To date, more than 3,000 companies have registered for Sourcemap’s Forced Labor Compliance Platform in advance of the 21 June Uyghur Forced Labor Prevention Act (ULFPA) enforcement deadline.
The Forced Labor Compliance Platform (FLCP) is critical to managing the end-to-end due diligence reporting requirements of the UFLPA, which is expected to place enhanced scrutiny on the apparel industry among others, Sourcemap says.
The UFLPA aims to prevent products from entering the United States if they were made wholly or in part in the Xinjiang Uyghur Autonomous Region (XUAR), or made from Uyghur labour elsewhere in China.
Sourcemap says the Forced Labour Compliance Platform has been specifically developed to help companies solve the “chain of custody challenge” – proving they can trace products from raw material to US import – by assembling definitive proof of the entities within their supply chains. This includes supplier discovery (identifying all of the stakeholders in the supply chain), transaction traceability (following every batch of raw material as it is converted into finished goods) and validation, including scanning suppliers for risk of fraud, waste and abuse.
“Under the UFLPA, the most important and difficult questions facing any importer will be ‘What do you know about the entities within your entire supply chain?’ and ‘What proof can you present regarding how imported goods were produced, wholly or in part?’” says John Foote, partner and head of the customs practice at Kelley Drye & Warren LLP and author of the newsletter, Forced Labor & Trade.
The Forced Labor Compliance Platform marries Sourcemap’s supplier network discovery capabilities – which help companies map their supply chains down to raw materials suppliers – with powerful traceability capabilities that verify the chain of custody for every container entering a US port. The platform equips retailers, manufacturers and brands with a better understanding of their suppliers, from Tier 1 to Tier N, and presents proof of the origin of imported goods required by US law.
Key features of the Sourcemap Forced Labor Compliance Platform (FLCP) include:
- Supplier discovery: Expands on Sourcemap’s supplier discovery software with an automatic classification of suppliers through forced labour risk heat maps for enhanced due diligence.
- End-to-end traceability: Collects all of the documentation needed to validate the chain of custody, compliance with forced labour regulations, and to root out fraud, waste or abuse that may obscure the presence of forced labour.
- Real-time monitoring: Collects real-time data to monitor supplier and overall supply chain risk exposure to fast-changing conditions including sanctions, affiliations, and adverse media, including exposure to the Office of Foreign Assets Control (OFAC) list.
- On-demand reporting for CBP: Automatically generates detailed reports on the chain of custody and compliance of individual shipments in response to CBP inquiries and Withhold Release Orders (WROs).
“Forced labour and the global supply chain have become intrinsically connected. Under the UFLPA, companies may be considered guilty until proven innocent,” says Sourcemap founder and CEO Leonardo Bonanni, who recently testified before the US Senate Finance Committee on technology for forced labour enforcement.
“As suppliers seek to de-risk their supply chains and meet coming ESG and trade regulations, our platform is positioned to become the de facto standard for supply chain transparency and traceability.”