DHS Adds Five Companies to Forced Labor List

Posted

Continuing its efforts to highlight what it labels  “ongoing genocide and crimes against humanity “against Uyghurs and other religious and ethnic minority groups in the Uyghur Region of Western China,   The US Department of Homeland Security announced the addition of five Chinese entities  to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, bringing the total entities listed to 73

Effective August 9, 2024, U.S. Customs and Border Protection (CBP) will apply a rebuttable presumption that goods produced by the five firms,  a copper miner, a constructions engineering firm, and three magnesium-related concerns, will be prohibited from entering the United States.

The Forced Labor Enforcement Tash Force (FLETF) finds that two entities are working with forced labor of Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups;  and two entities meet the criteria for inclusion because they source material from entities associated with government labor schemes that use forced labor.  One entity meets both criteria

 The UFLPA Entity List includes companies that are active in the apparel, agriculture, polysilicon, plastics, chemicals, batteries, household appliances, electronics, and food additives sectors, among others. Identifying these additional entities provides U.S. importers with more information to conduct due diligence and examine their supply chains for risks of forced labor to ensure compliance with the UFLPA.

“Today's announcement strengthens our enforcement of the Uyghur Forced Labor Prevention Act and helps responsible companies conduct due diligence so that, together, we can keep the products of forced labor out of our country, “ said Secretary of Homeland Security Alejandro Mayorkas.  “We will continue to implement this law with full force in our efforts to fight the exploitation and abuse of the Uyghur people and other persecuted groups and protect a free and fair market.”

The FLETF contends that two entities are working with forced labor of Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups, and two entities meet the criteria for inclusion because they source material from entities associated with government labor schemes that uses forced labor; and one entity meets both criteria

Entities Added to the UFLPA List

Xinjiang Habahe Ashele Copper Co., Ltd. is a company located in the XUAR that mines nonferrous metals, including zinc, copper and silver. Xinjiang Habahe Ashele Copper Co., Ltd. is a subsidiary of one of the world’s largest mining company, and produces approximately 10% of that company’s copper and silver. The United States Government has reasonable cause to believe, based on specific and articulable information, that Xinjiang Habahe Ashele Copper Co., Ltd. works with the government of the XUAR to recruit, transport, transfer, harbor, or receive Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Xinjiang Habahe Ashele Copper Co., Ltd. works with the Habahe County government of the XUAR to recruit Kazakh workers through PRC labor programs to mine metals, such as zinc, copper, and silver in the XUAR . The FLETF therefore determined that the activities of Xinjiang Habahe Ashele Copper Co., Ltd. satisfy the criteria for addition to the UFLPA Entity List described in section 2(d)(2)(B)(ii).

Kashgar Construction Engineering (Group) Co., Ltd. is a company based in Kashgar, Xinjiang, China, that manufactures structural components and materials for construction, and is  engaged in general construction, construction engineering and operations, and real estate development and operations. The United States Government has reasonable cause to believe, based on specific and articulable information, that Kashgar Construction Engineering (Group) Co., Ltd. works with the government of the XUAR to recruit, transport, transfer, harbor, or receive Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Kashgar Construction Engineering (Group) Co., Ltd. has repeatedly participated in the transfer and recruitment of ethnic minorities from Xinjiang, including Uyghurs, through Jiashi County Xinjiang government labor programs. The FLETF therefore determined that the activities of Kashgar Construction Engineering (Group) Co., Ltd. satisfy the criteria for addition to the UFLPA Entity List described in section 2(d)(2)(B)(ii).

Century Sunshine Group Holdings, Ltd. is a company based in Hong Kong that manufactures magnesium fertilizer and magnesium alloys. The United States Government has reasonable cause to believe, based on specific and articulable information, that Century Sunshine Group Holdings, Ltd. sources material, specifically magnesium, from the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Century Sunshine Group Holdings, Ltd. has established its magnesium production base in the XUAR through its vertically-integrated subsidiaries, and sources magnesium from the XUAR. The FLETF therefore determined that the activities of Century Sunshine Group Holdings, Ltd. satisfy the criteria for addition to the UFLPA Entity List described in section 2(d)(2)(B)(v).

Rare Earth Magnesium Technology Group Holdings, Ltd. is a company based in Hong Kong that manufactures and sells magnesium alloy products. The United States Government has reasonable cause to believe, based on specific and articulable information, that Rare Earth Magnesium Technology Group Holdings, Ltd. sources material, specifically magnesium, from the XUAR.  Information reviewed by the FLETF, including publicly available information, indicates that Rare Earth Magnesium Technology Group Holdings, Ltd., a principal subsidiary of Century Sunshine Group Holdings, Ltd., operates Century Sunshine Group Holdings, Ltd.’s magnesium product business, and sources magnesium from its magnesium production base located in the XUAR. The FLETF therefore determined that the activities of Rare Earth Magnesium Technology Group Holdings, Ltd. satisfy the criteria for addition to the UFLPA Entity List described in section 2(d)(2)(B)(v).

Xinjiang Tengxiang Magnesium Products Co., Ltd. is a company based in Hami, Xinjiang, China, that manufactures magnesium and magnesium alloy products. The United States Government has reasonable cause to believe, based on specific and articulable information, that Xinjiang Tengxiang Magnesium Products Co., Ltd. works with the government of the XUAR to recruit, transport, transfer, harbor, or receive Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR. Information reviewed by the FLETF, including publicly available information, indicates that Xinjiang Tengxiang Magnesium Products Co., Ltd. receives Uyghurs or members of other persecuted groups that the local Yizhou District government transfer from Xinjiang.  The United States Government also has reasonable cause to believe, based on specific and articulable information, that Xinjiang Tengxiang Magnesium Products Co., Ltd. sources material, specifically the raw materials required to produce magnesium, such as coal and dolomite, from the XUAR.  Information reviewed by the FLETF, including publicly available information, indicates that Xinjiang Tengxiang Magnesium Products Co., Ltd., a wholly-owned subsidiary of Rare Earth Magnesium Technology Group Holdings, Ltd. and a principal subsidiary of Century Sunshine Group Holdings, Ltd., operates a magnesium production facility in the XUAR and sources raw materials from the XUAR, including coal and dolomite, to produce magnesium. The FLETF therefore determined that the activities of Xinjiang Tengxiang Magnesium Products Co., Ltd. satisfy the criteria for addition to the UFLPA Entity List described in sections 2(d)(2)(B)(ii) and 2(d)(2)(B)(v).


This expansion of the UFLPA Entity List reflects DHS’s prioritization of efforts to combat the introduction of forced labor into U.S. supply chains. This commitment is outlined in the Department’s recent Quadrennial Homeland Security Review, which added combating crimes of exploitation, including labor exploitation, as the newest and sixth DHS mission.  Last month, DHS published updates to the UFLPA strategy, which outlines how the FLETF has significantly advanced our objectives through several initiatives including strong enforcement by CBP; expansion of the UFLPA Entity List; designating new high priority sectors for enforcement; and greater collaboration with stakeholders.

Uyghur Forced Labor Prevention Act Entity List

 

Comments

No comments on this item Please log in to comment by clicking here