Self-Assessment Tools

DOL launched four voluntary self-assessment tools that provide practical, user-friendly guidance to help companies map supply-chain risks and evaluate labor practices. The tools can also guide companies in taking steps to ensure alignment with U.S. forced labor laws and strengthen supply chains that support American workers and American industry.

The new tools are: 

• LaborShield: A mobile app that features information on egregious labor violations in over 145 countries (formerly the Sweat and Toil app).
• ImportWatch: A resource that brings together the department’s labor abuse research with U.S. import data from the U.S. Census Bureau to produce a red-flag list of all high-risk goods for U.S. importers.
• SourcingStrong: A tool to help U.S. businesses build strong labor due diligence systems to identify and manage risk in their supply chains.
  
• Supply Chain Traceability Portal: The portal provides visibility across supply chains and beyond the first tier to expose where exploitative labor hides.

Announcement Insights 

Diaz Trade Law was in attendance at the launch event in Washington, D.C. – hosted by the DOL and co-sponsored by the Responsible Business Alliance. The program featured remarks from Deputy Secretary of Labor Keith Sonderling, followed by a fireside chat with top executives from leading U.S. industries.

At the event, DOL representatives stated the department wants “good actors” to use these tools and to give feedback on them. Panelists highlighted that they have been engaging with DOL for years on the issues of forced labor in foreign supply chains. DOL’s stated goal is to level the playing field for U.S. businesses by making foreign actors play fair.

Forced Labor Enforcement Focus

DOL, among other government agencies, have made clear that enforcement of the U.S.’s forced labor laws is a priority. 

For importers, understanding who is supplying you with a product is not enough, you also need to know who is supplying them. You should have a comprehensive understanding of your supply chain that includes documentation of the various tiers of suppliers. Detailed documentation can help identify gaps and high-risk areas that may need to be revisited down the road.  

Diaz Trade Law has significant experience in a broad range of import compliance matters including forced labor compliance and enforcement mitigation. For assistance with developing or updating a forced labor compliance plan, forced labor compliance training, communicating with CBP regarding goods detained by CBP, or utilizing the new DOL tools contact us today at info@diaztradelaw.com or 305-456-3830.

Learn more:

• Webinar: Forced Labor – Practical Tips to Secure Your Supply Chain and Comply with Regulatory Requirements
• Breaking the Chains: Forced Labor in Mexico’s Supply Chains
• CBP Launches New Forced Labor Portal 
• Bloomberg Law: U.S. Customs Targets the Use of Forced Labor
• UFLPA Guidance: What Importers Need to Know
• Uyghur Forced Labor Prevention Act (UFLPA): What You Need to Know
• CBP’s Forced Labor Process Flowchart

What Can the USTR Do? 

Section 301, formally known as Title III of the Trade Act of 1974 or “Relief from Unfair Trade Practices,” authorizes the USTR to investigate acts, policies, or practices that it considers unreasonable, discriminatory, or burdensome to US commerce. The USTR goes on to say that practices which permit forced or compulsory labor meet the criteria of unreasonable, unfair, and inequitable. If the USTR concludes that an act is “unjustifiable” and “burdens or restricts” US commerce, action is mandatory. On the other hand, if the USTR determines that such act is only “unreasonable or discriminatory” and “burdens or restricts” US commerce, action is discretionary. In either case, when the USTR aims to remedy a foreign trade practice, the agency can (1) impose tariffs or other import restrictions, (2) withdraw or suspend trade agreement concessions, or (3) enter into a binding agreement with the foreign government to either cease the conduct in question or compensate the US. Additionally, the statute requires that when USTR’s action is mandatory, the agency’s action should “affect goods or services of the foreign country in an amount that is equivalent in value to the burden or restriction being imposed by that country on U.S. commerce.” 

The Government’s Rationale to Investigate 

According to the USTR, this investigation is necessary because “ending forced labor is a key priority and an economic and national security imperative for the United States.” The background provided by the agency also cited numerous statistics that reveal millions of people globally are in forced labor schemes. USTR then outlined how firms using forced labor harm US commerce and competitiveness: 1) selling goods at artificially low prices, and 2) pushing firms not using such labor practices out of the marketplace. The agency also noted that US exports are required to compete with products made with forced labor and are consequently less successful in markets that lackforced labor import prohibitions.  

Sectors, Goods, and Countries in Scope 

The USTR identified the agricultural and industrial sectors as arenas where forced labor is most profitable. However, the agency also called out specific items from the Department of Labor’s 2024 List of Goods Produced by Child Labor or Forced Labor (“TVPRA List”), typically composed of inputs produced with forced labor: garments, textiles, critical minerals, fish, and palm fruit. In addition to the countries identified on the TVPRA List, the USTR listed 60 countries under investigation, most notable of which include Australia, Canada, the European Union (EU), Israel, Japan, Norway, Singapore, South Korea, Switzerland, and the United Kingdom.  

While the USTR recognized Canada, Mexico, and the EU’s efforts to adopt measures “intended to stop the importation or sale of products produced using forced labor,” the agency claims “none of these countries [have] adopted and effectively enforced a forced labor import prohibition to date.” In other words, the statutory ban on forced labor domestically, as seen within US-allied countries, is insufficient to prevent global businesses from profiting off forced labor in third countries. 

