New US Clampdown on Goods from Chinese Firms Using Forced Labor

US importers take note: The Department of Homeland Security is intensifying its scrutiny on goods potentially produced using forced labor. The recent extension of restrictions includes three additional Chinese companies, dealing in seafood, aluminum, and footwear, now listed under the Uyghur Forced Labor Prevention Act (UFLPA) entity list.

As of Wednesday, Customs and Border Protection (CBP) has enforced a “rebuttable presumption” that goods produced by these entities are prohibited from entering the United States. The CBP stated, “By identifying entities found to utilize and/or facilitate the forced labor of Uyghurs and other persecuted groups from the Xinjiang Uyghur Autonomous Region, the entity list provides companies with more information about the potential involvement of forced labor in their supply chains.”

Secretary of Homeland Security Alejandro Mayorkas emphasized, “The Department of Homeland Security will not tolerate forced labor in US supply chains and will enforce our laws across all industries and sectors. We will continue to investigate companies that use or facilitate forced labor and will hold those entities responsible. We urge stakeholders across industry, civil society, and our international partners to work with us to eliminate the scourge of forced labor.”

The products affected span a wide range, including agriculture, apparel, batteries, chemicals, electronics, food additives, household appliances, nonferrous metals, polysilicon, and plastics.

This week, the three companies added to the restricted list are:

1. Shandong Meijia Group (Rizhao Meijia Group): This company processes, sells, and exports frozen seafood products, vegetables, quick-frozen convenience food, and other aquatic foods. John Williams, executive director of the Southern Shrimp Alliance, noted, “Shrimp supply chains have a disturbing pattern of profiting from the globe’s most vulnerable populations. Argentinian red shrimp packed by Uyghurs in Chinese seafood processing plants should not be competing with wholesome products in American grocery stores.”
2. Dongguan Oasis Shoes
3. Xinjiang Shenhuo Coal and Electricity Co.

The CBP began enforcing the UFLPA entity list two years ago and has reviewed approximately 8,500 shipments to date. This enforcement is part of a broader examination of US imports, with increased reporting and scrutiny, especially in the e-commerce sector. Notably, the US is not alone in this effort; Indonesia announced this week its investigation into e-commerce platforms Shopee and Lazada, the Southeast Asia arm of Alibaba, for suspected violations of anti-competition rules.

The addition of these companies to the restricted list marks a significant step in the US’s ongoing efforts to combat forced labor and ensure ethical supply chains.