The long-debated Uyghur Forced Labor Prevention Act (UFLPA) has now passed both chambers of Congress with strong bipartisan support, and President Biden is expected to sign the UFLPA into law on or before December 30, 2021. This legislation has the potential to broadly impact industries and companies with supply chain linkages to China.

Application of "Rebuttable Presumption" to Ban Imports

The overarching goal of the UFLPA is to prevent goods made with forced labor by Uyghurs and members of other persecuted groups in the People's Republic of China from entering the U.S. The UFLPA will require the Commissioner of Customs and Border Protection (CBP) to apply a "rebuttable presumption" to any goods that are produced wholly or in part in the Xinjiang Autonomous Uyghur Region (XUAR) or by an entity included on one of the forthcoming entity lists. Such goods will effectively be banned from import under Section 307 of the Tariff Act of 1930, unless the importer can demonstrate applicability of a narrow and difficult to meet exception.

An exception from the rebuttable presumption is available only where the Commissioner of CBP determines that the importer:

• Fully complied with new importer guidance and any regulations issued to implement that guidance;
• Completely and substantively responded to all inquiries for information submitted by the Commissioner of CBP to ascertain whether forced labor was used; and
• Provided "clear and convincing evidence" that the goods were not mined,...

Read Full Story: https://www.mondaq.com/unitedstates/employee-rights-labour-relations/1144960/...