Looking Ahead & What This Means for Global Businesses 

Over the past eight years, Section 301 has been a tool wielded by the USTR to retaliate against globally recognized trade competitors, such as China, for discriminatory practices like intellectual property rights violations. However, the current investigation illustrates a pivot by the Trump administration to use all tools at its disposal to replace the global reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA). While the language used to classify forced labor as a threat to US commerce would fall within the “discretionary action” category, the administration’s comments prior to publishing the investigation indicate that it will act to impose some form of import restriction (i.e., tariffs) at the conclusion of this investigation. These tariffs will likely “replace” the Section 122 tariffs upon their 150-day expiration.  

While the statute does not impose a fixed timeline for USTR to conclude a Section 301 investigation after written comments, public hearing, and post-hearing rebuttal, these investigations usually take between 6-12 months to complete. Given the impending expiration of Section 122 tariffs, we expect this investigation’s timeline could be much shorter.  

The deadline to submit written comments is April 15, 2026.  

The Section 301 Committee will convene public hearings in the main hearing room of the U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436, on April 28, 2026, beginning at 10:00 a.m., continuing, as necessary, until May 1. 

If you would like to comment on this investigation or attend a public hearing, contact Diaz Trade Law today. We have helped numerous entities and individuals participate in the federal rule-making process and would be happy to help you as well.  

Effective, January 21, 2026, importers MUST use the portal to submit the following for review:

• Withhold Release Order/Finding admissibility reviews.
• Uyghur Forced Labor Prevention Act applicability reviews.
• Uyghur Forced Labor Prevention Act requests for exception; and
• Countering America’s Adversaries Through Sanctions Act exception requests.

All detained or excluded shipments requiring review must be submitted through this Portal, and users must have a login.gov account to access it. Depending on the type of review submitted, submission will be reviewed by CBP personnel in Forced Labor Division, or Port of Entry, or the Center of Excellence and Expertise.

Diaz Trade Law has confirmed with CBP that responses to CBP Form 28 (Request for Information) and CBP Form 29 (Notice of Action) should not be submitted through the Forced Labor Portal.

The Portal is available at https://flportal.cbp.gov/s/login/ and CBP has provided an instructional video on how to submit a request here.

This change reflects another step forward in how CBP interacts with the trade community, transitioning from multiple submission pathways to a more centralized, digital platform.

Diaz Trade Law has significant experience in a broad range of import compliance matters including forced labor compliance and enforcement mitigation. For assistance with developing or updating a forced labor compliance plan, forced labor compliance training, or communicating with CBP regarding goods detained by CBP, contact us today at info@diaztradelaw.com or 305-456-3830.

Learn more:

• Webinar: Forced Labor – Practical Tips to Secure Your Supply Chain and Comply with Regulatory Requirements
• Bloomberg Law: U.S. Customs Targets the Use of Forced Labor
• UFLPA Guidance: What Importers Need to Know
• Uyghur Forced Labor Prevention Act (UFLPA): What You Need to Know
• CBP’s Forced Labor Process Flowchart

What Happened

On November 18, 2025, CBP issued the WRO against garments, apparel, and textiles manufactured in Mauritius by Firemount. CBP will immediately detain imports subject to the Order. The WRO was issued based on information that reasonably indicates forced labor was used in violation of 19 U.S.C. §1307.

In making this determination, CBP conducted an investigation and analyzed supporting evidence, including interview questionnaires, audio recordings and transcripts, open-source reports from nongovernmental organizations, news media, and academic research.  

The evidence demonstrated that Firemount workers are subject to four International Labour Organization indicators of forced labor: abuse of vulnerability, debt bondage, deception, intimidation, and threats. 

WRO Background 

The strategic use of WROs by CBP has been especially effective at identifying certain nations, industries, and companies that employ forced labor. CBP issues WROs after receiving information that reasonably indicates the use of prison or forced labor at any point in an imported product’s supply chain. Before the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA), the United States had only implemented 30 WROs in the previous five decades. Since 2016, however, the agency has now overseen more than 50 active WROs.

CBP provides the public with a list of all WROs and the conclusions of their forced labor investigations.

CBP carries out a number of steps prior to issuing a WRO and detaining merchandise if it is linked to forced labor. 

Below is a chart categorizing CBP’s detention process for merchandise-related forced labor:

What Importers Should Do to Address Forced Labor

CBP published a forced labor Reasonable Care Checklist that includes 12 questions importers must be able to answer in order to demonstrate they have used reasonable care. Key to this checklist is knowing “how your goods are made, from raw materials to finished goods, by whom, where, and under what labor conditions.” Understanding who is supplying you with a product is not enough; you also need to know who is supplying them. 

At a minimum, you should maintain the following information: 

• Detailed description of your supply chain, including all stages of production 
• A list of suppliers involved in each step of the production process 
• Contact information for all suppliers 
• Documentation that can be used to trace raw materials to merchandise 
• Manufacturing or production records 
• Reports on factory conditions, including reports on site visits  
• Reports showing that the volume of inputs matches the volume of outputs for merchandise produced 

The documentation process can also help you defend your reasonable care duty down the road should you face a CBP enforcement action. Importers should also write standards into their contracts, set up screening for partners, utilize technology, and conduct regular audits.

