U.S. Government Ramps Up Enforcement of Forced Labor Law: Oil & Gas
In June 2022, the Uyghur Forced Labor Prevention Act (UFLPA) was enacted into law, increasing the pressure on companies importing goods from overseas to document that their supply chains are free from forced labor. The U.S. government has pledged to strictly enforce the law, requiring companies now, more than ever, to focus on responsible sourcing and documenting their risk mitigation strategies. Certain commodities are considered by the U.S. government to be subject to a high-risk of forced labor – especially metals and other earth minerals that are used in the production of oil and gas equipment. Polysilicon (the basic building block of semiconductors) is considered among the highest-risk items with the Xinjiang Uyghur Autonomous Region (XUAR) alone accounting for up to half of the world’s supply. Semiconductor chips run the equipment that runs refineries, meaning half of all importers of oil and gas equipment are likely already out of compliance with UFLPA - and thus ripe for targeting by U.S. Customs and Border Protection (CBP).
Join us for a webcast moderated by Clark Sackschewsky (BDO Natural Resources Practice Leader), and featuring Damon V. Pike and Andrea Greco, where we will discuss how to navigate this complex law, its implications, and ways to ensure your company is prepared. Damon leads BDO’s Customs and International Trade Services (CITS) group and has nearly 34 years of experience helping multinational companies navigate the complex rules governing the cross-border movement of goods and services. Andrea leads BDO’s supply chain practice and has extensive industry as well as consulting experience in leading global supply chain and procurement organizations to maximize value and mitigate supply chain risks.
During this conversation, you’ll learn:
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Latest updates regarding UFLPA;
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How our team is assisting with supply chain mapping and performing forced labor assessments/origin verifications; and
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How to properly prepare the required documentation to “prove the negative” on goods targeted by CBP to show they’re free of forced labor.