Universal Corporation Obtains U.S. Customs Modification for Malawi Tobacco

Rhea-AI Summary

Universal Corporation (NYSE: UVV) announced a significant modification from U.S. Customs and Border Protection regarding a Withhold Release Order on tobacco imports from Malawi. Effective July 31, 2020, the modification allows imports from Limbe Leaf Tobacco Company Ltd., confirming that its tobacco is admissible at U.S. ports. The original WRO, issued on November 1, 2019, was based on concerns of forced labor in Malawi's tobacco production. The company demonstrated its compliance with sustainability and labor practices, leading to the favorable CBP decision.

Positive

• U.S. Customs and Border Protection modified the Withhold Release Order, allowing imports from Limbe Leaf.
• The company's efforts in social compliance and sustainability were recognized by CBP.

Negative

• None.

RICHMOND, Va., Aug. 7, 2020 /PRNewswire/ -- Universal Corporation (NYSE: UVV) announced today that it has successfully obtained a modification from U.S. Customs and Border Protection ("CBP") of an existing Withhold Release Order ("WRO") on all imports of tobacco from Malawi into the United States.  The modification, effective July 31, 2020, excludes the Company's Malawi subsidiary, Limbe Leaf Tobacco Company Ltd. ("Limbe Leaf"), from the WRO and confirms that tobacco imported from Limbe Leaf is admissible at all U.S. ports of entry. 

CBP issued the WRO on November 1, 2019, based on a suspicion that forced labor was used in Malawi to produce the country's tobacco crop.  The Company immediately engaged with CBP and subsequently filed a comprehensive explanation of Limbe Leaf's supply chain social compliance program, its efforts to identify and minimize the risks of forced labor on contracted farms from which it purchases tobacco in Malawi, and its ability to trace such tobacco once processed and shipped from the shipping vessel back to the individual farms on which it was produced.  CBP rigorously evaluated the Company's filing and concluded that Limbe Leaf's program and on-farm efforts produced evidence that sufficiently supported the Company's claims that tobacco purchased from Limbe Leaf is not produced or harvested using forced labor.

George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation, said he was pleased with CBP's decision.  "Universal Corporation is committed to the sustainable production of tobacco.  Our commitment is evidenced by our Agricultural Labor Practices program and other sustainability policies, and by the implementation and maintenance of those programs and policies by our operations around the world.  We are proud of Limbe Leaf's dedication to the sustainable production of tobacco in Malawi, and we appreciate CBP's recognition of those efforts." 

Universal Corporation (NYSE: UVV), headquartered in Richmond, Virginia, sources, processes, and supplies agri-products.  Tobacco has been our principal focus since our founding in 1918, and we are the leading global leaf tobacco supplier.  We conduct business in more than 30 countries on five continents.  Our revenues for the fiscal year ended March 31, 2020, were $1.9 billion. For more information on Universal Corporation, including information about our sustainability programs and policies, visit our website at www.universalcorp.com.

 

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SOURCE Universal Corporation

FAQ

What is the Withhold Release Order modification for UVV?

Universal Corporation has received a modification from U.S. Customs and Border Protection that allows imports of tobacco from its Malawi subsidiary, Limbe Leaf Tobacco Company, effective July 31, 2020.

When was the original Withhold Release Order for UVV issued?

The original Withhold Release Order was issued on November 1, 2019.

What was the reason for the Withhold Release Order affecting UVV?

The Withhold Release Order was based on suspicions of forced labor used in the production of tobacco in Malawi.

How did UVV address the forced labor concerns?

Universal Corporation engaged with CBP and provided evidence of its supply chain social compliance program, demonstrating efforts to minimize forced labor risks.

What were Universal Corporation's revenues for the fiscal year ending March 31, 2020?

Universal Corporation reported revenues of $1.9 billion for the fiscal year ended March 31, 2020.