"U.S. blocks palm oil imports from Malaysia's Sime Darby over forced labour allegations", 30 December 2020

The United States has banned imports of palm oil from Malaysian producer Sime Darby Plantation from Wednesday over allegations of forced labour during production, the U.S. Customs and Border Protection (CBP) said.

... The ban on Sime Darby, the world’s largest palm oil company by land size and seen as a leader in sustainably produced palm oil, is another blow to an industry that has faced mounting allegations of labour and human rights abuses.

... The CBP said it had issued a ‘withhold release order’ on Sime Darby, which will allow it to detain shipments based on suspicion of forced labour involvement under longstanding U.S. laws aimed at combating human rights abuses.

Sime Darby said it was reviewing the statement to better understand any potential impact, and would engage with the agency to address the concerns raised.

“The allegations made suggest a breach in the implementation of (Sime Darby’s) own strict policies,” it said on Thursday.

The company is committed to combating forced labour and has robust policies to protect workers’ rights, it said.

The CBP said the ban was based on a months-long investigation that suggested the presence of the International Labour Organization’s forced labour indicators at Sime Darby plantations.

“We do believe that there are some issues that are systemic across all of Sime Darby’s plantations,” Ana Hinojosa, executive director of CBP’s Trade Remedy Law Enforcement Directorate, told reporters.

The ban could be lifted if remedial action is taken.

Sime Darby is the third Malaysian company to be slapped with a U.S. ban this year over forced labour allegations, after FGV Holdings, another Malaysian palm oil producer, and latex glove producer Top Glove.