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. Lop County Meixin Hair Products Co., Ltd. Nanjing Synergy Textiles Co., Ltd. (including two aliases: Nanjing Xinyi Cotton Textile Printing and Dyeing; and Nanjing Xinyi Cotton Textile), No. Study Links Nike, Adidas And Apple To Forced Uighur Labor - Forbes This report must include both the goods and the evidence considered. 2023 Vox Media, LLC. 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. 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. Companies doing business in China, especially those with supply chain touchpoints in Xinjiang, should consider how the new law will affect them. It will place new requirements on a wide range of industries that rely on labor from Xinjiang, especially apparel, automotive, technology, food & beverage, and solar companies. Looking for U.S. government information and services? Supply chains widely tainted by forced labor in China, witnesses say 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. Address: One Bowerman Drive Beaverton, OR 97005. Retail giants Nike and H&M are facing a backlash in China after they expressed concern about the alleged use of Uighur forced labour in cotton production. Please be aware that this is CBPs importer guidance, which provides transparency to CBPs operational approach, and not the Forced Labor Enforcement Task Forces Strategy, which will provide additional importer guidance, required by the UFLPA. Photo Uyghur Muslims by the Uyghur Human Rights Project. ASPI stated that it had found 27 factories in 9 Chinese provinces that are using Uyghur labor transferred from Xinjiang since 2017. Opinions expressed by Forbes Contributors are their own. Please note that this notice may serve as an aggravating factor should CBP take enforcement action upon determining future violations of the Act. Here, they are paid at most 15 cents a day to pick cotton. Six of the seven suppliers were said to participate in work programs operated by the Chinese government, The Information reports, which human rights groups describe as frequently offering cover for forced labor. (LockA locked padlock) Chinese Solar Companies Tied to Use of Forced Labor Apple, Foxconn, and 81 others are accused of using Uighur forced labor WASHINGTON Effective January 13 at all U.S. ports of entry, U.S. Customs and Border Protection (CBP) will detain cotton products and tomato products produced in China's Xinjiang Uyghur Autonomous Region. Official websites use .gov The UFLPA also appears to envision a supply chain compliance program meeting certain minimum standards. The UK government must toughen measures to tackle modern slavery, including more penalties to compel businesses to ensure Uighur forced labour is not used in their supply chains, according to a . Apple lists both . In March 2020, a damning report from the Australian Strategic Policy Institute revealed that the Chinese government was forcing hundreds of young Uyghur women to. Any dollar that goes to these brands is a dollar that goes into the factories profiting off of Uyghur forced labor. Any violation of our policies has immediate consequences, including possible business termination. The TTP found that three Amazon suppliers Luxshare Precision Industry, AcBel Polytech, and Lens Technology have reportedly used forced labor themselves. An official website of the U.S. Department of Homeland Security. Demand Nike and other listed companies to stop sourcing their products from Uyghur forced labor. Implementation of the Uyghur Forced Labor Prevention Act As your company has previously imported merchandise from locations or entities potentially subject to the Act, you are being notified that subsequent entries of such merchandise may result in, among other things, suspension or removal from the Customs Trade Partnership Against Terrorism (CTPAT) program, seizure, forfeiture and/or penalties, or other appropriate action under the customs laws. The complexity and opacity of supply chains in China will complicate the due diligence process, as some products and materials made with forced labor in Xinjiang are repurposed in intermediary factories elsewhere in China, obscuring their origin. 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. A lock Forced labor has been a central part of China's campaign against the Uighurs for as long as I can remember. Major Global Brands Profiting From Forced Uighur Labor: Activists ) or https:// means youve safely connected to the .gov website. This enhanced enforcement already is underway. Share sensitive information only on official, secure websites. 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. The Washington Postreported Tuesdaythat Apple supplier Lens Technology uses Uighur workers in its factories, according to documents obtained by the Tech Transparency Project. For some products and industries, it may be easier to track sources and seek certifications of product origin. 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. Companies doing business in China should consider the following to prepare for the new requirements. 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. Companies will have limited time between now and June 21 to identify and manage both legal compliance and business risks. They are grouped into different categories and listed below. CBP guidance for XUAR WROs, and standards like the ILO Indicators of Forced Labor can provide reference points. Companies Prepare for the Uyghur Forced Labor Prevention Act (UFLPA) Stephan Becker, Benjamin Cote, Aaron Hutman, Moushami Joshi, Toochi Ngwangwa Pillsbury Winthrop Shaw Pittman LLP + Follow. Companies need to implement robust preventative and transparency measures, with their compliance departmentsnot their communications departmentsleading the way. The report and process for its preparation also are designed to help CBP improve its capacity to administer the import ban. I understand that in some of these poor countries it may not be clear who may be violating human rights in some way but there should be minimum due diligence standards. Uyghur Forced Labor Prevention Act Fact Sheet, Uyghur Forced Labor Prevention Act Importer Overview, H.R. 