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From · agreement provisional · 2024-03-13 CJ33-AG-759952 Proposal for a regulation of the European Parliament and of the Council on prohibiting products made with forced labour on the Union market

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To · opinion parliamentary committee · 2023-07-19 PECH-AD-739691 on the proposal for a regulation of the European Parliament and of the Council on prohibiting products made with forced labour on the Union market

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~~13.3.2024~~

PA_Legam

~~PROVISIONAL AGREEMENT RESULTING FROM INTERINSTITUTIONAL NEGOTIATIONS~~

SHORT JUSTIFICATION

~~Subject: Proposal for a regulation of the European Parliament and of the Council on prohibiting products made with forced labour on the Union market~~

According to the International Labour Organisation, 128.000 fishers are in a situation of forced labour worldwide. This number is likely to be an underestimate given the challenges in measuring forced labour, especially on board vessels. Forced labour in the sector includes withholding of wages, working long hours, under the threat of force, by means of debt bondage, for a very low remuneration and without adequate health and safety conditions. Migrant workers can be especially vulnerable to forced labour.

~~(COM(2022)0453 – C90307/2022 – 2022/0269(COD))~~

Due to the often geographically remote nature of fisheries operations, these abuses can go unnoticed.

The interinstitutional negotiations on the aforementioned proposal for a regulation have led to a compromise. In accordance with Rule 74(4) of the Rules of Procedure, the provisional agreement, reproduced below, is submitted as a whole to the Committee on International Trade Committee on the Internal Market and Consumer Protection for decision by way of a single vote.

With the deterioration of marine ecosystems and stock depletion at the global level, input costs for fishing operations have risen and are often transferred on crewmembers’ shoulders through lower and exploitative working conditions.

~~PE-CONS No/YY - 2022/0269(COD)~~

Forced labour abuses in fisheries are often associated with Illegal, Unreported and Unregulated (IUU) fishing. The lack of transparency and control inherent in IUU fishing acts as enabler for forced labour.

~~REGULATION 2024/... OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL~~

While no country is immune to forced labour abuses, the Asia Pacific region is the region with the largest share of labour abuse victims, estimated to be 15.1 million.

~~of ...~~

The EU imports 68, 6% of its seafood consumption, including from countries in the Asia-Pacific region.

~~on prohibiting products made with forced labour on the Union market and amending Directive (EU) 2019/1937~~

The EU fishing fleet is not immune to labour abuses either and the majority of EU Member States have not yet ratified ILO Convention C188 on work in fishing.

~~(Text with EEA relevance)~~

This Regulation will thus be key to ensure that seafood consumption in the EU does not contribute to forced labour, both within and outside the EU.

~~THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,~~

This proposal is only one of the many tools available to the EU and Member States to help eradicate forced labour worldwide. To address the root causes of forced labour, Member States and the EU must include this fight in their trade and development cooperation policies.

~~Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 and Article 207 thereof,~~

The EU must lead this action at the global level, promoting the ratification of existing international instruments.

~~Having regard to the proposal from the European Commission,~~

The Rapporteur therefore supports the Regulation and wishes to draw attention on the following points.

~~After transmission of the draft legislative act to the national parliaments,~~

Centralised complaint procedure

~~Having regard to the opinion of the European Economic and Social Committee,~~

The Rapporteur believes that stakeholders and citizens should have the right to file complaints concerning the violation of this Regulation directly with the European Commission through a centralised complaint mechanism.

~~Acting in accordance with the ordinary legislative procedure,~~

Upon receipt by the single entry point, the Commission should be empowered to either assign complaints to national authorities or assess them itself. Member States’ competent authorities and the Commission should then both be empowered to launch investigations.

~~Whereas:~~

Non-cooperating countries

(1) As recognised in the Preamble to the 2014 Protocol to Convention No. 29 on forced labour (‘ILO Convention No. 29’) of the International Labour Organization (‘ILO’), forced labour constitutes a serious violation of human dignity and fundamental human rights, contributes to the perpetuation of poverty and stands in the way of the achievement of decent work for all. The ILO declared the elimination of all forms of forced or compulsory labour as a principle concerning the fundamental rights. The ILO classifies ILO Convention No. 29, including the supplementing the 2014 Protocol to Convention No. 29 and the Forced Labour (Supplementary Measures) Recommendation No. 203 and the ILO Convention No.105 on the abolition of forced labour (‘ILO Convention No.105’) as fundamental ILO Conventions1. and issues recommendations to prevent, eliminate, and remedy forced labour. The ILO has developed several indicators used to identify and indicate cases of forced labour, such as threats and actual physical and sexual harm, abuse of vulnerability, abuse of working and living conditions and excessive overtime, deception, restriction of movement or confinement to the workplace or a limited area, isolation, debt bondages, withholding wages or excessive wage reduction, retention of passports and identity documents or threat of denunciation to the authorities when the worker has an irregular immigration status. Forced labour is very often linked to poverty and discrimination. The manipulation of credit and debt, either by employers or by recruiting agents, is still a key factor that traps vulnerable workers in forced labour situations. According to the ILO supervisory bodies, prison labour, including where it is performed for private companies, is not in itself constitutive of forced labour provided that it is done on a voluntary basis, for the benefit of the prisoner and approximates the conditions of a free labour relationship. Community work as an alternative penal sanction to imprisonment should always be in the public general interest and should, under no circumstances, be abused by States as means to degrade the convicted person or deprive the person of their dignity. In cases in which work or service is imposed by exploiting the worker's vulnerability, under the threat of a penalty, such threat does not need to take the form of a penal sanction but might take the form also of a loss of rights or benefits.

The Rapporteur believes that, in order to be effective, the proposal must introduce mechanisms that tackle the root causes of forced labour. Implementing this Regulation without an effective dialogue with countries concerned also poses the risk of disengagement, with further negative consequences on already affected vulnerable workers. Therefore, the Rapporteur suggests establishing a mechanism that fosters cooperation with high-risk countries building on the IUU Fishing Regulation carding system.

(2) The use of forced labour is widespread in the world. It is estimated that about 27.6 million people were in forced labour in 2021. Vulnerable and marginalised groups in a society, such as women, children, ethnic minorities, persons with disabilities, lower casters, indigenous and tribal people, migrants, especially if they are undocumented, have a precarious status and operate in the informal economy, are particularly susceptible to be pressured into performing forced labour. Even when it is not state imposed, forced labour is often a consequence of the absence or lack of good governance of certain economic operators and a demonstration of a state’s failure to enforce social and labour rights, particularly for vulnerable and marginalised groups. Forced labour can also take place as a result of authorities' tacit consent. The vast majority of forced labour occurs in the private sector, in particular through forced labour exploitation (17.3 million people), which accounts for 86 % of all forced labour cases. The obligations of economic operators set out in this Regulation should be predictable and clear in order to ensure full and effective compliance and contribute to bringing forced labour to an end.

Remediation

(3) The eradication of forced labour in all its forms, including state imposed forced labour, is a priority for the Union. Respect for human dignity and the universality and indivisibility of human rights are firmly enshrined in Article 21 of the Treaty on European Union. In order to achieve Target 8.7 of the Sustainable Development Goals, the Union should uphold and promote its values and contribute to the protection of human rights, in particular the rights of the child. Article 5 of the Charter of Fundamental Rights of the European Union explicitly prohibits slavery, servitude, forced or compulsory labour and trafficking in human beings and Article 4 of the European Convention on Human Rights provide that no one is to be required to perform forced or compulsory labour. The European Court of Human Rights has repeatedly interpreted Article 4 of the European Convention on Human Rights as requiring Member States to penalise and effectively prosecute any act maintaining a person in the situations described set out in Article 4 of the European Convention on Human Rights. The right to effective remedies for violations of fundamental rights is a human right, and a fundamental element in the process of effective prosecution of crimes. Existing Union law, the UN Guiding Principles on the Business and Human Rights (UNGPs), the Council of Europe and the OECD affirm that victims have the right to an effective remedy for business-related human rights violations or abuses, including forced labour.

The Rapporteur considers remediation essential to bring real change for forced labour victims. Remediation should be established in cooperation with civil society, trade unions and other relevant stakeholders, and workers’ involvement at every stage of the process will be key.

(4) All Member States have ratified the fundamental ILO Conventions, namely No29 on forced labour and No 182 on the worst forms of child labour. They are therefore legally obliged to prevent and eliminate the use of forced labour and to report regularly to the ILO.

Transparency, reporting and public access to information

(5) Through its policies and legislative initiatives the Union seeks to eradicate the use of forced labour and promote decent work and labour rights worldwide. The Union promotes due diligence in line with international guidelines and principles established by international organisations, including the ILO, the Organisation for Economic Co-operation and Development (hereinafter “OECD”) and the United Nations (hereinafter “UN”), to ensure that forced labour does not find a place in the supply chains of undertakings established in the Union.

Understanding forced labour practices in fisheries requires reliable data and estimates. However, such data are limited and incomplete. Increased transparency through more data will foster accountability and help identify challenges in the implementation of the Regulation.

(6) Union trade policy supports the fight against forced labour in both unilateral and bilateral trade relationships. The trade and sustainable development chapters of Union trade agreements contain a commitment to ratify and effectively implement the fundamental ILO Conventions, which include ILO Convention No. 29 and ILO Convention No. 105, whereas trade and gender provisions establish a gender lens that is essential for the economic empowerment of women in order to combat gendered forced labour. Moreover, unilateral tariff preferences under the Union’s General Scheme of Preferences may be withdrawn for serious and systematic violations of ILO Convention No. 29 and ILO Convention No. 105.

The proposal should thus require Member States and the Commission to report on its application and publish this information.

(7) Forced labour has a distinct impact on vulnerable and marginalised groups, such as children, women, migrants, refugees or indigenous peoples, and therefore an intersectional and gender sensitive approach is essential to combat forced labour effectively. This Regulation is therefore expected to contribute to the objectives of relevant international agreements and conventions, such as the ILO Convention 182, Council of Europe Convention on Preventing and Combating Violence Against Women and Domestic Violence, the Beijing Declaration, the Global Compact for Safe, Orderly and Regular Migration, the Geneva Convention Relating to the Status of Refugees; the United Nations Declaration on the Rights of Indigenous Peoples and the ILO Convention 169.

AMENDMENTS

(8) The Anti-trafficking Directive (Directive 2011/36/EU) of the European Parliament and of the Council▌ harmonises the definition of trafficking in human beings, including forced labour or services, and establishes rules on minimum penalties. Any rules laid down concerning the prohibition of placing and making available on the Union market domestic or imported products made with forced labour, or exporting such products, and the obligation to ensure that such products are withdrawn from the Union market (‘the prohibition’), should be without prejudice to that Directive, and in particular to the competence of law enforcement and judicial authorities to investigate and prosecute offences on trafficking in human beings, including labour exploitation.

The Committee on Fisheries calls on the Committee on International Trade and the Committee on the Internal Market and Consumer Protection, as the committees responsible, to take the following into account:

(9) ▌ Regulation (EU) 2017/821 of the European Parliament and of the Council requires Union importers of minerals or metals falling under the scope of that Regulation to carry out due diligence obligations consistent with Annex II to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, and the due diligence recommendations set out therein. Regulation (EU) No 2023/1542 of the European Parliament and of the Council contains obligations for economic operators to carry out due diligence in their supply chains, including with respect to labour rights. Regulation (EU) 2023/1115 of the European Parliament and of the Council requires due diligence regarding the legal and deforestation free character of products and commodities within its scope, including with respect to human rights.

Amendment 1

(10) Article 19a of Directive 2013/34/EU of the European Parliament and of the Council in its version of 21 November 2021 requires Member States to ensure that certain economic operators annually publish non-financial statements in which they report on the impact of their activity on environmental, social and employee matters, respect for human rights, including regarding forced labour, anti-corruption and bribery matters.▌ Furthermore, Directive (EU) 2022/2464 of the European Parliament and of the Council on Corporate Sustainability Reporting amended that requirement by introducing detailed reporting requirements for covered companies regarding the respect of human rights, including in global supply chains. The information that undertakings disclose about human rights should include, where relevant, information about forced labour in their value chains.▌

Proposal for a regulation

(11) As a member of the World Trade Organisation (WTO), the Union is committed to promoting a rules-based, open, multilateral trading system. Any measures introduced by the Union that affect trade should be WTO compliant.

Recital 1

(12) In July 2021, the Commission and the European External Action Service published guidance to assist Union businesses in taking appropriate measures to address the risk of forced labour in their operations and supply chains.

Text proposed by the Commission

(13) As recognised in the Commission’s Communication on decent work worldwide, notwithstanding the current policies and legislative framework, further action is needed to achieve the objectives of eliminating forced-labour products from the Union market and, hence, further contributing to the fight against forced labour worldwide.

Amendment

(14) Promoting decent work and a human-centred future of work ensuring the respect of fundamental principles and human rights, promoting social dialogue as well as the ratification and effective implementation of relevant ILO conventions and protocols, strengthening responsible management in global supply chains and access to social protection are core priorities of the Union as enshrined in the EU Action Plan on Human Rights and Democracy 2020-2024.

(15) The European Parliament in its resolutions strongly condemned forced labour and called for a ban on products made with forced labour. It is therefore a matter of public moral concern that products made with forced labour could be available on the Union market or exported to third countries without an effective mechanism to ban or withdraw such products.

(1) As recognised in the Preamble to the 2014 Protocol to Convention No. 29 on forced labour (‘ILO Convention No. 29’) of the International Labour Organization (‘ILO’), forced labour constitutes a serious violation of human dignity and fundamental human rights. The ILO declared the elimination of all forms of forced or compulsory labour as a principle concerning the fundamental rights. The ILO classifies ILO Convention No. 29 accompanied by the Forced Labour (Supplementary Measures) Recommendation (N.203) and the 2014 Protocol to Convention No. 29 and the ILO Convention No.105 on the abolition of forced labour (‘ILO Convention No.105’) as fundamental ILO Conventions16. Forced labour covers a wide variety of coercive labour practices worldwide where work, including in productive sectors, such as processing, agriculture and fisheries, or service such as transportation, storage, cleaning or logistics, is exacted from any person under the threat of a penalty and for which the person has not offered himself or herself voluntarily.17 Indirect coercion may also result from certain employers' practices, such as deceit, false promises and retention of identity documents. In cases in which work or service is imposed by exploiting the worker's vulnerability, under the menace of a penalty, dismissal or, where applicable, payment of wages below the minimum level, such exploitation ceases to be merely a matter of poor conditions of employment and becomes one of imposing work under the menace of a penalty. The European Court of Human Rights has repeatedly found that, under Article 4 of the European Convention on Human Rights, initial consent and voluntariness become null and void if there is an abuse of position of vulnerability17a.

(16) To complete the Union legislative and policy framework on forced labour, the placing and making available on the Union market of products made with forced labour or exporting domestically produced or imported products made with forced labour should be prohibited and it should be ensured that those products are withdrawn from the Union market.

