Federal authorities have banned any products or materials from several more China-based textile companies from entering the United States, saying the businesses rely on forced labor to power their operations.

The move means that promotional products suppliers – and distributors that import directly – must ensure the outlawed companies are not part of their supply chains. The U.S. Department of Homeland Security (DHS) could deny entry to any imported shipment containing products or materials from the banned firms.

DHS announced that it has added Esquel Group of Hong Kong, Guangdong Esquel Textile Co. Ltd. of Foshan City, Turpan Esquel Textile Co. Ltd. of Turpan City and Changji Esquel Textile Co. Ltd. of Changji Prefecture to its Uyghur Forced Labor Prevention Act (UFLPA) Entity List.

In effect, this means DHS believes the businesses use forced labor in China’s Xinjiang region. As such, these companies’ products are prohibited from being imported into the United States, either on their own or as components of other products.

“Through today’s expansion of the Entity List, we enable American businesses to better assess their supply chains and ensure they do not profit, directly or indirectly, from the use of forced labor,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Our department will continue to aggressively enforce the Uyghur Forced Labor Prevention Act and, in doing so, we stand up for human rights, safeguard a free and fair marketplace, and hold perpetrators accountable.”

The UFLPA became law in December 2021.

4,288
The number of shipments that border agents have denied entry into the United States under the UFLPA since enforcement began in June 2022.(U.S. Customs and Border Protection)

The act creates a rebuttable presumption that goods mined, produced or manufactured wholly or in part in Xinjiang or produced by entities identified on the UFLPA Entity List are prohibited from importation into the United States unless the commissioner of U.S. Customs and Border Protection (CBP) determines that the goods were not produced with forced labor.

The list of entities – businesses effectively banned from exporting to the U.S. – include companies that are active in the apparel, agriculture, polysilicon, plastics, chemicals, batteries, household appliances, electronics and food additives sectors.

CBP began enforcing the UFLPA in June 2022. Since then, CBP has reviewed about 10,160 shipments valued at more than $3.6 billion under the UFLPA. Of those, 4,288 shipments have been denied entry into the U.S., as of this writing. 

“We are uncompromising in removing forced labor from U.S. supply chains,” said Under Secretary for Policy Robert Silvers, who serves as chair of the Forced Labor Enforcement Task Force. “Our enforcement efforts are yielding results. Our administration is committed to advancing this momentum and strengthening accountability across global supply chains.”

Regarding the most recent companies added to the Entity List, authorities said that Esquel Group, also known as Esquel China Holdings Limited, is a vertically integrated textile and apparel company that engages in cotton research, as well as ginning, spinning, knitting, weaving of cotton and cotton products, in the production of textiles, apparel and accessories, including packaging and merchandising of these products.

Esquel Group includes a variety of subsidiaries also involved in cotton, textile, clothing and other products manufacturing, production and sales, including Changji Esquel Textile Co. Ltd., Turpan Esquel Textile Co. Ltd. and Guangdong Esquel Textile Co. Ltd.