Ninestar seeks UFLPAEL delisting
July 23, 2024
In court papers filed recently in the USA, Ninestar Corporation is seeking delisting from the Uyghur Forced Labor Prevention Act Entity List (UFLPAEL) following sanctions due to allegations of forced labour that Ninestar has been vigorously defending.
On the 9th June, 2023, the US government added the company to the UFLPAEL and banned imports from Ninestar and some of its affiliates, linking them to violations concerning the Uyghur population in China, which Ninestar has contested strongly. USA-based entities, Static Control and Lexmark were not added to the list.
The latest legal manoeuvre sees Ninestar seeking delisting from the U.S. Xinjiang-related entity list under the Uyghur Forced Labor Prevention Act, arguing that their inclusion was unfounded and that they adhere strictly to international labour laws.
The firm asserts that a decision by the Forced Labor Enforcement Task Force (FLETF) regarding this matter could render ongoing legal actions moot, suggesting a possible dismissal or at least a stay in court proceedings pending the outcome of administrative processes??.
Lexmark International Inc., majority owned by Ninestar, has recently navigated a significant shift in the manufacturing origins of its MS/MX and CS/CX series printers. The U.S. Customs and Border Protection (CBP) ruled that these printers, previously assembled in Mexico but considered of Chinese origin due to the assembly of key components in China, now qualify as Mexican-origin products.
This change follows Lexmark’s adjustments in their manufacturing process. The company has shifted significant portions of their production to Mexico, including the imaging unit, developing unit, and toner cartridge assembly. This move now sees 61% of the manufacturing time by labour hours taking place in Mexico, compared to 37% in China.
Financially, Ninestar appears resilient despite the challenging environment. The company reported modest growth in its latest financial disclosures, showcasing an increase in both total assets and shareholder equity. This suggests a robust structural standing capable of withstanding the fluctuations of international trade pressures?.
On the environmental front, Ninestar has not let its legal battles overshadow its commitment to sustainability. The company has enhanced its environmental, social, and governance (ESG) practices, recently establishing committees and restructuring teams to bolster its integrity and business ethics. It continues to invest heavily in clean technology and green product designs, aiming to align with global and national standards for reducing environmental impacts??.
The company’s staunch defence against the sanctions, paints a picture of a company eager to maintain its global standing. As these international legal and trade conflicts unfold, Ninestar remains a key player in the rapidly changing office imaging market.
Categories : World Focus
Tags : Business Delisting FLETF forced labour Ninestar UFLPAEL USA
