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On July 9, 2024, the Forced Labor Enforcement Task Force (FLETF) issued its annual update to its guidelines enforcing the Uyghur Forced Labor Prevention Act (“UFLPA”) in a Report to Congress titled “2024 Updates to the Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China” (“Updated UFLPA Strategy”). This report is the second strategy update since the UFLPA came into effect in June 2022. Since publication of the first strategy update published on July 26, 2023, FLETF has significantly expanded the UFLPA Entity List and designated three additional high-priority sectors for enforcement: polyvinyl chloride (PVC), aluminum, and seafood.

Between July 26, 2023 and June 12, 2024, 38 new entities were added to the UFLPA Entity List, which now includes 68 entities in total. FLETF additionally updated its method for designating entities to the UFLPA Entity List. Beginning May 17, 2024, FLETF began individually counting each organization, company, or facility identified as sourcing materials from the Xinjiang Uyghur Autonomous Region (“XUAR”) or working with the government for purposes of state-run labor transfer programs. This method includes subsidiaries and affiliates even if they were added at the same time as the parent company, expanding the reach of the UFLPA Entity List. Separately, the FLETF is currently evaluating three formal removal requests submitted to the FLETF Chair.

The initial UFLPA Strategy issued in June 2022 identified four high-priority sectors for enforcement, including apparel, cotton and cotton products, silica-based products (including polysilicon), tomatoes and downstream products. Following review and consideration of submitted recommendations from FLETF member agencies, the Updated UFLPA Strategy identified polyvinyl chloride (PVC), aluminum, and seafood as three additional high-priority sectors for enforcement. Additional detail on these sectors follows below:

Polyvinyl Chloride (PVC): The Updated UFLPA Strategy identifies polyvinyl chloride (PVC) as a high-priority sector, citing the XUAR as a producer of more than 10 percent of the world’s supply of PVC. Further, FLEFT cited “credible reports” indicating that production in the region is expected to expand. The report additionally references evidence of labor transfer programs and state-owned enterprises involved in production of PVC in the region. Entities previously added to the UFLPA Entity List are involved in the production of PVC, including Xinjiang Zhongtai Group, Co., Ltd., Xinjiang Zhongtai Chemical Co., Ltd., and the Xinjiang Production and Construction Corps (XPCC).

Aluminum: The Updated UFLPA Strategy identifies aluminum as a high-priority sector because the XUAR produces an estimated 9-12 percent of the world’s supply of the nonferrous metal. Over 15 percent of China’s aluminum is produced in this region, which the government has committed to further cultivate. Both state-owned and private enterprises operating in the XUAR have been identified as participating in the government’s labor transfer programs. Entities previously added to the UFLPA Entity List are involved in the production of aluminum, including Xinjiang Shenhuo Coal and Electricity Co., Ltd., Xinjiang East Hope Nonferrous Metals Co, Ltd., and the XPCC.

Seafood: The Updated UFLPA Strategy identifies seafood as a high-priority sector due to individuals being transported from the XUAR to seafood processing plants in eastern coastal China. Specifically, FLEFT cited “credible reports” suggesting that Uyghur and other persecuted groups are being transferred from the XUAR to seafood plants in the Shandong Province through state-run labor programs. Entities previously added to the UFLPA Entity List have invested in or are already involved in the seafood industry, including Shandong Meijia Group Co., Ltd. and the XPCC.

The report additionally highlights U.S. Customs and Border Protection’s commitment to strong enforcement and greater collaboration with stakeholders, referencing the agency’s examination of more than 9,000 shipments valued at over $3.4 billion since the implementation of the UFLPA in June 2022. Consistent with previous reports, the Updated UFLPA Strategy identifies additional resources needed by FLETF to implement the UFLPA.

Husch Blackwell continues to monitor developments relating to the UFLPA. In the meantime, for guidance or questions relating to U.S. customs and trade laws, companies can contact Husch Blackwell’s International Trade and Supply Chain team.

Written with the assistance of Matthew Magill, a summer associate in the Husch Blackwell LLP Milwaukee, WI office.

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Photo of Jamie Shookman Jamie Shookman

Jamie’s experience representing federal government agencies in trade and customs matters helps clients navigate U.S. trade laws as they grow their businesses. Jamie’s practice draws on her extensive experience handling cases in the U.S. Court of International Trade and learning the inner workings

Jamie’s experience representing federal government agencies in trade and customs matters helps clients navigate U.S. trade laws as they grow their businesses. Jamie’s practice draws on her extensive experience handling cases in the U.S. Court of International Trade and learning the inner workings of the federal agencies involved. She primarily represents domestic manufacturers, advising on complex regulatory regimes, proactively assessing new trade programs, and handling litigation as it arises.

Photo of Cortney Morgan Cortney Morgan

An experienced attorney in the area of international trade and supply chain issues, Cortney advises foreign and domestic clients on all aspects of international trade regulation, planning and compliance, including import (customs), export controls, economic sanctions, embargoes, international trade agreements and preference programs.

Photo of Nithya Nagarajan Nithya Nagarajan

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory…

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory actions before the Department of Commerce, International Trade Commission and U.S. Customs and Border Protection (CBP) and defends clients in appeals before the Court of International Trade, Court of Appeals for the Federal Circuit, NAFTA panels and the World Trade Organization. In addition to her body of U.S. experience, Nithya is also well-versed in international trade issues in China and India.