UFLPA Entity List Will Now Restrict Goods from 73 PRC-Based Companies from Entering the United States
WASHINGTON – Today, the U.S. Department of Homeland Security (DHS) announced the addition of five entities based in the People’s Republic of China (PRC) to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, bringing the total entities listed to 73. These additions build on DHS’s commitment to eradicate forced labor and promote accountability for the PRC’s ongoing genocide and crimes against humanity against Uyghurs and other religious and ethnic minority groups in the Xinjiang Uyghur Autonomous Region (XUAR).
Effective August 9, 2024, U.S. Customs and Border Protection (CBP) will apply a rebuttable presumption that goods produced by Century Sunshine Group Holdings, Ltd., Kashgar, Construction Engineering (Group) Co.; Ltd., Rare Earth Magnesium Technology Group Holdings, Ltd.; Xinjiang Habahe Ashele Copper Co., Ltd., and Xinjiang Tengxiang Magnesium Products Co., Ltd. will be prohibited from entering the United States.
“As DHS identifies more entities across different sectors that use or facilitate forced labor, we act to keep their tainted goods out of our nation’s supply chains,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Today's announcement strengthens our enforcement of the Uyghur Forced Labor Prevention Act and helps responsible companies conduct due diligence so that, together, we can keep the products of forced labor out of our country. We will continue to implement this law with full force in our efforts to fight the exploitation and abuse of the Uyghur people and other persecuted groups and protect a free and fair market.”
Including the five entities identified today, the FLETF – chaired by DHS and whose member agencies also include the Office of the U.S. Trade Representative and the U.S. Departments of Commerce, Justice, Labor, State, and the Treasury – has added 73 entities to the UFLPA Entity List since the UFLPA was signed into law in December 2021. The UFLPA Entity List includes companies that are active in the apparel, agriculture, polysilicon, plastics, chemicals, batteries, household appliances, electronics, and food additives sectors, among others. Identifying these additional entities provides U.S. importers with more information to conduct due diligence and examine their supply chains for risks of forced labor to ensure compliance with the UFLPA.
“We have shown again through today’s enforcement actions that the United States is committed to keeping goods made with forced labor out of U.S. supply chains,” said DHS Under Secretary for Policy Robert Silvers, who serves as Chair of the FLETF. “Companies must conduct due diligence and know where their products are coming from. The Forced Labor Enforcement Task Force will continue to designate entities in a variety of sectors that meet the criteria for inclusion on the UFLPA Entity List, and U.S. Customs and Border Protection will continue its vigilant enforcement at our ports.”
The FLETF has reasonable cause to believe, based on specific and articulable information, that two entities meet the criteria for inclusion under Section 2(d)(2)(B)(ii) of the UFLPA by working with the government of the XUAR to recruit, transport, transfer, harbor or receive forced labor of Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR; two entities meet the criteria for inclusion under Section 2(d)2(B)(v) of the UFLPA, which identifies facilities and entities that source material from the XUAR or from persons working with the government of Xinjiang or the Xinjiang Production and Construction Corps for purposes of the “poverty alleviation” program or the “pairing-assistance” program or any other government labor scheme that uses forced labor; and one entity meets both criteria under Sections 2(d)(2)(B)(ii) and (v) of the UFLPA.
Xinjiang Habahe Ashele Copper Co., Ltd. is a company located in the XUAR that mines nonferrous metals, including zinc, copper and silver. Xinjiang Habahe Ashele Copper Co., Ltd. is a subsidiary of one of the world’s largest mining company, and produces approximately 10% of that company’s copper and silver. The United States Government has reasonable cause to believe, based on specific and articulable information, that Xinjiang Habahe Ashele Copper Co., Ltd. works with the government of the XUAR to recruit, transport, transfer, harbor, or receive Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Xinjiang Habahe Ashele Copper Co., Ltd. works with the Habahe County government of the XUAR to recruit Kazakh workers through PRC labor programs to mine metals, such as zinc, copper, and silver in the XUAR . The FLETF therefore determined that the activities of Xinjiang Habahe Ashele Copper Co., Ltd. satisfy the criteria for addition to the UFLPA Entity List described in section 2(d)(2)(B)(ii).
Kashgar Construction Engineering (Group) Co., Ltd. is a company based in Kashgar, Xinjiang, China, that manufactures structural components and materials for construction, and is engaged in general construction, construction engineering and operations, and real estate development and operations. The United States Government has reasonable cause to believe, based on specific and articulable information, that Kashgar Construction Engineering (Group) Co., Ltd. works with the government of the XUAR to recruit, transport, transfer, harbor, or receive Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Kashgar Construction Engineering (Group) Co., Ltd. has repeatedly participated in the transfer and recruitment of ethnic minorities from Xinjiang, including Uyghurs, through Jiashi County Xinjiang government labor programs. The FLETF therefore determined that the activities of Kashgar Construction Engineering (Group) Co., Ltd. satisfy the criteria for addition to the UFLPA Entity List described in section 2(d)(2)(B)(ii).