__________________

(17) Currently there is no Union legislation that empowers Member States’ authorities to directly detain, seize, or order the withdrawal of a product on the basis of a finding that it was made, whether in whole or in part, with forced labour.

__________________

(18) In order to ensure the effectiveness of this Regulation, such prohibition should apply to products for which forced labour has been used at any stage of their production, manufacture, harvest and extraction, including working or processing related to the products. The prohibition should apply to all products, of any type, including their components, and should apply to products regardless of the sector, the origin, whether they are domestic or imported, or placed or made available on the Union market or exported. This Regulation should not apply to the provision of transport services.

16 https://www.ilo.org/global/standards/introduction-to-international-labour-standards/conventions-and-recommendations/lang--en/index.htm.

(19) The prohibition should contribute to the international efforts to abolish forced labour. The definition of ‘forced labour’ should therefore be aligned with the definition laid down in ILO Convention No. 29 stating that forced or compulsory labour means all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily, with the exclusion of (a) any work or service exacted in virtue of compulsory military service laws for work of a purely military character; (b) any work or service which forms part of the normal civic obligations of the citizens of a fully self-governing country; (c) any work or service exacted from any person as a consequence of a conviction in a court of law, provided that the said work or service is carried out under the supervision and control of a public authority and that the said person is not hired to or placed at the disposal of private individuals, companies or associations; (d) any work or service exacted in cases of emergency, that is to say, in the event of war or of a calamity or threatened calamity, such as fire, flood, famine, earthquake, violent epidemic or epizootic diseases, invasion by animal, insect or vegetable pests, and in general any circumstance that would endanger the existence or the well-being of the whole or part of the population; (e) minor communal services of a kind which, being performed by the members of the community in the direct interest of the said community, can therefore be considered as normal civic obligations incumbent upon the members of the community, provided that the members of the community or their direct representatives shall have the right to be consulted in regard to the need for such services.

16 https://www.ilo.org/global/standards/introduction-to-international-labour-standards/conventions-and-recommendations/lang--en/index.htm.

(20) Based on the definition of forced labour specified in ILO Convention No. 29 and used in this Regulation, the ‘ILO Indicators of Forced Labour’ and the ‘Hard to See, Harder to Count’ ILO guidelines represent the most common signs that point to the possible existence of forced labour and should be taken into account when implementing the regulation. However, these indicators may be insufficient for the identification of forced labour imposed by state authorities. These practices of forced labour are based on systemic and global coercive policies that require additional, specifically designed indicators.

17 The ILO definition of forced labour according to the ILO Forced Labour Convention, 1920 (No. 29), What is forced labour, modern slavery and human trafficking (Forced labour, modern slavery and human trafficking) (ilo.org).

(21) In the same line, the definition of ‘forced labour imposed by state authorities’ should be aligned with the notion as found in ILO Convention No. 105, which prohibits specifically the use of forced labour or compulsory labour as a means of political coercion or education or as punishment for the expression of political views or views ideologically opposed to the established political, social or economic system, as a method of mobilising and using it for the purposes of economic development, as a means of labour discipline, as a punishment for having participated in strikes, or as a means of racial, social, national or religious discrimination.

(22) Distance selling, including online selling, should also fall within the scope of this Regulation. In the case of a product offered for sale online or through other means of distance sales, the product should be considered to be made available on the market if the offer for sale is targeted at end-users in the Union. In line with the applicable Union rules on private international law, a case-by-case analysis should be carried out in order to establish whether an offer is targeted at end-users in the Union. An offer for sale should be considered to be targeted at end-users in the Union if the relevant economic operator directs, by any means, its activities to a Member State. For the case-by-case analyses, relevant factors, such as the geographical areas to which dispatch is possible, the languages available, used for the offer or for ordering, means of payment, the use of currency of the Member State or a domain name registered in one of the Member States should be taken into consideration in this regard. In the case of online sales, the mere fact that the economic operators’ or the providers of online marketplaces’ interface is accessible in the Member State in which the end-users is established or domiciled is insufficient. The fact that products offered for sale online or through other means of distance sales are deemed to be made available on the Union market if the offer for sale is targeted at end-users in the Union empowers competent authorities to check and take the necessary actions in relation to such products pursuant to this Regulation, even though they are not yet actually placed on the market at the moment of the offer for sale online or through other means of distance sales. Such products must comply with the relevant EU legislation in force at the moment when they are actually placed on the market and, in the case of products entering the Union, when they are placed under the customs procedure ‘release for free circulation’. The fact that the product offered for sale online or through other means of distance sales are deemed to be made available on the market if the offer for sale is targeted at end-users in the Union should be without prejudice to rules regarding products entering or leaving the Union market.

17a ECHR, Chowdury and Others v Greece (21884/15) and Zoletic and Others v. Azerbaijan (20116/12) cases.

(23) Intermediary services, in particular online marketplaces have become increasingly used for the sale of products. In this regard, any information related to the sale of products contravening the prohibition established in this Regulation should be considered illegal content within the meaning of article 3(h) of Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a Single Market for Digital Services and amending Directive 2000/31/EC (Digital Services Act) and should be subject to the obligations and measures under that Regulation.

Amendment 2

(24) The Commission and the competent authorities of the Member States should ▌ identify violations of the prohibition. In appointing those competent authorities, Member States should ensure that those authorities have sufficient human and financial resources and that their staff has the necessary competences and knowledge, especially with regard to human rights, labour rights, gender equality, supply chain management and due diligence processes. Competent authorities should closely coordinate with national labour inspections and judicial and law enforcement authorities, including those responsible for the fight against trafficking in human beings in such a way as to avoid jeopardising investigations by such authorities.

Proposal for a regulation

(25) In order to ensure the effective implementation of its tasks under the Regulation, in particular to carry out investigations, the Commission has the possibility to request the assistance of other Union bodies, offices or agencies with an appropriate mandate. These tasks could include: processing submissions of information, supporting the allocation of investigations, conducting the preliminary investigations and investigations, facilitating cooperation with and among authorities of Member States, facilitating international cooperation, supporting the development of support tools and, if appropriate, supporting implementation by customs and supporting the Commission in preparing decisions to ban products. This is without prejudice to the Commission’s task in its role as competent authority to take the decisions to prohibit the placing on the market of products in cases. The Commission in its role as competent authority exercises its powers impartially, transparently and with due respect for obligations of professional secrecy and should have the necessary expertise. The Commission should have the means to finance the necessary staff and related costs to carry out the tasks entrusted to it under the Regulation and build the required expertise.

Recital 1 a (new)

(26) Competent authorities and the Commission should be guided by the principle of proportionality when implementing this Regulation. Competent authorities ▌ and the Commission ▌ should ensure, in particular, that all the measures and actions carried out during the preliminary investigation and the investigation and set out in the decision are suitable and necessary to achieve the desired purpose and do not impose a burden on economic operators that is excessive in relation to the objective sought.

Text proposed by the Commission

(27) In order to ensure cooperation among the Commission and competent authorities designated under this and other relevant legislation and in order to ensure consistency in their actions and decisions, competent authorities designated under this Regulation should request information from other relevant authorities, where necessary, on whether economic operators under assessment are subject to and carry out due diligence in relation to forced labour in accordance with applicable Union legislation or Member States legislation setting out due diligence and transparency requirements with respect to forced labour. When requesting information from economic operators, competent authorities should whenever possible follow the Commission’s once-only principle, through increased cooperation and dialogue between authorities who are engaged in overseeing product regulation. For the same purposes, and where appropriate, competent authorities designated under this Regulation should inform other relevant authorities, such as Market Surveillance authorities, of their actions and decisions.

Amendment

(28) A uniform enforcement of the prohibition as regards products entering or leaving the Union market can only be achieved through systematic exchange of information and cooperation amongst competent authorities, customs authorities and the Commission. This cooperation should be supported by the Commission.

(1a) Article 2 of Regulation (EU) 1380/2013 requires, inter alia, fishing activities to be managed in a way that is consistent with the objectives of achieving economic, social and employment benefits, as well as to ensure a level-playing field and a culture of compliance within the Union. Fishing activities conducted with the use of forced labour undermine the achievement of these CFP objectives. In addition, they contribute to creating unfair competition among operators, in particular due to lower costs resulting from the use of social sub-standards, and increase the risk of fishery products made with such exploitative practices entering the EU market. For those reasons, EU fisheries control rules were strengthened to provide for effective, dissuasive and proportionate penalties, including the attribution of highest threshold of points, to those carrying out fishing activities with the use of forced labour.

(29) For the collection, processing and storage of information, in a structured form, on issues relating to the investigations, decision-making process, and enforcement of the prohibition, the competent authorities should use ICSMS. The Commission, competent authorities and customs authorities should have access to that system to carry out their respective duties under this Regulation. It is also possible for competent authorities to use other existing communication systems with other authorities within their own Member State, as long as this does not affect the obligation of using ICSMS for the purposes of implementing and enforcing this Regulation.

Amendment 3

(30) In order to optimise and unburden the control process of products entering or leaving the Union market, it is necessary to allow for an automated data transfer between the ICSMS and customs systems. Three different data transfers should be distinguished in view of their respective purposes. Firstly, decisions establishing a violation of the prohibition should be communicated from the ICSMS to the Electronic Customs Risk Management System (CRMS) referred to in Article 36 of Commission Implementing Regulation (EU) 2015/2447, without prejudice to any future evolution of the customs risk management environment, for use by customs authorities to identify products that may correspond to such a decision. The available interfaces of the customs environment should be used for those first data transfers. Secondly, where customs authorities identify such a product, case management will be necessary to, among others, transfer the notification of the suspension, the conclusion of competent authorities and the outcome of the actions taken by customs. The EU Single Window Environment for customs should support those second data transfers between ICSMS and national customs systems. Thirdly, customs systems contain information on products entering and leaving the Union market that would be relevant for competent authorities to carry out their duties but that is not accessible to them. The relevant information should therefore be extracted and transmitted to the ICSMS. The three interconnections should be highly automated and easy-to-use, so as to limit any additional burden for customs authorities. The Commission should be empowered to adopt, in cooperation with customs authorities and competent authorities, the implementing acts necessary to determine the procedural rules, practical arrangements and data elements to be transferred between the ICSMS and customs systems and any other ancillary requirement.

Proposal for a regulation

(31) The Commission should establish an indicative and non-exhaustive database of forced labour risks to support the work of competent authorities in assessing possible violations of the prohibition and help economic operators identify possible forced labour risks in their supply chains. The Commission may resort to external expertise to develop the database. The database should identify forced labour risks in specific geographic areas or with respect to specific products or product groups, with special focus on widespread and severe forced labour risks, based on reliable and verifiable information from international, institutions, such as the International Labour Organisation and the United Nations Organisation, and research or academic institutions. The database should be made publicly available through the Forced Labour Single Portal. Where there is reliable and verifiable evidence that products produced by specific economic sectors in specific geographic areas present a high risk of having been made with forced labour imposed by state authorities, those sectors in those areas should be identified in the database established under this Regulation.

Recital 1 b (new)

(32) Micro, small and medium-sized enterprises (’SMEs’) can have limited resources and ability to ensure that the products they place or make available on the Union market are free from forced labour. The Commission should therefore issue guidelines on due diligence in relation to forced labour, which should take into account also the size and economic resources of economic operators. In addition, the Commission should issue guidelines on forced-labour risk indicators, including how to identify them, which should be based on independent and verifiable information, including reports from international organisations, in particular the International Labour Organization.

Text proposed by the Commission

(33) The Commission should also prevent unnecessary administrative burdens on SMEs. In addition, the Commission should develop accompanying measures to support the efforts of economic operators and their business partners in the same supply chain, in particular the SMEs. Existing business and human rights helpdesks or due diligence contact points may be appointed as contact points for the purposes of this Regulation. SMEs should be able to contact the competent authority of the Member State in which they are established, using the information provided in the Forced Labour Single Portal. They should in particular be able to discuss with a competent authority to support them throughout the course of an investigation. Sufficient support resources should also be made available online in a clear and understandable way for SMEs.

Amendment

(34) The Commission should also issue guidelines on how to engage in dialogue with competent authorities ▌in order to help economic operators, and in particular SMEs, as well as other stakeholders, to comply with the requirements of the prohibition. Furthermore, the Commission should also issue guidelines to assist any person or association in submitting information.

(1b) Illegal, unreported and unregulated fishing (IUU fishing) oftenly contributes to the perpetuation of forced labour;

(35) Taking into account the variety of Union law dealing with forced labour issues, the Commission should provide additional guidance for economic operators, in particular SMEs, on how to apply the different obligations stemming from Union law.

Amendment 4

(36) The Commission should issue guidelines in order to facilitate the implementation of the Regulation by economic operators and competent authorities. Guidelines for economic operators should include guidance on due diligence in relation to forced labour, including for different types of suppliers and sectors of activity, on best practices for bringing to an end and remediating forced labour and on responsible disengagement. Remediation is understood to be the restitution of the affected person or persons or communities to a situation equivalent or as close as possible to the situation they would be in had forced labour not occurred, proportionate to the company’s implication in the forced labour, including financial or non-financial compensation provided by the company to a person or persons affected by forced labour and, where applicable, reimbursement of the costs incurred by public authorities for any necessary remedial measures. Guidance for competent authorities should focus on information relevant for the practical implementation of the Regulation. The guidance on due diligence in relation to forced labour should build on the Guidance on due diligence for Union businesses to address the risk of forced labour in their operations and supply chains published by the Commission and the European External Action Service in July 2021. The guidelines should be consistent with other Commission guidelines in this regard and relevant international organisations’ guidelines. The guidelines should be developed in consultation with relevant stakeholders and rely on experience and best practices from relevant Member State authorities. The reports from international organisations, in particular the ILO, as well as other independent and verifiable sources of information should be considered for the identification of risk indicators.

Proposal for a regulation

(37) Since forced labour is a global problem and given the interlinkages of the global supply chains, it is necessary to promote international cooperation against forced labour, which would also improve the efficiency of applying and enforcing the Regulation. The Commission should, as appropriate, cooperate ▌ and exchange information with authorities of third countries, international organisations and other relevant stakeholders to enhance the effective implementation of the Regulation. International cooperation with authorities of non-EU countries, including with countries with similar legislation in place, should take place in a structured way as part of the existing dialogue structures with those countries, or, if necessary, specific ones that will be created on an ad hoc basis. This cooperation may include exchanges of information on forced labour risks, such as those identified in the database, and on decisions to ban products but should not include information on ongoing investigations. Diplomatic representations of the Union should contribute to disseminating information about this Regulation and to facilitate the submission of information on forced labour risks by relevant stakeholders. International cooperation may also include the development of cooperation initiatives and accompanying measures to support relevant stakeholders in their efforts to root out forced labour from global supply chains, as well as the creation of enabling environments in third countries to promote and protect human rights.

