Xinjiang supply chain business advisory addendum
This US Government advisory highlights continuing reports of forced labour and human rights abuses in the Xinjiang Uyghur Autonomous Region, China, and reminds businesses of their obligations under relevant US laws. The report contains information on risks in supply chains and implementation and enforcement of relevant laws.
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OVERVIEW
This US Government advisory addendum urges businesses to uphold due diligence measures and to identify potential supply chain links to any entities operating in Xinjiang that are linked to forced labour or human rights abuses. The report highlights the widespread and pervasive risks in supply chains and the enforcement of relevant US laws, including the Uyghur Forced Labor Prevention Act (UFLPA), and the Tariff Act of 1930.
Human rights abuses in Xinjiang
The report documents human rights abuses across Xinjiang, including arbitrary detention, forced sterilisation, coercive abortions, torture, and persecution, such as forced labour. Reports from international organisations, academics, and non-governmental organisations consistently report these types of abuses. The Helena Kennedy Centre at Sheffield Hallam University’s “Over Exposed” report assesses the exposure of ten solar firms to the Uyghur Region, which produces around 35% of the world’s polysilicon and up to 32% of global metallurgical grade silicon production.
Uyghur Forced Labour Prevention Act implementation
Since its enactment, the UFLPA requires US Customs and Border Protection to apply a rebuttable presumption that goods produced wholly or in part in Xinjiang or by entities on the UFLPA Entity List are prohibited from importation into the US. The Financial Systems and Economic Crimes Centre monitors entities engaged in forced labour in Xinjiang and other regions of China. Several US departments and agencies have released guidelines for enterprise risk management and supply chain risk management, which businesses should consult to ensure compliance.
Conclusion
Businesses should continuously undertake appropriate human rights due diligence measures to identify potential supply chain links to entities operating in Xinjiang, entities linked to Xinjiang, entities included in the UFLPA Entity List, or entities using the labour of persecuted groups from Xinjiang, such as Uyghurs, Kazakh, or Kyrgyz. The report aims to provide relevant information to businesses and individuals to help them assess their potential exposure to entities engaged in human rights abuses, as part of a risk-based approach to due diligence.
