On January 28 , 2021, Senators Rubio and Merkley re-introduced the Uyghur Forced Labor Prevention Act (see press and bill) with 27 additional co-sponsors. The bill includes important changes from the last Congress that addresses some of the concerns from the business community, including:

  • The effective import ban on goods originating from Xinjiang goes into effect 300 days after the bill becomes law (vs. 120 days in the legislation from last year)
  • Requires the administration to issue guidance to importers on best practices/due diligence and on the of type of evidence to demonstrate that goods are not made with forced labor
  • Sets out a clearer process by which CBP may issue exemptions to the import ban
  • Requires the administration to develop a comprehensive enforcement strategy (with public comment) and a diplomatic strategy
  • Does not include the SEC disclosure requirements in last year’s bill

Also a multi-association letter was sent, which asked for an approach similar to some of the changes outlined above.  The timing for this legislation remains unclear, but the basic expectation is that this could potentially move quickly in the coming months.  Some House Democrats are expected to oppose some of the amendments, so it remains unclear if that might complicate passage.

Regardless, of the outcome of this legislation, we don’t expect this will affect the existing withhold release order (WRO) that CBP has issued for cotton products from Xinjiang, and it is likely the Biden team will look to impose additional WROs on Xinjiang or entities elsewhere.

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Photo of Jeffrey L. Snyder Jeffrey L. Snyder

Since 1986, Jeff’s practice has concentrated on the U.S. regulation of international trade. Clients seek him out for troubleshooting and problem solving in cross-border transactions. Jeff advises on import, export, and sanctions laws. He develops approaches for multinationals to manage the impact of…

Since 1986, Jeff’s practice has concentrated on the U.S. regulation of international trade. Clients seek him out for troubleshooting and problem solving in cross-border transactions. Jeff advises on import, export, and sanctions laws. He develops approaches for multinationals to manage the impact of U.S. extraterritorial regulations. Jeff assists companies in day-to-day compliance with these laws, and with interventions — such as audits and investigations, and civil enforcement proceedings.

Photo of Frances P. Hadfield Frances P. Hadfield

Frances P. Hadfield is a counsel in Crowell & Moring’s International Trade Group in the firm’s New York office. Her practice focuses on forced labor and withhold release orders (WRO), import regulatory compliance, and customs litigation. She regularly advises corporations on matters involving…

Frances P. Hadfield is a counsel in Crowell & Moring’s International Trade Group in the firm’s New York office. Her practice focuses on forced labor and withhold release orders (WRO), import regulatory compliance, and customs litigation. She regularly advises corporations on matters involving customs compliance, audits, customs enforcement, as well as import penalties.

Frances represents clients before the U.S. Court of International Trade and the U.S. Court of Appeals for the Federal Circuit, as well as in proceedings at the administrative level. She advises corporations on both substantive federal and state regulatory issues that involve U.S. Customs and Border Protection, the Federal Trade Commission, Food and Drug Administration, and U.S. Fish & Wildlife in matters pertaining to product admissibility, audits, classification, import restrictions, investigations, marking, licenses, origin, penalties, and tariff preference programs.