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U.S. Customs and Border Protection (CBP) has issued Withhold Release Orders targeting palm oil imports linked to two Indonesian producers, Mitra Aneka Rezeki and Hardaya Inti Plantation, in a significant escalation of forced-labor enforcement across the palm oil supply chain.
The orders take effect immediately at all U.S. ports of entry and cover palm oil and derivative products manufactured by the two companies in Indonesia.
CBP stated that the actions are issued under 19 U.S.C. § 1307, the U.S. statute that bars goods produced with forced labor from entering the country. The agency uses Withhold Release Orders (WROs) to detain shipments when it finds evidence indicating that imported goods were made using forced labor.
Susan S. Thomas, Executive Assistant Commissioner of CBP's Office of Trade, said that exploiting workers is 'inhumane and harmful to economic and national security.' She noted that workers face poor conditions and inadequate pay, while the resulting goods also create risks for American businesses and consumers.
According to the agency, its review concluded that both Mitra Aneka Rezeki (MAR) and Hardaya Inti Plantation (HIP) use forced labor in producing palm oil and derivative products in Indonesia. CBP examined a broad body of evidence, including interview transcripts, payroll slips, harvest quota information, photographs, open-source reports from non-governmental organizations and other government agencies, news media, and academic research.
In its findings, CBP identified nine International Labour Organization (ILO) indicators of forced labor at Mitra Aneka Rezeki: withholding of wages, debt bondage, deception, retention of identity documents, isolation, excessive overtime, intimidation and threats, abusive working and living conditions, and abuse of vulnerability.
For Hardaya Inti Plantation, the agency identified seven ILO indicators: debt bondage, withholding of wages, deception, excessive overtime, abusive working and living conditions, intimidation and threats, and abuse of vulnerability. CBP stated that these facts establish 'reasonable suspicion' of forced labor and that its trade import data confirms the goods are being, or are likely to be, imported into the United States.
With the two new orders, CBP now oversees and enforces 60 Withhold Release Orders and 8 Findings under the same statute.
Importers whose shipments are detained have three options: destroy the goods, export them, or attempt to demonstrate that the merchandise was not produced with forced labor. The latest move reflects a wider U.S. campaign to tighten scrutiny of agricultural supply chains and to push foreign suppliers toward compliance with international labor standards.
Source: Traders Union