LONGi reveals details of shipment seizure, stresses traceability progress

LONGi Solar has revealed details of its shipment seizures by US authorities, stating that 40.31MW of solar components were detained at five US ports from 28 October to 3 November.
In a statement released to the Shanghai Stock Exchange, LONGi broadly confirmed media reports but clarified the amount of goods seized by US authorities under the country’s Withhold Release Order (WRO).
On Wednesday (3 November) investment firm ROTH Capital reported that LONGi had been informed by US authorities that shipments currently bound for five US ports would be seized by US Customs and Border Protection (CBP) officials in relation to the WRO issued against polysilicon products produced by Hoshine Silicon Industry, amongst others.
LONGi was keen to stress that the seizure amounted to just 1.59% of the company’s export sales to the US in 2020, adding that the company’s sales areas is “globally distributed” and does not have a “major dependence on the US single market”.
“The company will continue to monitor and evaluate the impact of the WRO on the company’s US shipments,” said the statement, adding that at present its shipments to the US market were “preceding as normal”.
LONGi said that since the second half of 2020, it had “established and improved management measures to respond to temporary detention orders (WRO)”, including product traceability, system construction, external agency certification and supplier management.
“The company will actively respond to and cooperate with US Customs to provide corresponding traceability evidence to ensure that the company’s detained products can be lifted from restrictions early,” said the statement.
LONGi is the latest module supplier to have shipments seized following JinkoSolar, Canadian Solar and Trina Solar. All are tied to polysilicon producer Hoshine, which has been accused of employing forced labour practices in the Chinese province of Xinjiang.