US Solar Importers Face Scrutiny Amid China Labor Crackdown

Feb 27, 2024 04:07 PM ET
  • Department of Homeland Security ramps up scrutiny on solar companies, targeting Chinese forced labor. Are you prepared to prove your supply chain's integrity?

The Department of Homeland Security is intensifying its examination of solar companies in the US, requesting detailed information about their supply chains in a move signaling a forthcoming crackdown on products associated with Chinese forced labor. The questionnaire sent by US Customs and Border Protection seeks disclosure about the origins of modules, panels, and other solar products, expanding efforts to enforce a ban on goods linked to forced labor in China's Xinjiang region.

The survey, which includes questions about production facilities, organizational structures, and measures to prevent forced labor, poses challenges for solar companies reliant on overseas manufacturers. Smaller firms may struggle to provide the necessary documentation, while larger companies like JinkoSolar Holding Co. and First Solar Inc. stand to benefit from having mostly cleared the UFLPA gauntlet. The increased scrutiny comes amid global concerns about human rights violations in Xinjiang and aims to ensure compliance with the Uyghur Forced Labor Prevention Act enacted by Congress in December 2021.

How is the US cracking down on solar products linked to Chinese forced labor?

  • The Department of Homeland Security is intensifying its examination of solar companies in the US, requesting detailed information about their supply chains to crack down on products associated with Chinese forced labor.
  • US Customs and Border Protection is sending out questionnaires to solar companies, seeking disclosure about the origins of modules, panels, and other solar products to enforce a ban on goods linked to forced labor in China's Xinjiang region.
  • The survey includes questions about production facilities, organizational structures, and measures to prevent forced labor, posing challenges for solar companies reliant on overseas manufacturers.
  • Smaller firms may struggle to provide the necessary documentation, while larger companies like JinkoSolar Holding Co. and First Solar Inc. stand to benefit from having mostly cleared the UFLPA gauntlet.
  • The increased scrutiny comes amid global concerns about human rights violations in Xinjiang and aims to ensure compliance with the Uyghur Forced Labor Prevention Act enacted by Congress in December 2021.

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