Last week, on Thursday, December 23, 2021, U.S. President Biden signed the Uyghur Forced Labor Prevention Act into law.
H.R. 6256, which bans imports from the Xinjiang Uyghur Autonomous Region (Xinjiang) of the People’s Republic of China and imposes sanctions on foreign individuals responsible for forced labor in the region.
The bipartisan legislation was first introduced in 2020 by U.S. Senators Marco Rubio (R-FL) and Jeff Merkley (D-OR) along with House Representatives Chris Smith (R-NJ) and James P. McGovern (D-MA).
Under the new law, 180 days after being enacted, there will be an automatic rebuttable presumption that goods connected to China’s Xinjiang province, by inputs or work programs, will be assumed to be made with forced labor. At that time, on June 21, 2022, the President will determine to impose sanctions, as needed. U.S. Customs and Border Protection (CBP) will issue guidance for importers and the trade community regarding evidence criteria and formal filing procedures.
Under H.R. 6256 (Uyghur Forced Labor Prevention Act)
- goods from the Xinjiang region of China;
- goods with inputs from the region;
- factories that employ Uyghur and other minority workers under the government’s ‘‘poverty alleviation’’ and ‘‘pairing assistance’’ labor programs…
…will be assumed to be made with forced labor.
READ THE FULL TEXT: CONGRESS H.R. 6256
3 STEPS FOR IMPORTERS FROM CHINA
- Internal Supply Chain Review: Review your supply chain to determine if any direct goods or raw materials are manufactured in the Xinjiang province.
- Get an Impact Report: If impacted, contact your Customs Broker for a more detailed Impact Analysis Report.
- Update 2022 Strategy: Whether you choose alternative sourcing, to fight the rebuttable presumption, or discontinue a product line, be sure to connect with your Freight Forwarder with a revised 2022 forecast so they can secure space along new trade lanes; the demand for transportation is high and will continue to be tight well into next year.
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