Best practices for compliance and supply chain due diligence still are evolving. Share this article with your friends, and let them know which companies to avoid as well. Companies need to implement robust preventative and transparency measures, with their compliance departmentsnot their communications departmentsleading the way. Apr 9, 2022. Coca-Cola has frequently advocated against racism and discrimination in the U.S. report from the Tech Transparency Project, including internment camps, constant surveillance, mass sterilization, and forced labor, Tesla faced criticism for opening a showroom in the Xinjiang region, Mark Zuckerberg says Meta now has a team building AI tools and personas, Whoops! Senior China researcher explains why viewers should "stay away" from the 2022 Winter Olympics. Major international clothing brands like L.L. Meet The Company Bridging Synthetic Biology Innovation With The World Of Insurance To Ensure Safe Food Production, Theres A New Species Of Magic Mushroom - Named After Paul Stamets, Absci Takes Its Generative AI Antibody Design Platform To Europe, Meet The Startup Thats Putting Ice Factories In Shipping Containers For Winn-Dixie Supermarkets. BOE Technology Group, which supplies screens to Apple, and O-Film, which makes iPhone cameras, both use Uighur labor, either directly or through contractors, the report found. We have not identified additional exporters at this time but will continue to investigate and gather information about additional relevant entities. The laws rebuttable presumption means companies whose supply chains touch Xinjiangor utilize Xinjiang-exported laborwill have to demonstrate by clear and convincing evidence that their products are free of forced labor. The Washington Post reported Tuesday that Apple supplier Lens Technology uses Uighur workers in its factories, according to documents obtained by the Tech Transparency Project. Xinjiang workers have also been placed in factories that are part of Apples supply chains, including a plant in Guangzhou visited by Apple CEO Tim Cook in December 2017. Here are some of the 83 brands listed in the report as being connected to those factories using forced labor. 925) Adidas Amazon private labels American Eagle Outfitters, Inc. Anta Sports Products Ltd. Burberry Group PLC (Burberry) The coalition has published an extensive list of brands it claims continue to source from the region, or from factories connected to the forced labour of Uighur people, including Gap, C&A,. , which revealed a vast network of companies complicit in the use of Uyghur forced labor throughout China. Whenever CBP determines that an exception is appropriate, it is required to make a report to Congressional committees within 30 days. The Tech Transparency Projectsaid a glass supplier was using forced labor in December; Apple said it had seen no evidence of forced labor. As of April 2021, the following global companies and brands are profiting from their use of modern day Uyghur slavery. Although journalists have in the pastlinked Western companies to forced Uighur labor, this is the first time the problem is made apparent on such a large scale, enveloping factories and supply chains across the country. However, a vast majority of implicated brands and companies have not taken any steps to address their ties to Uyghur forced labor. Secure .gov websites use HTTPS Chinas population of Uyghurs, the countrys Muslim ethnic minority, is largely concentrated in the Xinjiang region of China. Working with two human rights groups, the publication identified seven companies that supplied products or services to Apple and supported forced labor programs, according to statements made by the Chinese government. We call for an immediate end to these violations and pledge to work collaboratively with governments, civil society, unions, and multilateral organizations to achieve this goal., @Nike Shameful that an American brand like yours benefit from the labor of the Uyghurs. Official websites use .gov Dont pretend theres not a problem in America. The presumption applies unless the Commissioner of U.S. Customs and Border Protection (CBP) determines that the importer of record has complied with specified conditions and, by clear and convincing evidence, that the goods, wares, articles, or merchandise were not produced using forced labor. Six of the seven suppliers were said to participate in work programs operated by the Chinese government, The Information reports, which human rights groups describe as frequently offering cover for forced labor. Abercrombie & Fitch, Acer Adidas Alstom BAIC Motor BMW Bombardier