US restricts palm oil imports from Malaysia over alleged forced labor abuses
US Customs and Border Protection will block imports of palm oil and palm oil products from Malaysia in the latest move by the agency targeting overseas forced labor practices.
The restrictions, which went into effect on Wednesday, take aim at all palm oil produced by FGV Holdings Berhad, a Malaysian-based agricultural company, and come after a yearlong CBP investigation into labor abuses.
CBP uncovered indicators of forced labor including physical and sexual violence, debt bondage, retention of identification documents and withholding of wages, said Brenda Smith, executive assistant commissioner of CBP's Office of Trade.
The agency also found potential child labor being used in FGV Holdings' palm oil manufacturing process.
CBP issued a "Withhold Release Order" against palm oil products from FGV Holdings. This allows the agency to detain these products at US ports of entry and forces importers to either export the products or prove that the palm oil was produced without forced labor. Sometimes shipments already headed to the US will be rerouted.
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