The restrictions took effect Oct 29, limiting US imports of goods produced by BGI Genomics, MGI Tech, and BGI Group over alleged ties to forced labor in China.
The US Department of Homeland Security (DHS) has added three Chinese genomics companies—BGI Genomics Co, MGI Tech Co, and Shenzhen BGI Technology Co—to a federal list restricting imports over alleged ties to forced labor in China’s Xinjiang region.
The designation, published in the Federal Register and effective Oct 29, subjects goods produced wholly or in part by the companies to a presumption that they were made with forced labor, barring their import into the US unless that presumption is successfully rebutted. The companies provide genomic sequencing technologies, laboratory instruments, reagents, and genetic testing services.
With the addition of these three companies, the Uyghur Forced Labor Prevention Act (UFLPA) Entity List now includes 190 organizations.
Findings on Genetic Testing and Sourcing
According to federal officials, the US government determined there was reasonable cause to believe, based on specific and articulable information, that all three entities participated in government initiatives involving genetic testing in the Xinjiang Uyghur Autonomous Region (XUAR). Federal authorities stated that these testing activities facilitated the recruitment, transport, transfer, harboring, or receiving of forced labor or persecuted groups out of Xinjiang, placing all three on the UFLPA Section 2(d)(2)(B)(ii) list.
Specifically, the notice details distinct roles for each entity:
- MGI Tech Co: Located in Shenzhen, Guangdong Province, MGI focuses on the research, development, manufacturing, and sales of instruments, reagents, and related products in life science and biotechnology. DHS stated that MGI provisioned genetic testing capacity to the Xinjiang government to conduct testing connected to regional labor schemes.
- BGI Genomics Co: Operating in Shenzhen, BGI Genomics provides research services, precision medicine solutions, and health management services through gene testing, mass spectrometry, bioinformatics analysis, and multimodal intelligent analysis models. Alongside the Section 2(d)(2)(B)(ii) designation, the company was added under Section 2(d)(2)(B)(v) for sourcing genetic material of plants, animals, and bacterial diseases from the XUAR.
- Shenzhen BGI Technology Co: Also known as BGI Group and BGI Holdings, the company is the controlling shareholder of BGI Genomics and supplies DNA, RNA, and metabolomics sequencing technologies, equipment, technical support, and precision medicine and health solutions, while managing the China National GeneBank repository. In addition to testing alongside regional authorities, the group was listed under Section 2(d)(2)(B)(v) for sourcing human genetic material from Xinjiang.
Although separately listed, the three companies have corporate ties. MGI Tech, a former BGI subsidiary that went public in 2022, shares an ultimate controlling shareholder with Shenzhen BGI Technology, according to DHS.
Implications for Clinical Laboratories and Supply Chains
The restrictions could affect US clinical laboratories, sequencing facilities, and diagnostic developers that rely on imported equipment and supplies produced by BGI Group, MGI Tech, or the other listed entity.
Under the Uyghur Forced Labor Prevention Act, US Customs and Border Protection applies a rebuttable presumption that goods produced wholly or in part by listed entities were made with forced labor and are prohibited from entering the US. Importers may seek an exception by providing clear and convincing evidence that the goods were not produced with forced labor.
Listed companies may request removal from the UFLPA Entity List by submitting supporting documentation to the Forced Labor Enforcement Task Force chair demonstrating that they do not or no longer meet the listing criteria. Removal requires a majority vote of Forced Labor Enforcement Task Force member agencies. Although the task force’s decision cannot be appealed, companies may submit new removal requests with additional information.
