INDUSTRY players must be more mindful of the US Customs and Border Protection’s (CBP) forced labour rule to avoid being slapped by a Withhold Release Order (WRO) for accusations of forced labour, said Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin.
This is following the US CBP’s clarifications on Thursday (June 2) on how it derived evidence of forced labour allegations and how it pursued its investigations that had led to products from six Malaysian firms being prevented from entering the US market after being slapped with WROs.
“As much as we cannot totally agree with its reliance on remote or third-party evidence in its investigation process, we have to accept that at the end of the day, the enforcement agency is vested with the prerogative to act based on what it deems as proprietary information,” she said.
In a statement today Zuraida stressed that her ministry has no intention of disputing CBP’s prerogative despite feeling that such claims were “unfair and biased”.
She further noted that the ban on Malaysian palm oil and palm oil products – or rubber gloves for the matter – is based only on allegations of forced labour as claimed by certain non-governmental organisations (NGOs) and other groups.
CBP – in detailing the route and subsequent actions taken against some companies – had previously reiterated that its investigations were done through reasonable information, analysis, investigations and assumptions.
“In this regard Malaysian palm oil and palm oil-related products may have to bear the brunt of being in direct competition with soybean oil of which the US is the world’s leading producer and the second-leading exporter,” Zuraida pointed out.
“Now that the modus operandi of the CBP and how their verdict is passed has been made clear, the onus is on industry players – especially those in the labour-intensive rubber gloves and plantation sectors – to pay heed to CBP’s sensitivities and work around a remedial action plan to avoid being slapped by a WRO for accusations of forced labour.”
Initially, eight Malaysian companies, including those involved in palm oil and glove manufacturing, were on a list of firms whose products were banned from entering the US due to “reasonable evidence” of forced labour practices.
Two glove manufacturers, Top Glove and WRP Asia Pacific, have since been removed from the list after satisfying CBP’s requirement. – June 8, 2022