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. Enforcement Priorities In March 2020, the Australian Strategic Policy Institute (ASPI) published a report titled Uyghurs For Sale, which revealed a vast network of companies complicit in the use of Uyghur forced labor throughout China. 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. Lets Examine. DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Thereport listedpopular clothing companies Abercrombie & Fitch, Adidas, Gap, Calvin Klein, H&M, L.L.Bean, Lacoste,Nike, The North Face, Polo Ralph Lauren, Puma, Skechers, Tommy Hilfiger, Zara, and Victorias Secret, as well as General Motors, Goertek, Land Rover, Mercedes-Benz, Volkswagon, and more. Olympic corporate partner 'proud' of sponsorship despite China's The Act, codified under 22 U.S.C. Stop sourcing from Qingdao Taekwang immediately. Keep in mind also this is part of the problem with China, it is hard for other countries or supply chains to compete with no labor costs. 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. 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. We look forward to seeing a prompt apology and response. 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. 83 Companies Linked to Uyghur Forced Labor - Save Uyghur - Save Uighur Entities identified in sections (i) and (ii) above may serve as both manufactures and exporters. It is bothersome that millions of people, including myself, may be owning clothing that are made by modern day slaves. As always, our focus is on making sure everyone is treated with dignity and respect, and we will continue doing all we can to protect workers in our supply chain, Rosenstock added. Do not buy products made with the tears of modern-day Uyghur slaves. 'Woke' corporations hit for 'bowing to China while snubbing America' as 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. US sanctions Chinese solar firms for Uighur human rights abuses ), 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. Apple supplier Lens Technology used forced Uighur laborers - The These Companies Are Linked to Forced Uighur Slave Labor Secure .gov websites use HTTPS SHARE. Amazon Accused of Using Suppliers With Ties to Forced Labor Thus, investment in supply chain due diligence, compliance and contractual requirements for commercial partners may emerge as a key development in 2022. 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. Here's the complete list of companies who have not taken steps in agreement with the Call to Action to End Uyghur Forced Labor: Abercrombie & Fitch (Abercrombie & Fitch, Hollister Co., Ruehl No. U.S. to crack down on child labor amid massive uptick | Reuters Chinese parents who have more than a few children are often sent to detention camps or subjected to huge fines, the publication found, and police instill terror into families by raiding homes searching for hidden children. Here Are The Companies Linked To Forced Uighur Slave Labor Call To House Republicans On Pharmaceutical Supply Chain Middleman Investigation. Primark uses sweatshops to make very low-price clothing. Are These Fashions Linked to Forced Labour? Brands Can't Confidently The companies were listed over human rights violations and abuses of Uighurs and other Muslim minorities, according to a US government filing on Wednesday. Even more to the point, how about forced labor right here in the U.S. with our prisons (especially the privatized ones), with our vagrancy laws, our with our use of cheap underpaid and unpaid foreign labor from the very groups that conservatives want to deport unless, of course, these conservatives can make more unbegotten money from their forced labor? Dont pretend theres not a problem in America. Importers of record will have a path to overcome that rebuttable presumption by showing that the items are not mined, produced, or manufactured wholly or in part by forced labor and demonstrating other elements of compliance. Build a Morning News Brief: Easy, No Clutter, Free! / Sign up for Verge Deals to get deals on products we've tested sent to your inbox daily. Questions regarding UFLPA may be submitted to UFLPAInquiry@cbp.dhs.gov. Apple said it looks for forced labor as part of every assessment it conducts. 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. 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 rebuttable presumption goes into effect on June 21, 2022. Apple found no evidence of forced labor anywhere we operate, a spokesperson told The Information. 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.. In advance of June 21st, CBP will be issuing letters to importers identified as having previously imported merchandise that may be subject to the Act to encourage those importers to address any forced labor issues in their supply chains in a timely manner. This statute expands on those earlier efforts and is likely to impact a large number of U.S. companies, non-U.S. companies engaged in manufacturing or distribution in the United States, and other importers. . Section 307 of the Tariff Act of 1930 currently prohibits the importation of all goods, wares, articles, and merchandise mined, produced or manufactured wholly or in part in any foreign country by forced labor. Under 19 U.S.C. We hope that by sharing this film we can serve as a catalyst to inspire action against a deep issue in our society and encourage people to help shape a better future.. Workers can be jailed for refusing to join the work programs, the report says, and those enrolled in the programs are often moved far from their homes. A .gov website belongs to an official government organization in the United States. These workers were . Specifically, this will include: (i) a list of entities in the Xinjiang Uyghur Autonomous Region that mine, produce, or manufacture wholly or in part any goods, wares, articles and merchandise with forced labor; (ii) a list of entities working with the government of the Xinjiang Uyghur Autonomous Region to recruit, transport, transfer, harbor or receive forced labor or Uyghurs, Kazakhs, Kyrgyz or members of other persecuted groups out of the Xinjiang