Practical Implications of the U.S. Uyghur Forced Labor Prevention Act for European Companies

Patrick Spaeth, Dr. Felix Helmstaedter, and Dr. Felix R. Werner authored an article for Export Compliance Manager explaining the Uyghur Forced Labor Prevention Act (UFLPA), which strengthens the existing prohibition of importation of goods manufactured by forced labor, and could have implications for European companies with business ties to China.

“The UFLPA strengthens the existing prohibition of importation of goods manufactured by forced labor by introducing a rebuttal presumption that all goods ‘mined, produced, or manufactured wholly who in part’ in XUAR [Xinjiang Uyghur Autonomous Region], or produced by certain yet-to-be-identified entities, are made with forced labor and, therefore, are automatically prohibited from importation into the United States effective June 21, 2022,” the authors wrote. “This comes after U.S. Customs and Border Protection issued a withhold release order to ban cotton and tomato products from XUAR in January 2021. The UFLPA now essentially shifts the burden of proof from the government to individual importers and businesses. Additionally, the Act strengthens the U.S. President’s authority to sanction foreign persons responsible for serious human rights abuses related to forced labor.”

Read the full article (subscription required).