In a Single Action, DHS Adds 26 Entities to the UFLPA Entity List – Importers and Textile Companies Should Expect More Supply Chain Turbulence

See the expanded list here.

Historically, DHS has made additions to the UFLPA Entity List in a more tempered manner, adding only a few companies at a time. Indeed, these substantial additions to the UFLPA Entity List align with our predictions from earlier in the year as discussed in our 2024 Forced Labor Guide.

These actions are part of DHS’s recent Textile Enforcement Plan aimed at combatting illicit trade and leveling the playing field for the American textile industry. This expansion also coincides with the issuance of the first withhold release order by US Customs and Border Protection (CBP) in 17 months.

As the US government continues to add companies to the UFLPA Entity List and increase its forced labor enforcement efforts more generally, importers should pay close attention to how these actions might impact their supply chains.

New Additions to the UFLPA Entity List

The newly added 26 entities include cotton traders and warehouse facilities in China that primarily operate outside of the Xinjiang Autonomous Region (XUAR). The cotton industry is a primary focus for UFLPA enforcement. Statistics from CBP indicate that, following the electronics industry, the apparel and footwear industry has been subject to the second highest number of enforcement actions. According to the DHS announcement, the Forced Labor Enforcement Task Force (FLETF) determined that 21 of the entities source and sell cotton from the XUAR on the wholesale market and five of these entities source cotton from the XUAR.

With these additions, the UFLPA Entity List now includes a total of 65 entities (see here for a full list), which began as 20 entities placed on the original UFLPA Entity List published in June 2022.

The newly added entities include: 

1. Binzhou Chinatex Yintai Industrial Co., Ltd.
2. China Cotton Group Henan Logistics Park Co., Ltd., Xinye Branch
3. China Cotton Group Nangong Hongtai Cotton Co., Ltd.
4. China Cotton Group Shandong Logistics Park Co., Ltd.
5. China Cotton Group Xinjiang Cotton Co.
6. Fujian Minlong Warehousing Co., Ltd.
7. Henan Yumian Group Industrial Co., Ltd.
8. Henan Yumian Logistics Co., Ltd. (formerly known as 841 Cotton Transfer Warehouse)
9. Hengshui Cotton and Linen Corporation Reserve Library
10. Heze Cotton and Linen Co., Ltd.
11. Heze Cotton and Linen Economic and Trade Development Corporation (also known as Heze Cotton and Linen Trading Development General Company)
12. Huangmei Xiaochi Yinfeng Cotton (formerly known as Hubei Provincial Cotton Corporation’s Xiaochi Transfer Reserve)
13. Hubei Jingtian Cotton Industry Group Co., Ltd.
14. Hubei Qirun Investment Development Co., Ltd.
15. Hubei Yinfeng Cotton Co., Ltd.
16. Hubei Yinfeng Warehousing and Logistics Co., Ltd.
17. Jiangsu Yinhai Nongjiale Storage Co., Ltd.
18. Jiangsu Yinlong Warehousing and Logistics Co., Ltd.
19. Jiangyin Lianyun Co. Ltd. (also known as Jiangyin Intermodal Transport Co. and Jiangyin United Transport Co.)
20. Jiangyin Xiefeng Cotton and Linen Co., Ltd.
21. Juye Cotton and Linen Station of the Heze Cotton and Linen Corporation
22. Lanxi Huachu Logistics Co., Ltd.
23. Linxi County Fangpei Cotton Buying and Selling Co., Ltd.
24. Nanyang Hongmian Logistics Co., Ltd. (also known as Nanyang Red Cotton Logistics Co., Ltd.)
25. Wugang Zhongchang Logistics Co., Ltd.
26. Xinjiang Yinlong Agricultural International Cooperation Co.

Implications for Importers

This development carries significant implications for importers. The UFLPA creates a rebuttable presumption that goods produced entirely or partially by entities on the UFLPA Entity List are made using forced labor. Consequently, any products made by these companies or containing components, subcomponents, or raw materials from these companies are barred from entry into the United States. Therefore, importers that use cotton products in their supply chain should conduct supply diligence to ensure they are not sourcing from any of these newly added entities, any other entity on the UFLPA Entity List, and that their supply chain has no nexus to the XUAR.

At least 18 of the newly added entities have been specifically cited in earlier forced labor reports issued by Sheffield Hallam University. This indicates that both CBP and FLETF continue to depend on public reporting, including nongovernment organizations (NGO) reports, to inform their enforcement efforts. As civil society continues to release reports of alleged forced labor use by certain companies and industries, importers should pay attention to whether these reports have any touchpoints with their supply chain, as they can become the next enforcement targets.

Next Steps

As enforcement under the UFLPA continues to intensify, importers should enhance their supply chain diligence to ensure they are not sourcing from companies on the UFLPA Entity List (including the newly added entities), from XUAR, and comply with all US forced labor laws. Importers can achieve this by conducting thorough supply chain reviews, implementing robust compliance programs, and staying informed about UFLPA updates and developments. While the latest action covers textile suppliers, the UFLPA Entity List now covers entities that supply the apparel, agriculture, polysilicon, plastics, chemicals, batteries, household appliances, electronics, and food additives sectors, etc. Thus, importers in all industries should ensure that they have implemented robust supply chain diligence programs.

ArentFox Schiff’s Forced Labor Task Force team was formed to help companies navigate the rules relating to the UFLPA and related forced labor enforcement initiatives. For more information, please contact any author or the ArentFox Schiff attorney you regularly work with.