KUALA LUMPUR – The three Malaysian companies whose shipments have been detained by United States (US) Customs and Border Protection (CBP) have to resort to a four-step revocation mechanism so their goods can be released, said CBP.
In an email to The Vibes, CBP Public Affairs specialist Nate Peeters said the agency was alerted to information “reasonably indicating the presence of all 11 International Labour Organisation (ILO) indicators of forced labour” with regard to the production process at the companies.
The trio’s products are actively listed under what is known as the withhold release order (WRO), which directs CBP personnel to detain shipments.
CBP, which comes under the US Homeland Security Department, issues WROs when it has information that goods are made either wholly or in part by forced labour, and will then subject the items to detention in American ports of entry.
The three Malaysian companies are Top Glove Corporation Bhd (disposable gloves), Sime Darby Plantation Bhd (palm oil and palm oil products) and FGV Holdings Bhd (palm oil and palm oil products).
Peeters said there is a revocation mechanism in place for firms that have their products listed under WRO.
These companies will have three months to submit proof that the products are not made by forced labour or re-export them, he added.
“If the importer does not export the excluded goods within 60 days, US CBP will destroy the shipment.
“CBP has established a process through which interested parties may request the modification or revocation of a WRO by demonstrating that the merchandise targeted by the WRO is not produced, manufactured or mined by forced labour.”
According to Peeters, there is a four-step procedure to revoke the WRO listing:
- The petitioner submits to CBP information such as evidence refuting each identified indicator of forced labour and that policies, procedures and controls are in place to ensure the remediation of forced labour conditions;
- CBP engages with the petitioner in remediation dialogue via questions or additional information requests throughout the review;
- CBP will make a determination to modify or revoke the WRO if forced labour indicators are addressed and fully remediated, and will not modify or revoke the listing unless all forced labour indicators are remediated; and,
- CBP may publish modification or revocation determinations on its portal.
“The required evidence and timeline for modification or revocation may vary depending on the specific circumstance of each individual case.”
The Vibes, however, received no reply on whether Top Glove, Sime Darby and FGV have taken steps to revoke their WROs.
Peeters merely pointed out in the email that the WROs remain active.
Canada probes forced labour allegations in Malaysia
On May 28, it was reported that Canada is now investigating claims of forced labour in glove manufacturing and palm oil industries in Malaysia.
Employment and Social Development Canada was quoted by Reuters as saying that its labour programme is “actively researching a number of forced labour allegations in different countries and sectors, including palm oil and glove manufacturing in Malaysia”.
The government agency, however, declined to provide further details or name specific companies being investigated.
On June 9, Top Glove senior management had reportedly said the company did not receive a fixed timeline on when the US import ban will be lifted.
Founder and executive chairman Tan Sri Lim Wee Chai said all 11 ILO indicators of forced labour have been resolved.
“We have done our part. Now, we just wait for them to verify the payment and remediation to the workers.”
On March 29, CBP had issued a forced labour finding on disposable gloves made by Top Glove in Malaysia.
The US law enforcement body had said forced labour indicators pointed to abusive working and living conditions, excessive overtime, debt bondage and retention of identification documents existing in the production process at Top Glove.
In his email, Peeters said CBP will now treat a petition from Top Glove as a petition to modify the forced labour finding.
Incidentally, CBP had on September 30, 2019, issued a WRO on disposable gloves produced by WRP Asia Pacific Sdn Bhd as well.
However, WRP submitted information to the agency addressing all forced labour concerns, upon which CBP modified the WRO, allowing their goods entry effective March 16 last year.
Sime Darby, FGV also address concerns
Sime Darby Plantation had in a statement on June 4 announced the appointment of Australian Human Rights Institute director Professor Justine Nolan, who is also a lawyer, to its Expert Stakeholder Human Rights Assessment Commission.
The commission, established in March, comprises ethical trade consultancy Impactt Ltd and a stakeholder consultation panel, which includes Nolan, migrant worker rights activist and human rights researcher Andy Hall, and the National Union of Plantation Workers – the largest trade union for plantation workers in Malaysia.
As for FGV, the agricultural and agri-commodities company had in a statement on March 31 said it continues to work with the Fair Labour Association to improve structures and systems to enhance its labour practices, including aligning codes and policies with international standards.
FGV has also established a Foreign Workers Working Committee, presided over by its chairman, to look into areas for continuous improvement, especially on upgrading infrastructures on the ground for the welfare of its workers.
“All these initiatives are part of FGV’s efforts to improve its labour practices and address concerns raised by the US CBP in relation to the 11 ILO indicators of forced labour.” – The Vibes, June 15, 2021
