U.S. says palm oil made by Malaysian firm Sime Darby

KUALA LUMPUR Reuters -- U.S. customs authorities have determined that palm oil products made by Malaysian firm Sime Darby Plantation have been no longer produced with forced labor, according to a notice on the U.S. Federal Register on Thursday.

Since 2020, Sime Darby Plantation has been able to enter the United States, because of suspected abusive labour practices. U.S. Customs and Border Protection CBP said last year it had sufficient information that the firm used forced labour and the goods were subject to seizure.

Sime Darby Plantation appointed an ethical trade consultancy to audit its facilities, and last year set aside $20 million for current and former migrant workers who paid recruitment fees to secure jobs at the firm.

CBP, citing additional information it had received, said on Thursday it had determined that the products were no longer being mined, produced, or manufactured wholly or in part with the use of convict, forced, or indentured labor by the Sime Darby PlantationSime Darby Plantation. The agency didn't respond immediately to a request for comment.

Sime Darby said it was aware of the U.S. notice.

We are optimistic that the tremendous strides we have made in bolstering the quality of life for our workforce will soon be recognised by the USCBP and we will be allowed to resume exports to the United States, a spokesman said in an email to the USCBP.

Sime Darby Plantation is one of eight Malaysian firms that have been banned by the United States in the past four years for forced labour allegations.

In 2021, Malaysia announced a plan to eliminate abusive practices, such as debt bondage, unhygienic dormitories for workers, and excessive overtime, by 2030.