H.R. 8712 — Uyghur Forced Labor Disclosure Act

This section requires issuers filing applications to register securities on a national securities exchange, issuers filing registration statements under section 12(g) of the Securities Exchange Act of 1934, and issuers merging with an exchange-listed company to include documentation showing whether their supply or production chain contains goods sourced from or through the Xinjiang Uyghur Autonomous Region (XUAR) or produced wholly or in part with forced labor, including from specified high-priority sectors and industries. The Securities and Exchange Commission must issue implementing rules within 180 days of enactment that also require independent third-party verification of the documentation, public disclosure of all received materials, and identification of each smelter, refinery, farm, or manufacturing facility involved. Non-compliant issuers face denial of exchange approval and a one-year bar on re-filing. This section repeals the amendment on the earlier of eight years after enactment or the date the President determines that the Government of the People’s Republic of China has ended mass internment, forced labor, and other gross human rights violations against Uyghurs and other groups in the XUAR.

This section directs the Securities and Exchange Commission to issue rules within 180 days of enactment requiring issuers filing annual reports under the Securities Exchange Act of 1934 or proxy statements to disclose whether they or their affiliates directly or indirectly sourced goods, wares, articles, or merchandise from or through the Xinjiang Uyghur Autonomous Region (XUAR) or mined, produced, or manufactured wholly or in part by forced labor, including industries on the “Illustrative List of Industries in Xinjiang” in the July 13, 2021 Xinjiang Supply Chain Business Advisory, high-priority sectors identified by the Forced Labor Enforcement Task Force, and products listed under section 2(d)(2)(B)(iv) of Public Law 117–78. Issuers must also report the nature and extent of such commercial activity, gross revenue and net profits attributable to the goods, alternative sourcing options, due diligence measures on supply chain custody, affiliated entities and facility locations, and any involvement in developing or providing surveillance goods, services, or technologies used to facilitate gross human rights abuses. The Commission must publish all disclosures on its website. The requirements are repealed on the earlier of 8 years after enactment or the date the President determines that the Government of the People’s Republic of China has ended mass internment, forced labor, and other gross human rights violations against Uyghurs, Kazakhs, Kyrgyz, and other persecuted groups in the XUAR.

This section directs the Securities and Exchange Commission to conduct annual assessments of issuer compliance with the requirements of section 12(m) of the Securities Exchange Act of 1934 for issuers described under paragraphs (1)(A), (1)(B), and (1)(C) of such section and with the requirements of section 13(t) of such Act, and to issue a report to Congress containing the results of those assessments. This section also requires the Comptroller General to periodically evaluate and report to Congress on the effectiveness of the Commission’s oversight of the certification requirements under sections 12(m) and 13(t).