US begins enforcing forced-labor import ban on goods tied to Xinjiang
From June 21, 2022, U.S. Customs and Border Protection presumed that goods made wholly or partly in China's Xinjiang region were made with forced labor and barred them from entry.
On June 21, 2022, U.S. Customs and Border Protection began enforcing the central provision of the Uyghur Forced Labor Prevention Act, a rebuttable presumption that shifted the burden of proof onto importers.
President Joe Biden signed the law, Public Law 117-78, on Dec. 23, 2021. It was the U.S. response to the Chinese government's use of forced labor against Uyghurs and other ethnic minorities in the Xinjiang Uyghur Autonomous Region.
How the presumption worked
Under the law, goods mined, produced or manufactured wholly or in part in Xinjiang, or by an entity on the UFLPA Entity List, are presumed to be made with forced labor. That means they are barred from entry under Section 307 of the Tariff Act of 1930.
CBP applies the presumption unless an importer can show, by clear and convincing evidence, that the goods were not made with forced labor. CBP said that standard requires importers to use due diligence across their supply chains and to respond completely to CBP requests for information about entries under review.
Preparing importers
Ahead of the June 21 date, CBP sent letters to importers it had identified as having brought in merchandise that might be covered by the law. The letters warned that future entries could face enforcement, including seizure, forfeiture and penalties. For members of the Customs Trade Partnership Against Terrorism, the letters added that violations could lead to suspension or removal from the program.
CBP also published operational guidance for importers. It said that not receiving a letter did not mean a supply chain was free of forced labor, and that all importers were expected to review their supply chains.
What it meant for carriers
The law changed how goods with possible links to Xinjiang moved through U.S. ports. When CBP detains a shipment under the law, the importer can submit documentation to prove its goods were not made with forced labor and secure the shipment's release. CBP published an attachment to its notice of detention listing example documents for that purpose.
For drayage and line-haul carriers, the practical effect was more uncertainty on some import loads. A container held for review does not become available for pickup until it is released. Brokers and forwarders working with affected importers had to account for the possibility of holds on shipments whose supply chains ran through the region.