Workers inspects disposable gloves at the Top Glove factory in Shah Alam on the outskirts of Kuala Lumpur on August 26, 2020. (MOHD RASFAN / AFP)
KUALA LUMPUR – The US Customs has found forced labour practices in Top Glove Corp Bhd’s production of disposable gloves and directed its ports to seize goods from the manufacturer, it said on Monday.
In a statement overnight, US Customs and Border Protection said it has sufficient information to determine labour abuses at the world’s largest medical glove maker.
In a statement overnight, US Customs and Border Protection said it has sufficient information to determine labour abuses at the world’s largest medical glove maker
CBP issued an order in July last year that barred imports from two of Top Glove’s subsidiaries on suspicion of labour abuses.
The ban now extends “to all disposable gloves originating in Top Glove factories in Malaysia,” it told Reuters.
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The stock fell 5.4 percent in Kuala Lumpur Tuesday to the lowest close since March 2, the biggest decliner on the main equities gauge. Trading volume was 145 percent of its three-month average. The shares have plunged 50 percent from an October high.
Top Glove told Reuters its US counsels are liaising with representatives from the CBP to obtain more clarity and information on the matter.
CBP said its finding does not impact the vast majority of disposable gloves imported into the United States which are critical during the COVID-19 pandemic.
“CBP has taken steps to ensure that this targeted enforcement action against Top Glove will not have a significant impact on total US imports of disposable gloves,” John Leonard, CBP Acting Executive Assistant Commissioner for Trade said in the statement.
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Top Glove has said in the past months that it has taken extensive rectification actions to improve its labour practices.
Ethical trade consultancy Impactt, appointed by Top Glove to assess its trade and labour practices, reported earlier this month that as at January, it “no longer” found indicators of systemic forced labour at the manufacturer.