October 2023

Feds intensify warnings on forced labor in supply chains (Sandler Travis & Rosenberg)

The federal government is reiterating the urgency for businesses to undertake due diligence measures to make sure their supply chains do not involve the use of forced labor in China’s Xinjiang Uyghur Autonomous Region.

In July 2021 a multi-agency advisory warned businesses, individuals, and others that do not exit supply chains, ventures, and/or investments connected to the XUAR that they could run a high risk of violating U.S. law and triggering criminal or civil enforcement actions. The advisory thus urged businesses and individuals to undertake heightened human rights due diligence to identify potential supply chain links to entities operating in the XUAR, linked to the XUAR (e.g., through supply chain inputs), or utilizing Uyghur or other ethnic and Muslim minority laborers from the XUAR. The advisory also identified a number of industries as being at particular risk concerning the use of forced labor in the XUAR. 

Ed. Note:  We STRONGLY urge you to THOROUGHLY investigate your supply chain to insure you have NO input of ANY kind from forced labor. Please note next article.

DHS Bans Imports from 3 Chinese Companies for Forced Labor

The Department of Homeland Security (DHS) announced, effective Sept. 27, goods produced by Xinjiang Zhongtai Group Co. Ltd., Xinjiang Tianshan Wool Textile Co. Ltd., and Xinjiang Tianmian Foundation Textile Co. will be restricted from entering the U.S. because of crimes against humanity against Uyghurs and other religious and ethnic minority groups in the Xinjiang Uyghur Autonomous Region.

The interagency Forced Labor Enforcement Task Force (FLETF), chaired by DHS, voted to add the three Chinese companies to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. The list today includes 27 companies.

 Xinjiang Zhongtai Group Co. Ltd. produces and sells polyvinyl chloride (PVC), iconic membrane caustic soda, industrial salt, calcium carbide, viscose fiber, viscose yarn, and other textile, chemical, and building materials. Xinjiang Tianshan Wool Textile Co. Ltd. Manufactures and sells cashmere and wool garments, as well as velvet and other textile products, while Xinjiang Tianmian Foundation Textile Co. produces yarn and textile products.

Lufthansa Cargo increases Airfreight Surcharge to 0.70 USD per kg
The sum of cost components in our airfreight surcharge has increased in the past weeks. Consequently, Lufthansa Cargo is increasing its Airfreight Surcharge, effective October 9, 2023, from 0.65 to 0.70 USD per kg chargeable freight weight. Please note, the latest acceptance time (LAT) of the booked/confirmed flight, not the AWB issue date, determines the applicable Airfreight Surcharge. 

Government shutdown averted – for now!

As I am sure you know, a shutdown was averted at the last minute last Saturday, but Congress must act to fund the government by November 17, or a shutdown will occur then.  There is absolutely no way to predict what Congress will do, so please allow as much extra time in your supply chain as possible.  If there is a shutdown in November, Customs will still be staffed to clear most shipments, though there will be more than usual delays,  especially shipments requiring PGA approval (FDA, USDA, DOT, EPA, etc). Please know that we will be working as hard as we can to clear your shipments if there is a shutdown, but we will be limited.  Please be prepared for delays.