[Federal Register Volume 87, Number 19 (Friday, January 28, 2022)]
[Notices]
[Pages 4635-4636]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-01779]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

[CBP Dec. 22-02]


Notice of Finding That Certain Palm Oil and Derivative Products 
Made Wholly or In Part With Palm Oil Produced by the Malaysian Company 
Sime Darby Plantation Berhad Its Subsidiaries, and Joint Ventures, With 
the Use of Convict, Forced or Indentured Labor Are Being, or Are Likely 
To Be, Imported Into the United States in Violation of 19 U.S.C. 1307

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: General notice of forced labor finding.

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SUMMARY: This document notifies the public that U.S. Customs and Border 
Protection (CBP), with the approval of the Secretary of Homeland 
Security, has determined that certain palm oil and derivative products 
made wholly or in part with palm oil produced by Sime Darby Plantation 
Berhad, its subsidiaries, and joint ventures with the use of convict, 
forced or indentured labor, are being, or are likely to be, imported 
into the United States.

DATES: This Finding applies to any merchandise described in Section II 
of this Notice that is imported on or after January 28, 2022. It also 
applies to merchandise which has already been imported and has not been 
released from CBP custody before January 28, 2022.

FOR FURTHER INFORMATION CONTACT: Ilissa Kabak Shefferman, Chief, 
Investigations Branch, Forced Labor Division, Trade Remedy Law 
Enforcement Directorate, Office of Trade, (202) 506-5663 or 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    Pursuant to section 307 of the Tariff Act of 1930, as amended (19 
U.S.C. 1307), ``[a]ll goods, wares, articles, and merchandise mined, 
produced or manufactured wholly or in part in any foreign country by 
convict labor or/and forced labor or/and indentured labor under penal 
sanctions shall not be entitled to entry at any of the ports of the 
United States, and the importation thereof is hereby prohibited.'' 
Under this section, ``forced labor'' includes ``all work or service 
which is exacted from any person under the menace of any penalty for 
its nonperformance and for which the worker does not offer himself 
voluntarily'' and includes forced or indentured child labor.
    The U.S. Customs and Border Protection (CBP) regulations 
promulgated under the authority of 19 U.S.C. 1307 are found at sections 
12.42 through 12.45 of title 19, Code of Federal Regulations (CFR) (19 
CFR 12.42-12.45). Among other things, these regulations allow any 
person outside of CBP to communicate his or her belief that a certain 
``class of merchandise . . . is being, or is likely to be, imported 
into the United States [in violation of 19 U.S.C. 1307].'' 19 CFR 
12.42(a), (b). Upon receiving such information, the Commissioner of CBP 
will initiate an investigation if warranted by the circumstances. 19 
CFR 12.42(d). CBP also has the authority to self-initiate an 
investigation. 19 CFR 12.42(a). If the Commissioner finds that the 
information available ``reasonably but not conclusively'' indicates 
that such merchandise ``is being, or is likely to be, imported'' into 
the United States, the Commissioner will order port directors to 
``withhold release of the merchandise pending [further] instructions.'' 
19 CFR 12.42(e). After issuance of such a withhold release order, the 
covered

[[Page 4636]]

merchandise will be detained by CBP for an admissibility determination 
and will be excluded unless the importer demonstrates that the 
merchandise was not made using forced labor in violation of 19 U.S.C. 
1307. 19 CFR 12.43-12.44. Subject to certain conditions, the importer 
may also export the merchandise prior to seizure. 19 CFR 12.44(a).
    These regulations also set forth the procedure for the Commissioner 
of CBP to issue a Finding when the Commissioner determines that the 
merchandise is subject to the provisions of 19 U.S.C. 1307. Pursuant to 
19 CFR 12.42(f), if the Commissioner finds that merchandise within the 
purview of 19 U.S.C. 1307 is being, or is likely to be, imported into 
the United States, the Commissioner will, with the approval of the 
Secretary of the Department of Homeland Security (DHS), publish a 
Finding to that effect in the Federal Register and in the Customs 
Bulletin and Decisions.\1\ Under the authority of 19 CFR 12.44(b), CBP 
may seize and forfeit imported merchandise covered by a Finding.
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    \1\ Although the regulation states that the Secretary of the 
Treasury must approve the issuance of a Finding, the Secretary of 
the Treasury delegated this authority to the Secretary of Homeland 
Security in Treasury Order No. 100-16 (68 FR 28322). See Appendix to 
19 CFR part 0. Under Delegation Order 7010.3, Section II.A.3, the 
Secretary of Homeland Security delegated the authority to issue a 
Finding to the Commissioner of CBP, with the approval of the 
Secretary of Homeland Security. The Commissioner of CBP, in turn, 
delegated the authority to make a Finding regarding prohibited goods 
under 19 U.S.C. 1307 to the Executive Assistant Commissioner, Office 
of Trade.
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    On December 16, 2020, CBP issued a withhold release order (made 
effective on December 30, 2020) on ``palm oil,'' including all crude 
palm oil and palm kernel oil and derivative products, made wholly or in 
part with palm oil traceable to Sime Darby Plantation Berhad (``Sime 
Darby Plantation''), with reasonable evidence demonstrating that the 
Sime Darby Plantation, including its subsidiaries and joint ventures, 
primarily located in Malaysia, harvested the fruit and produced the 
palm oil using forced labor. Through its investigation, CBP has 
determined that there is sufficient information to support a Finding 
that Sime Darby Plantation and its subsidiaries are using forced labor 
on Sime Darby's plantations in Malaysia to harvest fresh fruit bunches, 
which are used to extract palm oil and produce derivative products, and 
that such palm oil and derivative products produced by the company are 
likely being imported into the United States.

II. Finding

A. General

    Pursuant to 19 U.S.C. 1307 and 19 CFR 12.42(f), it is hereby 
determined that certain articles described in paragraph II.B., that are 
manufactured or produced in whole or in part with the use of convict, 
forced, or indentured labor by Sime Darby Plantation and its 
subsidiaries are being, or are likely to be, imported into the United 
States. Based upon this determination, the port director may seize the 
covered merchandise for violation of 19 U.S.C. 1307 and commence 
forfeiture proceedings pursuant to 19 CFR part 162, subpart E, unless 
the importer establishes by satisfactory evidence that the merchandise 
was not produced in any part with the use of prohibited labor specified 
in this Finding. 19 CFR 12.42(g).

B. Articles and Entities Covered by This Finding

    This Finding covers palm oil and derivative products made wholly or 
in part with palm oil classified under Harmonized Tariff Schedule of 
the United States (HTSUS) subheadings 12.07.10.0000, 1511.10.0000, 
1511.90.0000, 1513.21.0000, 1513.29.0000, 1517, 3401.11, 3401.20.0000, 
3401.19.0000, 3823.12.0000, 3823.19.2000, 3823.70.6000, 3823.70.4000, 
3824.99.41 and any other relevant subheadings under Chapters 12, 15, 
23, 29 and 38, which are produced or manufactured wholly or in part by 
Sime Darby Plantation, its subsidiaries and joint ventures.
    The Secretary of Homeland Security has reviewed and approved this 
Finding.

    Dated: January 25, 2022.
John P. Leonard,
Acting Executive Assistant Commissioner, Office of Trade.
[FR Doc. 2022-01779 Filed 1-27-22; 8:45 am]
BILLING CODE 9111-14-P