Major ban on importing goods from Xinjiang into the US

The Trump administration has banned the importation of products which include cotton or tomatoes produced in the Xinjiang region. The ban would not only limit importers from sourcing products directly from the region, but it would also prohibit importing goods from other countries which utilize cotton or tomatoes from the Xinjiang region in its supply chain.

Xinjiang is a major supplier of cotton to the apparel industry. An estimate by the Workers Rights Consortium suggests that cotton sourced from Xinjiang accounts for over $20 billion in retail sales and that US brands & retailers import over 1.5 billion garments from Xinjiang every year.

Bloomberg also reports that: “Tomatoes are also the largest export commodity for the region, with an annual value of more than $500 million.”

The US government has claimed that “the Chinese government has detained more than 1 million Uighurs and other ethnic and religious minorities in “re-education” camps”.

The New York Times has reported that “U.S. Customs and Border Protection said an investigation found numerous indicators of forced labor in Xinjiang, including debt bondage, restriction of movement, withheld wages, and abusive living and working conditions.”

Although it also noted that “the Chinese government denies the existence of forced labor in Xinjiang, saying all arrangements are voluntary”. The Chinese government has argued that the US is attempting to block its economic development and intervene in an internal matter.

In response to this ban, Scott Nova, executive director of the Worker Rights Consortium stated “Any global apparel brand that is not either out of Xinjiang already, or plotting a very swift exit, is courting legal and reputational disaster,”

Several companies have already announced that they are eliminating cotton or yarn sourced from Xinjiang from their supply chain, including Patagonia, Marks and Spencer, and H&M.

Although most people accept that it is very challenging to confirm a product’s supply chain does not include prohibited items, Mark Morgan, the acting commissioner of the US Customs and Border Protection stated that it was the responsibility of the importer to know its supply chains, noting that there is already a ban against forced labor to which importers must adhere.

Given the current state of affairs, and the ethical imperative to avoid contributing to what can be considered forced labor, companies must be vigilant when it comes to their supply chain – even for downstream sub-suppliers. They must take responsibility for ensuring that the individuals contributing to the manufacture of their products are treated properly if they want to maintain the continued support of the informed, millennial consumer.

While that certainly shouldn’t result in a blanket ban of products sourced from China – or other specific countries – it should compel these importers to establish supply chain practices that ensure it is not contributing to human rights abuses. P Miller Legal Services takes immense pride in assisting our clients to establish these practices and ensure that they are participating in an ethical, global 21st century economy.

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.