On December 23, 2021, President Biden signed into law legislation banning imports from China’s Xinjiang region because of its forced labor practices. The Uyghur Forced Labor Prevention Act is part of the United States’ opposition to Beijing’s treatment of China’s Uyghur Muslim minority.
Key to the legislation, which passed Congress, is a “rebuttable presumption.” This assumes all goods from Xinjiang – the location of detention camps for Uyghurs and other Muslim groups – are made with forced labor. As such, imports into the United States from this region are prohibited unless clear evidence confirms otherwise.
“Companies cannot and should not make credible claims about sustainability without being able to track the entire history of a product,” said Allan Dow, president of Logility. “Such product claims should be backed by data that includes the full chain of custody.”
It is more important than ever to ensure traceability throughout every link in your supply chain. Logility is here to help. With the Logility® Digital Supply Chain Platform, brands gain greater control of their supply chain. Its traceability capabilities enable brands to document the chain of custody from material origin to importer of record. Brands can:
- Create and maintain comprehensive supplier profiles, certifications and evaluations including supply chain hierarchies, geolocation maps and digital threads
- Verify the origin, supplier and consumption of all materials used in finished products prior to shipment
- Collect, organize and distribute supporting documents (purchase orders, packing lists and invoices) for every transaction in each tier of the supply network
- Utilize data from every transaction to create a compliance certificate that can be included with shipment paperwork to provide proof of admissibility that the merchandise was not produced with forced labor
- Use anomaly detection, exception alerts, advanced analytics and proactive notifications to discover any unauthorized or prohibited suppliers within the supply network.
“The need for global supply chains to prove the traceability of products passing through has never been more important,” said Dow. “From origin of materials to labor used to make products to final destination, a digital supply chain solution is an ironclad way for companies to better comply with legislation, vet suppliers and trace source materials.”