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KUALA LUMPUR (Dec. 30): The United States has banned imports of palm oil from Malaysian producer Sime Darby Plantation Bhd since Wednesday over allegations of forced labor in the production process, Customs and Border Protection (CBP) said in U.S.
The ban on Sime Darby, the world’s largest palm oil company by territorial size and considered a leader in sustainably produced palm oil, is another blow to an industry that has faced mounting accusations of labor and human rights abuses.
Palm oil is used in everything from food to cosmetics to biodiesel. It is produced mainly in Malaysia and Indonesia, where producers are also blamed for large-scale deforestation and habitat destruction.
CBP said it issued a “hold of release order” on Sime Darby, allowing him to stop shipments based on suspicions of involvement in forced labor under long-standing US laws aimed at combating human trafficking, child labor. and other human rights abuses.
A spokesperson for Sime Darby did not immediately comment on the ban and the allegations.
CBP said the order was based on a months-long investigation that reasonably indicated the presence of the International Labor Organization’s forced labor indicators on the Sime Darby plantations.
“We believe there are some problems that are systemic across all of Sime Darby’s plantations,” said Ana Hinojosa, executive director of CBP’s Commercial Remedies Law Enforcement Directorate, in a call with reporters.
Sime Darby is the third Malaysian company to receive a US ban this year over forced labor allegations after FGV Holdings Bhd, another Malaysian palm oil producer, and Top Glove Corp Bhd, the world’s largest producer of latex gloves from Malaysia. medical degree.
Malaysia has more than 337,000 migrant workers from countries like Indonesia, India and Bangladesh to harvest the palm fruit.
Sime Darby’s ban, effective Wednesday, could be lifted if corrective action is taken.
CBP said the United States imported about $ 410 million worth of crude palm oil from Malaysia in the fiscal year ending September 2020, representing just over 30% of total U.S. palm oil purchases. .
Sime Darby said its annual exports to the United States total about $ 5 million.
In July, Hong Kong-based anti-human trafficking group Liberty Shared petitioned CBP to ban Sime Darby products, citing evidence of labor abuse.
Sime Darby said at the time that the allegations contradicted the group’s public commitments to responsible agriculture and human rights.
“We believe that we have a responsibility to respect, support and defend fundamental human rights as expressed in the Universal Declaration of Human Rights and the United Nations Guiding Principles on Business and Human Rights,” the company said on its website.
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