Washington Bans Imports from 3 Chinese Genomics Companies Under Forced Labor Law
Key Facts
The United States added 3 Chinese genomics companies to the list of entities covered by the Uyghur Forced Labor Prevention Act, making goods linked to them subject to restrictions barring their entry into the U.S. market. Reuters reported that the companies are BGI Genomics, MGI Tech and Shenzhen BGI Technology, which Washington says is also known as BGI Group. The listing means U.S. importers must contend with a rebuttable legal presumption that goods produced wholly or partly by these entities were made with forced labor. The presumption took effect on June 21, 2022, according to the text published in the Federal Register. The decision places the burden of proving otherwise on the parties concerned if they want to bring those goods into the United States.
The listing covers the three companies, which operate in the genomics sector, Reuters reported. The report names BGI Genomics and MGI Tech alongside Shenzhen BGI Technology, noting that the U.S. government considers the latter also known as BGI Group. The law gives customs authorities grounds to deny entry to goods produced by listed entities unless the associated presumption is rebutted. The rule covers goods that the entities have mined, produced or manufactured, whether wholly or partly. The list’s reach therefore extends beyond the company name to goods linked to its production operations and supply chains.
The Uyghur Forced Labor Prevention Act provides for the presumption to apply from June 21, 2022, according to the Federal Register. Under the law, goods produced by listed entities are treated as having been made with forced labor and are barred from import into the United States. The presumption remains rebuttable, allowing the listed entity or concerned parties to submit information seeking to prove otherwise. A listed entity may request removal from the list by submitting supporting information to the relevant Forced Labor Enforcement Task Force. After member agencies review the request, removal is decided by a majority vote, according to procedures published in the Federal Register. This means removal from the list is subject to institutional review and a vote, rather than being automatic upon request.
Separately, U.S. Census Bureau data showed that the goods trade deficit reached $134.9 billion in September, up $2.8 billion from August, when it stood at $132.1 billion. The bureau released its advance estimate for September on October 28. Goods exports were $209.2 billion, up $5.3 billion from the previous month. Imports were $344.1 billion, an increase of $8.1 billion from August. The figures show monthly import growth outpaced export growth, alongside a widening goods trade deficit.
The U.S. Census Bureau is scheduled to release its next Advance Economic Indicators report on November 27 at 8:30 a.m. Eastern Time, covering October. The next report will address international trade alongside retail and wholesale data. It will provide a new reading on the goods trade deficit after it reached $134.9 billion in September, compared with $132.1 billion in August. Any request to remove an entity from the Uyghur law list is subject to review by the task force’s member agencies and a majority vote, according to the Federal Register.