22-11-2023 (WASHINGTON) – In September, electronics valued at a year-high of $74 million (S$99 million), including items such as solar panels and microchips primarily from Malaysia and Vietnam, were either denied entry into the United States or subjected to thorough inspections for components originating from forced labor in China, according to official data.
Since the implementation of stricter US regulations in June 2022 aimed at addressing human rights violations in China’s Xinjiang region, where the Uyghur minority resides, over 6,000 shipments with a total value exceeding $2 billion have been subject to scrutiny through September, the most recent month for which US customs data is available.
Nearly half of these shipments were either rejected or still awaiting approval, as indicated by the data updated earlier in November.
In September alone, shipments worth $82 million were either refused or held for inspections, with 90 percent of them being electronics. This represents a significant increase from the less than $20 million in August.
The US customs authority did not provide an immediate comment regarding this matter.
Of the rejected or held cargoes, over two-thirds originated from Malaysia or Vietnam, which are major exporters of solar panels and semiconductors to the United States. Vietnam also plays a significant role as a supplier of textiles, footwear, and apparel. Xinjiang, known for its cotton and polysilicon production, is an important source of raw materials used in photovoltaic panels and semiconductors.
Since the implementation of the new rules, Malaysia and Vietnam have faced rejections or inspections of cargoes worth approximately $320 million each, nearly three times more than China.
Although these incidents represent only a small fraction of their trade with the United States, it is unclear whether companies are delaying shipments due to compliance concerns.
Requests for comments from Malaysia’s trade ministry and Vietnam’s industry ministry went unanswered.
Industry experts and government officials in both countries have either expressed unawareness of the issue or stated that they have not received any concerns regarding this matter.
Washington has accused China of committing genocide against the Uyghur population, with human rights organizations condemning the widespread use of internment camps and forced labor. China has consistently denied all allegations of abuse.
Under the US Uyghur Forced Labor Protection Act (UFLPA), exporters are required to provide evidence that their products do not contain any raw materials or components originating from Xinjiang.