Read more about the steps importers can take to understand and protect their supply chains here.

How to Modify a WRO

WROs and Findings can be modified. On June 2, 2025, CBP issued a comprehensive WRO and Finding Modification Guide that provides a roadmap for importers facing allegations of forced labor. The guide outlines a “Identify, Correct, and Prevent” framework to remediate forced labor claims.

Identify: An entity subject to a WRO or Finding should conduct a comprehensive review of its supply chains to identify forced labor risks.

Correct: Entities should develop a “Corrective Action Plan” to address forced labor issues and prevent additional issues in the future.

Prevent: Entities should address the causes of forced labor and implement remedies, including strengthening internal controls and ensuring workers can easily report violations.

The guide makes clear that the bar is high to prove that an importer has taken the proper steps to warrant a modification. However, it has happened; for example, in 2023, CBP modified a WRO against a group of companies known collectively as Smart Glove in response to the companies’ remedial efforts, which included payment of back wages.

Forced labor remains a priority for CBP. Importers should seek counsel for assistance with audits and compliance. For assistance with due diligence, re-exporting your detained merchandise, submitting documents to dispute the use of forced labor, or for assistance with the revocation request process, contact Diaz Trade Law at info@diaztradelaw.com or 305-456-3830.

Learn more:

• Webinar: Forced Labor – Practical Tips to Secure Your Supply Chain and Comply with Regulatory Requirements
• Using WROs to Fight Forced Labor
• Know Your Supply Chain: Forced Labor
• UFLPA Guidance: What Importers Need to Know 
• Uyghur Forced Labor Prevention Act (UFLPA): What You Need to Know 
• Bloomberg Law: U.S. Customs Targets the Use of Forced Labor 
• CBP Publishes Additional Guidance On Responding to Cargo Detentions Made Under the Uyghur Forced Labor Prevention Act 
• Summary of CBP’s March 2023 Forced Labor Technical Expo
• UFLPA DHS Forced Labor Guidance – What Importers Need to Know

On August 19, 2024, the U.S. Department of Homeland Security (DHS) announced that it would be adding steel, copper, lithium, caustic soda, and red dates to the list of high-priority sectors for enforcement under the Uyghur Forced Labor Prevention Act (UFLPA). DHS also announced the release of an update to the UFLPA enforcement strategy.

Addition of High-Priority Sectors

Under the UFLPA, DHS is tasked with identifying high-priority sectors for enforcement. A high-priority sector designation indicates that entities in the sector have a higher risk of forced labor or state labor transfer of Uyghurs and other ethnic minorities from Xinjiang. 

In making the announcement of additional sectors, DHS cited each new addition’s connections to forced labor risks. For example, DHS stated that steel and copper have both been government-backed investment focal points in Xinjiang. Similarly, lithium is a government-identified key sector for investment and development in Xinjiang.

UFLPA Enforcement Strategy Update

DHS serves as the chair of the Forced Labor Enforcement Task Force (FLETF). Each year, the task force updates the UFLPA’s Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China (UFLPA Strategy). The task force is statutorily required to provide annual updates on the UFLPA Entity List, the list of products associated with certain listed entities, plans for enforcement and for identifying additional entities, and high-priority sectors.

The 2025 update highlights several accomplishments since the 2024 update, including:

• Significant expansion of the UFLPA Entity List
• Refinement of internal processes for expanding the UFLPA Entity List
• Providing greater transparency to the trade community
• Supporting the private sector’s due diligence and compliance efforts
• Protecting American industry from unfair trade practices

In the report, Christopher C. Pratt, acting DHS undersecretary for strategy, policy, and plans, reiterates that ending forced labor is “an economic and national security imperative for the United States.”

Contact Us For Assistance with Forced Labor Compliance

Diaz Trade Law has significant experience in a broad range of import compliance matters, including forced labor compliance and enforcement mitigation. For assistance with forced labor matters, including developing or updating a forced labor compliance plan, forced labor compliance training, or communicating with CBP regarding goods detained by CBP, contact us today at info@diaztradelaw.com or 305-456-3830.

Learn more:

• UFLPA Guidance: What Importers Need to Know
• Uyghur Forced Labor Prevention Act (UFLPA): What You Need to Know
• Bloomberg Law: U.S. Customs Targets the Use of Forced Labor
• CBP Publishes Additional Guidance On Responding to Cargo Detentions Made Under the Uyghur Forced Labor Prevention Act
• UFLPA DHS Forced Labor Guidance – What Importers Need to Know
• Uyghur Forced Labor Prevention Act (UFLPA): What You Need to Know

Both Mexico and the United States have robust legal frameworks to eradicate the use of forced labor and have made great strides in detection and enforcement. However, the secretive nature of the forced labor industry, changing bad actor tactics, and the intensive resourcing required presents challenges to both countries.

