All entities whose supply chains touch the XUAR or any entity on the UFLPA Entity List should undertake due diligence measures to ensure compliance with U.S. laws and trace their supply chains for potential exposure to forced labor. DHS encourages stakeholders in the trade community to closely examine their supply chains to ensure goods imported into the United States are not mined, produced, or manufactured, wholly or in part, with prohibited forms of labor in the XUAR or elsewhere, or by entities on the UFLPA Entity List.

Businesses and individuals should undertake due diligence to ensure compliance with U.S. law and to identify potential supply chain exposure to companies operating in the XUAR, linked to the XUAR (e.g., through the pairing assistance program or XUAR supply chain inputs), or using Uyghur or other minority laborers in the PRC. The financial implications of failing to do so may be significant: Goods containing any input from the XUAR or a company on the UFLPA Entity List are prohibited from entering U.S. commerce unless the importer can satisfy the exacting requirements of Section 3(b) of the UFLPA, outlined above in FAQ #6. In addition, within 30 days of any determination to grant an exception, the Commissioner of CBP must submit to Congress and make available to the public a report outlining the evidence supporting the exception.

Section VI of the FLETF’s UFLPA Strategy provides due diligence and supply chain guidance for importers. CBP’s Operational Guidance for Importers also lists resources available to trade stakeholders to support their ability to conduct supply chain due diligence, tracing, and management, including resources available on CBP.gov and other websites. While systems may vary from industry to industry, an effective due diligence system in any industry may include the following elements:

Engagement with suppliers and other stakeholders to assess and address forced labor risk; Mapping of the supply chain and assessment of forced labor risks along the supply chain from raw materials to production of the imported good; Written supplier code of conduct forbidding the use of forced labor and addressing the risk of use of Chinese government labor schemes; Training on forced labor risks for employees and agents who select and interact with suppliers; Monitoring of supplier compliance with the code of conduct; Remediation of any forced labor conditions identified or termination of the supplier relationship if remediation is not possible or is not timely completed; Independent verification of the implementation and effectiveness of the due diligence system; and Reporting performance and engagement publicly on its due diligence system.

U.S. law also requires importers to exercise reasonable care to ensure that imported goods comply with U.S. laws. The Department of Labor’s Comply Chain application outlines critical elements of a social compliance program. Importers may find additional information on effective forced labor/corporate social responsibility programs on the forced labor page on CBP’s website.

ERCOFTAC adheres to these requirements.