Solar Module Detentions Begin under UFLPA
By Christian Roselund
CEA has verified that Customs and Border Protection has detained shipments by two large Chinese PV makers under the Uyghur Forced Labor Prevention Act (UFLPA). UFLPA went into effect on 21 June 2022, and creates a rebuttable presumption that goods mined, produced, or manufactured in Xinjiang are associated with forced labor and cannot be imported into the United States.
Customs had already detained at least 140 megawatts of module shipments from the largest suppliers of solar to the U.S. market under a withhold release order (WRO, import ban) against Chinese metallurgical grade silicon (MGS) maker Hoshine Silicon in the summer and fall of 2021. The companies whose products were detained include LONGi, JinkoSolar, Trina Solar, and Canadian Solar. These shipments took three to eight months to release, and our sources report that some were never released.
While the Hoshine WRO was limited to MGS, under UFLPA Customs has stated that it will require documentation back to the source of the quartz used to make MGS. Both companies whose product has been detained under UFLPA previously had modules detained under the WRO, which suggests that Customs is casting a wider net and/or is requiring additional documentation.
In addition to the detentions under UFLPA, a shipment by JA Solar was detained in the final days of the Hoshine WRO, which was folded into UFLPA on 21 June 2022. JA Solar states that it only uses polysilicon from U.S. polysilicon maker Hemlock Semiconductor for its products for the U.S. market, and Hemlock cannot import MGS from Hoshine due to the WRO. CEA is seeking more information about this detention.
Under UFLPA, importers must challenge detentions within 30 days or forfeit shipments. Two routes exist to challenge detentions: either showing that product imported contains no inputs from Xinjiang or from a list of prohibited companies or showing that no material in the product is associated with forced labor. While the first route requires extensive documentation, the second route is likely impossible. The specific documentation and declarations sought by Customs to prove the absence of forced labor are not available in China and anyone attempting to supply them could be prosecuted under the China Anti-Foreign Sanctions Law.
The detention of shipments under the Hoshine WRO led to reduced solar imports to the United States in the second half of 2021, as many suppliers dramatically reduced exports to the U.S. market. In some cases, these manufacturers even reduced output and/or closed factories that served the U.S. market. So far, the suppliers CEA has spoken to have said that they will continue shipping to the U.S. market despite the recent UFLPA detentions.
Source: CEA