Forced Labor in Mexico

While Mexico has made great strides in identifying and preventing forced labor, it is still a problem that impacts hundreds of thousands of citizens. Certain risk factors[3] may make certain individuals more vulnerable to forced labor than others, including:

• Poverty
• Unstable immigration status
• Language barriers
• Lack of social support systems
• Physical or developmental disabilities

An estimated 850,000 people are still living in modern slavery today in Mexico.[4] The Department of Labor has identified a list of goods it has reason to believe are produced using child labor and forced labor in Mexico including[5]:

• Beans
• Cattle
• Chile peppers
• Coffee
• Cucumbers
• Eggplants
• Garments
• Leather goods/accessories
• Melons
• Onions
• Poppies
• Pornography
• Sugarcane
• Tobacco
• Tomatoes

Investigations have also uncovered severe forms of child labor including using children in the production and trafficking of drugs and in dangerous agricultural work.[6]

Mexico Efforts to Eliminate Forced Labor in Mexico

Over the past several years, the Mexican government has both acknowledged the prevalence of forced labor and taken steps to identify it and stop it. The government has amended its labor laws, signed a national pact that establishes nationwide objectives, and committed to transparency and reporting. However, both the Mexican government and international bodies recognize that there is more work to be done.

Mexico has been actively working to combat forced labor, driven by both international commitments and domestic reform initiatives. These efforts are guided by the country’s obligations under the USMCA, the ILO conventions, and Mexico’s own labor law reforms. Below is an overview of Mexico’s approach, recent actions, and the challenges it faces in eliminating forced labor.

1. Labor Law Reforms

Mexico’s comprehensive labor reform, enacted in 2019, introduced protections for workers and mandated independent labor courts to replace corrupt conciliation boards.[7] These reforms include provisions that make it easier to report forced labor practices and give workers the right to unionize and demand fair labor conditions.

 The reform also specifies penalties for employers who engage in exploitative labor practices, including forced labor. These penalties apply across industries and include potential fines and imprisonment for offenders.

2. Commitments under the USMCA

Mexico’s commitments under the USMCA include specific provisions addressing forced labor, as well as a general commitment to uphold internationally recognized labor rights. To avoid trade restrictions or sanctions, Mexican exporters must ensure that their goods are produced under fair labor conditions. The Mexican government collaborates with U.S. and Canadian authorities to address forced labor concerns within specific industries.

Mexican facilities suspected of labor rights violations, including forced labor, can be investigated and required to take corrective actions. Mexico has worked with the U.S. in cases involving the automotive and agricultural sectors, where reports of labor abuses have been more prevalent.

3. Focus on Child Labor

Child labor remains a significant challenge in Mexico. Approximately 3.7 million children aged 5 to 17 are engaged in child labor, with 2 million involved in hazardous work.[8] These children are often found in agriculture, construction, and informal urban economies, where they face significant health and safety risks.

To combat this issue, in 2023, the state secretaries of labor, the Federal Commission for Addressing Child Labor, and state-level commissions signed a national pact (Pacto del Mayab) that established shared objectives to combat child labor and forced labor in Mexico.[9] The federal commission also published a guide for employers on regulation compliance, expectations for general working conditions, and required benefits for working adolescents. The government also publishes a digital handbook informing minors aged15-17 about their working rights.

4. Enforcement and Monitoring

Mexico has taken steps to strengthen the enforcement of labor standards, including measures specifically targeting forced labor. The Ministry of Labor and Social Welfare (STPS) plays a central role in monitoring labor practices, conducting inspections, and enforcing labor laws.

To enhance its efforts, the STPS has increased labor inspections, especially in high-risk sectors such as agriculture, construction, and manufacturing. Inspectors are trained to identify signs of forced labor, such as withholding of wages, restricted movement, and abusive working conditions.

The Mexican government has also increased funding and training for labor inspectors to address forced labor and other labor rights violations more effectively.[10] This includes specific training on identifying and handling cases of forced labor and child labor.

5. International Partnerships and Capacity Building

Mexico collaborates with international organizations and the U.S. to build capacity for identifying and eliminating forced labor. These partnerships provide Mexico with resources and expertise to address forced labor comprehensively.

Mexico works with the ILO to align its labor standards with international guidelines. The ILO provides technical assistance, resources, and training for Mexican officials on forced labor issues.

Mexico also leverages U.S. assistance programs. For example, through the USMCA, the U.S. Department of Labor and USAID support Mexico’s labor reform efforts, including programs that help identify and prevent forced labor.[11] This includes funding for monitoring initiatives, worker education programs, and training for Mexican labor inspectors.

6. Awareness Campaigns and Worker Protections

Public awareness campaigns and legal protections are essential to combating forced labor in Mexico. These initiatives help inform workers about their rights and provide channels for reporting labor abuses.

The Mexican government and labor organizations conduct public campaigns to inform workers of their rights, including protections against forced labor. These campaigns are targeted at vulnerable populations, including migrant and seasonal workers, who are at a higher risk for exploitation.

Mexico has established hotlines[12] and complaint mechanisms for workers to report labor abuses. Workers can anonymously report instances of forced labor, allowing the government to investigate and take action.

Recommendations to Eliminate Forced Labor from Products Imported into the U.S. from Mexico

Mexico has made great strides in taking action to eliminate the use of forced labor. Mexico’s laws are consistent with international standards and Mexico has ratified all key international conventions concerning child labor. However, lack of resourcing for enforcement and coordination as well as limited social programs may hold back the ultimate goal of eliminating forced labor.