Recital 2

▌

Text proposed by the Commission

(38) Any person, whether it is a natural or legal person, or any association not having legal personality, should be allowed to submit information to the competent authorities when it considers that products made with forced labour are placed and made available on the Union market and to be informed of the outcome of the assessment of their submission. Submissions of information on alleged violations should be made via a single information submission point set up by the Commission and made available on the Forced Labour Single Portal. In order to ensure the ease of use for the submissions of information and the standardisation of the information provided, the Commission should issue guidance on the use of single information submission point and may adopt implementing acts to specify the procedural rules, templates and details of the submissions. Submissions that are manifestly incomplete, unfounded or made in bad faith should be discarded. Adequate protection measures should be put in place to ensure the safety of any person associated with the submission or the information contained therein including from retaliation.

Amendment

(39) Whistleblowers can bring new information to the attention of competent authorities to help them to detect infringements of this Regulation and enable them to take action. It should be ensured that adequate arrangements are in place to enable whistleblowers to alert the competent authorities to actual or potential infringements of this Regulation and to protect the whistleblowers from retaliation. For that purpose, it should be provided in this Regulation that Directive (EU) 2019/1937 of the European Parliament and of the Council is applicable to the reporting of breaches of this Regulation and to the protection of persons reporting such breaches, insofar as they fall within the personal scope of application of that Directive.

(40) To enhance legal certainty, the applicability, pursuant to this Regulation, of Directive (EU) 2019/1937 to reports of breaches of this Regulation and to the protection of persons reporting such breaches should be reflected in that Directive. The Annex to Directive (EU) 2019/1937 should therefore be amended accordingly. It is for the Member States to ensure that this amendment is reflected in their transposition measures adopted in accordance with Directive (EU) 2019/1937, although the adoption of national transposition measures is not a condition for the applicability of that Directive to the reporting of breaches of this Regulation and to the protection of reporting persons from the date of application of this Regulation.

(2) The use of forced labour is widespread in the world. It is estimated that about 27.6 million people were in forced labour in 2021.18 Vulnerable and marginalised groups in a society are particularly susceptible to be pressured into performing forced labour. In addition, forced labour is in many cases carried out in a context of mobility and constant movement, in remote locations, including at sea, in rapidly and abruptly changing conditions, and in conditions of isolation or imprisonment, which significantly increases the risk of violations of workers' rights. Due to lack of access to medical care, highly risky working conditions, long working hours, lack of sleep and rest, noise, inability to provide medical care in case of accident or illness, lack of regulatory oversight and transparency, unclear recruitment systems, performing work in unregistered locations, including on unregistered vessels, poor condition of work equipment, and forced labour, particularly in sectors such as agriculture, including slaughtering, processing and fishing, result in a high susceptibility to illness, physical injury and a high rate of fatal workplace accidents. As cases of forced labour largely affect the productive sector, including agriculture, fishing and processing, there is a significant risk of products made using forced labour appearing on food markets. Even when it is not state imposed, forced labour is often a consequence of a lack of good governance of certain economic operators. Forced labour is very often linked to poverty and discrimination, particularly if exacted in the private sector. The manipulation of credit and debt, either by employers or by recruiting agents, is still a key factor that traps vulnerable workers in forced labour situations. Women and girls make up 11,8 million of the total in forced labour. More than 3,3 million of all those in forced labour are children. Most forced labour occurs in the private economy. 86 % of forced labour cases are imposed by private actors - 63 % in the private economy in sectors other than commercial sexual exploitation and 23 % in forced commercial sexual exploitation. State-imposed forced labour accounts for the remaining 14 % of forced labour. Migrant workers who are not protected by law or are unable to exercise their rights face a higher risk of forced labour than other workers. According to the ILO, 15 % of all adults in forced labour exploitation are migrants. The Union´s Agency for Fundamental Rights has found that migrant workers are also being severely exploited for their labour within the Union. Unscrupulous employers use the weak position of migrant workers to force them to work for endless hours with no or little pay, often in dangerous settings, and without the minimum safety equipment required by law.

(41) To ensure ease of access to relevant information on this Regulation, the Commission should set up a single webportal at the Union level, available to the public in all official languages of the institutions of the Union.

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(42) When identifying potential violations of the prohibition, the Commission or the competent authorities should follow a risk-based approach and assess all information available to them. In order to implement the risk-based approach in the prioritisation of their investigations, the Commission and competent authorities should take into account the share of the suspected part in the final product, the quantity and volume of products concerned, and the scale and severity of the suspected forced labour, including whether forced labour imposed by state authorities could be a concern. The Commission and competent authorities should also take into account the size and economic resources of the economic operators and the complexity of the supply chain, and focus to the extent possible on the economic operators and where relevant product suppliers that are closer to the risk of forced labour and have the highest leverage to prevent, mitigate and bring to an end the use of forced labour.

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(43) Before initiating an investigation, the lead competent authorities should be able to request information from economic operators under assessment but also from other relevant stakeholders, including the persons or associations having submitted relevant information to competent authorities. Lead competent authorities should be able to opt for not requesting additional information from economic operators if they assess that this could lead to an attempt by those economic operators to hide a situation of forced labour and thus endanger the investigation. The lead competent authorities should initiate an investigation where, based on their assessment of all available information or on the basis of any other facts available where it was not possible to gather information and evidence during the preliminary phase of the investigation, they establish that there is a substantiated concern of a violation of the prohibition.

18 The 2021 Global Estimates of Modern Slavery, https://www.ilo.org/wcmsp5/groups/public/---ed_norm/---ipec/documents/publication/wcms_854733.pdf.

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18 The 2021 Global Estimates of Modern Slavery, https://www.ilo.org/wcmsp5/groups/public/---ed_norm/---ipec/documents/publication/wcms_854733.pdf.

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Amendment 5

▌

Proposal for a regulation

(44) In order to increase the effectiveness of the prohibition, competent authorities should grant reasonable time to economic operators to identify, mitigate, prevent and bring to an end the risk of forced labour, taking into account, among others, the complexity of the proceeding and the number of stakeholders involved.

Recital 3

(45) Before initiating an investigation, competent authorities should request from the economic operators under assessment information on actions taken to mitigate, prevent, bring to an end risks of forced labour or remediate forced labour cases in their operations and supply chains with respect to the products under assessment. Carrying out such due diligence in relation to forced labour should contribute to helping the economic operator to be at a lower risk of having forced labour in its operations and supply chains. Appropriate due diligence could mean that forced labour issues in the supply chain have been identified and addressed in accordance with relevant Union legislation and international standards. That implies that where the competent authority considers that there is no substantiated concern of a violation of the prohibition, or that the reasons that motivated the existence of a substantiated concern have been eliminated, for instance due to, but not limited to the applicable legislation, guidelines, recommendations or any other due diligence in relation to forced labour being applied in a way that mitigates, prevents and brings to an end the risk of forced labour, no investigation should be initiated.

Text proposed by the Commission

(46) Competent authorities, when requesting information during the investigation, should prioritise to the extent possible and consistent with the effective conduct of the investigation the economic operators under investigation that are involved in the steps of the supply chain as close as possible to where the likely risk of forced labour occurs and take into account the size and economic resources of the economic operators, the quantity of products concerned, as well as the scale of suspected forced labour.

Amendment

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(3) The eradication of forced labour is a priority for the Union. Respect for human dignity and the universality and indivisibility of human rights are firmly enshrined in Article 21 of the Treaty on European Union. Article 5(2) of the Charter of Fundamental Rights of the European Union and Article 4 of the European Convention on Human Rights provide that no one is to be required to perform forced or compulsory labour. The European Court of Human Rights has repeatedly interpreted Article 4 of the European Convention on Human Rights as requiring Member States to penalise and effectively prosecute any act maintaining a person in the situations described set out in Article 4 of the European Convention on Human Rights.19

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(3) The prohibition of the use of forced or compulsory labour in all its forms is considered as a peremptory norm of international law on human rights. It is of an absolutely binding nature from which no exception is permitted. The eradication of forced labour is therefore a priority for the Union. Respect for human dignity and the universality and indivisibility of human rights are firmly enshrined in Article 21 of the Treaty on European Union. Article 5(2) of the Charter of Fundamental Rights of the European Union and Article 4 of the European Convention on Human Rights provide that no one is to be required to perform forced or compulsory labour. An interpretation to this effect has been provided by the European Court of Human Rights in the relevant case-law, which addresses issues of prior consent and voluntariness1a. In addition, the European Court of Human Rights has ruled that Member States must penalise and effectively prosecute any act maintaining a person in the situations described set out in Article 4 of the European Convention on Human Rights19 The Charter of Fundamental Rights recognises the right to every worker to fair and just working conditions in Article 31 thereof and the right of an effective remedy in Article 47 thereof. The European Social Charter (1961) and the Revised European Social Charter (1996) adopted by the Council of Europe on 18 October 1961 and 3 May 1996 respectively, require contracting parties "to protect effectively the right of the worker to earn his living in an occupation freely entered upon" .

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(47) Competent authorities should bear the burden of establishing that forced labour has been used at any stage of production, manufacture, harvest or extraction of a product, including working or processing related to the product on the basis of all information and evidence gathered during the investigation, including its preliminary phase. To ensure their right to due process, economic operators should have the opportunity to provide information in their defence to the competent authorities upon request during the investigation. Where in response to a request for information from a lead competent authority, an economic operator or a public authority refuses or fails, without a valid justification, to provide information requested, provides incomplete or incorrect information with the objective of blocking the investigation, provides misleading information or otherwise impedes the investigation, including when a risk of forced labour imposed by state authorities is identified, the lead competent authority should be able to establish that the prohibition has been violated on the basis of any other relevant and verifiable information gathered during the preliminary phase of the investigation and the investigation. Lead competent authorities should also take these factors into account when reviewing a decision taken on this basis.

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(48) Where the lead competent authority establishes that economic operators violated the prohibition, it should without delay prohibit the placing and making available of such products on the Union market and their export from the Union, and require the economic operators that have been investigated to withdraw the ▌ products concerned already made available from the Union market and donate perishable products to charitable or public interest purposes. If such products are not perishable, economic operators should recycle those products, and if that is not possible, they should have the product destroyed, rendered inoperable, or otherwise disposed of in accordance with national law consistent with Union law, including Union legislation on waste management. Nevertheless, particular attention should be paid to preventing disruptions of supply chains of strategic or critical importance for the Union and, in this regard, to products whose disposal would alter the proper functioning of the internal market and of such supply chains. In those cases, by way of exception from the obligation to impose an order to have the product concerned disposed of, the lead competent authority should, where appropriate, be able to order the product concerned to be withheld for a defined period, at the cost of the economic operators. When assessing the strategic or critical importance of a product for the Union, the lead competent authority should, notably, take into account the list of sectors established in [proposed Regulation of the European Parliament and of the Council on establishing a framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem (Net Zero Industry Act)] and the Commission Recommendation of 3 October 2023 on critical technology areas for the EU's economic security for further risk assessment with Member States as well as the products listed in the proposed Regulation of the European Parliament and of the Council establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) 168/2013, (EU) 2018/858, 2018/1724 and (EU) 2019/1020 - Critical Raw Materials Act. When assessing whether an exception from the obligation to impose an order of disposal is appropriate, lead competent authorities should bear in mind the likelihood that economic operators will comply with the conditions for the review of the decision within the period defined by the lead competent authority. The period set by the lead competent authority would allow the economic operators concerned to demonstrate that they have eliminated forced labour with regards to the product concerned, by having brought it to an end within their supply chain. Changing one’s supply chain, in the sense of relying on different suppliers, cannot be considered as a way to eliminate the forced labour regarding the product concerned by a decision, since it would result in a different product. If the concerned economic operators provide the evidence for such demonstration, the lead competent authority should review its decision prohibiting the placing and making available of such products on the Union market, leading to its withdrawal and hence lifting the withholding of the products concerned. If the concerned economic operators do not provide such evidence, the decision prohibiting the placing and making available of such products on the Union market which contains the order to withhold the products for a defined period should also contain an order to dispose the products after the expiry of that period.

19 For instance paras. 89 and 102 in Siliadin v. France or para. 105 in Chowdury and Others v. Greece.

(49) In that decision, lead competent authorities should state the findings of the investigation, and the information underpinning the findings, and set a reasonable time within which the economic operators should comply with the decision, as well as information allowing for the identification of the product to which the decision applies. The Commission should be empowered to adopt the implementing acts necessary to specify the details about the information to be contained in such decisions. The decisions from lead competent authorities should be publicly available.

1ahttps://www.echr.coe.int/Documents/FS_Forced_labour_ENG.pdf

~~(50) In setting a reasonable time to comply with the order, lead competent authorities should take into account the size and economic resources of the economic operators concerned.~~

19 For instance paras. 89 and 102 in Siliadin v. France or para. 105 in Chowdury and Others v. Greece.

(51) To ensure effective enforcement decisions taken by a competent authority in one Member State should be recognised and enforced by competent authorities in the other Member States regarding products with the same identification from the same supply chain for which forced labour has been found.

Amendment 6

(52) Economic operators should have the possibility to request a review of the decisions by the lead competent authorities, after having provided new substantial information which demonstrates that the products placed or made available on the market or to be exported are in compliance with Article 3. Lead competent authorities should withdraw their decision for the future where the economic operators demonstrate that they have complied with the decision and eliminated forced labour from their operations or supply chain with respect to the products concerned. The decisions by the lead competent authorities should be subject to judicial review in accordance with the applicable rules and procedures.

Proposal for a regulation

(53) If the economic operators fail to comply with the decision of the lead competent authority by the end of the established timeframe, the competent authorities should ensure that the ▌ products concerned are prohibited from being placed or made available on the Union market, exported or withdrawn from the Union market and that any such products remaining with the relevant economic operators are donated to charitable or public interest purposes, in case they are perishable. If such products are not perishable, competent authorities should recycle those products, and if that is not possible, they should have the products destroyed, rendered inoperable, or otherwise disposed of in accordance with national law consistent with Union law, including Union legislation on waste management and on ecodesign for sustainable products at the expense of the economic operators. Where possible, competent authorities should ensure that the disposal or destruction method chosen has the smallest environmental impact possible of all the available options. Competent authorities from Member States should be responsible for the enforcement of the decisions in their own territory, including of decisions adopted by the Commission. After the decisions are communicated via the ICSMS, all competent authorities concerned with the specific decision shall proceed with the relevant enforcement actions foreseen in the Regulation.

Recital 3 a (new)

(54) The effect on animal welfare should be considered when enforcing the prohibition of the placing and making available of products made using forced labour in order to spare the animals concerned any avoidable pain, distress or suffering. In addition, this Regulation should be without prejudice to the legislation regarding animal welfare, such as Council Regulations (EC) No 1/2005 and (EC) No 1099/2009.

