FOUR shipments of Malaysian palm oil have been seized by the US Customs and Border Protection (CBP) in Baltimore since February 11 due to information indicating that the commodity was manufactured by forced labour.

According to a statement on CBP’s website published yesterday, the agency estimated that the palm oil shipments are valued at nearly US$2.5 million (RM10.5 million).

“The US CBP had seized the latest shipment, consisting of 108 super packs of palmitic acid, on March 1 and confiscated three earlier shipments of a combined 270 super packs of palmitic acid on February 11,” it said.

Super packs are large flexible sacks that are used to transport bulk cargo such as sand, grain, coffee beans and powdery substances.

However, CBP did not name the Malaysian company that produced the palmitic acid in its statement.

CBP also said all four shipments of palmitic acid were produced in Malaysia and destined to a processing facility in Delaware, a state in the Mid-Atlantic region of the United States.

According to the statement, the combined weight of the four shipments of palmitic acid came to 544,176lb and had an appraised value of about US$2.47 million.

Palmitic acid is palm oil refined into a powder that can be easily incorporated into food, beverages and skin and healthcare products.

Refining oil also removes unwanted free fatty acids, gums and waxes.

Last year, Reuters reported that major palm oil buyers are looking to omit FGV Holdings and Sime Darby Plantations from their global supply chains.

This was after the United States banned imports from the two Malaysian palm oil producers over forced labour allegations.

US food company General Mills, in a statement to the news portal, said it has issued “no-buy orders” for both companies.

Malaysia and Indonesia control nearly 85% of global production of palm oil. – March 9, 2022.