Trade Breakthrough: U.S. Customs Clears Ethiopia-Made Solar Cell Shipments Post-Review

US Customs and Border Protection (CBP) has authorized the release of solar cell shipments manufactured at TOYO Co., Ltd.'s facility in Ethiopia. This decision followed a comprehensive review of the Japanese company's supply chain documentation, as announced by TOYO on 29 October. The company successfully demonstrated the traceability of its supply chain, including the origins of polysilicon and wafers utilized in its solar cell manufacturing process, and confirmed its cooperation with US authorities throughout the review.

TOYO Chief Executive Officer Takahiko Onozuka lauded the completion of the review, commending CBP's professional approach. He reiterated the company's unwavering commitment to transparency and regulatory compliance as it continues to expand its US operations. TOYO, which also runs a manufacturing facility in Humble, Texas, is actively seeking certification under CBP's Customs Trade Partnership Against Terrorism (CTPAT) program, an initiative aimed at bolstering supply chain security and import compliance. Onozuka further emphasized the critical importance of ensuring customer confidence in the provenance of solar products through enhanced supply chain traceability.

This development underscores the increasing significance of robust supply chain documentation and strict regulatory adherence for solar manufacturers operating internationally, especially as the scrutiny over the origins of imported goods intensifies. The release of TOYO's shipments takes place amidst an ongoing US investigation into whether solar cell manufacturers in Ethiopia are circumventing existing American trade duties imposed on Chinese solar products.

In July 2026, the US Department of Commerce initiated a country-wide investigation into imports of silicon solar cells from Ethiopia. This inquiry aims to ascertain if these imports are circumventing longstanding antidumping and countervailing duty (AD/CVD) orders targeting Chinese solar products. The 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—alleging that two manufacturers in Ethiopia, TOYO and Origin Solar, were utilizing Chinese-origin wafers to produce solar cells in Ethiopia, which were then assembled into solar modules locally or in Vietnam for export to the US market.

The petitioners claimed that nearly 70% of finished solar modules exported from Ethiopia contained Chinese components and underwent processing that they alleged falls under existing US trade restrictions. Data indicated a dramatic surge in imports of Ethiopia-origin solar cells and modules, from virtually nonexistent prior to July 2025 to an estimated $277 million in the latter half of that year, with shipments continuing to rise in 2026. This increase, according to petitioners, coincided with a rise in shipments of key solar manufacturing inputs from China to Ethiopia.

Both TOYO and Origin Solar have submitted factual information to the Department of Commerce in response to these allegations. The preliminary determination for this investigation is anticipated by 10 December 2026, with a final decision expected around 10 May 2027. In the interim, US Customs and Border Protection was directed to suspend the liquidation of relevant imports and impose cash deposit requirements pending the outcome. Any duties subsequently imposed could be applied retroactively to the investigation's initiation date.

The dispute first became public in May 2026, when reports emerged of US solar manufacturers petitioning the Department of Commerce to investigate imports from Ethiopia for alleged tariff circumvention. This petition was filed weeks after Prime Minister Abiy Ahmed inaugurated new solar manufacturing facilities at Hawassa Industrial Park on 25 April 2026. These facilities, including TOYO Phase 2, Origin, and Lumintech, were projected to have a combined annual production capacity of 11.3 gigawatts, representing Ethiopia's ambition to expand its industrial base and renewable energy sector.