KUALA LUMPUR – United States Customs and Border Protection (CBP) has directed personnel at all US ports of entry to begin seizing disposable gloves produced in Malaysia by Top Glove Corp Bhd.
The CBP Office of Trade, in consultation with the Treasury secretary, has published alleged forced labour findings against disposable gloves produced by Top Glove in the customs bulletin and federal register.
Merchandise covered by forced labour findings is subject to seizure upon arrival at a US port of entry.
“The (alleged) forced labour findings are the result of a month-long CBP investigation aimed at preventing goods made by modern slavery from entering US commerce,” said Troy Miller, the senior official performing the duties of CBP commissioner, in a statement.
He said CBP will not tolerate foreign companies’ exploitation of vulnerable workers to sell cheap and unethically made goods to US consumers.
The findings expand on a withhold release order (WRO) that CBP issued in July last year.
The WRO was based on reasonable, but not conclusive, information that multiple forced labour indicators exist in Top Glove’s production process, including debt bondage, excessive overtime, abusive working and living conditions, and retention of identity documents.
The company, in a statement, said its US lawyers are liaising with CBP representatives to get more clarity and information on the agency’s finding information document.
“Top Glove earlier submitted a report prepared by an independent international consultant, Impactt, to CBP for review.”
Impactt was appointed by the firm last July to verify its labour practices.
The consultant, in a statement on March 9, confirmed that as of January, and considering Top Glove’s ongoing actions, the CBP findings do not amount to systemic forced labour.
Impactt’s full statement can be viewed here.
In a filing with Bursa Malaysia, Top Glove said at this juncture, the company is unable to ascertain the quantum of the financial and operational impact arising from the goods seizure.
“The company will take all the necessary steps to address the (forced labour) issue, and shall make the necessary announcement as appropriate when there are further developments.”
Losses in Top Glove shares weighed on the key index in the early session.
At 12pm, the firm lost 23 sen, or 4.55%, to RM4.82, with 38.04 million units changing hands. – Bernama, March 30, 2021