FLETF Adds Textile, Agriculture and Technology Companies to the UFLPA Entity List
On December 8, 2023, the Department of Homeland Security (“DHS”) announced the Forced Labor Enforcement Task Force is adding three new entities to the Uyghur Forced Labor Prevention Act (“UFLPA”) Entity List. The companies are (1) COFCO Sugar Holding Co. Ltd, (2) Sichuan Jingweida Technology Group Co., Ltd., and (3) Anhui Xinya New Materials Co., Ltd. The updated Entity List, including these three entities, was published in the Federal Register Monday, December 11, 2023.
Anhui Xinya New Materials Co., Ltd. is headquartered in Anhui Province, China, and produces functional fibers, special fiber yarns, other textile materials made with hemp and materials made with cotton, wool, Tencel, and other products. This is a high-impact listing for companies in the apparel sector, as Anhui Xinya New Materials Co., Ltd. is a significant spinner and material producer in the apparel sector, is located outside of Xingjiang, and is likely a downstream producer in many supply chains in the sector.
COFCO Sugar Holding Co. Ltd is headquartered in Xinjiang and refines, produces, and imports sugar. The entity also trades, processes, and produces various agricultural products, including fruit (including tomatoes) and vegetables. COFCO Sugar Holding Co. Ltd is part of the COFCO Group, a state-owned enterprise that has Xinjiang holdings in the textile and cotton industries.
Sichuan Jingweida Technology Group Co., Ltd. is headquartered in Sichuan Province, China and produces magnetic devices including network transformers, network filters, power transformers, inductors, radio frequency filters, and other devices. The Sheffield Hallam University Driving Force report describes this company as a manufacturer of “power and signal transformers and inductors for the automotive industry,” as well as “custom magnetic solutions for automotive applications.” The entity also appears to manufacture a wide range of electrical equipment for use outside the automotive industry.
DHS continues to step up its enforcement of the UFLPA, adding new entities in the textile, agriculture and technology sectors to its UFLPA Entity List. Notably, two of the three of these entities are located outside the Xinjiang Province.
If you have any concerns about exposure to any of these entities in your supply chains, please do not hesitate to contact us.