US Unveils New UFLPA Entity List Additions of PRC-Based Entities

In August, October, and November, the US Department of Homeland Security (DHS) added several People’s Republic of China (PRC)-based individuals and entities to its Uyghur Forced Labor Prevention Act (UFLPA) Entity List,¹ bringing the list’s total to 107 entities.

THE ADDITIONS

Metal- and Construction-Related  

First, on August 8, 2024, DHS announced the addition of five entities based in the PRC engaged in the following businesses, respectively:

1. Manufacture of magnesium fertilizer and magnesium alloys;
2. Manufacture of structural components and materials for construction; general construction, construction engineering and operations; and real estate development and operations;
3. Manufacture and sale of magnesium alloy products;
4. Mining of nonferrous metals, including zinc, copper, and silver; and
5. Manufacture of magnesium and magnesium alloy products.

Metal- and Sweetener-Related

Second, on October 3, 2024, DHS announced the addition of two entities based in the PRC that are engaged in the following businesses, respectively:

1. Mining of iron ore and manufacture of steel; and
2. Production and sale of aspartame, an artificial sweetener and food additive.

Textile-Related

Third, on October 31, 2024, DHS announced the addition of four companies based in the PRC that are engaged in the following businesses, respectively:

1. Research, ginning, spinning, knitting, and weaving of cotton and cotton products to produce textiles, apparel, and accessories, including packaging and merchandising of these products, as well as the manufacture and processing of textiles and apparel;  
2. Production and sale of cotton and cotton yarn; and
3. Production and sale of cotton yarn.

Agricultural and Other Sectors

Finally, on November 22, 2024, DHS announced the addition of 29 other entities based in the PRC. Twenty-three of those entities operate in the agricultural sector, while the remaining six operate in the food processing, electronic materials, metals, and mining sectors. FLETF also added “a listed entity to an additional UFLPA Entity List sub-list.”

THE REBUTTABLE PRESUMPTION

Entities identified on the UFLPA Entity List are subject to a rebuttable presumption that the importation of goods mined, produced, or manufactured by that entity, either directly or indirectly, is in violation of 19 U.S.C. §1307. Thus, such goods (including downstream products that incorporate inputs related to a UFLPA Entity List entity) are prohibited from entry into the United States unless the presumption is rebutted by “clear and convincing” evidence (which would be very difficult to achieve). Upon addition to the Entity List, an entity may submit a request to the FLETF Chair for removal from the list along with supporting information.

TAKEAWAYS

Concerns Are Not Limited to Uyghur Labor

It is worth noting that all of the above-mentioned entities were added to the UFLPA Entity List either for “working with the government of Xinjiang to recruit, transport, transfer, harbor or receive forced labor or Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of Xinjiang” or sourcing materials from Xinjiang. Notably, one of the entities was designated onto the list for working with a local government in Xinjiang “to recruit Kazakh workers through PRC labor programs,” indicating that the forced labor concerns underlying the UFLPA are not limited to Uyghur labor.

Supplier Due Diligence With Trading Companies Is Important, Too

Equally important, the FLETF appears to follow a priority industry approach in recent UFLPA Entity List designations—the impacted industries include cotton, textile and apparels, critical minerals, and food and agricultural products—and that a significant number of manufacturing entities as well as trading companies were added to the list for Xinjiang-related sourcing. This highlights the importance of proper supplier due diligence, including with trading companies, to effectively manage supply chain disruption risks caused by UFLPA Entity List designations.

Monitoring UFLPA Entity List Updates Is Critical

UFLPA Entity List designations are announced without advance notice and are usually effective the next business day. Parties interested in UFLPA compliance should continue to monitor FLETF’s announcements and modifications to the UFLPA Entity List, take note of FLETF’s enforcement priorities, and adopt effective measures to ensure compliance and protect their supply chains.

¹ The Entity List, developed and maintained by DHS’s Forced Labor Enforcement Task Force (FLETF), is a consolidated list of entities determined by FLETF to 1) mine, produce, or manufacture wholly or in part any goods, wares, articles, and merchandise with forced labor in the Xinjiang Uygur Autonomous Region (XUAR); 2) work with the government of the XUAR region to recruit, transport, transfer, harbor, or receive forced labor or Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR; 3) export products from the PRC to the United States that were produced, mined, or manufactured wholly or in part by entities listed in 1 and 2 above; or 4) source material from the XUAR or from persons working with the government of the XUAR 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.