Since a June 2022 law banning Chinese forced labor items, U.S. Customs and Border officers have scrutinized Vietnam’s exports.
The international cargo terminal at a port in Haiphong, Vietnam, on August 12, 2019, is the location where containers are transported from a truck to a cargo ship. (Source: Radio Free Asia)
Banned Exports Under Forced Labor
From June 2022, when the Uyghur Forced Labour Protection Act went into force, to the start of fiscal year 2024, over 1,200 Vietnamese imports were denied clearance by CBP. The rule bans US imports of raw materials and products created by forced labor in China’s Xinjiang Uyghur Autonomous Region. The U.S. government claims genocide and crimes against humanity against Muslim Uyghurs in Xinjiang, including mass detentions in “re-education” camps or prisons and forced labor. Uyghur forced labor produces cotton for textiles and polysilicon for PV panels and electronics. China has always denied Xinjiang rights abuses. Vietnam ranks second in U.S. shipments denied entry behind Malaysia since the UFLPA was implemented.
According to Reuters, tougher human rights standards in Xinjiang have led to bans on more than 6,000 shipments worth more than US$2 billion through September, the latest month for which U.S. customs figures are available. As of Nov. 8, the CPB had reviewed more than 2,000 Vietnamese goods worth almost US$549 million. 1,186 shipments worth more than US$230 million were denied entry, 554 were released, and 330 were still waiting. Most of the 962 exports were electronics worth over $488 million. Industrial and manufacturing supplies, garments, footwear, textiles, consumer products, and machinery were also shipped. This included 376 refused, 438 released, and 148 awaiting shipments.
Data shows August 2022 saw the most Vietnamese exports denied entry to the U.S., with 140 valued at over US$46 million. Reuters stated that Vietnam and Malaysia, key solar panel and semiconductor exporters, accounted for almost two-thirds of U.S. rejected or held goods. Vietnam and Malaysia’s trade ministries declined Reuters’ requests for comment.
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