November 14, 2024
Ryan Kennedy

Solar panels shipped from a factory in Mexico by manufacturer Maxeon Solar have been blocked from entering the US market by Customs and Border Patrol (CBP).

Maxeon has submitted a request for further review with US Customs and Border Patrol to review the products, which the company said is in full compliance with US law.

CBP examiners have alleged a lack of sufficient documentation to prove Maxeon’s compliance with the Uyghur Forced Labor Prevention Act (UFLPA).

“Despite fully and transparently mapping its supply chains and providing US Customs and Border Protection…CBP examiners have alleged a lack of sufficient documentation to prove Maxeon’s compliance with the Uyghur Forced Labor Prevention Act, which the company adamantly denies, after providing clear and objective evidence to the contrary,” Maxeon said.

Maxeon CEO 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 bans any product whose supply chain originates from China’s Xinjiang province, a western province that is alleged to have forced labor in the solar energy supply chain.

“CBP has found no evidence of non-compliance with the UFLPA,” Mulligan said. “Nevertheless, the CBP Electronics Center of Excellence and Expertise’s partnership track has decided to bar entry for our products…None of our supply chains involve devices on the UFLPA list, two of our supply chains do not even enter China, and yet the examiners have declined to make the appropriate determination that the UFLPA does not apply…”

Three different Maxeon products manufactured in Mexico were held in July 2024. Since then, all shipments have been excluded. This despite Maxeon claiming to have established the supply chains for every component, from quartz to module, is outside the scope of the UFLPA.

Following the July 2024 delisting, the publicly traded company withdrew its 2024 revenue forecasts, citing uncertainty in its largest market.

“Maxeon has now moved review of its Maxeon 3 and Maxeon 6 products to the next level of review, called the Application for Further Review (AFR) process, and will file a protest for its Performance Series products,” said Mulligan. “These processes will engage a new team of CBP examiners who we hope will be able to provide objective application of the UFPLA. We remain optimistic that this new team will be able to quickly reach the correct conclusion and clear our products for import.”

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