There has been much awareness raised in recent months to the issue of forced labor camps in the Xinjiang Uyghur Autonomous Region (XUAR) in China. Due to geopolitical tension in the region, Uyghur muslims and other minorities have been transferred to forced labor camps across the region. These detention camps drive forced labor, forced relocation, torture, and other human rights abuses. Over 100,000 Uyghurs and other minorities are estimated to be in these camps, and there are as many as 1200 estimated camps spread across the Xinjiang region.
The XUAR region is a manufacturing powerhouse in China and produces finished goods and raw materials that are distributed both internally and externally. Top raw materials produced in the region includes rare earth minerals, chemicals, cashmere, and cotton. The XUAR region produces 80% of China's cotton which is then distributed across the country. In fact, 1 in 5 pieces of apparel from China contains cotton from the XUAR. The XUAR is also the 3rd largest importer of cashmere in China.
The Uyghur Forced Labor Prevention Act established a presumption that all goods produced in the XUAR region are done so using forced labor and therefore prohibited from import to the US. The act applies to all publicly traded US businesses and government programs doing business or associated with Xinjiang. If passed, businesses are required to file periodic reports disclosing any engagement with facilities complicit with human rights abuses in the region. To do so, businesses must be able to gather required documentation and data from their supply chain. Non-compliance could mean seizure of goods.
At Source Intelligence, our Uyghur Forced Labor Prevention Act program combines an extensive due diligence and traceability process with high-frequency, comprehensive searches of your supply chain utilizing supplier location, names, alias, and other data to deliver compliance. With our solution you get the data you need for compliance without having to leave your desk.
Request a demo with our compliance experts to see how we can help you easily become compliant and gather the supply chain data you need.
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