Key Developments in UFLPA Enforcement

The list of products and suppliers subject to the UFLPA is growing

A recent report by the University of Sheffield analyzed the multitude of areas where the automotive supply chain has ties to Uyghur labor and thus may become subject to the UFLPA’s rebuttable presumption of forced labor. The report focused on a number of product categories involved in the automotive supply chain, including steel, aluminum, copper, batteries, and electronics.

The report recommends that automotive companies: (i) map their supply chains to understand their risks related to Uyghur labor; (ii) extricate themselves from supply relationships with ties to forced labor; (iii) prioritize human rights due diligence efforts in areas that might have ties to Uyghur labor; and (iv) remediate harms where possible.

In light of the findings from this report and others, many of those interested in this space have predicted that 2023 will see an increased focus on the importation of aluminum products by regulators. This is in addition to the three key targeted sectors of cotton, tomatoes and polysilicon.

Commentators have also predicted that the list of prohibited entities will continue to grow, making more imports fall under the scope of the Act.

US Government guidance on demonstrating your imports are not subject to the UFLPA

There have not yet been any reports to Congress pursuant to UFLPA § 3(c) of companies successfully rebutting the presumption of forced labor for goods which are subject to the Act. This is to be expected given the high burden of persuasion and the difficulty in obtaining reliable information from suppliers who would be subject to the Act.

Most companies have opted to focus their UFLPA compliance efforts around ensuring their imports do not fall within the scope of the Act, ie ensuring their imports are not subject to the rebuttable presumption.

The US Government has recently provided helpful guidance for practitioners to demonstrate that products which have been detained are not subject to the Act. They prepared a report detailing Best Practice for Applicability Reviews and also provided Guidance on Executive Summaries and Tables of Contents.

 The US Government is continuing its work to provide companies with the tools necessary to comply with its renewed focus on eradicating human rights violations from international supply chains.

Disclaimer: The information in this article is provided for informational purposes only. You should consult with an attorney before you rely on this information. This information should not be seen as legal advice and does not create an attorney-client relationship. This article is meant to be a general discussion and may not include all relevant information regarding the issues covered.