A. Enforcement

Additional resourcing could improve Mexico’s enforcement of both in-country labor laws and enforcing laws against the importation of goods produced with forced labor.

1. In-country labor laws

 There are multiple opportunities for Mexico to improve enforcement of its own forced labor laws.

Inspector resourcing

Enforcement of forced labor laws in Mexico continues to be limited by lack of resourcing. Mexico’s STPS would benefit from greater funding and resources to expand the number of labor inspectors, especially in rural and informal sectors where forced labor risks are highest.

Additionally, inspectors could greatly benefit from focused training on identifying forced labor, particularly in agriculture and manufacturing. This training would help inspectors detect abuses more effectively and avoid over- or underenforcement.

Business compliance

Mexico can take action to strengthen compliance and accountability measures for businesses. Requiring companies to perform labor due diligence, similar to standards in the U.S. and the EU, would help reduce forced labor in supply chains. Companies could be required to certify compliance with labor laws, conduct third-party audits, and disclose labor practices in their supply chains.

Mexico could establish tax incentives or other benefits for companies that demonstrate compliance with labor laws and engage in ethical labor practices. Recognizing and rewarding compliant businesses would encourage broader adherence to labor standards.

Stronger Penalties

Mexico could increase penalties for companies and individuals involved in forced labor to act as a stronger deterrent. This might include higher fines and tougher criminal consequences, sending a clear message that force labor will not be tolerated.

2. Trade Enforcement Mechanisms

Mexico could implement a customs-based enforcement tool to block goods produced with forced labor from being exported. This would align Mexico’s enforcement with the U.S. and send a strong message to businesses to comply with labor laws.

Mexico could also consider enhancing penalties for forced labor violations, including significant fines and potential facility closures.

B. Government Policies

Additional policy development is needed to ensure consistency and transparency in the enforcement of forced labor laws.

Inspection Standards & Coordination

The Mexican government can ensure that state-level labor inspectors conduct targeted, routine, and unannounced labor inspections in all sectors. There is also a need for improved coordination and information sharing between federal and state labor inspectors.

Transparency

Mexico’s forced labor enforcement programs would benefit from additional reporting and transparency. Currently, the government does not report information at the state or federal levels on the number of violations uncovered, fines that were collected, prosecutions, or convictions.

Strengthen Unions

Empowering unions can help workers organize and advocate against forced labor practices. Mexico should continue to support unionization efforts in high-risk industries, ensuring that unions are independent and representative.

Training for Law Enforcement

Finally, more resources are needed to ensure that criminal law enforcement agencies are equipped to conduct thorough investigations and prosecute forced labor crimes. Training for law enforcement, investigative teams, and judges is needed.

Expand Partnerships with NGOs and International Organizations

Collaboration with the ILO and local NGOs can help provide additional resources, training, and monitoring in areas where forced labor is prevalent. NGOs can also serve as intermediaries for workers who may be hesitant to report labor abuses directly to the government.

Mandatory Training

Require companies to provide training for employees and suppliers on identifying and mitigating forced labor risks within supply chains.

Mexico should also use the labor standards outlined in the USMCA and other trade agreements to secure technical and financial support from partner countries. This could help further labor reforms and inspection capacity.

C. Social Programs

While Mexico has taken steps to provide resources to victims of forced labor, more can be done to provide education and targeted outreach.

Education Access

Expand access to education for children in vulnerable communities to reduce child labor. Invest in scholarships and school infrastructure in rural areas.

School Coordination

Mexico can ensure that school children are screened for indicators of forced labor and that child victims of forced labor are placed in child protection centers instead of detention centers, with access to social services and education. The government can also provide additional support to migrant, refugee, and internally displaced children to reduce their risk for child labor.

Improve Worker Awareness and Reporting Channels

Targeted awareness campaigns can educate workers about their rights and the illegality of forced labor. Using local languages and accessible communication channels like radio, television, social media, and posters in high-risk regions can help reach vulnerable populations.

Offering more robust anonymous reporting channels, such as hotlines and mobile apps, can encourage workers to report abuses without fear of retaliation. These mechanisms should also connect workers to resources and legal assistance.

Targeted Programs for Vulnerable Populations

Certain populations, such as migrant workers, are at high risk of forced labor, especially in agriculture and construction. Mexico could expand targeted protections, such as access to identification documents, fair wage protections, and the right to change employers.

Mexico could also provide rehabilitative and legal services for forced labor survivors. Survivors can provide insight into labor practices, aiding efforts to identify and dismantle forced labor networks.

Conclusion

Eradicating forced labor from supply chains remains a priority trade issue for the United States. The U.S. government is determined not only to prevent goods made with forced labor from entering the country, but also to stop them from being made in the first place.

As a top trading partner, the U.S. is heavily invested in Mexico’s efforts to eradicate forced labor. In recent years, Mexico has been recognized by international organizations for their improvements in enforcing forced labor laws. The government’s efforts to adopt policies, identify forced labor, and conduct enforcement have brought the country closer to the standards of other developed nations. However, additional work remains to improve the identification of forced labor as well as the consistency of Mexico’s enforcement efforts.

