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PETALING JAYA: US Customs and Border Protection (CBP) will stop palm oil and palm oil products manufactured by FGV Holdings Berhad beginning tomorrow, following allegations of forced and child labor.
In a statement, CBP said the directive followed a year-long investigation that revealed indicators of forced labor, including restriction of movement, physical and sexual violence, withholding of wages and excessive overtime.
The investigation also raised concerns that “forced child labor is potentially being used in FGV’s palm oil production process.”
“The use of forced labor in the production of such a ubiquitous product allows companies to profit from the abuse of vulnerable workers,” said CBP’s Office of Commerce Assistant Executive Commissioner Brenda Smith.
“These companies are creating unfair competition for legitimately sourced products and exposing the public to products that do not meet ethical standards.”
Under US law, the importation of goods extracted, manufactured or produced, in whole or in part, through forced labor, including convict labor, forced child labor, and contract labor, is prohibited.
This release hold order will require the detention of palm oil produced by FGV and any palm oil products or derivatives traceable to palm oil produced by FGV at all US ports of entry.
However, CBP provides detained importers of shipments the opportunity to export their shipments or to present evidence that the merchandise was not produced by forced labor.
He went on to say that CBP received complaints of forced labor from a variety of sources, including the general public.
“CBP will continue to remind Americans that we can use our economic power to tell companies that we will not tolerate forced labor in American supply chains,” Smith said.
“We urge all consumers to research fair trade products and companies and buy directly from reputable retailers.”
