To navigate trade restrictions like the UFLPA and ensure ethical sourcing, companies are increasingly using isotopic analysis to verify the origin of materials like cotton and building supply chain resilience
Global trade regulations and tariff policies are chaotic at the moment, but some structures remain intact. One of them is trade restrictions and bans on China, and more specifically, products coming from the Xinjiang Uyghur Autonomous Region (XUAR) under the Uyghur Forced Labor Prevention Act (UFLPA). This law prohibits the importation of goods into the United States that are manufactured wholly or in part with forced labor in the XUAR region.
In addition to acts like UFLPA, laws in other countries and states requiring companies to conduct more due diligence of their suppliers also are still being enforced. Supply chain due diligence laws in California and Germany as well as modern slavery laws in Canada and the United Kingdom have put a spotlight on companies’ ability to trace origin materials, such as cotton and conflict minerals, to their geographic area of origin to better ensure companies are not purchasing source materials from high-risk areas or banned regions.
Isotopic analysis, a sophisticated scientific technique used to determine the unique atomic composition of natural materials, has emerged as a favored methodology, according to Ana Hinojosa, a supply chain and trade compliance expert. This unique atomic composition acts as a distinctive fingerprint that is influenced by the local environment in which the material originated.
Fast fashion companies in many cases outsource production of their clothes to factories in Pakistan and Bangladesh, which may employ children. And in 2023, Vietnam exported the greatest value of products that were denied entry to the United States under the UFLPA, according to U.S. Customs and Border Protection (CBP) enforcement statistics.
Verifying with the isotopic method
In the case of cotton, which is a raw material on the ULFPA’s restricted goods list, the isotopic signature is determined by the air, water, soil, and wind the plant experiences during its growth. These conditions shape the atomic structure of the cotton fiber, creating its unique isotopic profile. By comparing this isotopic fingerprint to a database of similar materials from various geographical regions, scientists can verify whether the composition of the raw material aligns with its claimed place of origin. In this way, the isotopic method provides a reliable way to authenticate the geographical source of natural materials.
In November 2024, the U.S. CBP added more credibility to the use of isotopic analysis by announcing that it is enhancing its own testing capabilities at three of its laboratories. In addition, CBP encouraged the inclusion of private-sector testing in importer due diligence programs to help identify and manage risk because the department does not have the resources to test all US-bound imports.
New Zealand-based forensic lab Oritain, is one of the providers of isotopic testing of cotton and many other source materials for private sector use — it also fulfills the isotopic testing guidelines from CBP. Oritain has the largest cotton references lab in the world, according to Hinojosa, and it maintains a robust chain of custody throughout the origin-verification process. The company’s comprehensive sample management system ensures that the whereabouts and integrity of a sample are always known; and because of its capability to track the sample — from collection to the lab where the cotton is tested on through its deposit in secure storage facilities — Oritain has gained trust in the marketplace.
Building supply chain resilience with isotopic testing
To strengthen supply chain integrity, companies should consider employing isotopic testing as a method to ensure that cotton does not originate from a prohibited region, explains Hinojosa. By integrating isotopic testing into their supply chain management, companies can accurately verify the source of their cotton, ensure compliance with UFLPA, and avoid the reputational and legal risks associated with using materials linked to forced labor, she adds.
At the same time, implementing this method requires multiple steps for effective compliance and supply chain risk mitigation, says Hinojosa, noting that these steps include:
Examine customs publications for compliance — The first step for companies to deploy isotopic testing is for sourcing and supply chain professionals to review the informed compliance publications issued by CBP, such as those outlining reasonable care and record-keeping. These documents provide guidance on the types of records and documentation required to demonstrate compliance with regulations.
Establish a partnership with a provider that actually meets CBP guidelines — To effectively incorporate isotopic techniques, companies should first ensure they are partnering with a provider that has a comprehensive reference library of isotopic fingerprints from, for example, cotton-producing regions worldwide. Start with those that meet the guidelines from CBP.
Develop and integrate testing frameworks across production phases — Companies also should work closely with their supply chain partners to establish testing protocols at various stages of production, from raw fiber to finished goods. This not only helps in maintaining transparency and accountability but also allows for timely identification and correction of any supply chain discrepancies.
Make isotopic techniques part of comprehensive due diligence protocols — Finally, companies should integrate isotopic testing into a broader due diligence strategy. This involves maintaining detailed records of purchase orders, contracts, and transportation documents to establish a clear chain of custody for materials used in production.
Today, the implementation of isotopic testing emerges as a critical strategy for companies to verify the geographical origin of materials like cotton to comply with the UFLPA and similar trade restrictions. By integrating this scientific methodology into their broader due diligence strategy, businesses can effectively mitigate supply chain risks, maintain regulatory compliance, and uphold ethical standards in their global operations.
You can find more information about how organizations are fighting forced labor in their supply chains here
