Daily Newsletter

16 January 2024

Daily Newsletter

16 January 2024

Vietnam beats China for most UFLPA reviewed shipments in 2023

US Customs and Border Protection (CBP)'s latest statistics shows Vietnam had the most apparel, footwear and textile goods reviewed by shipment value ($19.14m) as part of the Uyghur Forced Labour Prevention Act (UFLPA) with China sitting in second place with $17.70m worth of detained goods.

Shemona Safaya January 16 2024

The US Customs and Border Protection launched an interactive dashboard in March last year under the Uyghur Forced Labor Prevention Act or ULFPA to make the enforcement of the law more transparent.

The CBP dashboard aims to offer a unified data source on UFLPA enforcement actions while protecting sensitive trade information.

According to the data, in 2023 Vietnam accounted for the highest shipment value for apparel, footwear and textiles sector at $19.14m, followed by China at $17.70m and all other countries sat at $1.07m with Cambodia recorded at $0.63m, Nicaragua at $0.68m and Sri Lanka at $1.03m.

Overview of UFLPA statistics from January to December 2023

  • Apparel, footwear and textiles accounted for 786 shipments out of a total of 4,193 shipments, placing it in third position after Electronics (1,470), and Industrial and Manufacturing materials (900).
  • The number of apparel, footwear and textile shipments denied were 430 (55%) out of the total 786 with 273 released (35%).
  • 83 apparel, footwear and textile shipments are pending which equates to 11% of the total.
  • The total value of the apparel, footwear and textile shipments was $40m.

From the implementation of the Uyghur Forced Labor Prevention Act (UFLPA) by US Customs and Border Protection (CBP) to May 2023, a total of 679 shipments amounting to $40.54m were stopped with Malaysia accounting for the highest shipment value at that time.

Last September, data shared by Kharon's UFLPA: From Enforcement to Evolution study revealed that since UFLPA enforcement the value of detained goods from Malaysia and Vietnam was more than six times that of goods imported directly from China suggesting the US crackdown on third-country pass-throughs is gaining steam.

CBP said at the time: "Third-country manufacturing, where countries beyond China produce goods made with inputs from Xinjiang, is becoming increasingly common.” Since there is no de minimis threshold for the UFLPA, any product that contains even a trace amount of inputs made with forced labour is subject to possible enforcement action.”

Global menswear market dynamics

Global menswear market is expected to grow at a CAGR of more than 4% by 2027, as consumer confidence takes time to rebuild following inflationary pressures. The popularity of the resale market will also somewhat hinder menswear retail growth, as more shoppers will divert spend away from traditional retailers and brands to secondhand channels, in a bid to save money and protect the planet.

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