Importers Face Challenge of Compliance With Unreleased UFLPA 'Strategy' June 21

FORT LAUDERDALE -- With one week remaining, importers find themselves in the position of having to already comply with still unreleased policies as CBP begins enforcement of the rebuttable presumption under the Uyghur Forced Labor Protection Act, speakers said June 14 at a conference. The rebuttable presumption takes effect on June 21.

Overcoming the rebuttable presumption that goods related to China’s Xinjiang province were produced with forced labor will require, among other things, compliance with a strategy document prepared by a CBP forced labor task force, said AnnMarie Highsmith, CBP executive assistant commissioner-trade. But that document likely won’t be released until the day the new provisions take effect, and is still under interagency review, she said at the American Association of Exporters and Importers annual conference.

Adding to the challenge, CBP will require that due diligence be conducted in advance of a shipment in order to overcome the rebuttable presumption, said Eric Choy, acting executive director of CBP’s Trade Remedy and Law Enforcement division. Speaking during a different panel, Choy said it’s too late by the time goods arrive and are detained.

“This due diligence must be done well in advance … when and if a detention does occur,” Choy said. “if you're doing your due diligence, then you should be able to present these documents when requested for those specific entries.”

Further complicating matters, importers must also avoid an “entity list” provided for by UFLPA, which will also likely be released as the law takes effect June 21. Chris Smith of IKEA asked during the panel: “As an importer, how am I supposed to [perform] my due diligence, especially around those entities on both the region and the Greater China entity list? If we're talking about implementation on the same day? That's going to be a challenge. We'll have to see how we, working with CBP, work through some of those questions as we get past” June 21.

CBP has a “plan for every eventuality on that day,” Highsmith said in her speech. “But we all know that life’s uncertain.” The agency will be setting up a “war room” as the rebuttable presumption takes effect, she said. “We will be available for questions, any challenges, anything that goes on that day,” she said. “We don’t want people to not be able to do business because they’re uncertain about next steps.”

Highsmith emphasized there is no “de minimis” exemption to the rebuttable presumption provisions of UFLPA.

Smith highlighted the importance of supply chain mapping for importers that want to be prepared if their shipment is detained, citing a recent CBP webinar on UFLPA where the agency said mapping can be used to demonstrate a shipment isn't subject to UFLPA (see 2205310051). “If your supply chain is clean from the region, that is your first line of defense,” he said. “Test your supply chain and your ability to get those chain of custody documents. Trying to do it when you have a shipment detained is just adding pressure to an already high-stress time frame,” Smith said.