Solar dominates import seizures following US ban on Chinese products made with forced labor
According to the latest data released by the U.S. Customs and Border Protection, solar panels account for the majority of the value in shipments that are stopped at the U.S. border as a result of a law passed in 2021 banning goods made with Chinese forced labour. These data are the first to provide a detailed breakdown of the?types?of products that CBP has stopped since the Uyghur Forced Labor Prevention Act was signed by the former president Joe Biden. They confirm that the solar industry will be the most affected. Solar?panels have been causing delays and furloughs in recent years, even though federal data indicates that the sector is the leading source of electricity in the U.S.
CBP's previous?data included solar equipment under the category of electronics. This made it difficult to determine just how much was blocked. Solar panels and solar cells are now listed under a smaller category called semiconductor devices. In its guide on the data, CBP refers to solar goods as interchangeably with the code in question. According to the data reviewed on Tuesday, shipments with the?code of semiconductor devices are responsible for $3.26 Billion in stopped shipments. This is 82% of $3.94 Billion in blocked shipments since the law came into effect in 2022.
CBP has not stated when the data were first published. The agency officials didn't immediately respond to my request for comment.
Since Donald Trump became president of the United States, UFLPA enforcement is down. Last year, the U.S. Department of Homeland Security halted shipments worth $187.7 millions, down from $1.8 billion in 2024.
The majority of the solar panels that were halted came from Malaysia, Vietnam, and Thailand. These countries have in recent years been among the largest solar panel suppliers for the United States. Over 79% of the value, or $2.5 billion, of the stopped solar and other semiconductors shipments has been released to U.S. Importers.
The?UFLPA prohibits the sale of goods produced in China's Xinjiang Region, where Chinese authorities have reportedly set up labor camps for Uyghurs and other Muslim groups. China's government has denied allegations of abuse.
The UFLPA identified polysilicon as the raw material for solar. (Reporting from Nichola Groom).
(source: Reuters)