Washington(USA), 17/08/23: Agency statistics, and sources have stated that electric-vehicle batteries and other car parts are the latest products under review as part of Washington’s campaign to eliminate U.S. links to forced labour in Chinese supply chains.
Until now, according to the enforcement of a year-old US rule that prohibited the import of items manufactured in Xinjiang, China, has been concentrated on solar panels, tomatoes, and cotton garments. However, components such as lithium-ion batteries, tyres, and essential vehicle raw materials aluminium and steel are increasingly being detained at the border.
Increased inspection of products destined for auto assembly plants by US Customs and Border Protection (CBP) could spell trouble for automakers, who will need solid proof that their supply chains are free of links to a region where the US believes Chinese authorities have established labour camps for Uyghurs and other Muslim minority groups.
Beijing denies any wrongdoing.
The Uyghur Forced Labour Prevention Act (UFLPA) has already hampered the development of solar energy projects, with detained panel shipments languishing in U.S. warehouses after more than a year of enforcement.
Installations of big solar energy facilities for utilities fell 31% last year due to limited panel supplies, according to the trade group U.S. Solar Energy Industries Association, which has stated that conditions have improved significantly this year.
Solar energy and battery-powered electric vehicles are both crucial industries in the Biden administration’s efforts to wean the United States off of fossil fuels and address climate change.
When shipments are detained, CBP gives the importer with a list of examples of products from past reviews as well as the type of documentation needed to demonstrate that they were not created with forced labour, according to CBP.
CBP data reveal that 31 automotive and aerospace cargo have been detained under UFLPA since February of this year, reflecting the heightened focus. Base metal shipments, which include aluminium and steel, have also increased from around $1 million per month at the end of 2022 to more than $15 million per month.
CBP stated that it was unable to provide any additional information regarding enforcement efforts.
