DHS Expands UFLPA Entity List Amid Intensifying Enforcement Landscape

Executive Summary

Last week, the Forced Labor Enforcement Task Force (“FLETF”) added 43 entities to the Uyghur Forced Labor Prevention Act (“UFLPA”) Entity List and made technical name updates to two existing entities.[1] This is the first update to the Entity List since President Trump took office and is the single largest expansion since the UFLPA’s enactment. Together with recent guidance from U.S. enforcement agencies, the expansion suggests that importers may face increased UFLPA and forced labor enforcement risks.

The UFLPA establishes a rebuttable presumption that goods mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region (“XUAR”), or by any entity on the UFLPA Entity List are made with forced labor and therefore prohibited from importation into the United States under Section 307 of the Tariff Act of 1930 (19 U.S.C. § 1307).

The 43 newly listed entities operate across several sectors, with significant exposure in aluminum, apparel, cotton, and tomatoes—all FLETF-designated high-priority enforcement areas. The listings also cover companies in the mining, pharmaceuticals, electronics, energy, and transportation infrastructure sectors. According to the FLETF, the entities were listed based on determinations that they either source materials from the XUAR or participate in government-sponsored labor transfers out of the region.

Since the UFLPA’s enactment, CBP has detained thousands of shipments, valued at nearly $4 billion. While CBP’s UFLPA dashboard statistics show a marked decrease in detention activity since January 2025, this recent expansion of the Entity List may signal that a new wave of enforcement activity is on the horizon. In June, President Trump issued Executive Order 14411, “Strengthening Customs Enforcement,” directing the Department of Homeland Security (“DHS”) and the Department of Justice (“DOJ”) to prioritize enforcement of federal law relating to importations involving products produced by forced labor, among other trade issues.

In addition to civil enforcement, DOJ established a cross-agency a Trade Fraud Task Force, which recently issued “A Resource Guide to Trade Fraud Enforcement” (“Resource Guide”) articulating the agencies’ enforcement priorities and detailing the civil, criminal, and administrative tools available to target trade fraud. The guide includes a detailed section on forced labor enforcement and notes the possibility of civil penalties and criminal liability related to forced labor.

DHS further signaled increased enforcement risk in its press release accompanying the Entity List expansion. DHS Assistant Secretary for Trade and Economic Security Aris Kourkoumelis stated, “[t]he DHS-DOJ Trade Fraud Task Force brings a new energy to our enforcement against illicit imports and our broader efforts to end the human suffering caused by forced labor.” Kourkoumelis added that “[i]mporters should know that those who attempt to circumvent today’s action and knowingly import goods produced with forced labor will be prosecuted to the fullest extent of the law.” Taken together, these developments reflect coordinated action across multiple federal agencies to escalate forced labor enforcement through parallel civil, administrative, and criminal channels.

The Entity List expansion also comes just one week after USTR’s Section 301 forced labor tariffs took effect on July 24, 2026. Those tariffs were imposed on 60 economies that the U.S. Trade Representative (“USTR”) determined had failed to implement or enforce prohibitions on imports made with forced labor. In initiating the investigation, USTR noted that American workers and firms have an unfair disadvantage when competing against foreign producers using forced labor.  DHS echoed a similar theme in announcing the new UFLPA listings, emphasizing the competitive advantage gained by producers that rely on forced labor. Together, these developments suggest an increased U.S. enforcement focus on forced labor in global supply chains.

Against this backdrop, many importers are revisiting their UFLPA due diligence programs to prepare for the possibility of heightened enforcement. Comprehensive forced labor due diligence programs will remain central to managing compliance with the UFLPA and other relevant U.S. anti-forced labor laws. This is reflected in recent guidance across multiple key agencies. The Trade Fraud Task Force’s Resource Guide notes that criminal and civil liability regimes “create a robust and rigorous legal environment that ought to compel companies and others in the supply chain to conduct thorough due diligence into foreign and domestic forced labor practices and ensure their global supply chains remain free from exploitation.” Similarly, in June 2026, CBP issued a new, consolidated Forced Labor Enforcement Operational Guidance for Importers, superseding its prior 2022 UFLPA operational guidance. This guidance provides more direction from CBP on how to conduct effective forced labor due diligence.

Prepare for the possibility of increased enforcement. Importers and companies should consider several steps in anticipation of potential heightened scrutiny and enforcement activity from CBP and other agencies. Proactive steps may include the following:

1. Screen suppliers and refresh due diligence. As a first step, companies should consider screening their suppliers against the newly listed entities to identify potential connections. While these exercises generally focus on reviewing first-tier supplier lists, broader supply chain screenings may also be helpful. This can include screening all first-tier suppliers for any UFLPA risk (not just connections to the newly added entities) and refreshing mapping exercises to identify and assess risks related to Tier 2+ suppliers.
2. Enhance forced labor due diligence programs. Companies may also consider comprehensively reviewing their forced labor compliance programs to identify gaps and areas for enhancement, drawing on new guidance materials like CBP’s forced labor operational guidance. This process can also focus on governance, including reviewing the sufficiency of internal controls designed to flag, escalate, and address risks.
3. Assess global forced labor exposure beyond the United States. Forced labor enforcement is intensifying globally. The EU Forced Labour Regulation will enter into application in December 2027 and will prohibit products made with forced labor from being placed on or exported from the EU market. Canada has introduced Bill C-35, the Ban on Importing Goods Made with Forced Labour Act, to strengthen its existing forced labor legal framework. In response to the Section 301 forced labor investigations and pressure from the Trump Administration, multiple additional countries are moving to adopt or strengthen their own forced labor import bans. Given this trend, companies should consider reviewing and enhancing due diligence programs to cover global supply chains and implementing measures to address forced labor and legal risks across multiple regimes.
4. Evaluate supply chain resiliency. UFLPA detentions can cause significant supply chain disruptions. Companies should evaluate contingency plans for critical inputs, including identifying alternative suppliers and sourcing regions. Conducting due diligence as described above allows importers to identify and plan for risks in the supply chain.

 

If you have any questions concerning the material discussed in this alert, please contact our International Trade and Business and Human Rights (“BHR) and International Trade practices. Covington’s experts advise companies on identifying and managing forced labor risks and assist companies with developing due diligence programs and global compliance programs that account for forced labor risks, conducting due diligence and implementing remedial measures, mitigating legal risks, responding to enforcement actions, and engaging with government and other stakeholders.