Bosch BYD Calvin Klein Candy Carter's Cerruti 1881 Changan Automobile Cisco CRRC Electrolux Fila, Founder Group GAC Group (automobiles) Gap Geely Auto General Motors Goertek As for population statistics, China lists Xinjiang's population at 24.5 million, including 12 million Uyghurs and 11 million Chinese as well as one million Kazakhs, Kyrgyz, Huai, and other ethnic. Crypto company Gemini is having some trouble with fraud, Some Pixel phones are crashing after playing a certain YouTube video. Earlier this year, Tesla faced criticism for opening a showroom in the Xinjiang region and was also mentioned as an alleged customer of the aforementioned Lens Technology company in the TTP report from December 2020. Here's the complete list of companies who have not taken steps in agreement with the Call to Action to End Uyghur Forced Labor: Abercrombie & Fitch (Abercrombie & Fitch, Hollister Co., Ruehl No. Amazon is allegedly employing suppliers in China with links to forced labor, according to a report from the Tech Transparency Project (TTP), a research group owned by the nonprofit watchdog organization Campaign for Accountability (via NBC News). On December 23, 2021, President Biden signed into law the Uyghur Forced Labor Prevention Act (UFLPA) to prevent goods made with forced labor in the Xinjiang Uyghur Autonomous Region (XUAR) of China from entering the U.S. market. Primark uses sweatshops to make very low-price clothing. The activists named 38 companies which they say, based on credible news investigations and news reports, have products connected to forced Uighur or Turkic Muslim labor. All the companies that responded said they required suppliers to follow strict labor . The UFLPA now would effectively apply the presumption of forced labor to all goods made in the XUAR without the need for CBP to issue WROs. That timeline will be exacerbated by the expected announcement of additional prohibited companies on June 21, and the potential delay until that day of guidance from CBP on standards to demonstrate that imports are not connected to forced labor. 2023 Vox Media, LLC. U.S. Customs and Border Protection (CBP) Issues Withhold Release Order (WRO): CBP has issued a WRO on silica-based products made by Hoshine Silicon Industry Co., Ltd., a company located in . The period coincides with Chinas campaign ofmass internment of ethnic minorities in Xinjiang, which the government says is needed to root out terrorism and separatism. Even more to the point, how about forced labor right here in the U.S. with our prisons (especially the privatized ones), with our vagrancy laws, our with our use of cheap underpaid and unpaid foreign labor from the very groups that conservatives want to deport unless, of course, these conservatives can make more unbegotten money from their forced labor? Retail giants Nike and H&M are facing a backlash in China after they expressed concern about the alleged use of Uighur forced labour in cotton production. As we made clear during this months G7 summit, the United States is committed to employing all of its tools, including export controls, to ensure that global supply chains are free from the use of forced labor and technology is not misused to abuse human rights, said Secretary of Commerce Gina Raimondo. or https:// means youve safely connected to the .gov website. Looking for the presence of forced labor is part of every supplier assessment we conduct, including surprise audits, spokesman Josh Rosenstock told Apple. The TTP found that three Amazon suppliers Luxshare Precision Industry, AcBel Polytech, and Lens Technology have reportedly used forced labor themselves. Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. The Uyghur Forced Labor Prevention Act (UFLPA) was signed into law by President Biden on December 23, 2021. (See here.) DHS issued a Notice Seeking Public Comments in the Federal Register on January 24, 2022 on methods to prevent the importation of goods produced using forced labor from the People's Republic of China, specifically from the Xinjiang Uyghur Autonomous Region. Major solar companies including GCL-Poly, East Hope Group, Daqo New Energy, Xinte Energy and Jinko Solar are named in the report as bearing signs of using some forced labor, according to. While some of the enforcement specifics of the Uyghur Forced Labor Prevention Act will be clarified over the next six months, it is clear that grand statements from corporations are no longer enough. Chinese parents who have more than a few children are often sent to detention camps or subjected to huge fines, the publication found, and police instill terror into