DHS Adds 37 Companies to US Entities List

On January 14th, the U.S. Department of Homeland Security (DHS) on behalf of the Forced Labor Enforcement Task Force (FLETF) announced the addition of 37 banned entities to the U.S. Entities List, marking the largest single expansion of the list to date. As of January 15th, U.S. Customs began applying a rebuttable presumption that any goods produced whole or in part by any of these 37 entities will be prohibited from entering the United States as a result of said companies’ activities. The companies added to the list include suppliers of critical minerals as well as one of the world’s largest textile manufacturers. The additions bring the total number of entities on the Entities List to 144. 

“With each addition to the UFLPA Entity List, we are building momentum and showing that our efforts are sustainable and enduring in eradicating forced labor in our nation’s supply chains,” said Acting Under Secretary for Policy, Robert Paschall. “This largest-ever batch of additions reinforces that we are implementing the full force of this law, making impactful updates to the UFLPA Entity List, and enhancing U.S. Customs and Border Protection’s enforcement capabilities.”

This announcement underscores the U.S. commitment to preventing goods manufactured whole or in part using forced labor from entering its borders. Earlier this week, as part of the Biden-Harris administration’s efforts to address the de minimis loophole for low-value goods, CBP announced the release of a Notice of Proposed Rulemaking called the Entry of Low Value Shipments (ELVS). This new rule would subject companies importing low-value goods - particularly direct-to-consumer goods - to the same data collection and due diligence standards established by the Forced Labor Prevention Act in 2022, effectively closing the loophole that has allowed such goods to avoid enhanced scrutiny upon import. 

Sourcemap’s Mock Customs Detention solution is designed to evaluate the readiness of a supply chain in furnishing the detailed documentation needed to respond to customs detentions or seizures. To learn more about how Sourcemap can help your business prepare for what’s coming, reach out to our team of experts.