CBP Issues Notice Of Finding That Certain Palm Oil And Derivative Products From Malaysia Involve Forced Labor – International Law

U.S. Customs and Border Protection (CBP) has issued a “Notice of Finding” in which
it has determined that certain palm oil and derivative products
made wholly or in part with palm oil produced by Sime Darby
Plantation Berhad, its subsidiaries, and joint ventures with the
use of convict, forced or indentured labor, are being, or are
likely to be, imported into the United States. This finding will
become effective on January 28, 2022, at which time any such
merchandise imported into the United States may be seized by port
directors and forfeiture proceedings commenced.

This finding comes after CBP on December 16, 2020, issued a
Withhold Release Order (WRO) on “palm oil,” including all
crude palm oil and palm kernel oil and derivative products, made
wholly or in part with palm oil traceable to Sime Darby Plantation
Berhad. At that time, CBP established that reasonable evidence
demonstrated that this entity harvested the fruit and produced the
palm oil using forced labor.

Through its full investigation, CBP determined that there is
sufficient information to support a finding “that Sime Darby
Plantation and its subsidiaries are using forced labor … to
harvest fresh fruit bunches, which are used to extract palm oil and
produce derivative products, and that such palm oil and derivative
products produced by the company are likely being imported into the
United States.”

This finding covers palm oil and derivative products made wholly
or in part with palm oil classified under the following Harmonized
Tariff Schedule of the United States (HTSUS) subheadings:
12.07.10.0000, 1511.10.0000, 1511.90.0000, 1513.21.0000,
1513.29.0000, 1517, 3401.11, 3401.20.0000, 3401.19.0000,
3823.12.0000, 3823.19.2000, 3823.70.6000, 3823.70.4000, 3824.99.41
and any other relevant subheadings under Chapters 12, 15, 23, 29
and 38, which are produced or manufactured wholly or in part by
Sime Darby Plantation, its subsidiaries and joint ventures. Based
upon this CBP determination, port directors may seize the covered
merchandise and commence forfeiture proceedings, unless the
importer establishes “by satisfactory evidence that the
merchandise was not produced in any part with the use of prohibited
labor” specified in this finding.

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