Text proposed by the Commission

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Amendment

(55) Decisions of the lead competent authorities establishing a violation of the prohibition should be communicated to customs authorities, who should aim at identifying the product concerned amongst products declared for release for free circulation or export. The competent authorities of the Member States should be responsible for the overall enforcement of the prohibition with regard to the internal market as well as products entering or leaving the Union market. Since forced labour is part of the manufacturing process and does not leave any trace on the product, and Regulation (EU) 2019/1020 covers only manufactured products and its scope is limited to release for free circulation, the customs authorities would be unable to act autonomously under Regulation (EU) 2019/1020 for the application and enforcement of the prohibition. The specific organisation of controls of each Member State should be without prejudice to Regulation (EU) No 952/2013 of the European Parliament and of the Council and its general provisions on the control and supervisory powers of customs authorities.

(3a) According to the International Labour Organization (ILO), forced labour affects 128,000 fishers worldwide, although the number of unreported cases is likely to be much higher due to the challenges of recording in the fisheries sector. Unfortunately, only eight Member States have ratified the ILO Convention C188 - “Work in Fishing Convention (2007), it is therefore advised that the remaining nineteen Member States ratify as soon as possible.

(56) The information currently provided or made available to customs authorities by economic operators includes only general information on the products but lacks information on the manufacturer or producer and product suppliers as well as specific information on products. In order for customs authorities to be able to identify products entering or leaving the Union market that may violate the Regulation and should accordingly be stopped at the EU external borders, economic operators should submit to customs authorities information allowing matching a decision of the lead competent authorities with the product concerned. This should include information on the manufacturer or producer and the product suppliers as well as any other information on the product itself. To this end, the Commission should be empowered to adopt delegated acts identifying the products for which such information should be provided using, amongst others, the database established under this Regulation as well as the information and decisions of the lead competent authorities encoded in the information and communication system set out in Article 34 of Regulation (EU) 2019/1020 (‘ICSMS’). Moreover, the Commission should be empowered to adopt ▌ implementing acts necessary to specify the details of the information to be provided or made available to customs by the economic operators. This information should include the description, name or brand of the product, specific requirements under Union legislation for the identification of the product (such as a type, reference, model, batch or serial number affixed on the product, or provided on the packaging or in a document accompanying the product, or unique identifier of the digital product passport) as well as details on the manufacturer or producer and the product suppliers, including for each of them their name, trade name or registered trademark, their contact details, their unique identification number in the country they are established and, where available, their Economic Operators Registration and Identification (EORI) number. The review of the Union Customs Code will consider introducing in the customs legislation the information required to be provided or made available to customs by the economic operators for the enforcement of this Regulation and more broadly to strengthen the transparency of the supply chain. The Commission should issue guidance and support to economic operators, especially SMEs, on how to collect the required information.

Amendment 7

(57) Customs authorities that identify a product that may be covered by a decision communicated by lead competent authorities establishing a violation of the prohibition should suspend the release of that product and notify the competent authorities immediately. Competent authorities should reach a conclusion within a reasonable timeframe on the case notified to them by the customs authorities, either by confirming or by denying that the product concerned is covered by a decision. Where necessary and duly justified, the competent authorities should be authorised to require maintaining the suspension of its release, taking into account the potential damage for the economic operator. In the absence of a conclusion by competent authorities within the specified time limit, customs authorities should release the products if all other applicable requirements and formalities are fulfilled. Generally, the release for free circulation or export should also not be deemed to be proof of compliance with Union law, since such a release does not necessarily include a complete control of such compliance.

Proposal for a regulation

(58) Where the competent authorities conclude that a product corresponds to a decision establishing a violation of the prohibition, they should immediately inform customs authorities which should refuse its release for free circulation or export. Customs authorities should be able, where a competent authority so requests and on behalf and under the responsibility of that competent authority, to alternatively seize that product and put it at the disposal of and under the authority of that competent authority. In such cases, the relevant competent authority should take all the necessary measures to ensure that the product concerned is disposed appropriately. That may include its donation to charitable organisations or organisations that benefit public interest, its recycling or its otherwise disposal of in accordance with national law consistent with Union law at the expense of the relevant economic operator.

Recital 5

(59) The lead competent authorities should take into due consideration the risk of disengagement by economic operators who are either related to products or regions in the database, or who have had their product removed from the Union market, as well as the consequences on affected workers. Lead competent authorities should therefore, where appropriate, support economic operators in adopting and carrying out measures suitable and effective for bringing forced labour to an end. Responsible disengagement includes complying with collective agreements and articulating escalation measures.

Text proposed by the Commission

(60) The conditions applicable to products during the suspension of their release for free circulation or export, including their storage or destruction and disposal of in case of a refusal of release for circulation, should be determined by customs authorities, where applicable pursuant to Regulation (EU) No 952/2013. Should products entering the Union market require further processing, they are to be placed under the appropriate customs procedure allowing such processing in accordance with Articles 220, 254, 256, 257 and 258 of Regulation (EU) No 952/2013.

Amendment

(61) Where, for the prohibition, it is necessary to process personal data, such processing should be carried out in accordance with Union law on the protection of personal data. Any processing of personal data under the prohibition should be subject to Regulation (EU) 2016/679 of the European Parliament and of the Council and Regulation (EU) 2018/1725 of the European Parliament and of the Council.

(5) Through its policies and legislative initiatives the Union seeks to eradicate the use of forced labour. The Union promotes due diligence in accordance with international guidelines and principles established by international organisations, including the ILO, the Organisation for Economic Co-operation and Development (hereinafter “OECD”) and the United Nations (hereinafter “UN”), to ensure that forced labour does not find a place in the value chains of undertakings established in the Union.

(62) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission as regards: (a) the procedural rules and the details of the arrangements for the use of the information and communication system referred to in Article 34 of Regulation (EU) 2019/1020; (b) the procedural rules, templates and details for the submission of information on alleged violations of the prohibition on the placing or making available or exporting of products made out of forced labour; (c) the decisions adopted by the Commission establishing that the prohibition on the placing or making available or exporting of products made out of forced labour has been violated; (d) the withdrawal of those decisions; (e) the details of the content of those decisions and of the equivalent decisions adopted by competent authorities ; (f) the arrangements and details for providing or making available to the customs authorities certain information on specific products or product groups. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council.

(5) Through its policies and legislative initiatives the Union seeks to eradicate the use of forced labour. The eradication of child labour and forced labour can only be achieved if other objectives of decent work, such as sustainable business conduct, social dialogue, freedom of association, collective bargaining and social protection are promoted. The Union promotes due diligence, including through enforceable legislation, in accordance with international guidelines and principles established by international organisations, including the ILO, the Organisation for Economic Co-operation and Development (hereinafter “OECD”) and the United Nations (hereinafter “UN”), to ensure that forced labour does not find a place in the value chains of undertakings established in the Union. The Union is also guided by the ILO's guidance 'Harder to See, Harder to Count' which provides comprehensive information, tools and data collection to combat forced labour of adults and children, as well as by other types of sector specific guidance which should be considered for the identification of risk indicators relating to operators' own operations, subsidiaries suppliers, sub-suppliers, contractors, and business partners in the whole supply chain. When implementing legislation and policies aimed at eradicating forced labour, the Union should make relevant data available in real time, as it is crucial to identify the origin of the product as well as its transport route and the economic operators along its value chain on all sides of the borders to effectively fight against forced labour.

(63) The Commission should adopt immediately applicable implementing acts where, in duly justified cases relating to the withdrawal of the decisions establishing that the prohibition on the placing or making available or exporting of products made out of forced labour has been violated, imperative grounds of urgency so require.

Justification

(64) In order to supplement or amend certain non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union (TFEU) should be delegated to the Commission. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council.

This instrument alone will not be sufficient to eradicate forced labour in the fisheries sector, the Rapporteur therefore highlights here that a series of objectives, as well as data collection and publication, will be of key importance in the fight against forced labour.

(65) In order to ensure that the customs authorities are able to act effectively the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of further specifying the additional information identifying the ▌ product concerned that economic operators should make available or provide to the customs authorities as regards products entering or leaving the Union market. That information may be information identifying the product concerned, information about the manufacturer or the producer and information about the product suppliers. Customs authorities need to be enabled to obtain information rapidly on specific products, identified in the decisions of the competent authorities in order to take actions and measures effectively and swiftly. In such cases, delegated acts should be adopted in an urgent procedure.

Amendment 8

(66) Member States shall confer on their competent authorities the power to impose and implement effective, proportionate and dissuasive penalties in cases where the economic operator has failed to comply with a decision prohibiting the placing on the market of products. The rules on penalties applicable to non-compliance with a decision should be established by Member States, giving due regard to elements such as the gravity and duration of the infringement, previous infringements by the economic operator, the degree of cooperation with competent authorities and any other mitigating or aggravating factor applicable to the circumstances of the particular case. The Commission should issue guidance for Member States on the method for calculating financial penalties and the thresholds applicable and the EU Network should promote best practices in the application of such penalties.

Proposal for a regulation

(67) The Commission should carry out an evaluation of the implementation and enforcement of this Regulation and submit a report thereon to the European Parliament, the Council and the European Economic and Social Committee. The report should assess the contribution of the Regulation to the elimination of products made with forced labour from the internal market and to the fight against forced labour as well as to the cooperation between competent authorities and international cooperation to eliminate forced labour. The report should also assess the impact of the Regulation, on businesses, in particular SMEs, and on victims, as well as the overall costs and benefits of the prohibition. The report should further assess the alignment of this Regulation with other relevant Union legislation.

Recital 6 a (new)

(68) This Regulation respects the right to good administration, enshrined in Article 41 of the EU Charter of Fundamental Rights, which includes, inter alia, the right of every person to be heard, before any individual measure which would affect him or her adversely is taken. To this regard, the lead competent authorities conducting the investigation should inform the economic operators concerned about the initiation of the investigation and the possible consequences thereof. To ensure their right to due process, economic operators should have the opportunity to provide information in their defence to the competent authorities upon their request during the investigation. Economic operators should have the possibility to request the lead competent authority to review the decision affecting them, by providing new substantial information. The decisions adopted by Member States’ competent authorities should be subject to judicial review foreseen in applicable national law. The decisions adopted by the Commission under this Regulation are subject to review by the Court of Justice in accordance with Article 263 TFEU.

Text proposed by the Commission

(69) Since the objective of this Regulation, namely, the prohibition, cannot be sufficiently achieved by the Member States but can rather, by reason of its scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

Amendment

(70) In order to allow for the prompt application of the measures provided for in this Regulation, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union,

(6a) Fisheries Agreements with third countries are an essential instrument to guarantee the working conditions of third-country workers in the European fleet.

~~HAVE ADOPTED THIS REGULATION:~~

Amendment 9

~~Chapter I General provisions~~

Proposal for a regulation

~~Article 1 Subject matter and scope~~

Recital 6 b (new)

1. This Regulation lays down rules prohibiting economic operators from placing and making available on the Union market or exporting from the Union market products made with forced labour with a view to improving the functioning of the internal market, while contributing to the fight against forced labour.

Text proposed by the Commission

~~2. This Regulation shall not cover the withdrawal of products which have reached the end-users in the Union market.~~

Amendment

~~3. This Regulation does not create additional due diligence obligations for economic operators besides those already provided by Union or national law.~~

(6b) Forced labour in non-cooperating countries is sometimes linked to IUU fishing, which is why the fight against IUU fishing is essential to eliminate forced labour.

~~Article 2 Definitions~~

Amendment 10

~~For the purposes of this Regulation, the following definitions apply:~~

Proposal for a regulation

(a) ‘forced labour’ means forced or compulsory labour, including forced child labour, as defined in Article 2 of the Convention on Forced Labour, 1930 (No. 29) of the International Labour Organization ▌ ;

Recital 13

(b) ‘forced labour imposed by state authorities’ means the use of forced labour as described in Article 1 of the Convention on the Abolition of Forced Labour, 1957 (No. 105) of the International Labour Organization;

Text proposed by the Commission

(c) ‘due diligence in relation to forced labour’ means the efforts by economic operator to implement mandatory requirements, voluntary guidelines, recommendations or practices to identify, prevent, mitigate or bring to an end the use of forced labour with respect to products that are to be placed or to be made available on the Union market or to be exported;

Amendment

(d) ‘making available on the market’ means any supply of a product for distribution, consumption or use on the Union market in the course of a commercial activity, whether in return for payment or free of charge ▌ ;

(13) The European Parliament in its resolutions strongly condemned forced labour and called for a ban on products made with forced labour.30It is therefore a matter of public moral concern that products made with forced labour could be available on the Union market or exported to third countries without an effective mechanism to ban or withdraw such products.

~~(e) ‘placing on the market’ means the first making available of a product on the Union market;~~

(13) The European Parliament in its resolutions strongly condemned forced labour and called for a ban on products made with forced labour30. It is therefore a matter of public moral concern that products made with forced labour could be available on the Union market or exported to third countries without an effective mechanism to ban or withdraw such products, bearing in mind that cases of forced labour affect, inter alia, sectors such as agriculture, processing, fishing and transport, from which final products reach food markets characterised by a significant scale of consumption.

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30 See Resolutions: MOTION FOR A RESOLUTION on a new trade instrument to ban products made by forced labour (europa.eu), Texts adopted - Forced labour and the situation of the Uyghurs in the Xinjiang Uyghur Autonomous Region - Thursday, 17 December 2020 (europa.eu), Texts adopted - Forced labour in the Linglong factory and environmental protests in Serbia - Thursday, 16 December 2021 (europa.eu).

Amendment 11

Proposal for a regulation

Recital 16

Text proposed by the Commission

Amendment

(16) In order to ensure the effectiveness of the prohibition, such prohibition should apply to products for which forced labour has been used at any stage of their production, manufacture, harvest and extraction, including working or processing related to the products. The prohibition should apply to all products, of any type, including their components, and should apply to products regardless of the sector, the origin, whether they are domestic or imported, or placed or made available on the Union market or exported.

(16) In order to ensure the effectiveness of the prohibition, such prohibition should apply to products for which forced labour has been used at any stage of their production, manufacture, harvest, extraction, packaging, transportation or distribution, including working or processing related to the products. The prohibition should apply to all products, of any type, including their components, and should apply to products regardless of the sector, the origin, whether they are domestic or imported, or placed or made available on the Union market or exported.

Amendment 12

Proposal for a regulation

Recital 17

Text proposed by the Commission

Amendment

(17) The prohibition should contribute to the international efforts to abolish forced labour. The definition of ‘forced labour’ should therefore be aligned with the definition laid down in ILO Convention No. 29. The definition of ‘forced labour applied by state authorities’ should be aligned with ILO Convention No. 105, which prohibits specifically the use of forced labour as punishment for the expression of political views, for the purposes of economic development, as a means of labour discipline, as a punishment for participation in strikes, or as a means of racial, religious or other discrimination.31

(17) The import and export ban of products and services should contribute to the international efforts to abolish forced labour. The definition of ‘forced labour’ should therefore be aligned with the definition laid down in ILO Convention No. 29. The definition of ‘forced labour applied by state authorities’ should be aligned with ILO Convention No. 105, which prohibits specifically the use of forced labour as punishment for the expression of political views, for the purposes of economic development, as a means of labour discipline, as a punishment for participation in strikes, or as a means of racial, religious or other discrimination.31

_________________

31 What is forced labour, modern slavery and human trafficking (Forced labour, modern slavery and human trafficking) (ilo.org) and the ILO Conventions No. 29 and No. 105 referred therein.

