This solution ensures companies can trace chain-of-custody through all tiers in the supply chain while storing and managing all supporting documents related to every transaction between all supply chain trading partners at every level. This unparalleled visibility provides a digital thread that allows brand owners and retailers to generate a certificate that summarizes the chain of custody including all necessary information related to each exchange of products and materials from source to destination.
United States Customs and Border Protection announced on December 2, 2020, personnel at all U.S. ports of entry will detain shipments containing cotton and cotton products originating from the Xinjiang Production and Construction Corps (XPCC) and its subordinate and affiliated entities. This Withhold Release Order also includes any products that are made in whole or in part with or derived from that cotton, such as apparel, garments, and textiles. This announcement from US Customs and Border Protection means brand owners and retailers must either remove affected products before they enter the US market or present evidence that proves the merchandise was not manufacturing using cotton that originated from the XPCC.
“The apparel industry will do what it takes to eliminate the use of forced labor in the supply chain,” said Mark Burstein, president and chief strategy officer, NGC. “If H.R. 6210 Uyghur Forced Labor Prevention Act is signed into law as it is currently drafted, importers must be able to prove their products do not contain any inputs from the XUAR, including both materials and labor. NGC’s expertise in sourcing, quality and compliance combined with Logility’s expertise in visibility and planning allowed us to quickly work with brand owners and retailers to ensure visibility across the entire digital thread at this critical time.”
“This is an incredibly important issue for both Logility and NGC customers that requires immediate action,” said Allan Dow, CEO & president, American Software. “Our industry expertise and collaboration with both Logility and NGC customers allowed our innovation team to quickly identify the need and deliver a solution to confidently trace and certify the origin of products for brand owners and retailers that import products from China. In addition, we see broad applicability across many industries as consumers demand greater visibility and understanding of where products are sourced and manufactured.”
The H.R. 6210 Uyghur Forced Labor Prevention Act legislation, as it is currently drafted, will block the import of any goods into the United States that cannot prove the merchandise does not contain inputs originating in China's Xinjiang Uyghur Autonomous Region. This digital supply chain traceability solution provides a single consolidated view that helps brands and retailers manage one of the most urgent issues today: enabling supply chain visibility beyond Tier 1 suppliers by incorporating a private blockchain that identifies buyers and sellers from the cotton source to importer of record. The primary data from each transaction creates a digital thread that provides a deeper level of supply chain transparency than has ever existed in the industry.
