US Customs ban: Good progress made with Malaysian companies

KUALA LUMPUR: The US Customs and Border Protection (CBP) has revealed that positive progress is being made with Malaysian companies that are affected by sanctions it has imposed.

John Leonard, Deputy Executive Assistant Commissioner at the Office of Trade, cited “encouraging signs” within the industries that were issued a Withhold Release Order (WRO).

However, he said they were unable to reveal further details on specific cases due to privacy laws and requirements.

The CBP also stressed that WROs were only issued following reasonable evidence that a company is employing forced labour in the production and manufacturing of goods entering the US market.

This is verified through investigations based on allegations from investigative journalists, inter-agency partners, non-governmental organisations (NGOs) and other law enforcement sources.

“We understand very well the economic impact it has. But again, it’s simply a border enforcement issue that if we believe, through credible sources, that goods have been made with forced labour, they can’t be released into the commerce in the US until that situation’s remediated,” said Leonard.

With regards to certain companies being cleared of bans imposed upon them, Acting Executive Director Eric Choy explained that the affected companies would agree to a commitment in which they remediate its operations where forced labour was found.

“As they go through the remediation process, we ask that they retain third-party auditors. Once we validate with those auditors that those commitments have been completed, then we move forward to modify the WRO,” said the official of the Trade Remedy Law Enforcement at the CBP’s Office of Trade.

Eight WROs have been issued against Malaysian companies for various breaches of the International Labour Organisation’s 11 Indicators of Forced Labour, of which six are still active.