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CSMS # 62912824 - DHS Places New Additions to Uyghur Forced Labor Prevention Act (UFLPA) Entity List  

UFLPA Entity List Will Now Restrict Goods from 78 PRC-Based Companies from Entering the United States

U.S. Department of Homeland Security (DHS) announced the addition of textile companies based in the People’s Republic of China (PRC) to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. The additions reinforce DHS’s commitment to eradicate forced labor and ensure accountability for the PRC’s ongoing genocide and crimes against humanity against Uyghurs and other religious and ethnic minority groups in the Xinjiang Uyghur Autonomous Region (XUAR).

Effective November 1, 2024, U.S. Customs and Border Protection (CBP) will apply a rebuttable presumption that goods produced by Esquel Group, Guangdong Esquel Textile Co., Ltd., and Turpan Esquel Textile Co., Ltd. will be prohibited from entering the United States. The addition of these textile entities builds on DHS’s Textile Enforcement Plan and demonstrates the Forced Labor Enforcement Task Force's (FLETF) commitment to focus on entities in high priority sectors for enforcement under the UFLPA Strategy, including the apparel and cotton and cotton products sectors. In addition to this announcement, Changji Esquel Textile Co., Ltd. will also be removed from one section of the UFLPA Entity Lists and added to another. Goods produced by Changji Esquel Textile Co., Ltd. (also known as Changji Yida Textile Co., Ltd.) will continue to be subject to a rebuttable presumption that they are prohibited from entering the United States.

“Through today’s expansion of the Entity List, we enable American businesses to better assess their supply chains and ensure they do not profit, directly or indirectly, from the use of forced labor,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Our Department will continue to aggressively enforce the Uyghur Forced Labor Prevention Act and, in doing so, we stand up for human rights, safeguard a free and fair marketplace, and hold perpetrators accountable.”

The Forced Labor Enforcement Task Force (FLETF) – chaired by DHS and whose member agencies also include the Office of the U.S. Trade Representative and the U.S. Departments of Commerce, Justice, Labor, State, and the Treasury – has now added 78 entities to the UFLPA Entity List since the UFLPA was signed into law in December 2021. The UFLPA Entity List includes companies that are active in the apparel, agriculture, polysilicon, plastics, chemicals, batteries, household appliances, electronics, seafood and textile sectors, among others. Identifying these additional entities provides U.S. importers with more information to conduct due diligence and examine their supply chains for risks of forced labor to ensure compliance with the UFLPA.

“We are uncompromising in removing forced labor from U.S. supply chains,” said Under Secretary for Policy Robert Silvers, who serves as chair of the Forced Labor Enforcement Task Force. “Our enforcement efforts are yielding results. Our Administration is committed to advancing this momentum and strengthening accountability across global supply chains.”

The FLETF has reasonable cause to believe, based on specific and articulable information, that the below entities meet the criteria for inclusion in the UFLPA Entity List under Section 2(d)(2)(B)(v) of the UFLPA, which identifies facilities and entities that source material from the XUAR or from persons working with the government of XUAR or the Xinjiang Production and Construction Corps for the purposes of the “poverty alleviation” program or the “pairing assistance” program or any other government labor scheme that uses forced labor.

Esquel Group (also known as Esquel China Holdings Limited) is a Hong Kong-based vertically integrated textile and apparel company that engages in cotton research, as well as ginning, spinning, knitting, weaving of cotton and cotton products, in the production of textiles, apparel and accessories, including packaging and merchandising of these products. Esquel Group includes a variety of subsidiaries also involved in cotton, textile, clothing, and other products manufacturing, production, and sales, including Changji Esquel Textile Co., Ltd., Turpan Esquel Textile Co., Ltd., and Guangdong Esquel Textile Co., Ltd. The FLETF has reasonable cause to believe, based on specific and articulable information, including publicly available information, that Esquel Group sources cotton from the XUAR. The FLETF therefore determined that the activities of Esquel Group satisfy the criteria for addition to the UFLPA Entity List described in Section 2(d)(2)(B)(v).

Guangdong Esquel Textile Co., Ltd. is a company based in Foshan City, Guangdong Province, that is engaged in the manufacture and processing of textiles and apparel. The FLETF has reasonable cause to believe, based on specific and articulable information, including publicly available information, that Guangdong Esquel Textile Co., Ltd. sources cotton from the XUAR. The FLETF therefore determined that the activities of Guangdong Esquel Textile Co., Ltd. satisfy the criteria for addition to the UFLPA Entity List described in Section 2(d)(2)(B)(v).

Turpan Esquel Textile Co., Ltd. is a company based in Turpan City, in the XUAR that is engaged in the production and sales of cotton and cotton yarn. The FLETF has reasonable cause to believe, based on specific and articulable information, including publicly available information, that Turpan Esquel Textile Co., Ltd. is sourcing cotton from the XUAR. The FLETF therefore determined that the activities of Turpan Esquel Textile Co., Ltd. satisfy the criteria for addition to the UFLPA Entity List described in Section 2(d)(2)(B)(v).

Changji Esquel Textile Co., Ltd. (also known as Changji Yida Textile Co., Ltd.) is a company based in Changji Prefecture, XUAR that is engaged in production and sales of cotton yarn. The company had been included as one of the original twenty entities named to the UFLPA Entity List in June 2022 as an entity that qualified for inclusion under Section 2(d)(2)(B)(i) of the UFLPA. The FLETF has removed Changji Esquel Textile Co., Ltd. from Section 2(d)(2)(B)(i) of the UFLPA Entity List as the FLETF has determined there is no longer reasonable cause to believe that Changji Esquel Textile Co. meets the criteria described in Section 2(d)(2)(B)(i) of the UFLPA. The FLETF, however, has reasonable cause to believe, based on specific and articulable information, including publicly available information, that Changji Esquel Textile Co., Ltd. sources cotton from the XUAR. The FLETF therefore determined that the activities of Changji Esquel Textile Co., Ltd. satisfy the criteria for addition to the UFLPA Entity List described in Section 2(d)(2)(B)(v).

The bipartisan Uyghur Forced Labor Prevention Act, signed into law by President Joseph R. Biden, Jr., in December 2021, mandates that CBP apply a rebuttable presumption that goods mined, produced, or manufactured wholly or in part in the XUAR or produced by entities identified on the UFLPA Entity List are prohibited from importation into the United States unless the Commissioner of CBP determines, by clear and convincing evidence, that the goods were not produced with forced labor. CBP began enforcing the UFLPA in June 2022. Since then, CBP has reviewed over 9,700 shipments valued at more than $3.5 billion under the UFLPA. Additionally, Homeland Security Investigations, through the DHS Center for Countering Human Trafficking, conducts criminal investigations into those engaging in or otherwise knowingly benefitting from forced labor, and collaborates with international partners to seek justice for victims.

Today’s announcement supports President Biden’s Memorandum on Advancing Worker Empowerment, Rights, and High Labor Standards Globally. The memorandum represents the first whole-of-government approach to advance workers’ rights by directing federal agencies engaged abroad to advance international recognized labor rights, which includes DHS’s work implementing the UFLPA.

Posted: https://www.dhs.gov/news/2024/10/31/dhs-places-additional-prc-based-textile-companies-uflpa-entity-list.