Amendment 13

Proposal for a regulation

Recital 18 a (new)

Text proposed by the Commission

Amendment

(18a) The Commission should analyse the situation of non-cooperating countries in the fisheries sector and its impact on the European sector.

Amendment 14

Proposal for a regulation

Recital 19

Text proposed by the Commission

Amendment

(19) The competent authorities of the Member States should monitor the market to identify violations of the prohibition. In appointing those competent authorities, Member States should ensure that those authorities have sufficient resources and that their staff has the necessary competences and knowledge, especially with regard to human rights, value chain management and due diligence processes. Competent authorities should closely coordinate with national labour inspections and judicial and law enforcement authorities, including those responsible for the fight against trafficking in human beings in such a way as to avoid jeopardising investigations by such authorities.

(19) The competent authorities of the Member States should monitor the market to identify violations of the prohibition. In appointing those competent authorities, Member States should ensure that those authorities have sufficient resources and that their staff has the necessary competences and knowledge, especially with regard to human rights, gender equality, workers' rights, value chain management and due diligence processes. Competent authorities should closely coordinate with national labour inspections and judicial and law enforcement authorities, including those responsible for the fight against trafficking in human beings in such a way as to avoid jeopardising investigations by such authorities.

Amendment 15

Proposal for a regulation

Recital 22

Text proposed by the Commission

Amendment

(22) Before initiating an investigation, competent authorities should request from the economic operators under assessment information on actions taken to mitigate, prevent or bring to an end risks of forced labour in their operations and value chains with respect to the products under assessment. Carrying out such due diligence in relation to forced labour should help the economic operator to be at a lower risk of having forced labour in its operations and value chains. Appropriate due diligence means that forced labour issues in the value chain have been identified and addressed in accordance with relevant Union legislation and international standards. That implies that where the competent authority considers that there is no substantiated concern of a violation of the prohibition, for instance due to, but not limited to the applicable legislation, guidelines, recommendations or any other due diligence in relation to forced labour being applied in a way that mitigates, prevents and brings to an end the risk of forced labour, no investigation should be initiated.

(22) Before initiating an investigation, competent authorities should request from the economic operators under assessment information on actions taken to prevent, bring to an end and remediate forced labour in their operations and value chains with respect to the products under assessment. Carrying out such due diligence in relation to forced labour should help the economic operator to be at a lower risk of having forced labour in its operations and value chains. Appropriate due diligence means that forced labour issues in the value chain have been identified and addressed in accordance with relevant Union legislation and international standards. That implies that where the competent authority considers that there is no substantiated concern of a violation of the prohibition, for instance due to, but not limited to the applicable legislation, guidelines, recommendations or any other due diligence in relation to forced labour being applied in a way that prevents and brings to an end the risk of forced labour, no investigation should be initiated.

Amendment 16

Proposal for a regulation

Recital 24

Text proposed by the Commission

Amendment

(24) During the preliminary phase of investigation, competent authorities should focus on the economic operators involved in the steps of the value chain where there is a higher risk of forced labour with respect to the products under investigation, also taking into account their size and economic resources, the quantity of products concerned and the scale of the suspected forced labour.

(24) Competent authorities should focus on the economic operators involved in the steps of the value chain where there is a higher risk of forced labour with respect to the products or services under investigation, also taking into account the nature and working conditions of the sector in question, as well as their size and economic resources, the quantity of products or services concerned and the scale of the suspected forced labour.

Amendment 17

Proposal for a regulation

Recital 25

Text proposed by the Commission

Amendment

(25) Competent authorities, when requesting information during the investigation, should prioritise to the extent possible and consistent with the effective conduct of the investigation the economic operators under investigation that are involved in the steps of the value chain as close as possible to where the likely risk of forced labour occurs and take into account the size and economic resources of the economic operators, the quantity of products concerned, as well as the scale of suspected forced labour.

(25) Competent authorities, when requesting information during the investigation, should prioritise to the extent possible and consistent with the effective conduct of the investigation the economic operators under investigation that are involved in the steps of the value chain as close as possible to where the likely risk of forced labour occurs and take into account the size and economic resources of the economic operators, the quantity of products and services concerned, as well as the scale of suspected forced labour.

Amendment 18

Proposal for a regulation

Recital 26

Text proposed by the Commission

Amendment

(26) Competent authorities should bear the burden of establishing that forced labour has been used at any stage of production, manufacture, harvest or extraction of a product, including working or processing related to the product on the basis of all information and evidence gathered during the investigation, including its preliminary phase. To ensure their right to due process, economic operators should have the opportunity to provide information in their defence to the competent authorities throughout the investigation.

(26) Competent authorities should bear the burden of establishing that forced labour has been used at any stage of production, manufacture, harvest, extraction, packaging, storage, transportation or distribution of a product, including working or processing related to the product on the basis of all information and evidence gathered during the investigation, including its preliminary phase. To ensure their right to due process, economic operators should have the opportunity to provide information in their defence to the competent authorities throughout the investigation.

Amendment 19

Proposal for a regulation

Recital 27

Text proposed by the Commission

Amendment

(27) Competent authorities that establish that economic operators violated the prohibition, should without delay prohibit the placing and making available of such products on the Union market and their export from the Union, and require the economic operators that have been investigated to withdraw the relevant products already made available from the Union market and have them destroyed, rendered inoperable, or otherwise disposed of in accordance with national law consistent with Union law, including Union legislation on waste management.

(27) Competent authorities establish that economic operators violated the prohibition, should without delay prohibit the placing and making available of such products or services on the Union market and their export from the Union. These products should be made available, following a cascading principle, in the interest of charitable organisations, organisations that benefit public interests, or should be recycled and ultimately, if none of the above is possible, should be disposed of in accordance with national law consistent with Union law, including Union legislation on waste management.

Amendment 20

Proposal for a regulation

Recital 30

Text proposed by the Commission

Amendment

(30) If the economic operators fail to comply with the decision of the competent authorities by the end of the established timeframe, the competent authorities should ensure that the relevant products are prohibited from being placed or made available on the Union market, exported or withdrawn from the Union market and that any such products remaining with the relevant economic operators are destroyed, rendered inoperable, or otherwise disposed of in accordance with national law consistent with Union law, including Union legislation on waste management at the expense of the economic operators.

(30) If the economic operators fail to comply with the decision of the competent authorities by the end of the established timeframe, the competent authorities should ensure that the relevant products are prohibited from being placed or made available on the Union market, exported or withdrawn from the Union market and that any such products remaining with the relevant economic operators should be made available, following a cascading principle, in the interest of charitable organisations, organisations that benefit public interests, or should be recycled and ultimately, if none of the above is possible, should be disposed of in accordance with national law consistent with Union law, including Union legislation on waste management at the expense of the economic operators.

Amendment 21

Proposal for a regulation

Recital 31 a (new)

Text proposed by the Commission

Amendment

(31 a) Remediation as referred to in this Regulation should be understood within the meaning of [Directive of the European Parliament and of the Council on Corporate Sustainability Due Diligence and amending Directive (EU) 2019/1937].

Amendment 22

Proposal for a regulation

Recital 35

Text proposed by the Commission

Amendment

(35) The information currently made available to customs authorities by economic operators includes only general information on the products but lacks information on the manufacturer or producer and product suppliers as well as specific information on products. In order for customs authorities to be able to identify products entering or leaving the Union market that may violate the Regulation and should accordingly be stopped at the EU external borders, economic operators should submit to customs authorities information allowing matching a decision of the competent authorities with the product concerned. This should include information on the manufacturer or producer and the product suppliers as well as any other information on the product itself. To this end, the Commission should be empowered to adopt delegated acts identifying the products for which such information should be provided using, amongst others, the database established under this Regulation as well as the information and decisions of the competent authorities encoded in the information and communication system set out in Article 34 of Regulation (EU) 2019/1020 (‘ICSMS’). Moreover, the Commission should be empowered to adopt, the implementing acts necessary to specify the details of the information to be made available to customs by the economic operators. This information should include the description, name or brand of the product, specific requirements under Union legislation for the identification of the product (such as a type, reference, model, batch or serial number affixed on the product, or provided on the packaging or in a document accompanying the product, or unique identifier of the digital product passport) as well as details on the manufacturer or producer and the product suppliers, including for each of them their name, trade name or registered trademark, their contact details, their unique identification number in the country they are established and, where available, their Economic Operators Registration and Identification (EORI) number. The review of the Union Customs Code will consider introducing in the customs legislation the information required to be made available to customs by the economic operators for the enforcement of this Regulation and more broadly to strengthen the transparency of the supply chain.

(35) The information currently made available to customs authorities by economic operators includes only general information on the products but lacks information on the manufacturer or producer and product suppliers as well as specific information on products. In order for customs authorities to be able to identify products entering or leaving the Union market that may violate the Regulation and should accordingly be stopped at the EU external borders, economic operators should submit to customs authorities information allowing matching a decision of the competent authorities with the product concerned. This should include information on the manufacturer or producer and the product suppliers, including the original supplier directly performing the harvesting, catching, extraction or equivalent operation, as well as any other information on the product itself. To this end, the Commission should be empowered to adopt delegated acts identifying the products for which such information should be provided using, amongst others, the database established under this Regulation as well as the information and decisions of the competent authorities encoded in the information and communication system set out in Article 34 of Regulation (EU) 2019/1020 (‘ICSMS’). Moreover, the Commission should be empowered to adopt, the implementing acts necessary to specify the details of the information to be made available to customs by the economic operators. This information should include the description, name or brand of the product, specific requirements under Union legislation for the identification of the product (such as a type, reference, model, batch or serial number affixed on the product, or provided on the packaging or in a document accompanying the product, or unique identifier of the digital product passport) as well as details on the manufacturer or producer and all the product suppliers, including the original supplier where there is more than one actor in the supply chain, including for each of them their name, trade name or registered trademark, their contact details, their unique identification number in the country they are established, the number or other equivalent details of the facility or unit, including vessels, by means of which the harvesting, catching, extraction or other equivalent operation took place and, where available, their Economic Operators Registration and Identification (EORI) number, and, in the case of vessels, the flag of the vessel and the identity of the operator. The review of the Union Customs Code will consider introducing in the customs legislation the information required to be made available to customs by the economic operators for the enforcement of this Regulation and more broadly to strengthen the transparency of the supply chain.

Amendment 23

Proposal for a regulation

Recital 37

Text proposed by the Commission

Amendment

(37) Where the competent authorities conclude that a product corresponds to a decision establishing a violation of the prohibition, they should immediately inform customs authorities which should refuse its release for free circulation or export. The product should be destroyed, rendered inoperable, or otherwise disposed of in accordance with national law consistent with Union law, including legislation on waste management, which excludes re-export in case of non-Union goods.

(37) Where the competent authorities conclude that a product corresponds to a decision establishing a violation of the prohibition, they should immediately inform customs authorities which should refuse its release for free circulation or export. The product should be distributed to charity. If this product cannot be distributed, it should be wholly or partially recycled or, as a last resort, destroyed, rendered inoperable, or otherwise disposed of in accordance with national law consistent with Union law, including legislation on waste management, which excludes re-export in case of non-Union goods..

Amendment 24

Proposal for a regulation

Recital 38 a (new)

Text proposed by the Commission

Amendment

(38 a) In order for the Regulation to be effective, it should introduce a mechanism that allows Member States and the Commission to tackle the root causes of forced labour. To this end, the Commission should be entitled to identify non-cooperating third countries, on the basis of transparent, clear and objective criteria relying on international standards, and, after giving them adequate time and to respond to a prior notification, adopt non-discriminatory, legitimate and proportionate measures with respect to third countries, including trade measures.

Amendment 25

Proposal for a regulation

Recital 44

Text proposed by the Commission

Amendment

(44) To ensure effective enforcement of the prohibition, it is necessary to establish a network aimed at structured coordination and cooperation between the competent authorities of the Member States and, where appropriate, experts from customs authorities, and the Commission. That network should also aim at streamlining the practices of the competent authorities within the Union that facilitate the implementation of joint enforcement activities by Member States, including joint investigations. That administrative support structure should allow the pooling of resources and maintain a communication and information system between Member States and the Commission, thereby helping to strengthen the enforcement of the prohibition.

(44) To ensure effective enforcement of the prohibition, it is necessary to establish a network aimed at structured coordination and cooperation between the competent authorities of the Member States and, where appropriate, experts from customs authorities, the Commission, as well as responsible authorities of third countries, economic operators, civil society organisations, or social partners - such as trade unions - following a comprehensive pre-screening and verification of financial transparency. That network should also aim at streamlining the practices of the competent authorities within the Union that facilitate the implementation of joint enforcement activities by Member States, including joint investigations. That administrative support structure should allow the pooling of resources and maintain a communication and information system between Member States and the Commission, thereby helping to strengthen the enforcement of the prohibition.

Amendment 26

Proposal for a regulation

Recital 45

Text proposed by the Commission

Amendment

(45) Since forced labour is a global problem and given the interlinkages of the global value chains, it is necessary to promote international cooperation against forced labour, which would also improve the efficiency of applying and enforcing the prohibition. The Commission should as appropriately cooperate with and exchange information with authorities of third countries and international organisations to enhance the effective implementation of the prohibition. The Commission should seek closer cooperation with third-country authorities with a view to creating an effective network for the effective identification and eradication of violations bearing the hallmarks of forced labour. This should primarily concern third countries for which a high level of forced labour or regular and/or recurrent cases of forced labour have been documented. International cooperation with authorities of non-EU countries should take place in a structured way as part of the existing dialogue structures, for example Human Rights Dialogues with third countries, or, if necessary, specific ones that will be created on an ad hoc basis.

