U.S. Customs and Border Protection (CBP) aggressively targeted the automotive and aerospace sector in the first quarter of fiscal year 2025, inspecting more shipments over that period than in previous years in total.
From October 1 to December 31, 2024, CBP inspected 2,501 shipments with potential ties to forced labor, with 82% (2,042) coming from the automotive and aerospace industry. That marks a dramatic increase in forced labor enforcement within the sector compared to previous fiscal years, in which the electronics industry was the primary inspection target.
Most notably, the shipments inspected last quarter account for 89% of all automotive and aerospace shipments detained since the Uyghur Forced Labor Prevention Act (UFLPA) was enacted in June 2022.
The UFLPA prohibits goods produced in Xinjiang, China, from entering the U.S. unless there is sufficient evidence proving the products were not made with forced labor. Eighty-seven percent of the automotive and aerospace shipments inspected in the first quarter of fiscal year 2025 originated from China, the latest enforcement data shows.
Of the 2,042 shipments, 623 were denied entry to the U.S., a 30% denial rate. Just 3% of the shipments were released, according to CBP data, with most still pending.
The exact breakdown of shipments inspected between the automotive and aerospace sectors is unclear. The auto industry has lately been under scrutiny from Congress, which has called on it to minimize forced labor exposure in its supply chains.
Last year, the U.S. Senate Committee on Finance published a report highlighting significant deficiencies in how automakers oversee forced labor in their supply chains. The committee found that major Western automakers imported cars and auto parts from a Chinese entity added to the UFLPA Entity List in December 2023 for manufacturing products presumed to be made with forced labor.
The committee’s report noted that, despite laws intended to prevent such activities, “automakers have been slow to adequately watchdog their supply chains to ensure parts originating in Xinjiang and other identified entities are not used in cars and trucks imported to the United States.”
The Big Picture
Since the enactment of the UFLPA, CBP has inspected 12,666 shipments valued at $3.68 billion in total. Of those, 5,443—valued at over $830 million—were denied entry to the U.S. More than 1,700 shipments remain pending.
The latest data shows that most of the inspected shipments originated from China, Vietnam, and Malaysia. China accounted for 42% of shipments inspected, while Vietnam accounted for 24%.
However, Malaysia accounted for 43% of the total shipments inspected in terms of value, while Vietnam and Thailand accounted for 28% and 14%, respectively. The latest CBP figures indicate that shipments originating from Vietnam had the highest denial rate, at 50%.
The electronics industry has accounted for 42% of the inspections since 2022—more than 5,200 shipments valued at $3 billion. Of those, 1,685 were denied entry, while 209 are still pending. The automotive and aerospace industry was close behind in terms of shipments inspected, followed by the apparel, footwear, and textiles sector.
Since the law was enacted, the U.S. has added 144 companies, including 37 more this month, to its UFLPA Entity List for engaging in forced labor activities tied to Xinjiang.
