The US Department of Homeland Security (DHS) has added 37 Chinese companies to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, citing their alleged use of forced labor. A significant portion of these, around 26 companies, operate within the cotton sector.
Among those listed is Huafu Fashion Co, and 25 of its subsidiaries, identified by DHS as being involved in cotton production linked to the Xinjiang Uyghur Autonomous Region (XUAR). Huafu's vertically integrated supply chain, from cotton cultivation to textile manufacturing, and the location of its subsidiaries (22 in XUAR, 3 in Zhejiang Province) pose substantial compliance risks for apparel companies sourcing from China. Businesses associated with these entities could face shipment detentions under UFLPA enforcement.
In December 2024, US Customs and Border Protection (CBP) processed over 2.8 million entry summaries, valued at more than $290 billion. During this period, CBP targeted 1,404 entries (over $18.7 million) due to suspected forced labor links. These targets include goods subject to both UFLPA and Withhold Release Orders (WROs).
UFLPA enforcement statistics for the apparel, footwear, and textiles sector reveal it received 1,996 shipments in December 2024. Of these, it released only 649 shipments while 1,996 shipments were detained.
The industry's complex global supply chains necessitate increased compliance. Importers face risks like delays, penalties, and reputational damage if they cannot prove their products are free of forced labor. As UFLPA enforcement intensifies, apparel and textile importers are advised to seek expert guidance on navigating these regulations.
According to DHS, this largest-ever addition to the UFLPA Entity List demonstrates the full force of the law, highlighting impactful updates and enhanced CBP enforcement capabilities.
