A Bank of America Securities research note said analysts believe the Uyghur Forced Labor Prevention Act has been a "greater challenge than expected" for solar panel manufacturers, and at least three different suppliers' shipments have been detained in the first month since the law began to be enforced.
The Entity List released last month for the Uyghur Forced Labor Prevention Act (UFLPA) will be getting longer fairly soon, according to John Pickel, principal director, trade and economic competitiveness, Office of Strategy, Policy and Plans at DHS. Pickel, speaking at a CBP trade conference in California July 18, sad, "The process for adding and removing entities will be summarized in a Federal Register notice that we expect to come out in the short term."
A Husch Blackwell partner said that although most importers have not been surprised when CBP tells them they are intending to do an intensive exam on their goods when they arrive in port over forced labor issues, his firm has had several clients whose goods were cleared, and then, in the first month after that date, CBP issues a redelivery notice.
Seven House Democrats have asked the Biden administration why three Chinese solar panel manufacturers were not put on the entity list under the Uyghur Forced Labor Prevention Act, as they say consulting group Horizon Advisory has reported that the three either have ties to forced labor or have signs of using forced labor.
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Solar panel exports were already facing heightened CBP scrutiny under a withhold release order affecting a major supplier of polysilicon, a material used to make ingots that are then made into cells, which are then made into panels. But the early results of the Uyghur Forced Labor Prevention Act enforcement suggest that the Biden administration is willing to strictly enforce UFLPA "despite impacts on [solar panel] supply and pricing," said Tim Brightbill, a trade lawyer at Wiley.
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A lawyer who has represented clients whose goods were detained over suspicion of forced labor says the new document laying out the strategy on enforcing the Uyghur Forced Labor Prevention Act is not earth-shattering.
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The published strategy to stop imports of goods with Xinjiang region content is lengthy, but it also shows how many blanks are left to be filled in. The rebuttable presumption that goods with a nexus to Xinjiang or Uyghur workers are banned took effect on June 21.