families by raiding homes searching for hidden children. For further inquiries, please contact the UFLPA Entity List Team [email protected]. The report estimates that more than 80,000 Uighurs were transferred to work in factories across China between 2017 and 2019. "Apple has zero tolerance for forced labor," Rosenstock said. Companies doing business in China should consider the following to prepare for the new requirements. Brands Can't Confidently Say No. Apple lists both . CBP has released importer guidance to assist the trade community in preparing for the implementation of the UFLPA rebuttable presumption that goes into effect on June 21, 2022. The programs target the countrys Muslim minority population, particularly Uyghurs living in Xinjiang. Additional license requirements apply to exports, re-exports, and transfers (in-country) of items subject to the EAR to listed entities, and the availability of most license exceptions is limited. From Company-Specific WROs to a Broader Import Ban in the XUAR (Photo by Anna Fifield/The Washington Post via Getty Images), Nike, Adidas, Apple, Microsoft and Samsung are among 83 multinationals that have been linked to forced labor by Uighurs in factories across China, according to a new study by the Australian Strategic Policy Institute (ASPI). Check the below Frequently Asked Questions to see if your questions about UFLPA Strategymay be answered here. Thus far, the U.S. government has deployed Withhold Release Orders (WROs), export control restrictions pursuant to the Entity List, and sanctions designations under the Global Magnitsky Human Rights Accountability Act, which have targeted several large Chinese companies including the Xinjiang Production and Construction Corps (XPCC), as well as categories of products. The Act requires CBP to apply the rebuttable presumption unless the importer can overcome the presumption of forced labor by establishing, by clear and convincing evidence, that the good, ware, article, or merchandise was not mined, produced, or manufactured wholly or in part by forced labor. Products linked in whole or in part to these entities will be treated by CBP as having the same prohibitions as any products from the XUAR. Lop County Meixin Hair Products Co., Ltd. Nanjing Synergy Textiles Co., Ltd. (including two aliases: Nanjing Xinyi Cotton Textile Printing and Dyeing; and Nanjing Xinyi Cotton Textile), No. Lenovo also pointed to a 2018 audit by the Reliable Business Alliance in which OFILM scored very well. Companies doing business in China, especially those with supply chain touchpoints in Xinjiang, should consider how the new law will affect them. The entities to be added to the Entity List in connection with participating in the practice of, accepting, or utilizing forced labor involvingUyghurs and otherMuslim minority groups in the XUAR are: This Entity List rule supplements other Entity List designations in October 2019, June 2020, and July 2020. Products made with such labor will be covered by the laws rebuttable presumption, even if they are produced in other regions of China. Entities identified in sections (i) and (ii) above may serve as both manufactures and exporters. The Act, codified under 22 U.S.C. For the most up-to-date information on CBPs UFLPA implementation, please see our website at www.cbp.gov/trade/forced-labor/UFLPA. (Amazon and Facebook told The Information they wouldnt work with suppliers using forced labor; Google and Microsoft didnt respond. Thereport listedpopular clothing companies Abercrombie & Fitch, Adidas, Gap, Calvin Klein, H&M, L.L.Bean, Lacoste,Nike, The North Face, Polo Ralph Lauren, Puma, Skechers, Tommy Hilfiger, Zara, and Victorias Secret, as well as General Motors, Goertek, Land Rover, Mercedes-Benz, Volkswagon, and more. Interagency Convening on Equitable Economic Growth, Workforce Development - Employer Practices, Commerce Department Adds Five Chinese Entities to the Entity List for Participating in Chinas Campaign of Forced Labor Against Muslims in Xinjiang. WROs on materials like cotton (where an estimated 20 percent of world supply and 85 percent of Chinese supply is from the XUAR) and polysilicon (a key material in solar panels and the photovoltaic supply chain) reportedly are causing CBP to block broad categories of certain products incorporating those materials. #SaveUyghur #SaveUyghur @JFAorg, Send letter to John Donahoe, the Chief Executive Officer at Nike World Headquarters, Save Uyghur Statement on the Xinjiang Police Files and The Faces from Chinas Uyghur Detention Camp, HUMAN RIGHTS GROUP DISMAYED AT IMAMS VISIT TO CHINA, FEARING IT IS