The Uyghur Forced Labor Prevention Act (UFLPA) will be effective and enforced on June 21. This Act creates a rebuttable assumption that any goods from the Xinjiang Uyghur Autonomous Region (XUAR) are produced with forced Labor. The Act goes further to cover goods which include any components from the XUAR. These goods will be detained at the port of arrival and denied entry into the US. In response, the importer must provide convincing evidence that the goods were not produced in whole or in part by forced labor, and the must show they have complied with Customs guidance. Customs plans to issue this guidance in June prior to the effective date of UFLPA.
In advance of the effective date, Customs is issuing letters to the importers they have determined may have imported goods from the XUAR previously. These letters will inform the importer that subsequent shipments may be subject to Customs action including seizures and penalties. Customs is urging importers to be proactive in reviewing their supply chains to ensure they are in compliance with UFLPA.
If an importer receives one of these letters, it should be taken seriously as it indicates they are at risk when the Act becomes effective in June. Customs will take into consideration that an importer received this notice when determining what action will be taken. In addition to any penalties that may be forthcoming, the process of making a case for entry of their goods will incur additional expenses such as demurrage and possible loss of the product.
The UFLPA is just one segment of a larger effort by Customs to combat forced labor from any part of the world. This effort has taken on increased significance and will continue to expand as the tools become available to identify suspect products.
Sam McClure, LCB
Director of Compliance & Customs Services
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Meet one of CVI’s Customs Brokerage & Compliance experts, Sam McClure:
Sam serves as Director, Compliance and Customs Services for CVI. He serves as CVI’s corporate compliance officer and is responsible for overseeing all aspects of our Customs related services, including growth.
Sam started his career in 1977 with Waters Shipping Company in Charlotte, NC. He began as a document runner, soon becoming a leader in operations and customer service for the branch. Sam, along with Linda Masten, founded Central Carolina Shipping Inc. in 1983 as an independent Customs Brokerage firm where he served as Vice President for 26 years. Sam and Linda grew Central Carolina into a successful and highly respected member of the Carolinas trade community. When Charlotte opened their local chapter of the IFFCBA Sam was part of the organizing group and he headed the Customs committee for several years. Sam obtained his Customs Brokers License in 1984 and remained with Central Carolina until the company was acquired by CVI in 2009.
At CVI, Sam has held several positions in both the operations and sales departments. As an expert in U.S. Customs regulations, Sam is often called upon on to provide guidance to importers on Customs compliance issues. He makes regular presentations on matters related to importation and broader regulatory compliance.
– Sam McClure, LCB, Director of Compliance & Customs Services, CVI
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