Border Agency Faces Lawsuit Over Detention of Numerous ‘Forced Labour’ Cargo Shipments

Canada’s border agency reports detaining approximately 50 cargo shipments suspected of being products of forced labor under regulations implemented in 2020. Only one shipment was found to breach the ban.

The Canada Border Services Agency disclosed these statistics following inquiries related to a lawsuit filed against it by a Victoria solar firm. The company claims that a shipment of solar panels valued at over $5 million was unjustly detained due to false suspicions of being manufactured using forced labor in China.

Charge Solar Renewables Inc. asserts in a Federal Court lawsuit that the prolonged detention of the panels severely harmed its market position.

The CBSA declined an interview but stated via email that the import prohibition on forced labor took effect in July 2020, and goods are assessed on a case-by-case basis by border agents.

Since 2021, approximately 50 shipments have been intercepted and evaluated. Following a thorough review of detailed supply chain information provided by importers, only one shipment was determined to be produced through forced labor, resulting in its prohibition from entering the Canadian market. The rest of the shipments were allowed entry.

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Another shipment was abandoned at the Canadian border by the importer. The agency refrained from disclosing the names of the companies involved in the detentions and did not comment on the specifics of Charge Solar’s lawsuit, which was filed in Vancouver this month.

The lawsuit details Charge Solar’s supply contract with Chinese company LONGi Green Energy Technology, stating that the panels were shipped to Vancouver, Toronto, and Calgary between February and April 2024.

According to the lawsuit, 47 containers were detained by border agents, demanding proof that the panels, valued at over US$3.8 million, were not made with prison or forced labor.

Charge Solar claims to have submitted “thousands of pages” of information to the agency regarding the manufacture of the panels, including affidavits from individuals throughout the supply chain confirming that no forced labor was involved.

The lawsuit states that Charge Solar vehemently opposed the goods’ detention, attributing customer order cancellations to the delays caused by the agency’s demand for explanations regarding the solar module supply chains.

Following the release of the Charge Solar shipments in June and July, the company mentions that the deal with LONGi involved products originating in Vietnam.

Nevertheless, researchers warn of LONGi’s high risk of employing forced labor due to its sourcing from China’s Xinjiang Uyghur Autonomous Region. The firm’s involvement in the supply chain has raised concerns about forced labor exposure in its solar panels.

Furthermore, Global Affairs Canada issued an advisory in March 2023 cautioning Canadian firms against engaging with entities possibly linked to forced labor violations, primarily affecting Uyghurs and other ethnic minorities in Xinjiang.

Unlike the stringent enforcement actions taken by the United States, the Canadian response to goods suspected of forced labor involvement has been relatively limited. This is especially significant given Xinjiang’s critical role in global supply chains, particularly in the solar industry.

Efforts to ensure clean supply chains are emphasized, urging parties importing solar material from China to conduct thorough due diligence and understand their supply chain’s origins to minimize risks related to forced labor.

Notably, border guards and law enforcers exercise significant discretion in executing their duties. LONGi did not provide a response to inquiries related to the detention.