Congressional Actions Indicate Forced Labor Enforcement 'Likely to Ramp Up Further,' Trade Lawyer Says

Forced labor enforcement is "likely to ramp up even further" based on the inquiry of automakers led by Sen. Ron Wyden, D-Ore., and a letter from the Congressional-Executive Commission on China, international trade lawyer at Sidley Austin LLP Ted Murphy said April 13. Wyden's investigation, which began last December, focuses on automakers and their use of forced labor in the supply chain (see 2212220045). Wyden's role as Senate Finance Committee chairman means the investigation on the auto industry's supply chains and their connection to Xinjiang "is likely going to spur CBP into action," and auto manufacturers and suppliers will likely see increased UFLPA detentions, according to Murphy.

Murphy also noted that the lead sponsors of the Uyghur Forced Labor Prevention Act joined the CECC letter on UFLPA implementation. Their letter to Department of Homeland Security Undersecretary Robert Silvers stressed that they "remain concerned that Congress lacks sufficient information and transparency" to assess whether or not the UFLPA is being enforced the way it was intended to be enforced (see 2304110034). This letter indicates that lawmakers who wrote the bill expect both CBP and DHS to be doing more, according to Murphy. "At a minimum, we expect that the UFLPA Entity List will be expanded (probably significantly) relatively soon," Murphy added.

"This is a difficult issue -- tracing the supply chain of a product back to its raw materials (particularly when there may not have been a commercial or other reason to do so before the UFLPA came into effect less than a year ago) is challenging," Murphy said. "That said, all companies that import articles from China, or articles produced elsewhere using at least some China-origin inputs, need to be prepared to meet the challenge."