Coca-Cola, Nike, Apple, and other corporationsfought to weakenthe bills language, theNew York Timesreported in late November, arguing that the bill would harm the supply chains they rely on in China. The UFLPA also appears to envision a supply chain compliance program meeting certain minimum standards. Amazons suppliers are responsible for making Amazon-branded products, such as the Echo, Fire TV, Kindle, the wide range of affordable products sold as part of its Amazon Basics line, and more. The Biden administration has been vocal about human rights in China and other jurisdictions, and efforts to enforce supply chain ethics appear to have bipartisan support. U.S. remote-control maker Universal Electronics Inc told Reuters it struck a deal with authorities in Xinjiang to transport hundreds of Uyghur workers to its plant in the southern Chinese city of . The companies were listed over human rights violations and abuses of Uighurs and other Muslim minorities, according to a US government filing on Wednesday. Apples supply chain has previously been linked to forced labor in China. The rebuttable presumption goes into effect on June 21, 2022. Preparing for June 21, 2022 Amazon suppliers must not use forced labor slave, prison, indentured, bonded, or otherwise, its standards read. Read the FLETF'sStrategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the Peoples Republic of China. However, a vast majority of implicated brands and companies have not taken any steps to address their ties to Uyghur forced labor. Your companys response to the Washington Post, by your spokesperson has been disappointingly inadequate. On December 23, 2021, President Biden signed into law the Uyghur Forced Labor Prevention Act (UFLPA) to prevent goods made with forced labor in the Xinjiang Uyghur Autonomous Region (XUAR) of China from entering the U.S. market. Click Share This Page button to display social media links. To embed, copy and paste the code into your website or blog: Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra: [HOT] Read Latest COVID-19 Guidance, All Aspects [SCHEDULE] Upcoming COVID-19 Webinars & Online Programs, [GUIDANCE] COVID-19 and Force Majeure Considerations, [GUIDANCE] COVID-19 and Employer Liability Issues. Looking for U.S. government information and services? Although state media are claiming Uighurs are being compensated for their work, the ASPI researchersfound they live in segregated dormitories, are unable to go home, and they undergo Mandarin and ideological training outside working hours, similarly to Uighurs in the internment camps. Apple, which has saidthat it is committed to donating to organizations that challenge racial injustice and mass incarceration, is not the only company to come under scrutiny for its links to slave labor. Two other companies, GoerTek and Hefei BOE Optoelectronics, are indirectly involved, and allegedly utilize suppliers that have been accused of using forced labor. The coalition has published an extensive list of brands it claims continue to source from the region, or from factories connected to the forced labour of Uighur people, including Gap, C&A,. In anticipation of the rebuttable presumption becoming effective on June 21, 2022, an implementation strategy and guidance for the trade community will be issued to ensure compliance with the Act. You may opt-out by. From Company-Specific WROs to a Broader Import Ban in the XUAR Primark uses sweatshops to make very low-price clothing. The Commerce Department will continue to take firm, decisive action tohold China and other perpetrators of human rights abuses accountable.. 2023 Vox Media, LLC. As your company has previously imported merchandise sourced from locations or entities potentially subject to the Act, you are being notified that any future entries of such merchandise may be subject to CBP enforcement action, including seizure, forfeiture and/or penalties, or other appropriate action under the customs laws. The list of 83 companies includes over 30 technology brands "directly or indirectly benefiting" from using Uighur workers a veritable who's who of consumer electronics, such as Acer,. . An April 2021 report co-authored by Human Rights Watch and Stanford Law School details "crimes against humanity," including mass detention, forced labor, torture, and cultural and religious erasure. As of April 2021, the following global companies and brands are profiting from their use of modern day Uyghur slavery. Lenovo also pointed to a 2018 audit by the Reliable Business Alliance in which OFILM scored very well. Under conditions that strongly suggest forced labour, Uyghurs are working in factories that