Uyghur Forced Labor Prevention Act
The Uyghur Forced Labor Prevention Act (UFLPA) went into effect on June 21st. This new law initiates a total ban on imports from the Xinjiang Uyghur Autonomous Region of China (XUAR); establishing a rebuttable presumption that all materials and goods from the region are produced with forced labor. UFLPA expands upon the previously established Withhold Release Orders (WROs) placed on specific commodities and manufacturers showed indicators of forced labor in their processes.
Under ULFPA, all inputs and finished products (goods produced ‘wholly or in part’) from the XUAR are banned from importation to the United States. To avoid costly issues, importers must maintain full custody of their entire supply chain, from raw material sourcing, through production, and including final delivery.
Companies are encouraged to review the US Customs publications on UFLPA to ensure compliance with the new law:
Russian Import Tariffs
On June 27th, President Biden announced tariff hikes on more than 570 groups of Russian product imports. The new tariffs are set at 35% and will take effect at the end of July. The specific commodity groups will be outlined in an annex, but that annex has yet to be published.
The President also stated he wants the tariff revenue to be sent to Ukraine as aid, but that decision will need to come from a vote in Congress.
We have a team of experts on staff who would be happy to help you navigate the complexities of these issues. Please contact Ashley Coxey, National Director of Business Development, Customs Brokerage or your Laufer representative for more information on any topic discussed in this week’s market letter.