Century Sunshine Group Holdings, Ltd. is a company based in Hong Kong that manufactures magnesium fertilizer and magnesium alloys. The United States Government has reasonable cause to believe, based on specific and articulable information, that Century Sunshine Group Holdings, Ltd. sources material, specifically magnesium, from the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Century Sunshine Group Holdings, Ltd. has established its magnesium production base in the XUAR through its vertically-integrated subsidiaries, and sources magnesium from the XUAR. The FLETF therefore determined that the activities of Century Sunshine Group Holdings, Ltd. satisfy the criteria for addition to the UFLPA Entity List described in section 2(d)(2)(B)(v).
Rare Earth Magnesium Technology Group Holdings, Ltd. is a company based in Hong Kong that manufactures and sells magnesium alloy products. The United States Government has reasonable cause to believe, based on specific and articulable information, that Rare Earth Magnesium Technology Group Holdings, Ltd. sources material, specifically magnesium, from the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Rare Earth Magnesium Technology Group Holdings, Ltd., a principal subsidiary of Century Sunshine Group Holdings, Ltd., operates Century Sunshine Group Holdings, Ltd.’s magnesium product business, and sources magnesium from its magnesium production base located in the XUAR. The FLETF therefore determined that the activities of Rare Earth Magnesium Technology Group Holdings, Ltd. satisfy the criteria for addition to the UFLPA Entity List described in section 2(d)(2)(B)(v).
Xinjiang Tengxiang Magnesium Products Co., Ltd. is a company based in Hami, Xinjiang, China, that manufactures magnesium and magnesium alloy products. The United States Government has reasonable cause to believe, based on specific and articulable information, that Xinjiang Tengxiang Magnesium Products Co., Ltd. works with the government of the XUAR to recruit, transport, transfer, harbor, or receive Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Xinjiang Tengxiang Magnesium Products Co., Ltd. receives Uyghurs or members of other persecuted groups that the local Yizhou District government transfer from Xinjiang. The United States Government also has reasonable cause to believe, based on specific and articulable information, that Xinjiang Tengxiang Magnesium Products Co., Ltd. sources material, specifically the raw materials required to produce magnesium, such as coal and dolomite, from the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Xinjiang Tengxiang Magnesium Products Co., Ltd., a wholly-owned subsidiary of Rare Earth Magnesium Technology Group Holdings, Ltd. and a principal subsidiary of Century Sunshine Group Holdings, Ltd., operates a magnesium production facility in the XUAR and sources raw materials from the XUAR, including coal and dolomite, to produce magnesium. The FLETF therefore determined that the activities of Xinjiang Tengxiang Magnesium Products Co., Ltd. satisfy the criteria for addition to the UFLPA Entity List described in sections 2(d)(2)(B)(ii) and 2(d)(2)(B)(v).
The bipartisan Uyghur Forced Labor Prevention Act, signed into law by President Joseph R. Biden, Jr., in December 2021, mandates that CBP apply a rebuttable presumption that goods mined, produced, or manufactured wholly or in part in the XUAR or produced by entities identified on the UFLPA Entity List are prohibited from importation into the United States unless the Commissioner of CBP determines, by clear and convincing evidence, that the goods were not produced with forced labor. CBP began enforcing the UFLPA in June 2022. Since then, CBP has reviewed over 9,000 shipments valued at more than $3.4 billion under the UFLPA. Additionally, Homeland Security Investigations, through the DHS Center for Countering Human Trafficking, conducts criminal investigations into those engaging in or otherwise knowingly benefitting from forced labor, and collaborates with international partners to seek justice for victims.
Today’s announcement supports President Biden’s Memorandum on Advancing Worker Empowerment, Rights, and High Labor Standards Globally. The memorandum represents the first whole-of-government approach to advance workers’ rights by directing federal agencies engaged abroad to advance international recognized labor rights, which includes DHS’s work implementing the UFLPA.
This expansion of the UFLPA Entity List reflects DHS’s prioritization of efforts to combat the introduction of forced labor into U.S. supply chains. This commitment is outlined in the Department’s recent Quadrennial Homeland Security Review, which added combating crimes of exploitation, including labor exploitation, as the newest and sixth DHS mission. Last month, DHS published updates to the UFLPA strategy, which outlines how the FLETF has significantly advanced our objectives through several initiatives including strong enforcement by CBP; expansion of the UFLPA Entity List; designating new high priority sectors for enforcement; and greater collaboration with stakeholders.
You can read more about the FLETF by visiting: https://www.dhs.gov/uflpa.
