Compliance Hot Spots: 'Nervousness' for Companies Over New Forced Labor Law + Lawyer Exodus from SEC + Akin Gump Reps Ex-Oath Keeper Before Jan. 6 Committee
A new U.S. law cracking down on forced labor in the Xinjiang region of China poses major compliance obstacles, according to attorneys focusing on supply chain issues and human rights.
July 13, 2022 at 05:36 PM
11 minute read
Compliance Hot Spots
Welcome to Compliance Hot Spots, our weekly snapshot on white-collar, regulatory and compliance news and trends. We're back after a one-week hiatus with the details on a new U.S. law cracking down on forced labor in the Xinjiang region of China that's creating compliance worries for importers. Plus, an analysis of what's driving lawyers to leave the SEC for private practice, and a look at the defense lawyers involved in DOJ's latest civil antitrust action. Please get in touch with tips and feedback. Contact me at [email protected] and @AGoudsward on Twitter.
Port of Los Angeles in San Pedro, California. Credit: Ritu Jethani/Adobe Stock New Law Targeting Forced Labor in China Creates 'Nervousness' for Companies
A new U.S. law meant to crack down on forced labor in the Xinjiang region of China is creating a host of new compliance worries for companies, especially importers associated with major industries in the region.
The law, which took effect last month, establishes a presumption that goods produced or manufactured in the Xinjiang region will be barred from the United States. Importers can overcome that presumption only by showing "clear and convincing" evidence the products were not created using forced labor. The act also gives the U.S. Customs and Border Patrol greater authority to detain merchandise if there is a suspected link to forced labor in Xinjiang.
The law, the Uyghur Forced Labor Protection Act, which passed with bipartisan support, was a response to years of reports of human rights abuses against the Muslim Uyghur minority in the region. The Chinese government has reportedly forced thousands of Uyghurs into internment and forced labor camps.
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