Sime Darby Plantation worries over possible US import ban

PETALING JAYA: A possible withhold release order or import ban by the US Customs and Border Protection (CBP) on Sime Darby Plantation Bhd (SDP) is a concern to the plantation firm as it views the US as an important growing market for its products, even though the annual value of its export to the US at present is a modest sum of US$5 million (RM20.8 million).

SDP is the subject of a petition filed by Liberty Shared (LS) with the CBP on April 20, 2020.

This week, the US banned palm oil imports from FGV Holdings Bhd, following an investigation by CBP into allegations that the group uses forced labour.

“Despite our attempts to engage with the CBP, we have not had the opportunity to provide any explanation and neither has SDP been provided details of the allegation by LS,” SDP said in a statement today.

Prior to this, SDP had responded to the allegations via three public statements based on the information available by outlining its policies and best practices related to matters raised in the petition between July and August this year.

It stated that the group’s responses underline its serious commitment to uphold human rights and genuine intentions to remedy any lapses in its operations and supply chain.

“They are further underscored by our plan, following our engagement with LS, to commission an independent review of our governance, procedures and practices related to the areas of concern, the details of which will be announced in due course,” it said.

SDP said it will continue its engagements with hopes of being able to obtain the details of the allegations for it to address them at the earliest opportunity.

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