CBP Lifts Ban on Malaysian Glove Imports

U.S. Customs and Border Protection (CBP) announced today that it has modified import restrictions against a group of companies, jointly known as Smart Glove, after the companies successfully demonstrated their products are no longer produced with forced labor.

Effective immediately, CBP will allow Smart Glove shipments to enter U.S. commerce, provided the imports comply with other U.S. laws.

This marks the third Withhold Release Order (WRO) modification CBP has issued in 2023. Over the past three years, CBP's forced labor enforcement efforts have resulted in improved living and working conditions for tens of thousands of workers, including the repayment of more than $50 million in withheld wages and recruitment fees used to trap workers in debt bondage.

U.S. Secretary of Homeland Security Alejandro N. Mayorkas praised the modification, stating, "Today’s modification of the withhold release order against Smart Glove proves that our enforcement efforts are driving responsible corporate citizenship and significant changes in corporate behavior, and that we will recognize those changes when they are instituted. Our efforts are driven by the core principle that every worker around the world deserves to be treated with dignity and respect."

In November 2021, CBP issued a WRO against disposable gloves produced in Malaysia by a group of companies, including Smart Glove Corporation Sdn Bhd, GX Corporation Sdn Bhd, GX3 Specialty Plant, Sigma Glove Industries, and Platinum Glove Industries Sdn Bhd (jointly, "Smart Glove"). The WRO was based on information indicating their production facilities utilized forced labor.

In response, Smart Glove implemented various measures to address the indicators of forced labor that prompted the WRO, ensuring the elimination of forced labor throughout its supply chain. Remediation efforts included repayment of recruitment fees, improvements to living conditions, and implementation of new worker-centered policies and procedures. CBP has determined that the conditions of forced labor identified in the WRO have been remediated, and shipments of Smart Glove's synthetic gloves received on or after April 26, 2023, will no longer be detained at U.S. ports of entry.

Today's announcement demonstrates CBP's commitment to working with foreign manufacturers and international supply chain stakeholders to achieve positive outcomes for workers trapped by forced labor worldwide.

CBP Acting Commissioner Troy Miller said, "We are witnessing a shift in behavior from importers and businesses as they identify and eliminate forced labor from their supply chains so that they can do business in the U.S., which ensures our economic security and enhances protections against forced labor. CBP is proud to be a part of this positive change that directly impacts so many lives abroad and ensures fair competition for law-abiding American entrepreneurs and companies."

The modification or revocation of a WRO or Finding is contingent upon interested parties providing evidence demonstrating that the subject merchandise is no longer produced, manufactured, or mined using forced labor.