basis, and polysilicon and silica-based products on an entity basis; China and Xinjiang in particular produce a high proportion of the world’s supply of these items. And as we previously reported, a multiagency advisory issued in July 2021 warned of the risks of exposure to entities found to engage in human rights abuses, including by sourcing of goods or labor from Xinjiang, or from other locations connected to forced labor in Xinjiang or that rely on inputs from Xinjiang. These measures are part of a wide range of economic, trade, and diplomatic sanctions and pressure against China and those who do business in or with Chinese entities.
Importers, particularly those that source from China at large should prepare for greater scrutiny upon implementation of the Act, and develop compliance plans to ensure they avoid Xinjiang manufacturers and Xinjiang-derived goods unless they can meet the high clear-and-convincing-evidence standard to rebut its presumption. The goods subject to the ban may be divided into three categories: those produced (1) wholly in Xinjiang, (2) partially in Xinjiang, or (3) by certain entities operating in China or third countries that produce in or export from Xinjiang, or work with the Xinjiang government or Xinjiang Production and Construction Corps to facilitate forced labor. The second and third categories will require examination of not only finished goods but also of materials, components, or other inputs upstream through the supply chain, and the suppliers’ backgrounds. CBP does not apply a de minimis exception to Section 307 violations.
..
We expect CBP to enforce the UFLPA strictly, aggressively, and quickly upon its effective date, which will create risks for any companies doing business in China, often in the agriculture, textile, and solar industries.
"