37 Additions to UFLPA Entity List Most Likely to Impact Energy and Textile Industries
WASHINGTON, Jan. 17, 2025 -- Exiger, the market-leading supply chain and third-party risk AI company, released proprietary research generated by its AI platform 1Exiger examining the impact of the Department of Homeland Security's recent announcement that 37 entities have been added to the Uyghur Forced Labor Prevention Act Entity List. Exiger's analysis reveals that the additions are most likely to impact the renewable energy and textile manufacturing industries, resulting in heightened risk of supply chain disruptions and rising costs.
The 37 entities are tied to critical minerals, cotton, and polysilicon used in solar modules from the Xinjiang Uyghur Autonomous Region of China. The UFLPA mandates that goods produced wholly or partially with forced labor in the XUAR or by entities linked to forced labor are prohibited from entry into the U.S. The DHS's expansion of the UFLPA Entity List, now totaling 144 entities, reflects continued efforts to combat forced labor and human rights abuses.
Exiger identified 13.1 million shipments involving the newly added UFLPA entities or their direct or indirect subsidiaries since the start of 2024. More than 53,000 unique shippers, 113,000 business relationships and 88,000 unique consignees are associated with these shipments. Of those implicated, consignees are concentrated amongst construction and engineering, specialty retailers and distributors. Shippers are concentrated in textiles, apparel and luxury goods; electronic equipment, instruments and components; and metals and mining.
Exiger's research also identifies the countries outside of China where shipment entities and consignees are based (Indian, Taiwan and Vietnam), and offers a case study diving deeper into one of the new entities, Huafu Fashion Co. Ltd.
Exiger cautions that industry stakeholders may experience delays due to increased Customs and Border Protection inspections, product or material shortages, strained logistics networks, and increased expenses from logistics and compliance measures. The company continues to monitor vulnerable supply chains and is working with customers to conduct supply chain audits, identify alternative suppliers and enhance due diligence where appropriate.
Exiger's complete analysis is available at https://www.exiger.com/perspectives/dhs-adds-37-entities-to-uyghur-forced-labor-prevention-act-entity-list/.
About Exiger
Exiger is revolutionizing the way corporations, government agencies and banks navigate risk and compliance in their third-parties, supply chains and customers through its software and tech-enabled solutions. Exiger's mission is to make the world a safer and more transparent place to succeed. Empowering its 550 customers across the globe, including 150 in the Fortune 500 and over 55 organizations across the Defense Industrial Base and government agencies, with award-winning AI technology, Exiger leads the way in ESG, cyber, financial crime, third-party and supply chain management and recently achieved FedRAMP® Moderate Authorization. Named one of Fast Company's 2023 and 2024 'Brands That Matter' and recipient of the Third Party Risk Association's 2024 Innovator Award, Exiger's work has been recognized by 50+ AI, RegTech and Supply Chain partner awards. Learn more at Exiger.com and follow Exiger on LinkedIn.
For more information, please contact:
Kody Gurfein
Chief Marketing Officer
1.914.393.0398
kgurfein@exiger.com
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