CBP Reviewing First Two 'Exception Requests' for Goods Detained Under UFLPA, Agency Official Says

CBP has now received two “exception requests” seeking to rebut the presumption that goods produced in Xinjiang were produced with forced labor, said CBP’s Therese Randazzo, special adviser in the agency’s Forced Labor Division, during a webinar hosted by CBP on Jan. 26.

“Both requests are under review,” Randazzo said. Previously, CBP had only received applicability requests seeking to demonstrate detained goods weren’t produced in Xinjiang, she said. Under the Uyghur Forced Labor Prevention Act, there is a “rebuttable presumption” that goods produced in Xinjiang are made with forced labor and inadmissible. CBP had not received any exception requests as of late October (see 2210250025).

During the webinar, Randazzo gave an overview of CBP’s timeline for review of shipments detained for forced labor. She said the time frame can be dependent on the product itself, the complexity of the documentation provided and the complexity of the supply chain, as well as on the workload of the Center of Excellence and Expertise handling the request.

For example, if the detained product is one that must be traced all the way back to the raw material -- as is the case with solar and cotton products -- “that tends to be a very long and complex supply chain,” adding to the time required to review it, Randazzo said.

Once the admissibility package is sent to the relevant Center, that Center then will review the package in the order received, Randazzo said. That means the time frame is “somewhat dependent on the workload in the center and how many packages they have,” she said.

Once the Center takes a look at the package and determines whether it is complete, the Center will reach back out to the importer “to let you know what additional information is required,” Randazzo said. That communication will not come on a CBP Form 28, she said.

Generally, it only takes a few weeks for the Center to complete the review, though that varies between Centers and supply chains. “The process does get faster once the Center is familiar with the supply chain and once the importer is accustomed to providing the documentation because the packages then tend to be more complete from the first submission, she said. Overall the process can take from several weeks to several months.

Randazzo cautioned that just because CBP allows a detained shipment in, “that does not necessarily mean that future shipments” of similar merchandise “will not be detained because the risk may still exist.” Each shipment “stands on its own,” whether or not the supply chain is identical to a shipment that was previously released, she said.

Officially, the detention period for forced labor goods is 30 days, but importers can request that period be extended, Randazzo said. The 30-day period only triggers the right for the importer to protest. “But if you don’t protest, the detention can just continue until CBP completes review on the packages.”

Randazzo said that just because a company is not listed on the UFLPA Entity List does not mean it’s not at risk for being associated with a company that is listed. While the Entity List will specify whether or not the listing includes subsidies or affiliates or other companies, “an entity that is associated with an entity that is on the Entity List would be considered higher risk even if that party is not named on the list, because of the risk of goods being shipped via that other company,” she said. “So that is a factor to consider in your supply chains even if the entity is not specifically named on the Entity List.