U.S. Customs and Border Protection officials have detained nearly $43 million worth of electronic equipment shipments from India since October, suspecting they may have been manufactured with components linked to forced labor in China. The detained shipments have raised concerns that India may be attempting to circumvent U.S. tariffs and trade restrictions by exporting products that include components derived from illegal labor practices.
These seizures fall under the 2022 Uyghur Forced Labor Prevention Act (UFLPA), which aims to block goods produced in China’s Xinjiang region from entering the U.S.
The Xinjiang region has come under international scrutiny due to reports that Chinese authorities have established labor camps for ethnic Uyghur and other Muslim groups.
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While the specific nature of the confiscated goods has not yet been disclosed, solar panel components are considered a high-priority area under the UFLPA.
Experts say the seized goods likely include raw materials used for solar tech that were first sourced from Xinjiang before being manufactured in India, a practice which may have been occurring for some time now.
India has seen a recent surge in solar panel exports to the U.S., with shipments rising to 11% of total U.S. solar panel imports in the second quarter of this year. This marks a significant increase from the previous quarter, where India’s share stood at just over 5%.
JACK ALYMER: PRODUCTS MADE WITH FORCED LABOR ARE A NON-STARTER IN THE U-S.
IT’S WHY MANY CHINA-MADE PRODUCTS ARE NOT ALLOWED TO ENTER THE COUNTRY.
BUT WHAT HAPPENS WHEN A NATION TRIES TO CIRCUMVENT THOSE RULES?
WE’RE LEARNING INDIA MAY HAVE REPORTEDLY DONE SOMETHING LIKE THIS TO GET AROUND AMERICAN TARIFFS.
CUSTOMS OFFICIALS SAY THEY’VE DETAINED NEARLY 43 MILLION DOLLARS WORTH OF ELECTRONIC EQUIPMENT SHIPMENTS FROM INDIA SINCE OCTOBER.
THE ITEMS WERE SEIZED UNDER THE 20-22 UYGHUR FORCED LABOR PREVENTION ACT-
WHICH BANS GOODS MADE IN CHINA’S XINJIANG REGION WHERE CHINESE AUTHORITIES ARE REPORTED TO HAVE ESTABLISHED LABOR CAMPS FOR CERTAIN ETHNIC GROUPS.
WHILE WE DONT’ KNOW DETAILS ABOUT WHAT EXACTLY WAS CONFISCATED-
RAW MATERIALS USED IN SOLAR PANELS ARE LISTED AS A HIGH-PRIORITY.
SOMETHING THAT WOULD BE PROHIBITED FROM ENTERING THE U.S.
LATELY SHIPMENTS OF SOLAR PANELS FROM INDIA TO THE STATES HAVE BEEN GROWING-
REACHING 11 PERCENT OF TOTAL U.S. PANEL IMPORTS DURING THE SECOND QUARTER OF THIS YEAR.
THAT’S MORE THAN DOUBLE ITS SHARE FROM THE PREVIOUS QUARTER.
EXPERTS BELIEVE INDIAN SOLAR PANELS MAY HAVE BEEN BUILT WITH COMPONENTS THAT CAME FROM FORCED LABOR – AND THAT THE PRACTICE MAY HAVE BEEN GOING ON FOR SOMETIME.
U.S. CUSTOMS IS NOW LOOKING AT SOLAR IMPORTS FROM INDIA WITH INCREASED SCRUTINY.
JACK AYLMER – STRAIGHT ARROW NEWS.
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