BEING USED TO FURTHER PROPAGANDA ABOUT STATE OF UYGHURS, Justice For Alls Save Uyghur Campaign Calls on Assistant Secretary Noyes to Get Uyghurs Released from Thailand, Community Alert For Uyghurs: China Relentlessly Targeting You for its Surveillance Campaign. Many companies will require advance planning to assess the business and legal risks posed to their supply chains by these rule changes, and develop appropriate compliance and due diligence mechanisms. In advance of June 21st, CBP will be issuing letters to importers identified as having previously imported merchandise that may be subject to the Act to encourage those importers to address any forced labor issues in their supply chains in a timely manner. ), Chinas forced work programs have been getting more attention over the past year, with new reports speaking to the growing scope of Chinas oppressive practices in Xinjiang. Yili Zhuowan Garment Manufacturing Co., Ltd. They added: The tainted global supply chain that results from these practices means that it is now difficult to guarantee that products manufactured in China are free from forced labour., This is a BETA experience. Opinions expressed by Forbes Contributors are their own. The companies that broker this Uighur labor advertise that the workers are used to working in adversity, that they will stay the length of the contract. DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Including the rule announced today, these actions have added 53 parties specifically implicated in human rights abuses of ethnic minorities from Xinjiang, and 15 of these which were implicated in human rights abuses related to forced labor of ethnic minorities from Xinjiang. SHARE. / Sign up for Verge Deals to get deals on products we've tested sent to your inbox daily. Hoshine Silicon Industry (Shanshan) Co., Ltd. Xinjiang East Hope Nonferrous Metals Co., Ltd. Xinjiang GCL New Energy Material Technology Co., Ltd. Xinjiang Production and Construction Corps (XPCC). Save Uyghur Statement on the Xinjiang Police Files and The Faces from Chinas Uyghur Detention Camp, HUMAN RIGHTS GROUP DISMAYED AT IMAMS VISIT TO CHINA, FEARING IT IS BEING USED TO FURTHER PROPAGANDA ABOUT STATE OF UYGHURS, Justice For Alls Save Uyghur Campaign Calls on Assistant Secretary Noyes to Get Uyghurs Released from Thailand, Community Alert For Uyghurs: China Relentlessly Targeting You for its Surveillance Campaign. It establishes a rebuttable presumption that the importation of any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of the Peoples Republic of China, or produced by certain entities, is prohibited by Section 307 of the Tariff Act of 1930 and that such goods, wares, articles, and merchandise are not entitled to entry to the United States. This enhanced enforcement already is underway. 6901 note, established a rebuttable presumption that any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region (XUAR) of the Peoples Republic of China or produced by an entity on a list required by clause (i), (ii), (iv) or (v) of section 2(d)(2)(B) are prohibited under section 307 of the Tariff Act of 1930 (19 U.S.C. or https:// means youve safely connected to the .gov website. In a spring 2020 report report titledUyghurs For Sale, the Australian Strategic Policy Institute found that at least 83 popular, household-name brands are potentially directly or indirectly benefiting from the use of Uyghur workers outside Xinjiang through abusive labour transfer programs as recently as 2019.. Under conditions that strongly suggest forced labour, Uyghurs are working in factories that are in the supply chains of at least 82 well-known global brands in the technology, clothing and automotive sectors, including Apple, BMW, Gap, Huawei, Nike, Samsung, Sony and Volkswagen. However, each company and industry will have unique risks and therefore we may see bespoke risk assessments, supply chain ethical goals and resulting due diligence approaches. Secure .gov websites use HTTPS Opinions expressed by Forbes Contributors are their own. Apples supply chain has previously been linked to forced labor in China. Read the FLETF'sStrategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the Peoples Republic of China. They are grouped into different categories and listed below. He said Apple earlier this year ensured that none of its other suppliers are using Uighur labor transferred from Xinjiang. An investigation by the Associated Press published in June found that the Chinese government is committing demographic genocide against Uighur Muslims through forced abortions, birth control, mass detentions, and imprisonment.