Preventing forced labor requires a unified effort across government institutions, private sectors, and civil society. By strengthening enforcement of labor laws, providing education, and fostering international collaboration, both the U.S. and Mexico can address the root causes of forced labor and ensure bad actors are brought to justice.

As the U.S. and Mexico continue to combat forced labor, the countries have an opportunity to set a powerful example of commitment and cooperation to human rights on the global stage.

[1] International Labour Organization. Forced labour, modern slavery and trafficking in persons.

https://www.ilo.org/topics-and-sectors/forced-labour-modern-slavery-and-trafficking-persons

[2] Id.

[3] U.S. Department of Homeland Security. What is Forced Labor?  https://www.dhs.gov/blue-campaign/forced-labor

[4] Walk Free. The Global Slavery Index. (2023) https://cdn.walkfree.org/content/uploads/2023/05/17114737/Global-Slavery-Index-2023.pdf

[5] U.S. Department of Labor. 2024 List of Goods Produced by Child Labor or Forced Labor. (2024) https://www.dol.gov/sites/dolgov/files/ilab/child_labor_reports/tda2023/2024-tvpra-list-of-goods.pdf

[6] U.S. Department of Labor, Bureau of International Labor Affairs. Child Labor and Forced Labor Reports (2023). https://www.dol.gov/agencies/ilab/resources/reports/child-labor/mexico

[7] U.S. Department of Labor, Bureau of International Labor Affairs, Building an Independent & Democratic Labor Movement to Protect Worker Rights in Mexico. https://www.dol.gov/agencies/ilab/building-independent-democratic-labor-movement-protect-worker-rights-mexico

[8] International Labour Organization, Child Labour- Facts and Figures in the world. https://www.ilo.org/projects-and-partnerships/projects/child-labour

[9] U.S. Department of Labor, Bureau of International Labor Affairs, Child Labor and Forced Labor Reports.

https://www.dol.gov/agencies/ilab/resources/reports/child-labor/mexico

[10] U.S. Department of Labor, Bureau of International Labor Affairs, Strengthening Mexican Inspectorate for Forced Labor Enforcement (CAMINOS). https://www.dol.gov/agencies/ilab/strengthening-mexican-inspectorate-labor-enforcement-caminos

[11] U.S. Department of Labor, Bureau of International Labor Affairs, Labor Rights and the United States-Mexico-Canada Agreement (USMCA).

https://www.dol.gov/agencies/ilab/our-work/trade/labor-rights-usmca

[12] Contratados, Binational Anti-Trafficking Hotline Launched to Combat Human Trafficking.

https://contratados.org/es/node/35331

Strategy Background

DHS released the first publication of the UFLPA Strategy in June 2022. The strategy outlines a multi-pronged approach to combating forced labor in global supply chains.The strategy includes a comprehensive assessment of the risk of importing goods with forced labor in the PRC, high priority sectors for enforcement, guidance to importers, recommendations to accurately identify affected goods, and more. DHS released the first update to the publication in August of 2023.

The Latest Update  

The update builds on two years of the Administration’s enforcement of the UFLPA. The latest strategy identified new high priority sectors for enforcement – aluminum, polyvinyl chloride (PVC), and seafood. These industries were identified due to higher risk of forced labor or state labor transfer of Uyghurs and other ethnic minorities from the Xinjiang Uyghur Autonomous Region (XUAR).

Entities in these sectors will now be prioritized for review for enforcement actions such as inclusion on the UFLPA Entity List, sanctions, export limitations, and visa restrictions.

Other products previously identified as high priority such as apparel, cotton and cotton products, silica-based products including polysilicon, and tomatoes remain high priority sectors.

The latest updates also outline how the FLETF has significantly advanced their objectives through several initiatives, such as strong enforcement by U.S. Customs and Border Protection (CBP); expansion of the UFLPA Entity List; new high priority sectors for enforcement; and greater collaboration with stakeholders.

Revisit Your Due Diligence Efforts

With the addition of these new high-priority sectors for enforcement, importers should give extra attention to due diligence efforts on supply chains that interact with these sectors.

Diaz Trade Law has significant experience in a broad range of import compliance matters including forced labor compliance and enforcement mitigation. For assistance in a broad range of forced labor compliance matters including developing or updating a forced labor compliance plan, forced labor compliance training, or communicating with CBP regarding goods detained by CBP, contact us today at info@diaztradelaw.com.

Read more:

• Bloomberg Law Feature: S. Customs Targets Use of Forced Labor
• Uyghur Forced Labor Prevention Act (UFLPA): What You Need to Know
• UFLPA DHS Forced Labor Guidance – What Importers Need to Know
• Know Your Supply Chain: Forced Labor

Panelists indicated that “more than 10” new entities would be placed on the Entity List in the coming months. The government has received criticism regarding the relatively low number of entities on the Entity List since the UFLPA was enacted in June 2022. While “more than 10” is still a relatively low number, given that the current Entity List is comprised of just 30 entities, ten-plus new entities would represent a significant increase.

