By National Law Review
- U.S. Customs postponed up the import of silica-based products made by Hoshine Silicon Industry Co. because the products are suspected of being produced using forced labor.
- For future imports of solar energy equipment sourced from Xinjiang, China, the United States may use Withhold Release Orders (WROs) to block entry into the United States if there is reasonable suspicion of forced labor in the supply chain.
- The renewables industry is working together and with regulators to find ways to certify its supply chains are free of forced labor.
The Silica Products WRO
On June 24, the White House announced the first strike against forced labor in the solar equipment manufacturing industry. Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) stopping the import of silica-based products made by Hoshine Silicon Industry Co., Ltd. and its subsidiaries. Hoshine is located in Xinjiang. The WRO states that CBP has information reasonably indicating that the company used forced labor to manufacture its products. As we reported here, the importer may obtain the release of goods subject to a WRO if the importer can prove to CBP’s satisfaction that the goods were not produced using forced labor. Such proof might take the form of a certificate of origin by the supplier, and a supply chain audit report demonstrating adequate anti-forced-labor procedures in the supply chain
Based on the wording of the WRO, we believe it is likely that more and broader import controls on equipment critical to the solar industry may follow.
Separately, the U.S. Department of Commerce, Bureau of Industry and Security has designated Hoshine Silicon Industry (Shanshan) and four other Xinjiang companies to the Entity List. Generally, no person may export or reexport commodities, software, or technology subject to U.S. export controls to companies on the Entity List.
Finally, the U.S. Department o of Labor published a notice that updates its “List of Goods Produced by Child Labor or Forced Labor.” That list now includes polysilicon produced with forced labor in the PRC. Normally, the Department of Labor updates its list every two years. The fact that this updated is the first made outside of that two-year cycle, demonstrates how seriously the Biden administration takes the ongoing human rights abuses against Uyghurs and other minority groups in Xinjiang. It also signals that further restrictions on imports from and trade with the Xinjiang region are likely to follow.
