As of June 2022, the Xinjiang import ban is in effect, and now, importers who previously relied on the manufacture of cotton, tomato, or polysilicon products from the region are left scrambling. Whether you’re part of an established corporation or an individual importer, import bans can have a significant impact on your ability to do business. So, as an importer, what do you need to know about the Xinjiang import ban?
The Uyghur Forced Labor Prevention Act (UFLPA), otherwise known as the Xinjiang import ban, prohibits the import of goods from XUAR, citing human rights abuses and forced labor of the Uyghurs. The ban impacts all goods that are mined, produced, or manufactured in Xinjiang, including cotton, tomato and polysilicon products.
Read on to learn more about the specific products being impacted, how the ban will affect your business, and ways that we can help you combat the import ban.
Do you need immediate assistance related to the Xinjiang import ban? We’re here to help. You can schedule a 1-on-1 consultation with our import specialists. We’ll answer all of your questions and review your current import program to determine if and how you’ll be affected by the ban.
The legislation, known as the Uyghur Forced Labor Prevention Act (UFLPA), was signed by the Biden administration in an effort to combat human rights abuses against Uyghur Muslims and other ethnic minorities in China. The human rights violations cited include the detainment of individuals in internment camps, forced labor and forced sterilization.
The bill, signed in December 2021, bans imports from the Xinjiang Uyghur Autonomous Region (XUAR) and imposes sanctions on those responsible for forced labor. The strategy for keeping goods from Xinjiang from being allowed import into the U.S. was created by the Forced Labor Enforcement Task Force.
In addition to the import ban, the U.S. Departments of Commerce and Treasury has imposed restrictions on more than 30 Chinese research institutes and tech entities.
The Forced Labor Enforcement Task Force was created under Section 741 of the United States-Mexico-Canada Agreement Implementation Act. The task force is chaired by the Secretary of Homeland Security and is comprised of representatives from several other government agencies.
Under the UFLPA, the task force must request public comment on how to ensure that goods produced using forced labor do not enter the United States. Comments had to be solicited by Jan. 22 and remain open for 45 days.
Once the 45 days were up, the task force held a public hearing. After the hearing, the task force provided a detailed enforcement strategy. This strategy includes:
The import ban affects any goods “mined, produced or manufactured, wholly, or in part” in the Xinjiang region of China. Any products manufactured in the region are presumed to have been produced using forced labor unless an importer is able to provide “clear and convincing evidence” otherwise. This is known as the “rebuttal process”.
Among the goods impacted by the import ban, some commodities have been identified as high-priority commodities for enforcement. The high-priority products include cotton, tomatoes and polysilicon.
It’s estimated that 20 percent of the world’s cotton and 45 percent of polysilicon is imported from Xinjiang. The polysilicon sourced from Xinjiang is primarily known for its use in the manufacture of solar panels and smartphones.
Additionally, CBP estimates that roughly $9 billion worth of cotton products and $10 million worth of tomato products were imported from China in the past year. However, it’s not known how much of those products were imported specifically from Xinjiang.
If you believe that your imports are affected by the import ban, or you’re unsure of whether or not they are, consult with a Licensed Customs Broker. A customs broker can review your imports and determine whether or not your shipments are compliant with U.S. customs and any import bans.
Prior to the signing of the UFLPA, the U.S. placed bans specifically on cotton and tomato products from the region.
CBP issued a Withhold Release Order (WRO) in 2021 on all cotton and tomato products produced in the Xinjiang region due to forced labor and human rights abuses. The WRO mandated that all products imported from the region be detained. Once detained, the importer has the option to export the goods back out of the country or prove that the goods were not manufactured using forced labor.
The Xinjiang import ban now covers the commodities originally impacted by the WRO as well as all other products produced from that region.
According to Reuters, imports from Xinjiang to the United States rose 116 percent in 2020, accounting for $653.5 million. Those imports accounted for around 4 percent of Xinjiang’s total exports by value, up from less than 2 percent in 2019.
In addition to cotton, tomato and polysilicon products, other goods imported from the region include:
|Year||GDP (in Yuan)||YoY Growth|
Any goods that arrive from Xinjiang after June 21 will be detained by CBP. Importers have 30 days to provide clear and convincing evidence that the goods were not made using forced labor. Otherwise, the Xinjiang products must be re-exported out of the U.S.
According to the UFLPA, that means providing evidence based on three topics:
Additionally, importers and businesses have been warned that any individual or entity with supply chain investments in the Xinjiang region could face legal consequences if they do not comply with the UFLPA. This includes individuals and companies who are linked even indirectly.
The U.S. Departments of State, Treasury, Commerce, Homeland Security and Labor issued the Xinjiang Supply Chain Business Advisory in July of 2021. This advisory provides a full explanation of the situation involving the import ban and human rights abuses.
The advisory also states that potential legal risks of importing goods from XUAR include:
It’s critical that your shipments and imports are compliant with U.S. Customs and any potential import bans. The consequences of non-compliance can be not just financial, but legal as well. Consult with a Licensed Customs Broker and ensure that your imports remain unaffected by the import ban.
Do you need an import compliance manual for your business? Make sure that all of your bases are covered in the event of an inspection by CBP, especially if importing goods that are impacted by an import ban. Read more about import compliance manuals and get help determining if it's the right move for you.
The Forced Labor Enforcement Task Force is responsible for developing the strategy necessary to prevent the import of goods from XUAR and ways to enforce the ban.
Now that the China import ban is in effect, Customs and Border Protection (CBP) will prohibit the entry of all goods from Xinjiang entering the United States, unless specifically requested.
CBP will automatically assume that all goods from the region are produced using forced labor. In order for an importer to ship goods from this region, they must provide “clear and convincing evidence” that the goods or materials were not sourced or produced using forced labor.
If the goods are determined to be acceptable for importation, CBP must submit a public report to Congress within 30 days identifying the specific goods and the evidence for why they should be allowed entry to the U.S.
If your business imports goods made in whole, or in part within the XUAR, you will be affected by the Xinjiang import ban.
This applies to more than just goods directly from Xinjiang too. The ban impacts “downstream” products and goods made “in part” from XUAR. That means that if you’re importing cotton clothing from Vietnam, but your supplier sources their cotton from the Xinjiang region, your clothing imports will also be subject to the import ban.
By not complying with the import ban, you could face both financial and legal consequences. That’s why it’s so important to work with an import specialist. A customs broker can help take a look at your import documents and the products you import to make sure that you’re compliant with the Xinjiang import ban. Additionally, our team can assist you in identifying alternative suppliers for current products that you may import from the XUAR.
The Xinjiang import ban went into effect on Tuesday, June 21, 2022. That marks 180 days from the time that the bill was passed. The ban will remain in effect until Dec. 23, 2029, or until the ban is lifted by the U.S. by certifying that human rights abuses have ended in XUAR.
Import bans can be devastating to a business. Depending on what you’re selling, you may not even know that your goods are being impacted by the ban. Working with an import specialist, like the ones at USA Customs Clearance, can give you peace of mind that your imports will be safely brought into the U.S.
A customs broker’s job is to ensure that your shipment is legal and compliant with U.S. Customs. When non-compliance can lead to heavy legal and financial penalties, as is the case with shipments impacted by the Xinjiang import ban, it’s critical that this process is done right.
Our team can help you review your documents, your imports and your suppliers and ensure that you get an answer to whether or not your shipment is impacted by the import ban. If so, we’ll walk you through the process of what to do next.
Schedule a 1-on-1 consultation with our licensed professionals to get the help and answers you need.