are in the supply chains of at least 82 well-known global brands in the technology, clothing and automotive sectors, including Apple, BMW, Gap, Huawei, Nike, Samsung, Sony and Volkswagen. ) or https:// means youve safely connected to the .gov website. I was born in a re-education camp at the height of China's infamous Cultural Revolution. Looking ahead, this focus on supply chain ethics appears to reflect a trend and not a blip. The Act establishes a rebuttable presumption that the importation of any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of the Peoples Republic of China, or produced by an entity on a list required by clause (i), (ii), (iv) or (v) of section 2(d)(2)(B) of the Act, is prohibited by Section 307 of the Tariff Act of 1930 and that such goods, wares, articles, and merchandise are not entitled to entry to the United States. (See here.) Several Apple suppliers may have used forced labor in China, according to The Information. We have not identified additional exporters at this time but will continue to investigate and gather information about additional relevant entities. A comprehensive listing of entities in the XUAR that use forced labor, entities that work with the XUAR government to facilitate the use of forced labor, a list of products produced by those entities, a list of entities that exported those products, a list of entities that source material from the XUAR and a plan for updating those lists. report from the Tech Transparency Project, including internment camps, constant surveillance, mass sterilization, and forced labor, Tesla faced criticism for opening a showroom in the Xinjiang region, Mark Zuckerberg says Meta now has a team building AI tools and personas, Whoops! Fila LL Bean Hugo Boss Lacoste Li-Ning The North Face Skechers Tommy Hilfiger Victoria's Secret Zara Zegna Anta Jansport Clothing Brands Versace Jimmy Choo Michael Kors Chanel Costco Hanes Hermes Gucci Balenciaga Yves Saint Laurent 925) Adidas Amazon private labels American Eagle Outfitters, Inc. Anta Sports Products Ltd. Burberry Group PLC (Burberry) Let the companies know youre using your power as the consumer to advocate for human rights by tagging them in social media and pushing them to address their complicity in Uyghur forced labor. Pillsbury Winthrop Shaw Pittman LLP var today = new Date(); var yyyy = today.getFullYear();document.write(yyyy + " "); | Attorney Advertising, Copyright var today = new Date(); var yyyy = today.getFullYear();document.write(yyyy + " "); JD Supra, LLC. Some Uighurs have allegedly been placed in these factories straight from the internment camps in Xinjiang, where experts estimate more than 1.5 million members of ethnic minorities are being held. Crypto company Gemini is having some trouble with fraud, Some Pixel phones are crashing after playing a certain YouTube video. All Rights Reserved, By submitting your email, you agree to our. On the Red Carpet at the 2022 Met Gala . Lets Examine. The UFLPA now would effectively apply the presumption of forced labor to all goods made in the XUAR without the need for CBP to issue WROs. For the most up-to-date information on CBPs UFLPA implementation, please see our website at https://www.cbp.gov/trade/forced-labor/UFLPA. Some companies have even advertised their ability to supply Uighur workers through online bookings. Please note that this notice may serve as an aggravating factor should CBP take enforcement action upon determining future violations of the Act. A number of previous reports have implicated these companies in the past for example, Luxshare and Lens Technology were both linked to forced labor in bombshell reports from The Information and The Washington Post, although those reports pertained to Apples questionable history of suppliers. (Amazon and Facebook told The Information they wouldnt work with suppliers using forced labor; Google and Microsoft didnt respond. The presumption applies unless the Commissioner of U.S. Customs and Border Protection (CBP) determines that the importer of record has complied with specified conditions and, by clear and convincing evidence, that the goods, wares, articles, or merchandise were not produced using forced labor. The period coincides with Chinas campaign ofmass internment of ethnic minorities in Xinjiang, which the government says is needed to root out terrorism and separatism. The year 2021 brought supply chain challenges to the center of the national conversation. The report did not document factories using Uyghur labor. In March, Apple cut ties with another supplier over allegations it was connected to coercive government labor programs. Opinions expressed by Forbes