U.S. Customs clears solar panels for sale after holding them for fear of forced labor
U.S. Customs and Border Protection has released a significant shipment of solar panels for sale in the U.S. market after initially withholding them under the Uighur Forced Labor Prevention Act (UFLPA), according to an industry note published recently by Philip Shen, managing director of ROTH Capital Partners.
According to Shen, authorities released JinkoSolar modules made with Wacker polysilicon.
“We believe this could lead to increased volume and imports,” Shen wrote.
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The UFLPA places the burden of proof on buyers that goods imported from China’s Xinjiang region have no connection to forced labor. To be in compliance, companies must provide a comprehensive supply chain map, complete lists of all workers at their facilities, and proof that workers were not subjected to forced labor conditions.
In November, Reuters reported that more than 1,000 shipments of solar power components, valued at hundreds of millions of dollars, had been blocked at U.S. ports under the UFLPA. ROTH Capital said in August that up to 3 GW had been held up by U.S. customs since the law’s enactment. Between 9 GW and 12 GW of solar modules could be blocked in U.S. markets by the end of the year, Shen added.
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According to ROTH Capital, the release of the panels will have a positive impact on the US solar sector. However, he warned that U.S. customs could begin to focus beyond major importers of solar components.
“We could find ourselves in a two-steps-forward, one-step-back situation,” the firm said.
