CBP Removes Stevia Producer From Withhold Release Order

January 30, 2017 by Tim Warren|Top News

CBP removed PureCircle, a stevia producer, from a withhold release order that prevented imports from the company due to allegations of forced labor use, the company said on Jan. 30 (here). CBP included PureCircle in its May 20 WRO on stevia and its derivatives (see 1605310019), but no longer lists the company in the agency's list of WROs. "All PureCircle shipments have been released and business will fully resume on a regular basis," the company said.

PureCircle's inclusion in the WRO was "based on inaccurate allegations" that its stevia shipments were produced through forced labor, the company said. "PureCircle was removed from WRO and shipments were released after CBP review of substantial, detailed documentation from PureCircle, including independent, third-party verifications." CBP is working on new regulations to implement the forced labor provisions of the customs reauthorization law, which repealed "consumptive demand" considerations (see 1606170040).

The company remains supportive of the law, it said. “We are pleased that this matter has been rigorously investigated and that PureCircle has been cleared by the CBP," PureCircle CEO Magomet Malsagov said. "This experience has only reinforced our commitment to human rights and fair labor practices in any of our markets as well as strengthened our capabilities in providing traceability and transparency as the stevia industry’s only vertically integrated natural supply chain.“ CBP didn't comment.

The WRO led to a significant decrease in the company's earnings in the first half of its fiscal year 2017, it said in a Jan. 5 notice to investors (here). A 14 percent decrease in group sales compared to the previous year was "a direct consequence" of the CBP detentions, it said. PureCircle also laid out the case it made to CBP that resulted in its removal from the WRO. PureCircle showed the agency detailed purchase records, a third-party audit on its supply chain (here) and its labor (here) and supplier policies (here).