Panelists also announced that new high-priority sectors for UFLPA enforcement would be identified in the near future. Currently, only cotton, tomatoes, and polysilicon are officially listed as high-priority sectors. Panelists re-affirmed that the Forced Labor Enforcement Task Force (“FLETF”) – an interagency team led by the Department of Homeland Security – uses reports from Non-Government Organizations (NGOs), reporting from journalists, letters from Congress, and other sources to identify additional potential high-priority sectors. Panelists also appeared to agree that polyvinyl chloride (“PVC”), fish, and aluminum – sectors that have recently been tied to Uyghur forced labor in NGO and media reporting – were likely candidates for designation as high-priority sectors.

Importers of products in any newly-identified high-priority sectors are likely to receive increased scrutiny under the UFLPA, even if the products are not designated as “Country of Origin China” on entry. Since the UFLPA was enacted, by value, Malaysia has seen the highest number of shipments detained under the UFLPA, followed by Vietnam, Thailand, and, finally, China.[1] Importers should also remember that CBP is actively detaining shipments under the UFLPA across a wide variety of industries not designated as high-priority sectors. In fact, the industry with the highest number of UFLPA-related detentions since the UFLPA went into effect is Electronics. Industrial and manufacturing materials, consumer products, pharmaceuticals, machinery, and automotive and aerospace products have also seen many detentions under the UFLPA.^[2]

The UFLPA requires the FLETF to provide annual updates to Congress regarding the UFLPA strategy, including any updates to the Entity List, plans for enforcement, and high-priority sectors. The 2023 update was published July 26, 2023, so we expect to see additions to the Entity List and newly identified high-priority sectors this summer, if not before.

It is clear that forced labor will continue to be a priority for CBP. Importers should prepare for increased scrutiny by investing in robust compliance programs that take into account the entire supply chain. Read more about specific steps you can take in our Bloomberg article here and read more about how to de-risk your supply chain here.

Diaz Trade law has significant experience in forced labor compliance and enforcement mitigation. Get in touch with us at info@diaztradelaw.com for assistance developing or updating your forced labor compliance plan.

More information on forced labor:

• UFLPA Guidance: What Importers Need to Know
• Uyghur Forced Labor Prevention Act (UFLPA): What You Need to Know
• Bloomberg Law: U.S. Customs Targets the Use of Forced Labor
• CBP Publishes Additional Guidance On Responding to Cargo Detentions Made Under the Uyghur Forced Labor Prevention Act
• Summary of CBP’s March 2023 Forced Labor Technical Expo

[1] Id.

[2] Uyghur Forced Labor Prevention Act Statistics, available at Uyghur Forced Labor Prevention Act Statistics | U.S. Customs and Border Protection (cbp.gov) (statistics current as of March 1, 2024).

What is Forced Labor? 

Forced labor is defined under 19 U.S.C. § 1307 as “all work or service which is exacted from any person under the menace [threat] of any penalty for its non-performance and for which the worker does not offer himself voluntarily.”  Forced Labor is the third most lucrative illicit trade, behind only drugs and weapons, and has an annual trade value of roughly $150 billion.  

Right now, over 40 million people around the world are victims of some type of forced labor, including modern slavery, human trafficking, child labor, etc. Section 307 of the Tariff Act of 1930 (19 U.S.C. 1307) prohibits the importation of all goods and merchandise mined, produced, or manufactured wholly or in part in any foreign country by forced labor, convict labor, and/or indentured labor under penal sanctions, including forced child labor. 

CBP is responsible for preventing the entry of products made with forced labor into the U.S. market by investigating and acting upon allegations of forced labor in supply chains. CBP implements Section 307 of the Tariff Act of 1930 (19 U.S.C. 1307) through issuance of Withhold Release Orders (WRO) and findings to prevent merchandise produced in whole or in part in a foreign country using forced labor from being imported into the United States. 

 UFLPA 

On June 21, 2022, the Uyghur Forced Labor Prevention Act (UFLPA) was enacted to further reinforce the United States’ prohibition against the importation of goods made with forced labor. The UFLPA establishes a rebuttable presumption that goods mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of China or by an entity on the UFLPA Entity List are prohibited from importation into the United States under 19 U.S.C. § 1307.  

 In many ways, the UFLPA heightened the standard for forced labor compliance in comparison to its predecessor / parallel enforcement system, Withhold Release Orders. However, if an Importer of Record can demonstrate by clear and convincing evidence that the goods in question were not produced wholly or in part by forced labor the Commissioner of CBP may grant an exception to the presumption. 

 What Importers Should Do 

 In September 2017, CBP published an updated forced labor Reasonable Care Checklist that includes 12 questions importers must be able to answer in order to demonstrate they have used reasonable care. Key to this checklist is knowing “how your goods are made, from raw materials to finished goods, by whom, where, and under what labor conditions.” 

 Map & Document Your Supply Chain 

Understanding who is supplying you with a product is not enough, you also need to know who is supplying them. You should have a comprehensive understanding of your supply chain that includes documentation of the various tiers of suppliers. Detailed documentation can help identify gaps and high-risk areas that may need to be revisited down the road.  

