Forced Labor: Supply Chain Business Advisory 

State, Treasury, Commerce, Homeland Security, U.S. Trade Representative, and the Department of Labor Issue Joint Alert

Posted

An Addendum to the 2021 Updated Xinjiang Supply Chain Business Advisory calls attention to the China’s ongoing genocide and crimes against humanity in Xinjiang and the evidence of widespread use of forced labor there.

The addendum urges businesses and individuals to continue to undertake appropriate human rights due diligence measures to identify potential supply chain links to entities operating in Xinjiang, entities linked to Xinjiang (e.g., through the pairing program, Xinjiang supply chain inputs, or the Xinjiang Production and Construction Corps (XPCC)), entities included in the UFLPA Entity List, or entities using the labor of Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups from Xinjiang.

The addendum focuses on potential supply chain exposure from entities engaged in human rights abuses through the sourcing of goods from Xinjiang, or from entities elsewhere in the People’s Republic of China (PRC) connected to the use of forced labor of individuals from Xinjiang, including entities employing Uyghurs through state-sponsored “poverty alleviation” programs, or from entities outside of the PRC that source inputs from Xinjiang.

The Addendum highlights the following:

  • Reports from both governmental and non-governmental sources that contain information about the ongoing, widespread, and pervasive risks in supply chains posed by state-sponsored forced labor and other human rights abuses in Xinjiang.
  • The urgency for businesses to undertake appropriate human rights due diligence measures as described in the Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China.  This guidance is issued pursuant to the Uyghur Forced Labor Prevention Act.

Updated Xinjiang Supply Chain Business Advisory

On July 13, 2021, the U.S. Department of State, alongside the U.S. Department of the Treasury, the U.S. Department of Commerce, the U.S. Department of Homeland Security, the Office of the U.S. Trade Representative, and the U.S. Department of Labor issued an updated Xinjiang Supply Chain Business Advisory to highlight the heightened risks for businesses with supply chain and investment links to Xinjiang, given the entities complicit in forced labor and other human rights abuses there and throughout China. This updates the original Xinjiang Supply Chain Business Advisory issued by U.S. government agencies on July 1, 2020.

The People’s Republic of China (PRC) government continues its horrific abuses in the Xinjiang Uyghur Autonomous Region (Xinjiang) and elsewhere in China, targeting Uyghurs, ethnic Kazakhs, and ethnic Kyrgyz who are predominantly Muslim, and members of other ethnic and religious minority groups.  These abuses include widespread, state-sponsored forced labor and intrusive surveillance, forced population control measures and separation of children from families, mass detention, and other human rights abuses amidst ongoing genocide and crimes against humanity.  Given the severity and extent of these abuses, businesses and individuals that do not exit supply chains, ventures, and/or investments connected to Xinjiang could run a high risk of violating U.S. law.

The updated advisory highlights:

  • Information related to widespread, state-sponsored forced labor and intrusive surveillance in and related to Xinjiang;
  • Information related to the various kinds of risks and potential exposure to state-sponsored forced labor and human rights abuses related to Xinjiang;
  • The U.S. Department of State Guidance on Implementing the “UN Guiding Principles on Business and Human Rights” for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities;
  • Information for investors in PRC companies linked to surveillance in Xinjiang;
  • Information on due diligence related to banking, financial institutions and other investors;
  • Information from the Office of the U.S. Trade Representative and the U.S. Department of Labor;
  • Updated information about U.S. government actions taken in response to human rights abuses in and in connection to Xinjiang, including but not limited to the issuance of Withhold Release Orders by U.S. Customs and Border Protection, the addition of entities to the U.S. Department of Commerce Entity List, the imposition of economic sanctions by the U.S. Department of the Treasury, the imposition of visa restrictions by the U.S. Department of State, and the addition of goods to the U.S. Department of Labor’s List of Goods Produced by Child Labor or Forced Labor(Annex 1);
  • Information on forced labor in the Xinjiang silicon and polysilicon supply chain and the prevalence of inputs sourced from Xinjiang (Annex 4); and
  • A list of other countries’ regulatory provisions and information on forced labor in supply chains (Annex 7).

Labor Department Lists 

The Bureau of International Labor Affairs (ILAB) maintains a list of goods and their source countries which it has reason to believe are produced by child labor or forced labor in violation of international standards, as required under the Trafficking Victims Protection Reauthorization Act (TVPRA) of 2005 and subsequent reauthorizations.

The Frederick Douglass Trafficking Victims Prevention and Protection Reauthorization Act of 2018 expanded this mandate to require the TVPRA List to also include, "to the extent practicable, goods that are produced with inputs that are produced with forced labor or child labor."

DOL’s Office of Child Labor, Forced Labor, and Human Trafficking is identifying downstream products containing goods that ILAB has reason to believe are produced with forced labor or child labor for inclusion on the List. [Review DOL Lists]

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