US Customs Authorizes TOYO Ethiopia Solar Release After Supply Chain Review

• US Customs and Border Protection released solar cell shipments from TOYO Co., Ltd.'s Ethiopian facility after a supply chain documentation review.
• TOYO provided detailed traceability for its polysilicon and wafer origins, confirming compliance.
• The release occurs amid a US Department of Commerce investigation into whether Ethiopian solar cell imports circumvent AD/CVD orders on Chinese solar products.
• Eight US solar manufacturers filed a petition alleging TOYO and Origin Solar used Chinese-origin wafers in Ethiopia for US-bound modules.
• The investigation's preliminary determination is expected by December 10, 2026, with potential retroactive duties.

This development underscores the critical need for robust supply chain documentation and traceability, particularly for companies manufacturing in jurisdictions under scrutiny for trade duty circumvention.

US Customs and Border Protection (CBP) recently authorized the release of solar cell shipments produced at a Japanese company's facility in Ethiopia. The company, TOYO Co., Ltd., confirmed on October 29 that CBP had concluded its assessment of the firm's supply chain documentation. This review process involved TOYO providing detailed evidence demonstrating the complete traceability of its supply chain, specifically highlighting the origins of the polysilicon and wafers utilized in the manufacturing of its solar cells.

Throughout the review, TOYO actively collaborated with US authorities, furnishing comprehensive records pertaining to the sourcing of its production materials. The successful release of these shipments is a significant step for TOYO as it pursues an expansion of its global manufacturing footprint and aims to solidify its market presence within the United States. The company currently operates a manufacturing plant in Humble, Texas, and is also in the process of seeking certification under CBP's Customs Trade Partnership Against Terrorism (CTPAT) program, an initiative designed to bolster supply chain security and enhance import compliance.

Takahiko Onozuka, TOYO's Chief Executive Officer, expressed satisfaction with the review's completion, commending CBP for its professional approach. He reiterated the company's dedication to maintaining transparency and adhering to regulatory standards as it grows its operations in the US. Onozuka further underscored the critical importance of ensuring customers have confidence in the provenance of solar products through enhanced supply chain traceability.

The release of TOYO's shipments occurs amidst an ongoing investigation by US authorities into whether certain solar cell manufacturers operating in Ethiopia are circumventing existing American trade duties imposed on Chinese solar products. As reported by Addis Standard in July 2026, the US Department of Commerce initiated a country-wide inquiry into silicon solar cell imports from Ethiopia. The objective of this investigation is to ascertain if these imports are bypassing long-standing antidumping and countervailing duty (AD/CVD) orders that apply to Chinese solar goods.

This investigation was prompted by a petition filed in May 2026 by eight US solar manufacturers: DYCM Power, First Solar, Qcells, Silfab, Solx, Suniva, Swift Solar, and Talon PV. The petitioners alleged that two manufacturers based in Ethiopia, TOYO and Origin Solar, were utilizing Chinese-origin wafers to produce solar cells within Ethiopia. These cells were then reportedly assembled into solar modules either locally or in Vietnam, destined for export to the US market. The petition further claimed that nearly 70% of finished solar modules exported from Ethiopia contained Chinese components, which underwent processing allegedly covered by existing US trade restrictions.

According to Solar Power World, imports of solar cells and modules originating from Ethiopia, which were almost non-existent prior to July 2025, surged to an estimated $277 million during the latter half of that year, with shipments continuing to rise throughout 2026. The petitioners contended that this dramatic increase in exports coincided with a corresponding rise in shipments of essential solar manufacturing inputs from China to Ethiopia. Both TOYO and Origin Solar have since provided factual information to the Department of Commerce in response to these allegations. A preliminary determination for the investigation is anticipated by December 10, 2026, with a final decision expected around May 10, 2027. In the interim, CBP received instructions to suspend the liquidation of relevant imports and to impose cash deposit requirements, pending the final outcome. Any duties ultimately imposed could be applied retroactively to the investigation's initiation date.

This development underscores the critical need for robust supply chain documentation and traceability, particularly for companies manufacturing in jurisdictions under scrutiny for trade duty circumvention. The increased scrutiny on the origins of imported products highlights the imperative for solar manufacturers operating across multiple countries to maintain meticulous records and ensure regulatory compliance. The ability to demonstrate the precise origin of components, such as polysilicon and wafers, is becoming an indispensable aspect of international trade, especially in sectors like solar manufacturing that face heightened global trade scrutiny.

The potential for retroactive duties, as indicated by the Department of Commerce's instructions to CBP, presents a significant financial risk for importers. This situation emphasizes that companies must proactively implement compliance strategies and engage transparently with customs authorities to prevent shipment detentions and potential financial penalties. The case of TOYO's shipments from Ethiopia serves as a clear example of how detailed supply chain transparency can facilitate the navigation of complex international trade regulations and mitigate risks associated with trade investigations.

This development underscores the critical need for robust supply chain documentation and traceability, particularly for companies manufacturing in jurisdictions under scrutiny for trade duty circumvention. Lawyers should advise clients on proactive compliance strategies, meticulous record-keeping for material origins, and engagement with customs authorities to prevent shipment detentions and potential retroactive duties, especially in sectors like solar manufacturing facing increased international trade scrutiny.

Source: Original reporting via SolarQuarter and Addis Standard