U.S. lifts import ban on Malaysia's Top Glove over forced labour
concerns
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[September 10, 2021] By
A. Ananthalakshmi and Rozanna Latiff
KUALA LUMPUR (Reuters) - The United States
on Friday allowed imports from Malaysia's Top Glove Corp, after customs
authorities lifted a year-long ban imposed for alleged forced labour
https://www.reuters.com/world/asia-pacific/us-seizes-shipment-malaysias-top-glove-over-forced-labour-concerns-2021-05-13
found at the world's largest medical glove maker.
The U.S. Customs and Border Protection (CBP) had banned gloves made by
Top Glove in July 2020, saying it had found abuses of migrant workers.
In a statement, the CBP said it will now allow imports after a thorough
review of evidence that showed Top Glove has addressed all indicators of
forced labour.
Top Glove had said earlier its disposable gloves would be admissible at
all U.S. ports as of Sept. 10.
Its shares, which have plunged about 40% since the ban, jumped as much
as 10% on Friday.
Top Glove has taken a hit to reputation and business from the ban, which
came at a time when it was making record profits as the COVID-19
pandemic boosted demand for its gloves.
Its glove production in Malaysia has dropped and a plan for a $1 billion
Hong Kong listing has been delayed https://www.reuters.com/article/us-top-glove-listing-hong-kong-idCAKCN2DD2AX
since the ban.
The North American market accounts for 22% of Top Glove's total sales
volume, according to most recent data.
IMPROVEMENTS AT TOP GLOVE
The CBP had prohibited imports of Top Glove products citing evidence of
forced labour practices at the company, including debt bondage,
excessive overtime, abusive working and living conditions, and retention
of identity documents.
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A worker leaves a Top Glove factory after his shift in Klang,
Malaysia Dec. 7, 2020. REUTERS/Lim Huey Teng
While Top Glove said in April it had resolved all forced labour indicators, U.S.
Customs had two of the company's shipments seized in May https://www.reuters.com/world/asia-pacific/us-seizes-shipment-malaysias-top-glove-over-forced-labour-concerns-2021-05-13/#:~:text=KUALA%20LUMPUR%2C%20May%2013%20(Reuters,labour%20allegations%2C%20U.S.%20customs%20said.
Rights activist Andy Hall, who had urged the CBP to investigate Top Glove, said
he welcomed the decision to lift the ban "in light of the considerable
improvements in foreign workers living and working conditions" at Top Glove.
Top Glove has upgraded hostel facilities for its migrant workers, who account
for a majority of its factory workforce, and promised to compensate them for the
fee they paid to employment agents in their home countries.
The fees result in debt bondage, labour activists say.
Rivals Hartalega Holdings and Kossan Rubber have also since said they would pay
back the fees.
Two other Malaysian firms have also been hit with U.S. bans in the last year -
Sime Darby Plantation and FGV Holdings. The palm oil producers have both
appointed auditors to evaluate their practices and said they would engage with
CBP to address the concerns raised.
(Reporting by A. Ananthalakshmi and Rozanna Latiff; Editing by Tom Hogue and
Himani Sarkar)
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