Sunday Jan 29, 2023

Supply chain woes won’t stop solar industry expansion – Reuters

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December 1, 2021 – Allegations of forced labor in Xinjiang province in China led to the June 24 announcement by the U.S. Customs and Border Protection of a prohibition on import of products made with materials from Hoshine Silicon Industry Company, pursuant to Section 307 of the Tariff Act of 1930. Five months later, we have seen the effects of this order play out in real time.

Hoshine is a significant silicon manufacturer in Xinjiang. While modules made with silicon from Hoshine historically represent a relatively small fraction of the total solar modules imported to the U.S., almost all manufacturers that import to the U.S. use silicon from Hoshine in at least some of their modules.

This has resulted in two immediate problems — first, there is a direct impact on supply by removing a major supplier. Second, there is an indirect impact caused by complexities in determining just which import modules are made with Hoshine silicon. There are reports of modules from major manufacturers being held up in ports for extended periods, only to finally be cleared for import.

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This is hardly surprising. Since 2012 there have been a complex and changing set of tariffs applicable to the import of solar modules and components manufactured in China or Taiwan (and, more recently, elsewhere). We all recall confusion and delays at the ports over the past decade as CBP agents attempt to determine the correct application of these tariffs to imported modules. The sheer complexity of the rules and the underlying supply chain became its own problem. We have already seen some of these same delays with the Hoshine prohibition.

There is also a potentially greater third …….

Source: https://www.reuters.com/legal/legalindustry/supply-chain-woes-wont-stop-solar-industry-expansion-2021-12-01/

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