Late Monday, June 13, 2022, Customs and Border Protection (CBP) issued its long-anticipated Operational Importer Guidance to guide importers before the Uyghur Forced Labor Prevention Act (UFLPA) enters into effect on June 21. As a reminder, beginning on that date, CBP will apply a rebuttable presumption that goods coming from the Xinjiang region violate a long-standing ban on the importation of goods made with forced, indentured, or prison labor. CBP’s guidance is the first of documents expected to be released by federal government officials and provides preliminary background on the expected UFLPA’s process and enforcement, how to request exceptions to the rebuttable presumption, additional resources, and the types and nature of information that CBP may require. The document is available on CBP’s website here.
CBP Hosts Webinar on Uyghur Forced Labor Prevention Act Implementation
On June 1, 2022, US Customs and Border Protection’s (CBP) Office of Trade Relations hosted a webinar on forthcoming implementation of the Uyghur Forced Labor Prevention Act (UFLPA). Half of the webinar focused on the history, enactment, and text of the UFLPA (discussed in this blog’s previous posts here, here, and here), while the second half addressed questions from online attendees.
CBP Releases Known Importer Letters and Enforcement Guidance relating to the Uyghur Forced Labor Prevention Act
Earlier this year, U.S. Customs and Border Protection (CBP) released a statement on its website that it would be issuing letters to importers identified as having previously imported merchandise from locations or entities potentially subject to the Uyghur Forced Labor Prevention Act (UFLPA). Well, CBP stuck to its word and just recently released two sample Known Importer Letters.
“Is Your Organization Complying With the US Uyghur Forced Labor Prevention Act?”
The Uyghur Forced Labor Prevention Act goes into effect on June 21, 2022. The Act creates a rebuttable presumption that “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 by an entity included on a list required by the Act) is prohibited from importation into the US under 19 U.S.C. §1307. What does this mean for your organization? Click here to find out.
The Effects of the Military Conflict in Ukraine on Supply Contracts
Our colleague, Dr. Christopher Eggers, prepared an insight on how the effects of the military conflict in Ukraine are serious, far-reaching and, ultimately, unforeseeable at the present time. Supply relationships will not remain unaffected, and there are numerous questions regarding the consequences under contract law. Read our full insight.
Supply Chain Investigations and Legal Privilege
Regulators worldwide are increasing their demands that manufacturers and retailers know and understand all aspects of their supply chains as they relate to Environmental, Social, and Governance (“ESG”) goals. Keeping the findings, communications, information, and reports generated in connection with supply chain ESG investigations is imperative to ensure full and candid fact-finding and to manage brand integrity effectively. However, maintaining legal confidentiality is challenging when an investigation includes fact-finding of third parties such as suppliers. To learn more on how to keep internal investigations privileged, click here.
Raw Material Surcharges Again on the Cartel Radar – German Authority Raids Cable Companies
In one of the first dawn raids of the New Year, the German competition authority have raided the premises of several cable manufacturers. The investigation arose in response to alleged coordination of metal surcharge calculations.
Establishing Rules of the Road – DHS Soliciting Comments to Support UFLPA Implementation
On January 24, 2022, the Department of Homeland Security (DHS) began soliciting comments on a strategy to ensure goods alleged to have been made with forced labor are not imported into the United States from China, including the Xinjiang region. The comment window reflects the first major requirement of a law passed by Congress addressing forced labor risks in these supply chains, known as the Uyghur Forced Labor Prevention Act (UFLPA, Pub. L. 117-78). Over the coming months, administration officials will craft a strategy to implement UFLPA’s new rebuttable presumption that all goods originating from Xinjiang violate the import ban. Importers must be prepared to face this increased scrutiny of these supply chains.
Fashion Sustainability and Social Accountability Act Proposed in New York
Happy New Year (are we still saying that?) from the Global Supply Chain Law Bog! In our ever-evolving society, the fashion industry has taken new heights. And with those heights, the industry is on pace to account for more than a quarter of the world’s carbon budget, according to the New Standard Institute. Indeed, the group indicates that apparel and footwear are responsible for roughly 4-8.6% of global greenhouse gas emissions. You may be wondering, “but how?” Well after that sweater you bought last year (or even last month!) goes out of style, you may donate it. According to CBS, some of those donations go overseas to Ghana, for example, to be sold. The unsold clothes, however, end up as landfills creating an environmental nightmare.
U.S. House and Senate Reach Agreement on Uyghur Forced Labor Prevention Act
On December 14, 2021, lawmakers in the House and Senate announced that they had reached an agreement on compromise language for a bill known as the Uyghur Forced Labor Prevention Act or “UFLPA.” Different versions of this measure passed the House and the Senate earlier this year, but lawmakers and Congressional staff have been working to reconcile the parallel proposals. The compromise language paves the way for Congress to pass the bill and send it to President Biden’s desk as soon as this week.