 At a minimum, you should maintain the following information: 

• Detailed description of your supply chain including all stages of production 
• A list of suppliers involved in each step of the production process 
• Contact information for all suppliers 
• Documentation that can be used to trace raw materials to merchandise 
• Manufacturing or production records 
• Reports on factory conditions including reports on site visits  
• Reports showing that the volume of inputs matches the volume of outputs for merchandise produced 

 The documentation process can also help you defend your reasonable care duty down the road should you face a CBP enforcement action. 

 Write Standards and Penalties Into Your Contracts 

Suppliers may not always be as invested as you in being diligent about discovering forced labor. Contracts should stipulate compliance with forced labor laws and ideally include a code of conduct that promotes continual due diligence. You can also write your contracts with suppliers in a way that imposes large financial penalties or allows for termination if they use vendors who are discovered to be using forced labor. 

 Step Up Screening for Partners 

You cannot rely on a supplier’s word as your compliance strategy. Every importer should have a robust screening process that ensures, at a minimum, that trading partners are not subject to sanctions or embargoes. Importers should consider partnering with research firms that compile watch lists that government agencies won’t or can’t.  

 Utilize Technology 

As supply chains become more complex, gaining visibility and maintaining transparency can seem overwhelming. Technology can help. There are several responsible sourcing software providers and managed services providers that can help you collect data, understand where your products come from, and organize your documentation. There are also free resources to help you understand documented risks, such as the U.S. Department of Labor’s Sweat & Toil app. 

 Audit Your Supply Chain 

Continual monitoring is a key part of preventing forced labor. Supply chains can change frequently, and you may never know about it if you don’t perform audits. Audits should include data collection that can uncover compliance lapses, transparency gaps, and new risk. It is also critical to set up an audit reporting and remediation process so that you can quickly action items uncovered in an audit. 

 Contact Us 

 Diaz Trade Law has significant experience in a broad range of import compliance matters including forced labor compliance and enforcement mitigation. For assistance in a broad range of forced labor compliance matters including developing or updating a forced labor compliance plan, forced labor compliance training, or communicating with CBP regarding goods detained by CBP, contact us today at info@diaztradelaw.com. 

  More information on forced labor: 

• UFLPA Guidance: What Importers Need to Know 
• Uyghur Forced Labor Prevention Act (UFLPA): What You Need to Know 
• Bloomberg Law: U.S. Customs Targets the Use of Forced Labor 
• CBP Publishes Additional Guidance On Responding to Cargo Detentions Made Under the Uyghur Forced Labor Prevention Act 
• Summary of CBP’s March 2023 Forced Labor Technical Expo 
• UFLPA DHS Forced Labor Guidance – What Importers Need to Know 
• Uyghur Forced Labor Prevention Act (UFLPA): What You Need to Know 
• CBP’s Forced Labor Process Flowchart 

UFLPA Background

On December 23, 2021, President Biden signed into law H.R. 6256, as part of the United States’ commitment and deterrence efforts to secure U.S. supply chains from goods produced by forced labor. The Uyghur Forced Labor Prevention Act  (UFLPA) (H.R. 6256) requires CBP to apply a rebuttable presumption that all imports of goods, wares, articles, and merchandise manufactured wholly or in part from the Xinjiang Uyghur Autonomous region of the People’s Republic of China, or by entities identified by the U.S. government on the UFLPA Entity List, are presumed to be produced with forced labor and are prohibited from entry into the United States.

This presumption applies to all goods made in, or shipped through, other countries that include parts made in Xinjiang. However, this presumption is rebuttable. To rebut this presumption, the importer of record will need to provide to CBP clear and convincing evidence that the goods were NOT produced using forced labor.

DHS Making Progress, Some Say Not Enough

While the announcement was applauded by some, other groups expressed concern that DHS is not doing enough to enforce the UFLPA. The Uyghur Human Rights Project (UHRP) issued a press release expressing concern with the announcement of only two entity list additions. UHRP claims that they, along with other research organizations, have submitted substantial data showing evidence of violations that the government has yet to take action on. UHRP Executive Director stated that the announcement was “highly disappointing,” noting “it’s truly concerning that the government apparently could only act on two companies.”

The Chairs of the Congressional Executive Commission on China also issued a statement saying the additions are a “step in the right direction” but urging more robust enforcement.

UFLPA Enforcement Remains a Priority

Despite the criticism of action, UFLPA enforcement will continue to be a priority of the U.S. government. FLETF has opened up strong channels for public input and continues to investigate violations.

Diaz Trade Law has significant experience in a broad range of import compliance matters including forced labor issues. Read more about UFLPA requirements:

• Bloomberg Law article, US Customs Targets Use of Forced Labor
• Uyghur Forced Labor Prevention Act (UFLPA): What You Need to Know
• CBP Publishes Additional Guidance On Responding to Cargo Detentions Made Under the Uyghur Forced Labor Prevention Act
• Summary of CBP’s March 2023 Forced Labor Technical Expo
• UFLPA DHS Forced Labor Guidance – What Importers Need to Know

For assistance with importer due diligence in relation to forced labor requirements, or for assistance in submitting documents to dispute the use of forced labor, contact our Customs and International trade law attorneys at info@diaztradelaw.com or call us at 305-456-3830.