The U.S. Customs and Border Protection (CBP) has detained $43 million worth of Indian electronics equipment, including solar panels, since October under the Uyghur Forced Labor Prevention Act (UFLPA). The law, enacted in 2022, prohibits the import of goods made with forced labor from China’s Xinjiang region, where Uyghur and other Muslim minorities are reportedly subjected to human rights abuses. The U.S. government has intensified its scrutiny of solar products, especially those containing polysilicon—a critical material in solar panels—from regions associated with forced labor.
For the first time, Indian manufacturers are experiencing the brunt of UFLPA enforcement. Historically, CBP’s focus has been on Chinese suppliers, but the recent detention of Indian shipments signals a shift in the agency’s approach. According to CBP data, nearly one-third of the detained Indian shipments have been denied entry into the U.S. market, starkly contrasting the 5.4% rejection rate for top solar component suppliers from Malaysia, Vietnam, and Thailand.
The rise in detentions is particularly concerning for Indian solar manufacturers, who have emerged as key players in the U.S. market amid increasing restrictions on Chinese goods. In 2024, Indian solar panel imports surged, accounting for 11% of U.S. panel imports in the second quarter—more than double the previous quarter’s share. This growth, however, is now at risk due to the heightened enforcement of UFLPA.
Trade experts suggest that the increase in detentions could be linked to the origin of solar cells used in Indian panels. “If the solar cells for Indian panels are coming from China, then there is likely a good reason why detentions of Indian products may be increasing,” said Tim Brightbill, a trade attorney with Wiley Rein LLP. This highlights the complexities Indian manufacturers face in sourcing components while remaining compliant with U.S. regulations.
Prominent Indian solar companies, including Waaree Technologies and Adani Enterprises, have been affected by these detentions. Adani Enterprises confirmed that some of its shipments were initially detained but were subsequently released after compliance checks. “This outcome reaffirms that our products imported into the U.S. fully comply with UFLPA regulations, reinforcing customer confidence in the quality, reliability, and legal adherence of our products and manufacturing,” an Adani spokesperson stated.
The detentions represent a significant challenge for Indian manufacturers aiming to establish themselves as viable alternatives to Chinese products in the global solar market. As U.S. developers grow increasingly wary of potential delays and tariffs, the future of Indian solar exports may depend on manufacturers' ability to navigate the complexities of UFLPA compliance. This development serves as a reminder of the ongoing challenges in the global supply chain, where ethical sourcing and regulatory compliance are becoming critical determinants of market access.
