The US Claims Sime Darby Plantation Goods No Longer Use Forced Labor

According to a notice published in the U.S. Federal Register on Thursday, U.S. customs officials have decided that palm oil goods manufactured by the Malaysian company Sime Darby Plantation are no longer made using forced labor.

Since 2020, goods produced by Sime Darby Plantation are prohibited from entering the United States because of suspicions of harsh labor practices. U.S. Customs and Border Protection (CBP) stated that it had sufficient evidence that the company used "forced labor" and that the commodities were vulnerable to confiscation.

In response, Sime Darby Plantation hired an ethical trade consulting firm to inspect its facilities and set aside almost $20 million last year to pay current and past migrant workers who paid recruitment fees to get employment at the company.

CBP, citing further evidence it had obtained, stated on Thursday that it had now "decided that the items were no longer mined, processed, or manufactured fully or in part by the Sime Darby Plantation using convict, forced, or indentured labor."

The CBP did not specify what proof it had received or whether it had removed the prohibition on the company's imports. The organization did not reply immediately to a request for comment.

Sime Darby acknowledged knowledge of the U.S. notice.

"We are optimistic that the USCBP will soon recognize the enormous efforts we have made in improving the quality of life for our staff and allow us to resume exports to the United States," a spokeswoman said in an email to Reuters.

Sime Darby Plantation is one of eight Malaysian companies that the United States has banned on allegations of forced labor in the previous four years.

By 2030, Malaysia aims to eradicate abusive practices such as debt bondage, filthy dormitories for workers, and excessive overtime, as declared in 2021.