Amendment 27

Proposal for a regulation

Article 2 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c) ‘due diligence in relation to forced labour’ means the efforts by economic operator to implement mandatory requirements, voluntary guidelines, recommendations or practices to identify, prevent, mitigate or bring to an end the use of forced labour with respect to products that are to be made available on the Union market or to be exported;

(c) ‘due diligence in relation to forced labour’ means the efforts by an economic operator to implement mandatory requirements, voluntary guidelines, recommendations or practices to identify, prevent, bring to an end and remediate forced labour in its operations and value chain, with respect to its products and services that are to be made available on the Union market or to be exported; whereby bringing to an end forced labour does not mean disengagement as first resort;

Amendment 28

Proposal for a regulation

Article 2 – paragraph 1 – point c a (new)

Text proposed by the Commission

Amendment

(c a) ‘root causes of forced labour’ at the country or region level refers, among others, to the issues of economic exploitation, poverty, systemic discrimination and lack of regular and decent paths of labour migration pathways; at the level of an economic operator, it includes prices below cost of production, lack of decent and living wages, where applicable, and, more generally, any unfair purchasing practices of economic operators;

Amendment 29

Proposal for a regulation

Article 2 – paragraph 1 – point f

Text proposed by the Commission

Amendment

(f) ‘product’ means any product that can be valued in money and is capable, as such, of forming the subject of commercial transactions, whether it is extracted, harvested, produced or manufactured, including working or processing related to a product at any stage of its supply chain;

(f) 'product' means any product that can be valued in money and is capable, as such, of forming the subject of commercial transactions, whether it is extracted, harvested, produced, manufactured, packaged, stored, transported or distributed, including working or processing related to a product at any stage of its supply chain;

Amendment 30

Proposal for a regulation

Article 2 – paragraph 1 – point g

Text proposed by the Commission

Amendment

(g) ‘product made with forced labour’ means a product for which forced labour has been used in whole or in part at any stage of its extraction, harvest, production or manufacture, including working or processing related to a product at any stage of its supply chain;

~~(h) 'supply~~(g) ~~chain'~~‘product ~~means~~made ~~the~~with ~~system~~forced oflabour’ ~~activities,~~means ~~processes~~a ~~and~~product ~~actors~~for ~~involved~~which atforced ~~all~~labour ~~stages~~has ~~upstream~~been ofused ~~the~~in ~~product~~whole ~~being~~or ~~made~~in ~~available~~part onat ~~the~~any ~~market,~~stage ~~namely~~of ~~the~~its extraction, ~~harvesting, production and manufacturing~~harvest, ofproduction, amanufacture, ~~product~~packaging, instoring, ~~whole~~transport or ~~in part,~~distribution, including working or processing related to ~~the~~a product at any stage of ~~those~~its ~~stages;~~supply chain;

~~(i) ‘economic operator’ means any natural or legal person or association of persons who is placing or making available products on the Union market or exporting products from the Union;~~

Amendment 31

~~(j) ‘manufacturer’ means any natural or legal person who manufactures a product or has a product designed or manufactured, and markets that products under its name or trademark;~~

Proposal for a regulation

~~(k) ‘producer’ means the producer of agricultural products as referred to in Article 38(1) Treaty on the Functioning of the European Union or of raw materials;~~

Article 2 – paragraph 1 – point j

(l) ‘product supplier’ means any natural or legal person or association of persons in the supply chain who extracts, harvests, produces or manufactures a product in whole or in part, or intervenes in the working or processing related to a product at any stage of its supply chain, whether as manufacturer or in any other circumstances;

Text proposed by the Commission

(m) ‘end user’ means any natural or legal person residing or established in the Union, to whom a product has been made available either as a consumer outside of any trade, business, craft or profession or as a professional end user in the course of its industrial or professional activities;

Amendment

~~(n) ‘importer’ means any natural or legal person or association of persons established within the Union who places a product from a third country on the Union market;~~

(j) ‘producer’ means the producer of agricultural products as referred to in Article 38(1) TFEU or of raw materials;

~~(o)~~(j) ~~‘exporter’~~‘producer’ means the ~~exporter~~producer of agricultural and fisheries products as ~~defined~~referred to in Article 1,38(1) ~~point~~TFEU ~~(19),~~or of ~~Commission Delegated Regulation (EU)~~raw ~~2015/2446;~~materials;

(p) ‘substantiated concern’ means a reasonable indication based on objective, factual and verifiable information, for the competent authorities to suspect that products were likely made with forced labour;

Amendment 32

(q) ‘lead competent authority’ means the authority responsible for assessing submissions, conducting investigations, and taking decisions in accordance with Article 15, which could be a Member State competent authority or the Commission;

Proposal for a regulation

~~(r) ‘customs authorities’ means customs authorities as defined in Article 5, point (1), of Regulation (EU) No 952/2013 of the European Parliament and of the Council;~~

Article 2 – paragraph 1 – point k

(s) ‘products entering the Union market’ means products from third countries intended to be placed on the Union market or intended for private use or consumption within the customs territory of the Union and to be placed under the customs procedure ‘release for free circulation’;

Text proposed by the Commission

~~(t) ‘products leaving the Union market’ means products to be placed under the customs procedure ‘export’;~~

Amendment

~~(u) ‘release for free circulation’ means the procedure laid down in Article 201 of Regulation (EU) No 952/2013;~~

(k) ‘product supplier’ means any natural or legal person or association of persons in the supply chain who extracts, harvests, produces or manufactures a product in whole or in part, or intervenes in the working or processing related to a product at any stage of its supply chain, whether as manufacturer or in any other circumstances;

~~(v) ‘export’ means the procedure laid down in Article 269 of Regulation (EU) No 952/2013;~~

(k) ‘product supplier' means any natural or legal person or association of persons in the supply chain who inter alia extracts, harvests, produces, manufactures, packs, stores, transports or distributes a product in whole or in part, or intervenes in the working or processing related to a product at any stage of its supply chain, whether as manufacturer or in any other circumstances;

(w) ‘EU Customs Single Window Certificates Exchange System’ or (EU CSW-CERTEX) means the system established by Article 4 of ▌ Regulation (EU) 2022/2399 of the European Parliament and of the Council ▌ ;

Amendment 33

~~(x) ‘National single window environments for customs’ means the national single window environments for customs as defined in point 9 of Article 2 of ▌ Regulation (EU) 2022/2399▌ .~~

Proposal for a regulation

~~Article 3 Prohibition of products made with forced labour~~

Article 3 – paragraph 1

Text proposed by the Commission

Amendment

Economic operators shall not place or make available on the Union market products that are made with forced labour, nor shall they export such products.

▌

Economic operators shall not place or make available on the Union market products that are made with forced labour, coming from IUU fishing, nor shall they export such products.

~~Article 4 Cases where a product is offered through distance selling~~

Amendment 34

Products offered for sale online or through other means of distance selling shall be deemed to be made available on the market if the offer is targeted at end-users in the Union. An offer for sale shall be considered to be targeted at end-users in the Union if the relevant economic operator directs, by any means, its activities to one or more Member States.

Proposal for a regulation

~~Article 5 Competent authorities~~

Article 4 – paragraph 2

1. Member States shall designate one or more competent authorities responsible for carrying out the obligations set out in this Regulation. Designated Member State competent authorities and the Commission shall work in close cooperation and be responsible for ensuring the effective and uniform implementation of this Regulation throughout the Union.

Text proposed by the Commission

2. Where Member States have designated more than one competent authority, they shall clearly demarcate the respective duties and establish communication and coordination mechanisms that enable those authorities to collaborate closely and exercise their duties effectively.

Amendment

3. No later than ... [12 months from the date of entry into force of this Regulation], Member States shall, through the information and communication system referred to in Article 7(1), provide the Commission and the other Member States with the following information:

2. In their assessment of the likelihood that economic operators violated Article 3, competent authorities shall focus on the economic operators involved in the steps of the value chain as close as possible to where the risk of forced labour is likely to occur and take into account the size and economic resources of the economic operators, the quantity of products concerned, as well as the scale of suspected forced labour.

~~(a) the names, addresses and contact details of the designated competent authority or authorities;~~

2. In their assessment of the likelihood that economic operators violated Article 3, competent authorities shall focus on the economic operators involved in the steps of the value chain as close as possible to where the risk of forced labour is likely to occur, the nature and working conditions of the sector concerned, and take into account the size and economic resources of the economic operators, the quantity of products concerned, as well as the scale of suspected forced labour.

~~(b) the areas of competence of the designated competent authority or authorities.~~

Amendment 35

~~Member States shall regularly update the information set out in points (a) and (b) of the first subparagraph of this paragraph.~~

Proposal for a regulation

4. The Commission shall make the list of the designated competent authorities publicly available on the Forced Labour Single Portal and shall regularly update that list, based on the updates received from Member States.

Article 4 – paragraph 3 – introductory part

5. Member States shall ensure that the designated competent authorities exercise their powers impartially, transparently and with due respect for obligations of professional secrecy. Member States shall ensure that their competent authorities have the necessary powers, expertise, and resources to carry out the investigations, including sufficient budgetary and other resources ▌ .

Text proposed by the Commission

6. Member States shall ensure that competent authorities coordinate closely and exchange information with the relevant national authorities, such as the labour inspections and judicial and law enforcement authorities, including those responsible for the fight against trafficking in human beings, and the authorities designated by the Member State under Directive (EU) 2019/1937 of the European Parliament and of the Council.

Amendment

7. Member States shall confer on their competent authorities the power to impose, either directly, in cooperation with other authorities or by application to the competent judicial authorities, penalties in accordance with Article 37.

3. Before initiating an investigation in accordance with Article 5(1), the competent authority shall request from the economic operators under assessment information on actions taken to identify, prevent, mitigate or bring to an end risks of forced labour in their operations and value chains with respect to the products under assessment, including on the basis of any of the following:

~~Chapter II Governance~~

3. Before initiating an investigation in accordance with Article 5(1), the competent authority may request from the economic operators under assessment information on actions taken to identify, prevent, mitigate, bring to an end and remediate forced labour in their operations and value chains with respect to the products and services under assessment, including on the basis of any of the following:

~~Article 6 Union Network Against Forced Labour Products~~

Amendment 36

~~1. A Union Network Against Forced Labour Products (‘the Network’) is hereby established.~~

Proposal for a regulation

2. The Network shall serve as a platform for structured coordination and cooperation between the competent authorities of the Member States and the Commission, and to streamline the practices of enforcement of this Regulation within the Union, thereby making enforcement more effective and coherent.

Article 4 – paragraph 3 – point c

~~3. The Network shall be composed of representatives from each Member State, representatives from the Commission and, where appropriate, representatives from the customs authorities.~~

Text proposed by the Commission

~~4. The Commission shall coordinate the work of the Network. A representative from the Commission shall chair the meetings of the Network.~~

Amendment

~~5. The Network shall have a secretariat provided by the Commission. The secretariat shall organise the meetings of the Network and provide technical and logistical support to the Network.~~

~~6. Members of the Network shall actively participate to ensure efficient coordination and cooperation, and contribute to the uniform implementation of this Regulation.~~

(c) due diligence guidelines or recommendations of the UN, FAO, ILO, OECD or other relevant international organisations, as well as social partners;

~~7. The Network shall have the following tasks:~~

Amendment 37

(a) facilitate the identification of common enforcement priorities to achieve the objectives of prohibiting products made with forced labour on the Union market and contributing to the fight against forced labour;

Proposal for a regulation

~~(b) facilitate the coordination of investigations;~~

Article 4 – paragraph 7

~~(c) follow-up on the enforcement of decisions taken pursuant to Article 20;~~

Text proposed by the Commission

~~(d) upon request from the Commission, contribute to the development of guidelines referred to in Article 11;~~

Amendment

~~(e) facilitate and coordinate the collection and exchange of information, expertise and best practices with regard to the application of this Regulation;~~

7. Competent authorities shall not initiate an investigation pursuant to Article 5, and shall inform the economic operators under assessment accordingly, where, on the basis of the assessment referred to in paragraph 1 and the information submitted by economic operators pursuant to paragraph 4, the competent authorities consider that there is no substantiated concern of a violation of Article 3, for instance due to, but not limited to, the applicable legislation, guidelines, recommendations or any other due diligence in relation to forced labour referred to in paragraph 3 being applied in a way that mitigates, prevents and brings to an end the risk of forced labour.

~~(f) contribute to uniform risk-based approaches and administrative practices for the implementation of this Regulation;~~

~~(g) promote best practices in the application of penalties provided by Article 37;~~

Amendment 38

~~(h) cooperate, as appropriate, with Commission services, Union agencies or Member State authorities relevant for the implementation of this Regulation,~~

Proposal for a regulation

(i) promote the cooperation, exchanges of personnel and visit programmes among competent authorities and customs authorities, as well as between these and third countries’ competent authorities and international organisations;

Article 4 – paragraph 7 a (new)

(j) facilitate the organisation of training and capacity building activities on the implementation of this Regulation for competent authorities, customs authorities and other relevant authorities of Member States, the Commission and Union Delegations in third countries;

Text proposed by the Commission

~~(k) upon request from the Commission, provide assistance to the Commission on the development of a coordinated approach for engagement and cooperation with third countries pursuant to Article 13,~~

Amendment

~~(l) monitor situations of systemic use of forced labour;~~

7 a. The Commission is empowered to adopt delegated acts in accordance with Article 27 to supplement this Regulation by providing further details on the risk-based approach Member States has to use pursuant to paragraph 1 of this Article. Such delegated acts shall further complement the work done by the Network in accordance with Article 24, especially in relation to ensuring the effective and uniform application of this Regulation.

~~(m) assist in the organisation of information and awareness-raising campaigns about this Regulation;~~

Amendment 39

~~(n) promote and facilitate collaboration to explore possibilities for using new technologies for the enforcement of this Regulation and the traceability of products;~~

Proposal for a regulation

~~(o) collect data on remediation linked to the decisions and evaluation of their effectiveness.~~

Article 5 – paragraph 1 a (new)

8. Other relevant Member State authorities can attend meetings on an ad hoc basis. Experts and stakeholders, including representatives from trade unions and other workers’ organisations, civil society and human rights organisations, business organisations, international organisations, third countries’ relevant authorities, the European Agency for Fundamental Rights, the European Labour Authority or relevant Commission services, Union Delegations and Union agencies with expertise in the areas covered by the Regulation may be invited to attend meetings of the Network or to provide written contributions.

Text proposed by the Commission

~~9. The Network shall meet at regular intervals and, where necessary, at the duly motivated request of the Commission or a Member State.~~

Amendment

~~10. The Commission and the Member States shall ensure that the Network has the necessary resources to carry out the tasks referred to in paragraph 7, including sufficient budgetary resources.~~

1 a. Competent authorities may request information from third countries where they have reasonable grounds for suspecting that products from forced labour are being introduced.

~~11. The Network shall establish its rules of procedure.~~

Amendment 40

▌

Proposal for a regulation

~~Article 7 Information and communication systems~~

Article 5 – paragraph 2 – introductory part

1. For the purposes of Chapters III, IV, and V, competent authorities and the Commission shall use the information and communication system referred to in Article 34 of Regulation (EU) 2019/1020 the European Parliament and of the Council. The Commission, competent authorities and customs authorities shall have access to that system for the purposes of this Regulation.

Text proposed by the Commission

~~2. The decisions communicated pursuant to Article 26(3) shall be entered in the relevant customs risk management environment.~~

Amendment

3. The Commission shall develop an interconnection to enable the automated communication of decisions referred to in Article 26(3) from the information and communication system referred to in paragraph 1 to the environment referred to in paragraph 2. That interconnection shall start operating no later than 2 years from the date of the adoption of the implementing act referred to in paragraph 7, point (b), in respect of that interconnection.

