DHS Bans Import from Ninestar and its Subsidiaries: What About Lexmark?

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Beaming up customer service to the next level the rhythm of change: In the copier industry, we don’t just make copies, we make history.

Back in 2016 Ninestar, then called Apex Technology, with a group of investors, purchased Lexmark International. The acquisition was reviewed by the Committee on Foreign Investment in the U.S., a government body that reviews deals with potential national security implications, and Lexmark agreed to maintain an independent board consisting of U.S. citizens only. Ninestar holds 62% of Lexmark.

Ninestar and its eight Zhuhai-based subsidiaries, along with Xinjiang Zhongtai Chemical, were added to the list for working with the government of Xinjiang to recruit, transport, transfer, harbor or receive forced labor of Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups, out of Xinjiang, according to the posting.

The ban is part of the enforcement of the U.S. Uyghur Forced Labor Protection Act (UFLPA), which was established in December 2021. This legislation prohibits the importation of goods from companies identified on a UFLPA Entity List unless the importer can demonstrate that the goods were not produced with forced labor. Currently, twenty-two companies are featured on this list, reflecting the scale of the issue.

As of this date, there is no clear ban on Lexmark printers manufactured and sold here in the US. It’s reasonable to infer that the ban could potentially affect its operations or supply chain. Undoubtedly, the ban will impact managed print services providers and toner supplies who utilized Ninestar’s product as well as Static Control.

The big winners here look to be toner manufacturers here in the US; especially HP.

Whatever the result, this is a great display of how our little niche is at the forefront of not only digital transformation, or moving data and information at the speed of thought, we are on the edge of Global economics and geopolitical transformation.

– Greg Walters, Head Writer