U.S. Customs and Border Protection (CBP) has initiated an investigation into Waaree Energies Ltd., India’s largest solar panel manufacturer, over allegations of circumventing U.S. tariffs on Chinese-made solar cells and panels by mislabeling them as “Made in India.”
The inquiry follows a complaint from the American Alliance for Solar Manufacturing Trade Committee, a coalition of U.S. solar manufacturers including Qcells and First Solar, which suspects that Waaree avoided antidumping and countervailing duties imposed on Chinese solar products.
The U.S. has enforced tariffs on Chinese solar cells and panels for over a decade, and similar measures have been applied to imports from Southeast Asian nations in recent years.
India’s solar panel exports to the U.S. have surged since these tariffs were implemented, raising concerns among domestic manufacturers about potential tariff evasion. In response to the investigation, CBP has required Waaree to provide cash deposits on certain imports to secure potential duties.
Waaree Energies has not publicly commented on the ongoing investigation. The company operates Waaree Solar Americas Inc., which handles its U.S. operations.
The probe is part of broader scrutiny by U.S. regulators into the global solar supply chain, particularly concerning the use of components linked to forced labor practices in China’s Xinjiang region. While CBP has detained shipments from Chinese companies due to forced labor concerns, the agency has also increased inspections of Indian solar panel exports, including those from Waaree, to ensure compliance with U.S. trade laws.
Following the announcement of the investigation, Waaree Energies’ stock price declined by approximately 6% on the National Stock Exchange of India, reflecting investor concerns over the potential impact of the probe on the company’s U.S. market presence. Despite this setback, Waaree’s shares had previously surged nearly 37% since its market debut in October 2024, indicating strong investor confidence in the company’s growth prospects.
The outcome of the investigation could have significant implications for Waaree Energies and the broader Indian solar industry, which has been expanding its footprint in the U.S. market.
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