Contributors are their own. LockA locked padlock Many companies will require advance planning to assess the business and legal risks posed to their supply chains by these rule changes, and develop appropriate compliance and due diligence mechanisms. Any dollar that goes to these brands is a dollar that goes into the factories profiting off of Uyghur forced labor. Two other companies, GoerTek and. In January, the Trump administration said China was committed genocide against the predominantly Muslim Uyghurs and other ethnic and religious minority groups in Xinjiang.. The 83 foreign and Chinese companies that ASPI has identified as directly or indirectly benefiting from the potentially abusive transfer programs for Uighurs include clothing brands such as Adidas, Gap, Tommy Hilfiger and Uniqlo; carmakers such as BMW, General Motors, Jaguar and Mercedes Benz; and tech giants such as Apple, Google, Huawei and Microsoft. The paper also described government incentives such as tax breaks and subsidies for Chinese companies to take Uighurs. LAIXI, CHINA - JANUARY 8, 2020: The fences along the side of the Qingdao Taekwang Shoes Co. factory [+] -- the side where the Uighur workers enter and exit, and live in dorms -- looks almost like a prison. The UFLPA reflects an expansion of U.S. policy efforts over the past two years to address reported violations of human rights in the XUAR. The Act requires CBP to apply the rebuttable presumption unless the importer can overcome the presumption of forced labor by establishing, by clear and convincing evidence, that the good, ware, article, or merchandise was not mined, produced, or manufactured wholly or in part by forced labor. Sign up for Verge Deals to get deals on products we've tested sent to your inbox daily. This elevated standard will require the importer to not only use due diligence in evaluation of its supply chain, but also to respond completely and substantively to CBP requests for information regarding entries it may review. A lock ( There are watchtowers with cameras pointed in all directions and high barbed wire fences atop the walls. 6256 - Uyghur Forced Labor Prevention Act, DHS Press Release on UFLPA Public Comment Period, Federal Register Notice Seeking Public Comment. The Entity List is a tool utilized by BIS to restrict the export, reexport, and transfer (in-country) of items subject to the EAR to persons (individuals, organizations, companies) reasonably believed to be involved, or to pose a significant risk of becoming involved, in activities contrary to the national security or foreign policy interests of the United States. Written by USCIRF Commissioner Nury Turkel. Dont turn your back on racism. Stop sourcing from Qingdao Taekwang immediately. Uyghur Forced Labor Prevention Act Fact Sheet, Uyghur Forced Labor Prevention Act Importer Overview, H.R. ), Chinas forced work programs have been getting more attention over the past year, with new reports speaking to the growing scope of Chinas oppressive practices in Xinjiang. However, each company and industry will have unique risks and therefore we may see bespoke risk assessments, supply chain ethical goals and resulting due diligence approaches. Chinas population of Uyghurs, the countrys Muslim ethnic minority, is largely concentrated in the Xinjiang region of China. This page was not helpful because the content, Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the Peoples Republic of China, Notice on the Addition of Entities to the Uyghur Forced Labor Prevention Act Entity List. or https:// means youve safely connected to the .gov website. Most fashion brands can't promise their products aren't implicated, with concern spreading from fast-fashion and sportswear giants to major luxury groups. The ECCHR said that the companies have been complicit "directly or indirectly" in the forced labour of members of the Muslim Uyghur minority in China's Xinjiang province. The Uyghur Forced Labor Prevention Act (UFLPA) was signed into law by President Biden on December 23, 2021. However, existing CBP guidance for WROs indicates a demanding standard for documentation and tracing. Apple lists both . The UFLPA also requires the interagency Forced Labor Enforcement Task Force, chaired by the Secretary of Homeland Security, and in consultation with the Secretary of Commerce and Director of National Intelligence, to develop and submit to Congress a strategy for supporting CBPs enforcement of Section 307 of the Tariff Act of 1930 with respect to goods, wares, articles, and merchandise produced with forced labor in the Peoples Republic of China. The entities to be added to the Entity List in connection with