I think as an industry, the trade community will continue to encounter customs issues related to forced labor and knowledge of a company’s supply chains. Forced labor is no longer just a US issue but a global issue, with many countries initiating or considering import bans of products made with forced labor, particularly from the Xinjiang Uyghur Autonomous Region (XUAR). In fact, the International Labor Organization (ILO) recently issued the ILO Protocol on Forced Labor, which aims to strengthen global efforts toward trafficking and slavery-like practices.
Since the implementation of the Uyghur Forced Labor Prevention Act (UFLPA), US Customs and Border Protection (CBP) has targeted hundreds of shipments for potential UFLPA violations. In fact, CBP publishes the statistics in its Monthly Operational Update.
Getting caught up in a detention can result in lengthy and very costly delays for importers. In some instances, an importer may choose to re-export the shipment if they feel that they cannot substantiate that the goods were not made with forced labor. However, companies may find themselves in a difficult situation with customers looking for their goods and with suppliers who refuse to accept returned goods.
Customs authorities expect that companies will have knowledge of their supply chains, particularly for products which are made in the XUAR region or could potentially fall within another forced labor case, whether in the US or in another country. Companies should evaluate their imported products for potential forced labor risk factors and work closely with Tier One suppliers to assist with a deeper dive into the lower-tier suppliers. Keep in mind that if you are shipping products internationally, particularly from China, you may run into forced labor issues in countries outside of the US as well.