Uyghur Autonomous Region; (iv) a list of entities that exported products described in clause (iii) from the Peoples Republic of China into the United States [being products mined, produced, or manufactured wholly or in part by entities on the list required by clause (i) or (ii)]; (v) a list of facilities and entities that source material from the Xinjiang Uyghur Autonomous Region or from persons working with the government of the Xinjiang Uyghur Autonomous Region or the Xinjiang Production and Construction Corps for purposes of government labor scheme that uses forced labor. Since the release of the ASPIs report, numerous companies and brands have released statements regarding their connections to Uyghur forced labor, with some taking direct action to end their complicity in supply chains corrupted by modern day slavery. They added: The tainted global supply chain that results from these practices means that it is now difficult to guarantee that products manufactured in China are free from forced labour., This is a BETA experience. Several major companies have reportedly fought efforts to end the practice of forced labor specifically the Uyghur Forced Labor Prevention Act, which passed the House by a vote of 403-6 in September. Primark has been involved in child labor and modern slavery scandals before. The paper also described government incentives such as tax breaks and subsidies for Chinese companies to take Uighurs. Nike and Coca-Cola Lobby Against Xinjiang Forced Labor Bill This op-ed was originally published by the New York Times on January 20, 2021. It 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 People's Republic of China, or produced by certain entities, is prohibited by . Please immediately end any sourcing from companies complicit in using forced labor, and discontinue any business relations with them. Here are some of the 83 brands listed in the report as being connected to those factories using forced labor. The Uyghur Forced Labor Prevention Act: What U.S. Companies with China Uyghur Forced Labor Prevention Act Becomes Law - ArentFox Schiff Additional license requirements apply to exports, re-exports, and transfers (in-country) of items subject to the EAR to listed entities, and the availability of most license exceptions is limited. Official websites use .gov Among the required elements of the Task Force Strategy Report are lists of entities meeting the characteristics outlined at Section 2(d)(2)(B) of the UFLPA at (i), (ii), (iv) and (v). Apple suppliers linked to Uyghur forced labor in new report Your companys response to the Washington Post, by your spokesperson has been disappointingly inadequate. DHS issued a Notice Seeking Public Comments in the Federal Register on January 24, 2022 on methods to prevent the importation of goods produced using forced labor from the People's Republic of China, specifically from the Xinjiang Uyghur Autonomous Region. Many Chinese have called for boycotts,. The guidance referenced above under Section 2(d)(6) is not expected until closer to June 21, 2022, as part of the Task Force Strategy Report, and thus companies may not know for some time what are the due diligence, effective supply chain tracing, and supply chain management measures that will meet CBP standards. Hoshine Silicon Industry (Shanshan) Co., Ltd. Xinjiang East Hope Nonferrous Metals Co., Ltd. Xinjiang GCL New Energy Material Technology Co., Ltd. Xinjiang Production and Construction Corps (XPCC). Hefei Bitland Information Technology Co. Ltd. Hoshine Silicon Industry (Shanshan) Co., Ltd., and Subsidiaries. Secure .gov websites use HTTPS Apple spokesman Josh Rosenstock said the company has confirmed that Lens Technology has not received any labor transfers of Uighur workers from Xinjiang. manufacturing also using Uighur workers?https://t.co . Major solar companies including GCL-Poly, East Hope Group, Daqo New Energy, Xinte Energy and Jinko Solar are named in the report as bearing signs of using some forced labor, according to. China is using the 2022 Winter Olympics to "legitimize its human rights abuses," a human rights . We will continue doing all we can to protect workers and ensure they are treated with dignity and respect, the spokesperson said. These categories appear likely to include additional manufacturers and intermediate supply chain participants outside of the XUAR. 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. Nike, H&M face China fury over Xinjiang cotton 'concerns' Products made with such labor will be covered by the laws rebuttable presumption, even if they are produced in other regions of China. In 2022, legal developments look to focus the attention of the business community on ethics in the supply chain and introduce new due diligence and compliance challenges. 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. Preparing for June 21, 2022 Rebutting the Forced Labor Presumption What to Know - Effective June 21, 2022, 180 days after enactment of the Uyghur Forced Labor Prevention Act (UFLPA), a rebuttable presumption will apply that goods produced in whole or part in the Xinjiang Uyghur Autonomous Region (XUAR) of the People's Republic of China (PRC) are produced with forced labor and banned from US importation, unless the importer can provide "clear and convincing . Baoding LYSZD Trade and Business Co., Ltd. Changji Esquel Textile Co. Ltd. (and one alias : Changji Yida Textile), Hetian Haolin Hair Accessories Co. Ltd. (and two aliases: Hotan Haolin Hair Accessories; and Hollin Hair Accessories), Hetian Taida Apparel Co., Ltd (and one alias: Hetian TEDA Garment), Hoshine Silicon Industry (Shanshan) Co., Ltd (including one alias: Hesheng Silicon Industry (Shanshan) Co.) and subsidiaries, Xinjiang Daqo New Energy, Co. Ltd (including three aliases: Xinjiang Great New Energy Co., Ltd.; Xinjiang Daxin Energy Co., Ltd.; and Xinjiang Daqin Energy Co., Ltd.), Xinjiang East Hope Nonferrous Metals Co. Ltd. (including one alias: Xinjiang Nonferrous), Xinjiang GCL New Energy Material Technology, Co. Ltd (including one alias: Xinjiang GCL New Energy Materials Technology Co.).
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