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U.S. Customs and Border Protection blocked Maxeon products despite “having provided clear and objective evidence” of a compliant supply chain.
Solar panels shipped from a Mexico factory by manufacturer Maxeon Solar have been blocked from entry to the U.S. market by Customs and Border Patrol (CBP).
In early September, Maxeon reported that CBP detained solar panels imported from its module factories in Ensenada and Mexicali, Mexico, for the first time. The company explained that the US authorities were trying to determine whether the panels comply with the UFLPA.
Maxeon has now filed a request for further review with U.S. Customs and Border Patrol to review the products, which the company said is in full compliance with U.S. laws.
CBP reviewers have alleged a lack of sufficient documentation to prove Maxeon’s compliance with the Uyghur Forced Labor Prevention Act (UFLPA).
“Despite having fully and transparently mapped its supply chains and provided U.S. Customs & Border Protection…, CBP reviewers have alleged a lack of sufficient documentation to prove Maxeon’s compliance with the Uyghur Forced Labor Prevention Act, which the company vehemently refutes, having provided clear and objective evidence to the contrary,” stated Maxeon.
Maxeon chief executive officer Bill Mulligan said the company’s core values are “diametrically opposed” to the use of forced labor in the production of its products. The UFLPA bars any products whose supply chain stems from the Xinjiang province of China, a western province alleged to have forced labor practices in the solar supply chain.
“CBP has found no evidence of non-compliance with the UFLPA,” said Mulligan. “Nonetheless, the Partnership track of CBP Electronics Center of Excellence and Expertise has decided to bar entry of our products…None of our supply chains involve entities on the UFLPA list, two of our supply chains do not even enter China, and yet the reviewers have declined to make the appropriate determination that UFLPA does not apply…”
Three different Maxeon products manufactured in Mexico were detained in July 2024. Since then, all shipments have been excluded. This is despite Maxeon’s claims that it has established the supply chains for each component, from quartz to module, are outside the scope of the UFLPA.
Following the July 2024 exclusion from the market, the publicly traded company withdrew its forecasts for revenues in 2024, citing uncertainty in its largest market.
“Maxeon has now moved review of its Maxeon 3 and Maxeon 6 products into the next level of review, called the Application for Further Review (AFR) process, and will submit a protest for its Performance line products,” said Mulligan. “These processes will engage a new team of CBP reviewers who we hope will be able to provide an objective application of the UFPLA. We remain optimistic that this new team will be able to expeditiously reach the right conclusion and clear our products for importation.” |
