CBP's Leonard Says Transferred Uyghur Workers Won't Be Identified When UFLPA Begins

CBP is ready for the June start date of the Uyghur Forced Labor Prevention Act, John Leonard, deputy executive assistant commissioner of the CBP Office of Trade told a textile conference audience. However, Leonard acknowledged that CBP won't have identified factories outside of the Xinjiang Uyghur Autonomous Region that employ Uyghurs or members of other persecuted groups by the start of enforcement. Those goods are also supposed to be blocked under the UFLPA.

Leonard said at the National Council of Textile Organizations annual meeting in Washington, "What you mentioned is obviously important because it’s in the law. As you know, we don’t get any information from inside China," and so the interagency task force has not been able to determine which factories have Uyghur labor transfers. "We’re going to have to continue to work on that," he said.

Leonard said CBP had contacted almost 2,000 importers who import from XUAR. The agency said in April it would be sending letters to companies that previously imported goods that may be subject to UFLPA (see 2204120043). So far this fiscal year, CBP has seized 624 shipments containing Xinjiang-grown cotton, valued at almost $26 million, he said.

Identifying goods that have Xinjiang inputs but are produced outside China is challenging, he said, adding, "We are getting more and more sophisticated with that." He said they're using artificial intelligence and origin tracing technology.

The NCTO supports a provision in the House China package that would end Chinese exporters' eligibility for de minimis. Asked about the bill, Leonard said it would be a big change for the private sector, to have to pay duty on millions of entries, although "we can turn on a dime and start doing it," he said.

NCTO CEO Kimberly Glas told Leonard her group is very concerned that Shein, a fast fashion company in China, is using Xinjiang cotton and escaping scrutiny because of its reliance on de minimis. "It’s a concern of ours as well," Leonard replied. "We are laser focused on de minimis. Regardless of what happens with the Competes Act, we are moving ahead with rulemaking."