THE United States has blocked FGV Holdings’ palm oil imports over allegations the company used forced labour in its production process.

The country’s Customs and Border Protection (CBP) said the ban is a result of a year-long investigation revealing forced labour indicators including restriction of movement, physical and sexual violence, withholding of wages and excessive overtime.

The probe also raised concerns of forced child labour being potentially used in the production process.

The ban is with immediate effect.

“The use of forced labour in the production of such a ubiquitous product allows companies to profit from the abuse of vulnerable workers,” said Brenda Smith, executive assistant commissioner of CBP’s trade office.

The CBP will issue a “withhold release order”, which will allow it to detain shipments based on suspicion of forced labour involvement under longstanding US laws aimed at combating human trafficking, child labour and other human rights abuses.

FGV has long faced accusations by human rights groups that foreign workers work in abusive conditions at the plantations. – September 30, 2020.