2. Competent authorities that initiate an investigation pursuant to paragraph 1 shall inform the economic operators subject to the investigation, within 3 working days from the date of the decision to initiate such investigation about the following:

4. Requests and notifications exchanged between competent authorities and customs authorities pursuant to Chapter V, Section II of this Regulation as well as the ensuing messages shall take place by means of the information and communication system referred to in paragraph 1.

2. When initiating an investigation pursuant to paragraph 1, competent authorities shall inform the economic operators subject to the investigation, within 3 working days from the date of the decision to initiate such investigation about the following:

5. An interconnection between the information and communication system referred to in paragraph 1 and the EU Single Window Environment for Customs shall be established in accordance with Regulation (EU) 2022/2399 for the purposes of exchanging the requests and notifications between customs and competent authorities pursuant to Chapter V, Section II of this Regulation. That interconnection shall be established at the latest within 4 years from the date of adoption of the implementing act referred to in paragraph 7. The exchanges referred to in paragraph 4 shall take place through that interconnection as soon as it is operational.

Amendment 41

6. The Commission may extract from the surveillance system referred to in Article 56(1) of Commission Implementing Regulation (EU) 2015/2447 information on products entering or leaving the Union market related to the implementation of this Regulation and transmit it to the information and communication system referred to in paragraph 1.

Proposal for a regulation

7. The Commission is empowered to adopt implementing acts in accordance with the examination procedure pursuant to Article 35(2) to specify the procedural rules and the details of the implementation arrangements for this Article, including:

Article 5 – paragraph 6 a (new)

(a) the functionalities, data elements and data processing, as well as the rules on the processing of personal data, confidentiality and controllership, of the information and communication system referred to in paragraphs 1 and 4;

Text proposed by the Commission

(b) the functionalities, data elements and data processing, as well as the rules on the processing of personal data, confidentiality and controllership for the interconnection referred to in paragraph 3;

Amendment

~~(c) the data to be transmitted, as well as the rules on its confidentiality and controllership, in accordance with paragraph 6.~~

6 a. Competent authorities may ask diplomatic representations of the Union in relevant third countries to provide information and support.

~~Article 8 Database of forced labour risk areas or products~~

Amendment 42

1. The Commission shall establish a database, with the assistance of external expertise if needed. This database shall provide an indicative, non-exhaustive, evidence-based, verifiable and regularly updated information of forced labour risks in specific geographic areas or with respect to specific products or product groups including with regard to forced labour imposed by state authorities. The database shall prioritise the identification of widespread and severe forced labour risks.

Proposal for a regulation

2. The database shall be based on independent and verifiable information, from international organisations, in particular the International Labour Organization and the United Nations Organization, or institutional, research or academic organisations.

Article 6 – paragraph 1

~~It shall not publicly disclose information that directly names economic operators. The database shall be made available in all official languages of the institutions of the Union.~~

Text proposed by the Commission

~~The database shall indicate specific economic sectors in specific geographic areas for which there is reliable and verifiable evidence that there exists forced labour imposed by state authorities.~~

Amendment

2. The Commission shall ensure that the database is easily accessible, including for persons with disabilities, and made publicly available, in all official languages of the institutions of the Union, at the latest … [18 months after ▌the date of entry into force of this Regulation].

1. Competent authorities shall assess all information and evidence gathered pursuant to Articles 4 and 5 and, on that basis, establish whether Article 3 has been violated, within a reasonable period of time from the date they initiated the investigation pursuant to Article 5(1).

▌

1. Competent authorities shall assess all information and evidence gathered pursuant to Articles 4 and 5 and, on that basis, establish whether Article 3 has been violated, within 30 working days from the date they initiated the investigation pursuant to Article 5(1).

~~Article 9 Single information submission point~~

Amendment 43

1. The Commission shall set up a dedicated centralised mechanism for the submission of information. This mechanism shall be available in all official languages of the institutions of the Union, and it shall be user friendly and free of charge.

Proposal for a regulation

2. Submissions of information on alleged violations of Article 3 shall be made via the single information submission point referred to in paragraph 1 by any natural or legal person or any association not having legal personality. The submissions shall contain information on the economic operators or products concerned, provide the reasons and evidence substantiating the allegation, and where possible, supporting documents. The Commission is empowered to adopt implementing acts to specify the procedural rules, templates and details of the submissions. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 35(2).

Article 6 – paragraph 4 – point c

▌

Text proposed by the Commission

3. The Commission shall discard any submissions that are manifestly incomplete or unfounded or made in bad faith and distribute the remaining submissions according to the allocation key referred to in Article 15 for their assessment.

Amendment

▌

(c) an order for the economic operators that have been subject to the investigation to dispose of the respective products in accordance with national law consistent with Union law.

4. The lead competent authority in charge of the assessment pursuant to paragraph 3 shall diligently and impartially assess the information, acknowledge the receipt of the submission and inform the person of the outcome of the assessment of its submission as soon as possible.

(c) an order for the economic operators that have been subject to the investigation to donate the products concerned to charitable organisations or organisations that benefit public interest or where donation is not possible, recycle the products concerned or when neither of these two options are possible, dispose of the respective products in accordance with national law consistent with Union law.

~~5. The lead competent authority may ask the person or association referred to in paragraph 1 to provide additional information.~~

Amendment 44

6. In cases where there is a significant time interval between the submission of information and the decision to proceed with an investigation according to Chapter III, the lead competent authority shall, to the extent possible, verify with the person or association submitting the information whether the situation has, to the best of their knowledge, significantly changed.

Proposal for a regulation

~~7. Directive (EU) 2019/1937 shall apply to the reporting of the breaches of this Regulation and the protection of persons reporting such breaches.~~

Article 6 – paragraph 5 – point c

~~Article 10 Support measures for SMEs~~

Text proposed by the Commission

The Commission shall develop accompanying measures to support the efforts of economic operators and their business partners in the same supply chain, in particular the micro, small and medium-sized enterprises. Where appropriate, these measures shall be made available through the Forced Labour Single Portal.

Amendment

Competent authorities shall designate contact points to provide information to SMEs for matters related to the application of this Regulation. Those contact points may also provide assistance to SMEs on those matters.

(c) that any product remaining with the economic operator concerned is disposed of in accordance with national law consistent with Union law at the expense of the economic operator.

~~Member State competent authorities may also organize trainings for economic operators on forced labour risk indicators and on how to engage in dialogue with authorities throughout an investigation.~~

(c) that any product remaining with the economic operator concerned is donated to charitable organisations or organisations that benefit public interest or where donation is not possible, recycle the products concerned or when neither of these two options are possible, disposed of in accordance with national law consistent with Union law at the expense of the economic operator.

~~Article 11 Guidelines~~

Amendment 45

The Commission, in consultation with relevant stakeholders, shall make available and regularly update guidelines, no later than … [18 months after the date of entry into force of this Regulation], which shall include the following:

Proposal for a regulation

(a) guidance for economic operators on due diligence in relation to forced labour, including forced child labour, which shall take into account applicable national and Union legislation, setting out due diligence requirements with respect to forced labour, guidelines and recommendations from international organisations, as well as the size and economic resources of economic operators, different types of suppliers along the supply chain, and different sectors;

Article 10 – paragraph 1 b (new)

~~(b) guidance for economic operators on best practices for bringing to an end and remediating different types of forced labour;~~

Text proposed by the Commission

(c) guidance for competent authorities on the practical implementation of Articles 16 and 18, Article 8, including benchmarks for assisting competent authorities in their risk-based assessments of investigations and guidelines on the applicable standard of evidence;

Amendment

(d) guidance for customs authorities and economic operators for the practical implementation of Article 27 and, where appropriate, any other provision laid down in Section II of Chapter V of this Regulation;

1b. In order to ensure uniform conditions for the submission of information, the Commission shall adopt implementing acts establishing templates for the submission of information. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 29.

(e) information on risk indicators of forced labour, including on how to identify them, which shall be based on independent and verifiable information, including reports from international organisations, in particular the International Labour Organization, civil society, business organisations, trade unions, and experience from implementing Union legislation setting out due diligence requirements with respect to forced labour;

Amendment 46

~~(f) guidance for economic operators on due diligence in relation to forced labour imposed by state authorities;~~

Proposal for a regulation

~~(g) guidance for economic operators and product suppliers on how to engage in dialogue with competent authorities pursuant to Chapter III, in particular on the type of information to be submitted;~~

Article 11 – title

~~(h) guidance on how to submit information pursuant to Article 9;~~

Text proposed by the Commission

~~(i) guidance for Member States on the method for calculating financial penalties and the thresholds applicable;~~

Amendment

~~(j) further information to facilitate the competent authorities’ implementation of and the economic operator’s compliance with this Regulation;~~

Database of forced labour risk areas or products

~~▌ The guidance referred to in points (a), (b) and (f), shall focus in particular on assisting small and medium-sized enterprises (SMEs) in complying with this Regulation.~~

Database of forced labour risks

~~The guidelines shall be consistent with guidelines provided in accordance with other relevant Union law.~~

Amendment 47

~~Article 12 Forced Labour Single Portal~~

Proposal for a regulation

The Commission shall set up and regularly update a single website making available to the public, in the same place and in all the official languages of the institutions of the Union, the following items:

Article 11 – paragraph 1

~~(a) the list and contacts of the designated competent authorities;~~

Text proposed by the Commission

~~(b) the guidelines;~~

Amendment

~~(c) the database;~~

(d) a list of publicly available information sources of relevance for the implementation of this Regulation, including sources which make available disaggregated data on the impact and victims of forced labour, such as gender-disaggregated data or data about forced child labour, allowing to identify age- and gender-specific trends;

1. The Commission shall call upon external expertise to provide an indicative, non-exhaustive, verifiable and regularly updated database of forced labour risks in specific geographic areas or sectors with respect to specific products and services including with regard to forced labour imposed by state authorities. The database shall be based on the guidelines referred to in Article 23, points (a), (b) and (c) and on information, including from EU missions, and relevant external sources of information from, amongst others, international organisations economic operators, social partners, such as trade unions and labour cooperatives NGOs, and third country authorities. The database shall include a list of the specific geographical high-risk regions or countries where forced labour practices are systematic and widespread. The database shall also contain information concerning the countries identified as non-cooperating under this Regulation and on those for which the status of non-cooperating country has been lifted. Where applicable, the respective stakeholders must be registered in the EU transparency register. For sources where the transparency register does not apply, transparency of funding must be established before those sources can provide of information to the database.

~~(e) the single information submission point;~~

Amendment 48

~~(f) any decision to ban a product;~~

Proposal for a regulation

~~(g) any withdrawal of a ban;~~

Article 11 – paragraph 1 a (new)

~~(h) the result of reviews.~~

Text proposed by the Commission

▌

Amendment

~~Article 13 International Cooperation~~

1a. Primary sources, for instance, EU fishers bearing witness to forced labour outside EU waters, need to be allowed to provide their first-hand experience to the database and Network in a safe and respectful environment with any processing of personal data carried out per Regulation (EU) 2016/679 and Regulation (EU) 2018/1725.

1. In order to facilitate effective implementation and enforcement of this Regulation, the Commission shall, as appropriate, cooperate ▌ and exchange information with ▌ authorities of third countries, international organisations, civil society representatives, trade unions, business organisations and other relevant stakeholders.

Amendment 49

2. International cooperation with authorities of third countries shall take place in a structured way, for example in the context of existing dialogues with third countries, such as human rights and political dialogues, implementation of trade and sustainable development commitments of trade agreements or the Generalised Scheme of Preferences, and EU development cooperation initiatives or, if necessary, specific dialogues that will be created on an ad hoc basis. This cooperation may involve exchanges of information on forced labour risk areas or products, of best practices for bringing forced labour to an end, and of information on decisions to ban products, including their reasons and evidence, in particular with countries that have similar legislation in place.

Proposal for a regulation

3. For the purposes of paragraph 2, the Commission and Member States may consider the development of cooperation initiatives and accompanying measures to support the efforts of economic operators, in particular SMEs, as well as civil society organisations, social partners and third countries to tackle forced labour and its root causes.

Article 11 – paragraph 1 b (new)

~~Chapter III Investigations~~

Text proposed by the Commission

~~Article 14 Risk-based approach~~

Amendment

1. Competent authorities and the Commission shall follow a risk-based approach when assessing the likelihood of violation of Article 3, initiating and conducting the preliminary phase of the investigations and identifying the products and economic operators concerned.

1b. Encourages the Common Security and Defence Policy Missions, such as EUNAVFOR ATALANTA, to report without delay any vessel suspected of forced labour to the database and local authorities, and to continue preventing, deterring and combatting Illegal, Unregulated and Unreported (IUU) fishing.

2. In their assessment of the likelihood of a violation of Article 3, competent authorities and the Commission shall use the following criteria, as appropriate, in order to prioritise products suspected to have been made with forced labour:

Amendment 50

~~(a) scale and severity of the suspected forced labour, including whether forced labour imposed by state authorities could be a concern;~~

Proposal for a regulation

~~(b) quantity or volume of products placed or made available on the Union market;~~

Article 11 – paragraph 2

~~(c) share of the part suspected to have been made with forced labour in the final product.~~

Text proposed by the Commission

3. The assessment of the likelihood of a violation of Article 3 shall be based on all relevant, factual, and verifiable information available to competent authorities and the Commission, including, but not limited to, the following:

Amendment

(a) information and decisions encoded in the information and communication system referred to in Article 7(1), including any past cases of compliance or non-compliance of an economic operator with Article 3;

2. The Commission shall ensure that the database is made publicly available by the external expertise at the latest 24 months after the entry into force of this Regulation.

~~(b) the database referred to in Article 8;~~

2. The Commission shall ensure that the database is easily accessible and made publicly available by the external expertise at the latest 24 months after the entry into force of this Regulation.

~~(c) the risk indicators and other information pursuant to Article 11, point (e);~~

Amendment 51

~~(d) submissions made pursuant to Article 9;~~

Proposal for a regulation

(e) information received by the competent authority or the Commission from other authorities relevant for the implementation of this regulation, such as Member States’ due diligence, labour, health or fiscal authorities, on the products and economic operators under assessment;

Article 17 – paragraph 1

~~(f) any issues arising from meaningful consultations with relevant stakeholders, such as civil society organisations and trade unions.~~

Text proposed by the Commission

4. When initiating a preliminary investigation pursuant to Article 17, lead competent authorities shall, to the extent possible, focus on the economic operators and, where relevant, product suppliers involved in the steps of the supply chain as close possible to where the forced labour likely occurs, and with the highest leverage to prevent, mitigate and bring to an end the use of forced labour. Lead competent authorities shall also take into account the size and economic resources of the economic operators, in particular whether the economic operator is an SME, and the complexity of the supply chain.

