Daily US Times: US Customs and Border Protection (CBP) has blocked palm oil import from a Malaysian producer over forced labour concerns.
CBP cited sexual and physical abuse, debt bondage and abusive conditions as reasons for blocking FGV Holdings.
Shipments from that company and its subsidiaries will be held at US entry ports.
FGV said in a statement that it had taken “concrete steps” to improve workers conditions.
A year-long investigation revealed “restriction of movement, isolation, physical and sexual violence, intimidation and threats, retention of identity documents, withholding of wages, debt bondage, abusive working and living conditions, and excessive overtime,” CBP said.
The investigation also raised concerns that forced child labour is potentially being used in FGV Holdings’s palm oil production process.
According to the website of FGV, it is a publicly-listed company and it accounts for about 15% of Malaysia’s annual production of crude palm oil.
Palm oil is used for a wide range of food products, pharmaceuticals, cosmetics and biofuels.
Brenda Smith, executive assistant commissioner of CBP’s Office of Trade, said: “The use of forced labour in the production of such a ubiquitous product allows companies to profit from the abuse of vulnerable workers.”
She said, “These companies are creating unfair competition for legitimately sourced goods and exposing the public to products that fail to meet ethical standards.”
The United States has increased its use of import bans since 2016, when a change in US law renewed CBP’s ability to act against products made with forced labour.
The US has issued a number of so-called Withhold Release Orders against Chinese companies over alleged forced labour concerns in the Xinjiang province over the last few months.
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