SUPERMAX Corp Bhd has become the third Malaysian glove maker to have its products denied entry into the US after WRP Asia Pacific Sdn Bhd (in September 2019) and Top Glove Corp Bhd (in July 2020).
This follows the issuance of a Withhold Release Order (WRO) by the US Customs and Border Protection (CBP) against Supermax Corp and its three wholly owned subsidiaries, namely Maxter Glove Manufacturing Sdn Bhd, Maxwell Glove Manufacturing Bhd and Supermax Glove Manufacturing.
With the WRO, CBP officers at all US ports of entry will detain all disposable gloves produced by Supermax Corp’s wholly owned subsidiaries with effect from today (Oct 21).
The WRO which is issued based on information that reasonably indicates their use of forced labour in manufacturing operations will mean that CBP officers at all US ports of entry will detain disposable gloves produced by the subsidiaries of Supermax Corp.
CBP has identified 10 of the International Labour Organization’s (ILO) indicators of forced labour during its investigation.
“This WRO will help protect vulnerable workers,” CBP Acting Commissioner Troy Miller pointed out in a media statement. “CBP is a global leader in forced labour enforcement and “we will continue to exclude products made by modern slavery from entering into the US.”
With 10 of the 11 forced labour indicators identified during the course of our investigation, CBP has sufficient evidence to conclude that Supermax Corp and its subsidiaries produce gloves in violation of US trade law, according to CBP Office of Trade executive assistant commissioner AnnMarie R. Highsmith.
“Until the manufacturers can prove their manufacturing processes are free of forced labour, their goods are not welcome here,” she added.
In fiscal year 2021, CBP issued seven WROs and two forced labour findings. The ILO estimates that 25 million workers suffer under conditions of forced labour worldwide.
“Foreign companies exploit forced labour to sell goods below market value. This exposes vulnerable populations to inhumane working conditions like physical and sexual violence, isolation, restriction of movement, withholding of wages, excessive overtime, and more,” noted WRO.
“It also hurts law-abiding businesses, threatens American jobs, and exposes consumers to unwittingly supporting unethical business practices.”
Federal statute 19 USC (US Constitution) 1307 prohibits the importation of merchandise produced, wholly or in part, by convict labour, forced labour, and/or indentured labour, including forced or indentured child labour.
As such, CBP will detain shipments of goods suspected of being imported in violation of this statute. However, importers of detained shipments have the opportunity to export their shipments or demonstrate that the merchandise was not produced with forced labour.
At the close of yesterday’s (Oct 20) trading, Supermax was up 3 sen or 1.34% to RM2.25 with 11.17 million shares traded, thus valuing the company at RM6.12 bil. – Oct 21, 2021
