US CBP begins seizing disposable gloves by Top Glove

KUALA LUMPUR: The US Customs and Border Protection (CBP) has directed personnel at all US ports of entry to begin seizing disposable gloves produced by Top Glove Corp Bhd in Malaysia.

This comes after the CBP Office of Trade published a forced labour finding against disposable gloves produced in Malaysia by Top Glove in the Customs Bulletin and in the Federal Register.

“Today’s forced labor finding is the result of a months-long CBP investigation aimed at preventing goods made by modern slavery from entering US commerce.

“CBP will not tolerate foreign companies’ exploitation of vulnerable workers to sell cheap, unethically-made goods to American consumers," said Troy Miller, Senior Official Performing the Duties of the CBP Commissioner, in a statement released today.

The finding expands upon a Withhold Release Order (WRO) that the CBP issued in July 2020, which was based on reasonable but inconclusive information that there were elements of forced labour in Top Glove's production process.

These included debt bondage, excessive overtime, abusive working and living conditions, and retention of identity documents.

In a statement filed with Bursa Malaysia, Top Glove said its US Counsels are in midst of liaising with representatives from the CBP to obtain more clarity and information on the latest order issued by the CBP.

" The Company, at this juncture, is unable to ascertain the quantum on financial and operational impacts arising from the above," it said.

It added that it had had earlier submitted the report prepared by the appointed independent international consultant to CBP for review.

"In its published statement on 9 March 2021, the said independent international consultant is of the view that further progress had been made with regard to the forced labour indicators and considering Top Glove’s ongoing actions, the findings do not amount to systemic forced labour.

"The Company wishes to inform all its stakeholders it will take all necessary steps to address the issue and shall make the necessary announcement as appropriate when there are further developments to the above matter," it said.

As at 12.30pm, Top Glove's share price was down 22 sen or 4.36% to RM4.83 on the back of 40.44 million shares traded.