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Understanding the Uyghur Forced Labor Prevention Act

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The Uyghur Forced Labor Prevention Act (UFLPA) is a U.S. legislation aimed at preventing the importation of goods made with forced labor from the Xinjiang Uyghur Autonomous Region (XUAR) in China. The Act establishes a rebuttable presumption that any goods mined, produced, or manufactured wholly or in part in XUAR are made with forced labor, and therefore, prohibited from importation into the United States.

Under this Act, companies must demonstrate that their supply chains are free from forced labor, particularly if they source from regions known for human rights abuses.

What Constitutes Forced Labor Under the UFLPA?

The Act defines forced labor as all work or service which is exacted from any person under the menace of any penalty and for which the person has not offered themselves voluntarily. This includes forced labor practices affecting the Uyghur population and other ethnic and religious minorities in China.

Key Provisions of the UFLPA

1

Rebuttable Presumption

Any goods produced wholly or in part in the Xinjiang region are presumed to be made with forced labor and are therefore prohibited from entering the U.S.

2

Clear and Convincing Evidence

Importers must provide clear and convincing evidence that goods produced in Xinjiang are not made with forced labor to rebut the presumption.

3

Due Diligence and Supply Chain Transparency

Companies must conduct thorough due diligence and maintain transparent supply chains to ensure compliance.

4

Documentation and Reporting

Importers must be prepared to respond to U.S. Customs and Border Protection (CBP) inquiries and provide documentation demonstrating that goods are not produced with forced labor.

The Importance of Compliance With The UFLPA

Under the Uyghur Forced Labor Prevention Act (UFLPA), companies face significant penalties for non-compliance, including the detention, exclusion, or seizure of goods suspected to be produced with forced labor. 

Financial penalties are severe and can escalate with repeated violations. Additionally, companies risk reputational damage, loss of importing privileges, and legal consequences for their directors and officers. 

To avoid these penalties, companies must implement robust due diligence, supply chain tracing, and compliance documentation processes to prove their goods are not linked to forced labor​

Implementing a Compliance Program for UFLPA

The UFLPA requires companies to take comprehensive measures to prevent forced labor in their supply chains. This includes:

Supply Chain Mapping: Identify all suppliers and their sources of materials, especially those connected to XUAR.

Due Diligence: Conduct thorough audits and assessments of suppliers to ensure they comply with labor standards.

Risk Assessment: Identify and mitigate risks of forced labor within operations and supply chains.

Remediation Measures: Develop and implement measures to address any instances of forced labor found.

Training: Provide training for employees and suppliers on forced labor risks and compliance requirements.

Public Disclosure: Maintain transparency by publicly disclosing efforts to combat forced labor in supply chains, and be prepared to respond to U.S. Customs and Border Protection (CBP) inquiries and provide comprehensive documentation demonstrating compliance.

GAN Integrity for UFLPA Compliance

GAN Integrity’s platform is designed to support companies in maintaining robust ESG compliance programs, including anti-forced labor.

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Policy Management

Manage approvals, distribution, and attestation of policies, along with centralized portals for easy access to the latest policies and procedures. Capabilities include:

  • Regulatory change management: Identify policies that require updates and timely distribution to employees in response to regulatory changes.
  • Automated workflow: Optimize the review and approval process for policies, operating procedures, and work instructions with automated workflows.
  • Comprehensive reporting and documentation: Maintain a full audit trail and generate detailed reports to provide clear evidence of compliance to stakeholders and regulators.
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