Notice2023-02286

Determination That Maintenance of Finding of January 28, 2022, Pertaining to 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, Is No Longer Necessary

Primary source

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Published
February 3, 2023

Issuing agencies

Homeland Security DepartmentU.S. Customs and Border Protection

Abstract

On January 28, 2022, U.S. Customs and Border Protection (CBP), with the approval of the Secretary of the Department of Homeland Security, issued a Finding 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, were being produced with the use of forced labor, and were being, or were likely to be, imported into the United States. CBP has now determined, based upon additional information, that such merchandise is no longer being produced with the use of forced labor in violation of section 307 of the Tariff Act of 1930, as amended.

Full Text

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<title>Federal Register, Volume 88 Issue 23 (Friday, February 3, 2023)</title>
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[Federal Register Volume 88, Number 23 (Friday, February 3, 2023)]
[Notices]
[Pages 7451-7452]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-02286]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

[CBP Dec. 23-01]


Determination That Maintenance of Finding of January 28, 2022, 
Pertaining to 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, Is No Longer 
Necessary

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

ACTION: Determination that merchandise is no longer subject to 19 
U.S.C. 1307.

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SUMMARY: On January 28, 2022, U.S. Customs and Border Protection (CBP), 
with the approval of the Secretary of the Department of Homeland 
Security, issued a Finding 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, were being 
produced with the use of forced labor, and were being, or were likely 
to be, imported into the United States. CBP has now determined, based 
upon additional information, that such merchandise is no longer being 
produced with the use of forced labor in violation of section 307 of 
the Tariff Act of 1930, as amended.

DATES: This determination applies to any merchandise described in this 
notice that is imported on or after February 3, 2023.

FOR FURTHER INFORMATION CONTACT: Jason Leffler, Assistant Director, 
Forced Labor Division, Trade Remedy Law Enforcement Directorate, Office 
of Trade, (202) 325-1601 or <a href="/cdn-cgi/l/email-protection#90f6ffe2f3f5f4fcf1f2ffe2d0f3f2e0bef4f8e3bef7ffe6"><span class="__cf_email__" data-cfemail="b1d7dec3d2d4d5ddd0d3dec3f1d2d3c19fd5d9c29fd6dec7">[email&#160;protected]</span></a>.

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/and indentured labor or 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 
(Commissioner) ``will cause such investigation to be made as appears to 
be 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 merchandise within the purview of 
section 307 is being, or is likely to be, imported,'' the Commissioner 
will order port directors to ``withhold release of any such merchandise 
pending [further] instructions.'' 19 CFR 12.42(e). After issuance of 
such a withhold release order, the covered 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 labor 
in violation of 19 U.S.C. 1307. 19 CFR 12.43-12.44. The importer may 
also export the merchandise. 19 CFR 12.44(a).
    These regulations also set forth the procedure for the Commissioner 
to issue a Finding when it is determined that the merchandise is 
subject to the provisions of 19 U.S.C. 1307. Pursuant to 19 CFR 
12.42(f), if the Commissioner determines 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 Customs Bulletin and in the Federal 
Register.\1\ Under the authority

[[Page 7452]]

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). In 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 determined 
that there was sufficient information to support a
    Finding that the Sime Darby Plantation, its joint ventures, and 
subsidiaries were 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 also produce such palm oil and 
derivatives, and that such palm oil and derivative products produced by 
the company were likely being imported into the United States. Pursuant 
to 19 CFR 12.42(f), CBP issued a Finding (CBP Dec. 22-02) to that 
effect in the Federal Register on January 28, 2022 (87 FR 4635).\2\
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    \2\ The Finding was also published in the Customs Bulletin and 
Decisions (Vol. 56, No. 6, p. 4) on February 16, 2022.
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    Since that time, the Sime Darby Plantation has provided additional 
information to CBP, which CBP believes establishes by satisfactory 
evidence that the subject palm oil and derivative products are no 
longer mined, produced, or manufactured in any part with forced labor. 
19 CFR 12.42(g).

II. Determination

    Pursuant to 19 U.S.C. 1307 and 19 CFR 12.42(g), it is hereby 
determined that the articles described below are no longer being mined, 
produced, or manufactured wholly or in part with the use of convict, 
forced, or indentured labor by the Sime Darby Plantation, its 
subsidiaries, and joint ventures.
    The subject articles are palm oil and derivative products 
classified under Harmonized Tariff Schedule of the United States 
(HTSUS) subheadings 1207.10.0000, 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 the Sime Darby 
Plantation, its subsidiaries, and joint ventures.

    Dated: January 31, 2023.
AnnMarie R. Highsmith,
Executive Assistant Commissioner, Office of Trade.
[FR Doc. 2023-02286 Filed 2-2-23; 8:45 am]
BILLING CODE 9111-14-P


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Indexed from Federal Register on February 3, 2023.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.