DHS Adds Textile Companies to UFLPA Entity List
DHS has updated its Uyghur Forced Labor Prevention Act Entity List to include textile companies that allegedly use forced labor or source material from the Xinjiang autonomous region in China, and it removed one entity from one category of alleged violations and placed it in another category, according to a Federal Register notice.
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Esquel Group, also known as Esquel China Holdings Limited; Guangdong Esquel Textile Co. Ltd.; and Turpan Esquel Textile Co., Ltd, have all been flagged by DHS for allegedly sourcing material from the Xinjiang autonomous region. This violations category also includes companies that may work 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, DHS said.
Hong Kong-based Esquel Group is involved in cotton and garment manufacturing and retail. DHS described them as an "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." Its subsidiaries include Changji Esquel Textile Co., Ltd., Turpan Esquel Textile Co., Ltd., and Guangdong Esquel Textile Co., Ltd.
Guangdong Esquel Textile, based in Forshan City, Guangdong Province, is engaged in textiles, clothing, and apparel processing and manufacturing. Turpan Esquel Textile, based in Turpan City, deals with cotton, cotton yarn, and cloth production and sales.
An additional entity, Changji Esquel Textile Co., Ltd., also known as Changji Yida Textile Co., Ltd., has also been flagged by DHS for sourcing material from Xinjiang. It has been on the UFLPA list since June 2022. However, DHS moved the company from one category of the UFLPA Entity List to another. This entity, which deals with cotton yard production and sales, is based in Changji Prefecture.
DHS made the announcement today as chair of the Forced Labor Enforcement Task Force (FLETF), an interagency group charged with monitoring the enforcement of the ban on U.S.-bound imported goods made wholly or in part with forced labor.
The agency said in a release that the inclusion of these textile companies builds on the agency's Textile Enforcement Plan and "demonstrates the FLETF’s commitment to focus on entities in high priority sectors for enforcement under the UFLPA Strategy, including the apparel and cotton and cotton products sectors."
“We are uncompromising in removing forced labor from U.S. supply chains,” DHS Under Secretary for Policy and FLETF Chair Robert Silvers said in a release. “Our enforcement efforts are yielding results. Our Administration is committed to advancing this momentum and strengthening accountability across global supply chains.”
The changes to the list are part of DHS' ongoing efforts to create a consolidated register of entities flagged for alleged Uyghur forced labor violations. The last update to this list was earlier this month when it added Baowu Group Xinjiang Bayi Iron and Steel Co., Ltd. and Changzhou Guanghui Food Ingredients Co., Ltd., a steel company and an aspartame producer, respectively, to the list (see 2410020028).
DHS says there are now 78 entities on the list. The list includes companies 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," DHS said.