participating in the practice of, accepting, or utilizing forced labor involving Uyghurs and other Muslim minority groups in the XUAR are: Hoshine Silicon Industry (Shanshan) Co., Ltd. Xinjiang Daqo New Energy Co., Ltd. Xinjiang East Hope Nonferrous Metals Co., Ltd. Adding to these challenges, the efforts to comply with or plan for the UFLPA may cause a number of companies to consider their policies for supply chain ethics and due diligenceissues that may tie into broader environment, social and governance (ESG) efforts. Those factories claim to be part of the supply chain of 83 well-known global brands., The Fair Labor Association has also written a statement calling to an end of all forced labor in East Turkestan: The Fair Labor Association (FLA) is deeply troubled by credible reports of forced labor and other violations of fundamental human rights in the Xinjiang region of China. The laws rebuttable presumption means companies whose supply chains touch Xinjiangor utilize Xinjiang-exported laborwill have to demonstrate by clear and convincing evidence that their products are free of forced labor. The TTP pinpoints five companies on Amazons supplier list (available as a CSV file in the small print below the pages supply chain map) that have been publicly denounced for being directly or indirectly connected to the forced labor of Chinas Uyghur population in the Xinjiang region. WROs on materials like cotton (where an estimated 20 percent of world supply and 85 percent of Chinese supply is from the XUAR) and polysilicon (a key material in solar panels and the photovoltaic supply chain) reportedly are causing CBP to block broad categories of certain products incorporating those materials. A number of countries have also imposed sanctions on Xinjiang, with the US moving ban imports from Xinjiang altogether in December. One of the suppliers operated in Xinjiang, the region of China predominantly populated by Uyghurs and where the most egregious human rights violations have reportedly taken place. As the TTP notes, China uses what it calls labor transfers to transport Uyghurs from the Xinjiang region to factories throughout China, forcing them into labor programs the TTP says are often coercive and connected to a network of mass internment and reeducation camps., Five suppliers have been publicly denounced for being connected to the forced labor. DHSs New Criminal Enforcement Initiative to Prosecute Corporations for Forced Labor, Slavery in Supply Chains: CBP Petitions Raise New Forced Labor Compliance Risks, Recent DOJ Action Creates Uncertainty for Information-Sharing Programs, NLRB Invalidates Common Confidentiality and Non-Disparagement Clauses in Severance Agreements, U.S. Attorneys Offices Adopt New Voluntary Self-Disclosure Policy, Uyghur Forced Labor Prevention Act (UFLPA). CBP guidance for XUAR WROs, and standards like the ILO Indicators of Forced Labor can provide reference points. These workers were transferred from labor camps in the Xinjiang region of western China, WaPo reported. Using Amazon's June 2021 supplier list, the TTP said it found five of the companies on the list had publicly known links to forced labor programs called "labor transfers," which. 4 Vocation Skills Education Training Center (VSETC), Tanyuan Technology Co. Ltd. (including five aliases: Carbon Yuan Technology; Changzhou Carbon Yuan Technology Development; Carbon Element Technology; Jiangsu Carbon Element Technology; and Tanyuan Technology Development), Xinjiang Production and Construction Corps (XPCC) and its subordinate and affiliated entities. It is bothersome that millions of people, including myself, may be owning clothing that are made by modern day slaves. ASPI stated that it had found 27 factories in 9 Chinese provinces that are using Uyghur labor transferred from Xinjiang since 2017. Following near unanimous passage by Congress, President Biden signed into law the Uyghur Forced Labor Prevention Act, which seeks to untangle American supply chains from the forced labor of Uyghurs and other persecuted ethnoreligious minorities in China. CBP has released importer guidance to assist the trade community in preparing for the implementation of the UFLPA rebuttable presumption that goes into effect on June 21, 2022. Including the rule announced today, these actions have added 53 parties specifically implicated in human rights abuses of ethnic minorities from Xinjiang, and 15 of these which were implicated in human rights abuses related to forced labor of ethnic minorities from Xinjiang. Brands Can't Confidently Say No. They are grouped into different categories and listed below. Many consumers are now boycotting