Correspondence
Email sent to the contact address for S.J. Distributors.
The email said: "We’re contacting you in light of our latest investigation which concerns the use of forced labor in China’s food processing industry, and a link we’ve discovered between companies engaged in such practices and your supply chain – Dandong Hailong Foodstuff and Dandong Taifeng Foodstuff. We have uncovered evidence that Dandong Hailong Foodstuff and Dandong Taifeng Foodstuff used North Korean labor after the December 2019 deadline for the repatriation of overseas North Korean workers required under United Nations Security Council sanctions. This evidence shows North Korean labor at factories belonging to each of the companies Dandong Hailong and Dandong Taifeng in Liaoning, China, as recently as 2023. Furthermore, under the Countering America's Adversaries Through Sanctions Act (CAATSA), passed in 2017, the U.S. prohibits the import of any goods produced by North Korean nationals unless clear and convincing evidence is provided that indicates the materials were not made with forced labor.
Trade data seen by The Outlaw Ocean Project shows that: 1. Ande Foods (USA) Inc. was the consignee for dozens of shipments of seafood from Dandong Hailong since 2017. According to our research, Ande Foods supplies seafood products under its Sea Legacy brand to S.J. Distributors. 2. C & D International Fishery was the consignee for dozens of shipments of seafood from Dandong Hailong since 2017. According to our research, C & D International Fishery provides QF-branded squid products to S.J. Distributors. 3. Pacific American Fish (PAFCO) was the consignee for dozens of shipments of seafood from Dandong Taifeng Foodstuff since 2017. According to our research, PAFCO provides seafood products under its Pacific Surf and Oceankist brands to S.J. Distributors.
While we understand that you may not be aware of the above issues, we want to ask if S.J. Distributors has any comment to make in response to this email?"
S.J. Distributors replied: "Thank you for bringing this matter to our attention and providing relevant information. We want to assure you that we take these allegations seriously as part of our Company’s general practice, and our Company is fully committed to ethical business practices in compliance with applicable laws, especially the “Countering America’s Adversaries Through Sanctions Act” (CAATSA). We want to further assure you that we will immediately initiate a thorough investigation of the matter that you reported in your letter. If the information you provided is accurate, rest assured that we will cease any further collaboration with the implicated suppliers, and we will discontinue purchasing related products. We will not tolerate or acknowledge any practices that involve forced labor or violate human rights.
In order to conduct a thorough further investigation, we kindly request additional details or evidence regarding the allegations in your letter, including but not limited to, the starting and ending dates that the alleged suppliers purchased products from the companies which were suspected to use forced labor in China, the starting and ending dates that the alleged suppliers provided these problematic products to our Company and the documentation or proof that the products with the brands alleged in your letter were directly from the companies in China which were suspected to use forced labor. Your cooperation in providing more information would be immensely helpful for us to validate the claims made. We appreciate your commitment to transparency and justice. Once again, thank you for bringing this matter to our attention. We look forward to receiving any additional information you can provide and assure you that we will take appropriate action based on the results of our investigation."
The Outlaw Ocean Project replied: "Thanks for responding to our email and for sharing those comments. We appreciate your interest in the evidence we have gathered to date, but are unable to share materials in order to protect our sources. We can say that we have seen products from Ande Foods (USA) Inc., C&D International Fishery and PAFCO among your product listings. Images of the Ande Foods Sea Legacy short-necked clams are labeled as being supplied by Dandong Hailong. Trade records show: Ande Foods (USA) was the consignee for shipments from Dandong Hailong since at least January 2017 through to July 2021; C&D International Fishery was the consignee for shipments from Dandong Hailong since June 2019 through to November 2023; Pacific American Fish Company was the consignee for shipments from Dandong Taifeng since at least November 2017 through to January 2023. Please note that we focused the trade record analysis on the period following the enactment of the Countering America’s Adversaries Through Sanctions Act (CAATSA) in August 2017."