Top Glove Corp. can't predict the magnitude of the financial effects that may result from a U.S. Customs and Border Protection order to seize goods the company makes in Malaysia owing to accusations of forced labor, it said Tuesday.
In a Bursa Malaysia filing Tuesday, Top Glove added its U.S. lawyers were talking with U.S. Customs about its directive.
Customs said in a statement it had substantial information indicating labor violations were committed at the world's biggest medical glove manufacturer. Merchandise covered by the Customs' office of trade forced-labor finding is subject to seizure on arrival in the U.S.
Shares of Top Glove were down almost 5% at one point in Tuesday trading.
Customs "has taken steps to ensure that this targeted enforcement action against Top Glove will not have a significant impact on total U.S. imports of disposable gloves," Customs acting executive assistant commissioner for trade John Leonard said, according to Reuters.
The finding doesn't affect the majority of disposable gloves imported into the U.S. which are critical during the global health crisis, Customs said.
The finding expands upon a Customs' withhold release order in July, The Edge Markets reported. It was based on reasonable but not conclusive information that forced labor indicators existed in Top Glove's manufacturing process - including abusive working conditions, excessive overtime and debt bondage, the report said.
Top Glove has said it had adopted "rectification" measures, Reuters reported.
Ethical trade consultancy Impactt Ltd. - appointed by Top Glove to evaluate its labor and trade practices - reported earlier in March that as of January it "no longer" found indicators of forced labor at the company's factories.