Primark, but the brand is still expanding. Nov. 17, 201801:48. / Sign up for Verge Deals to get deals on products we've tested sent to your inbox daily. An official website of the United States government. Check the documents below for UFLPA Applicability Review best practices, as well as guidance on executive summaries and sample tables of contents for Applicability Review submissions. Following a public comment period, the Forced Labor Enforcement Task Force will describe how companies can adequately demonstrate that their imports originating from China are not made with forced labor. In January 2021, CBP issued a region-wide ban on all XUAR-produced cotton and tomato products, irrespective of the associated company. An official website of the United States government. The ASPI found that 27 factories across nine Chinese provinces used the labor of Uyghurs forcibly transferred from Chinese-occupied East Turkestan since 2017. In June remarks, Coca-Cola CEO James Quincysaidhe was outraged, sad, frustrated, angry over the death of George Floyd and promised that the company stands with those seeking justice and equality., Nike has also spoken out against racism in the U.S., particularly in a May 2020 ad thaturged viewersFor once, dont do it. The factory, Haoyuanpeng Clothing Manufacturing Co. Ltd, lists Fila, Adidas, Puma and Nike among its clients. There are watchtowers with cameras pointed in all directions and high barbed wire fences atop the walls. 83 global companies and brands are directly or indirectly benefiting from the use of Uyghur forced laborers in these factories. Whenever we find or receive proof of forced labor, we take action.. Please note that if you do not receive a letter from CBP, this does not mean that your supply chain is free of forced labor. Companies need to implement robust preventative and transparency measures, with their compliance departmentsnot their communications departmentsleading the way. The UFLPA Entity List can be found in the Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People's Republic of China and the Federal Register Notice on the Addition of Entities to the Uyghur Forced Labor Prevention Act Entity List. Activists have launched a campaign accusing firms of . The ASPI found that 27 factories across nine Chinese provinces used the labor of Uyghurs forcibly transferred from Chinese-occupied East Turkestan since 2017. Apple, whichhas saidthat it is is committed to donating to organizations that challenge racial injustice and mass incarceration, has protested that it rigorously audits companies in its supply chain to make sure that Apples products arent derived from forced labor, saying in a statement to WaPo that Apple has zero tolerance for forced labor.. Persons wishing to import affected products to the United States will need to supply evidence demonstrating that those products were not made with forced labor, and meet pending compliance standards. Apple said it looks for forced labor as part of every assessment it conducts. Share sensitive information only on official, secure websites. The law places the burden of proof on companies to demonstrate that any imports mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Regionor involving entities exporting labor from Xinjiangwere not made using forced labor. Secure .gov websites use HTTPS Law Firms: Be Strategic In Your COVID-19 Guidance [GUIDANCE] On COVID-19 and Business Continuity Plans. Here are some of the 83 brands listed in the report as being connected to those factories using forced labor. by Steve Miller . As we made clear during this months G7 summit, the United States is committed to employing all of its tools, including export controls, to ensure that global supply chains are free from the use of forced labor and technology is not misused to abuse human rights, said Secretary of Commerce Gina Raimondo. All work must be voluntary, and workers must be free to leave work and terminate their employment or other work status with reasonable notice.. Yili Zhuowan Garment Manufacturing Co., Ltd. U.S. Customs and Border Protection (CBP) Issues Withhold Release Order (WRO): CBP has issued a WRO on silica-based products made by Hoshine Silicon Industry Co., Ltd., a company located in . For more information, visitwww.bis.doc.gov. Those factories claim to be part of the supply chain of 83 well-known global brands., The Fair Labor Association has also written a statement calling to an end of all forced labor in East Turkestan: , The Fair Labor Association (FLA) is deeply troubled by credible reports of forced labor and other violations of fundamental human rights in the Xinjiang region of China.