Amendment

▌

Where customs authorities identify a product entering or leaving the Union market that may, in accordance with a decision received pursuant to Article 15(3), be in violation of Article 3, they shall suspend the release for free circulation or the export of that product. Customs authorities shall immediately notify the relevant competent authorities of the suspension and transmit all relevant information to enable them to establish whether the product is covered by a decision communicated pursuant to Article 15(3).

▌

Where customs authorities identify a product entering or leaving the Union market that may, in accordance with a decision received pursuant to Article 15(3), be in violation of Article 3, they shall suspend the release for free circulation or the export of that product. Customs authorities shall immediately notify the relevant competent authorities of the competent Member State of the suspension and transmit all relevant information to enable them to establish whether the product is covered by a decision communicated pursuant to Article 15(3).

~~Article 15 Allocation of investigations~~

Amendment 52

~~1. Where the suspected forced labour is taking place outside the territory of the Union, the Commission shall act as lead competent authority.~~

Proposal for a regulation

~~2. Where the suspected forced labour is taking place in the territory of a Member State, a competent authority of that Member State ▌ shall act as lead competent authority.~~

Article 20 – paragraph 1

~~Article 16 Coordination of investigations and mutual assistance~~

Text proposed by the Commission

1. The Commission and competent authorities shall cooperate closely between them and provide each other with mutual assistance in order to implement this Regulation in a consistent and efficient manner.

Amendment

~~2. Lead competent authorities shall respect the right of the economic operator to be heard at all stages of the process.~~

Where the release for free circulation or export of a product has been refused in accordance with Article 19, customs authorities shall take the necessary measures to ensure that the product concerned is disposed of in accordance with national law consistent with Union law. Articles 197 and 198 of Regulation (EU) No 952/2013 shall apply accordingly.

3. Lead competent authorities shall, at any time and without undue delay, communicate via the information and communication system referred to in Article 7(1) if they find new information about suspected forced labour taking place in a territory for which they are not competent for pursuant to Article 15.

Where the release for free circulation or export of a product has been refused in accordance with Article 19, customs authorities shall take the necessary measures to ensure that the product concerned is donated to charitable organisations or organisations that benefit public interest or where donation is not possible, recycle the products concerned or, when neither of these two options are possible, disposed of in accordance with national law consistent with Union law. Articles 197 and 198 of Regulation (EU) No 952/2013 shall apply accordingly.

4. The lead competent authority may request the support of other relevant competent authorities, including to contact economic operators whose place of establishment is within the territory of that Member State or whose language of operation is that of a Member State. Other competent authorities that have an interest in the investigation may request to be closely involved in the investigation.

Amendment 53

5. A competent authority that has received, through the information and communication system referred to in Article 7(1), a request for information from another competent authority shall provide an answer within 20 working days from the date of receipt of the request.

Proposal for a regulation

6. The requested competent authority may ask the requesting competent authority to complement the information contained in the request if it concludes that the information provided initially is not sufficient.

Chapter III a (new)

7. A requested competent authority may refuse to comply with a request only if the requested authority demonstrates that complying with the request would substantially impair the execution of its own activities.

Text proposed by the Commission

▌

Amendment

~~Article 17 Preliminary phase of investigations~~

Chapter III a

1. Before initiating an investigation in accordance with Article 18(1), lead competent authorities shall request from the economic operators under assessment and, where relevant, other product suppliers, information on their relevant actions taken to identify, prevent, mitigate, bring to an end or remediate risks of forced labour in their operations and supply chains with respect to the products under assessment, including on the basis of any of the following, unless it would jeopardise the outcome of the assessment:

Non-cooperating third countries

~~(a) applicable Union legislation or Member States legislation setting out due diligence and transparency requirements with respect to forced labour;~~

Article 21a

~~(b) the guidelines issued by the Commission ▌ ;~~

Identification of non-cooperating third countries

(c) due diligence guidelines or recommendations of the UN, ILO, OECD or other relevant international organisations, in particular those guidelines and recommendations relating to geographic areas, productions sites and economic activities in certain sectors in which there are systematic and widespread forced labour practices;

1. The Commission, in accordance with the procedure referred to in Article 29(2), shall identify the third country that it considers as non-cooperating third country in fighting the use of forced labour.

~~(d) any other meaningful due diligence or other information in relation to forced labour in their supply chain.~~

2. The identification set out in paragraph 1 shall be based on the review of all information obtained pursuant to Chapters II and III, or, as appropriate, any other relevant information, such as trade information.

Lead competent authorities may request information on those actions from other relevant stakeholders, including the persons or associations having submitted relevant, factual, and verifiable information pursuant to Article 9 and any other natural or legal persons related to the products and geographical areas under assessment, as well as from the European External Action Service and Union Delegations in relevant third countries.

3. A third country may be identified as a non-cooperating third country if it fails to discharge the duties incumbent upon it under International law to take action to prevent, deter and eliminate the use of forced labour.

2. Economic operators shall respond to the request ▌ referred to in paragraph 1 within 30 working days from the day they received such request. Economic operators may provide ▌ any other information they may deem useful for the purposes of this Article.

4. For the purposes of paragraph 3, the Commission shall take into account at least the following information:

~~Where necessary, economic operators may request support on how to engage with the lead competent authority from a contact point referred to in Article 10.~~

(a) whether the third country concerned effectively cooperates with the Union, by providing a response to requests made by the Commission to investigate, provide feedback or follow-up in matters concerning the use of forced labour;

3. Within 30 working days from the date of receipt of the information submitted by economic operators pursuant to paragraph 2, lead competent authorities shall conclude the preliminary phase of their investigation as to whether there is a substantiated concern of violation of Article 3, on the basis of the assessment referred to in Article 14(3) and the information submitted by economic operators pursuant to paragraph 2.

(b) whether the third country concerned has taken effective enforcement measures in respect of the economic activity found responsible for the use of forced labour, and in particular whether sanctions of sufficient severity to deprive the offenders of the benefits accruing from the use of forced labour have been applied;

▌

4. Notwithstanding paragraph 3, lead competent authorities may conclude that there is ▌ substantiated concern on the basis of any other facts available where lead competent authorities have refrained from requesting information in accordance with paragraph 1 or in the situations referred to in Article 20(2), points (a) to (e).

(d) relevant information that the Commission has gathered under Regulation (EC) No 1005/2008;

5. Lead competent authorities shall not initiate an investigation pursuant to Article 18, and shall inform the economic operators under assessment accordingly, where, on the basis of the assessment referred to in Article 14(3) and, if any, of the information submitted by economic operators pursuant to paragraph 2, they consider that there is no substantiated concern of a violation of Article 3, or that the reasons that motivated the existence of a substantiated concern have been eliminated, for instance due to, but not limited to, the applicable legislation, guidelines, recommendations or any other due diligence in relation to forced labour referred to in paragraph 1 being applied in a way that mitigates, prevents and brings to an end the risk of forced labour.

(e) for developing countries, the existing capacity of their competent authorities.

~~6. Lead competent authorities shall communicate through the information and communication system referred to in Article 7(1) the outcome of their assessment pursuant to paragraph 5.~~

5. For the purposes of paragraph 3, the Commission shall also consider the following elements:

▌

(a) whether the third country concerned has ratified and implemented relevant international conventions on labour conditions, including, but not limited to, fundamental International Labour Organisation (ILO) Conventions and sectoral conventions;

~~Article 18 Investigations~~

(b) any act or omission by the third country concerned that may have diminished the effectiveness of applicable laws, regulations or international conservation concerning combating the use of forced labour.

1. Lead competent authorities that, pursuant to Article 17(4) determine that there is a substantiated concern of a violation of Article 3, shall initiate an investigation on the products and economic operators concerned and inform the economic operators subject to the investigation, within 3 working days from the date of the decision to initiate such investigation, about the following:

6. Where appropriate, specific constraints of developing countries, in particular in respect to monitoring, control and surveillance, shall be duly taken into consideration in the implementation of this Article.

~~(a) the initiation of the investigation and the possible consequences thereof;~~

Article 21b

~~(b) the products subject to the investigation;~~

Notification

~~(c) the reasons for the initiation of the investigation, unless it would jeopardise the outcome of the investigation;~~

1. The Commission shall, without delay, notify countries concerned of the possibility of being identified as non-cooperating third countries in accordance with the criteria laid down in Article 21a. The notification shall include the following information:

~~(d) the possibility for the economic operators to submit any other document or information to the lead competent authority, and the date by which such information has to be submitted.~~

a. the reason or reasons for the identification with all available supporting evidence;

~~2. Lead competent authorities shall communicate through the information and communication system referred to in Article 7(1) the initiation of an investigation pursuant to paragraph 1.~~

b. the opportunity to respond to the Commission with regard to the identification decision and other relevant information, such as evidence refuting the identification or, where appropriate, a plan of action to improve and the measures taken to rectify the situation;

3. Where requested to do so by lead competent authorities, economic operators under investigation shall submit ▌ any information that is relevant and necessary for the investigation, including information identifying the products under investigation and, where appropriate, identifying the part of the product to which the investigation should be limited, the manufacturer, producer or product supplier of those products or parts thereof. In requesting such information, lead competent authorities shall, to the extent possible, prioritise the economic operators under investigation involved in the steps of the supply chain as close as possible to where the forced labour likely occurs, and take into account the size and economic resources of the economic operators, in particular whether the operator is an SME, the quantity of products concerned, the complexity of the supply chain, as well as the scale of suspected forced labour. Where necessary, economic operators may request support on how to engage with the lead competent authority from a contact point referred to in Article 10.

c. the right to ask for, or to provide, additional information;

4. Lead competent authorities shall set a deadline for economic operators for submitting the information referred to in paragraph 3 of at least 30 working days and no longer than 60 working days. Nevertheless, economic operators may request an extension of that deadline with a justification. When deciding on such extension, lead competent authorities shall consider the size and economic resources of the economic operators concerned, including whether the economic operator is an SME.

d. a request that the third country concerned takes necessary measures for the cessation of forced labour and the prevention of any future such activities;

5. Lead competent authorities may collect information from or interview any relevant natural or legal person who consents to be interviewed for the purpose of collecting information relating to the subject matter of the investigation, including relevant economic operators and any other stakeholders.

e. the consequences of its identification as non-cooperating third country, as provided in Article 21e.

▌

2. The Commission shall also include in the notification referred to in paragraph 1 a request that the third country concerned take any necessary measures for the cessation of the activities having been identified to be using forced labour and the prevention of any future such activities, and rectify any act or omission referred to in Article 21a(5)(b).

~~6. Lead competent authorities may, where needed, carry out all necessary checks and inspections in accordance with Article 19.~~

3. The Commission shall transmit its notification and request to the third country concerned. The Commission shall seek to obtain confirmation from that country that it has received the notification.

~~Article 19 Field inspections~~

4. The Commission shall give to the third country concerned adequate time to answer the notification.

1. In exceptional situations where the lead competent authority may deem it necessary to conduct field inspections, it shall undertake this with consideration to where the risk of forced labour is located.

Article 21c

2. Where the risk of forced labour is located in the territory of the Member State, the lead competent authority may conduct its own inspections, in accordance with national law in compliance with Union law. If needed, the lead competent authority may ask the cooperation of other national authorities relevant for the implementation of this regulation, such as labour, health or fiscal authorities.

Démarches in respect of countries identified as non-cooperating third countries and establishment of a structured dialogue

3. Where the risk of forced labour is located outside the territory of the Union, the Commission acting as lead competent authority may carry out all necessary checks and inspections provided that the economic operators concerned give their consent and that the government of the third country in which the inspections are to take place has been officially notified and raises no objection. Assistance from the European External Action Service may be requested, as appropriate, to facilitate such contacts.

1. Following the process outlined in Article 21a, the Commission shall invite the third country to engage in a formal dialogue to end forced labour abuses and tackle the root causes of forced labour in its territory. Within the framework of this dialogue, the Commission shall endeavour to involve all relevant stakeholders active in the country concerned.

▌

2. Based on the information available and the extent of the abuses, the Commission shall establish a reasonable amount of time for the third country concerned to remedy the situation.

~~Chapter IV Decisions~~

3. The Commission and the Member States shall also ensure that controls on products from the identified product groups originating from the third country concerned shall be strengthened and a minimum percentage of operators making available such products on the Union market shall be subject to a higher level of checks. The Commission shall establish the minimum level of checks on a case-by-case basis. When the identification process concerns one or more specific product groups, the controls and checks may be strengthened only with regards to these product groups.

~~Article 20 Decisions ▌~~

Article 21d

1. Lead competent authorities shall assess all information and evidence gathered pursuant to Chapter III, and, on that basis, establish whether the products concerned have been placed or made available on the market or are being exported in violation of Article 3, within a reasonable period of time from the date they initiated the investigation pursuant to Article 18(1). Lead competent authorities shall endeavour to adopt their decisions within 9 months from the date they initiated the investigation.

Establishment of a list of non-cooperating third countries

2. Notwithstanding paragraph 1, lead competent authorities may establish that Article 3 has been violated on the basis of any other facts available where it was not possible to gather information and evidence pursuant to Article 17(1) and Article 18(3), notably where, in response to a request for information, an economic operator or a public authority:

1. The Council, acting by a qualified majority on a proposal from the Commission, shall decide on a list of non-cooperating third countries.

~~(a) refuses to provide the information requested without a valid justification; or~~

2. The Commission shall, without delay, notify the third country concerned of its identification as a non-cooperating country and of the measures applied in accordance with Article 21e. The Commission shall also request it to rectify the current situation and to inform the Commission on the measures taken to remedy the situation and ensure compliance with international obligations in relation to combating the use of forced labour.

~~(b) fails to provide the information requested within the time limit prescribed without a valid justification; or~~

3. Following a decision taken pursuant to paragraph 1 of this Article, the Commission shall, without delay, notify it to the Member States and shall request them to ensure the immediate implementation of the measures laid down in Article 21e. Member States shall notify the Commission of any measures they have taken in response to this request.

~~(c) provides incomplete or incorrect information with the objective of blocking the investigation; or~~

Article 21e

~~(d) provides misleading information; or~~

Action in respect of non-cooperating third countries

~~(e) otherwise impedes the investigation, including when a risk of forced labour imposed by state authorities is identified during the preliminary phase of the investigation or the investigation.~~

1. The importation into the Union of products from the non-cooperating third countries shall be prohibited. When the identification of a non-cooperating third country pursuant to Article 21d concerns forced labour perpetrated with regards to a specific product group from a particular entity, including a product supplier, vessel, site of production or region, the prohibition of importation may only apply to this specifically identified product groups.

3. Where lead competent authorities cannot establish that the products concerned have been placed or made available on the market or are being exported in violation of Article 3, they shall close the investigation and inform the economic operators that have been subject to the investigation. They shall also inform all other competent authorities through the information and communication system referred to in Article 7(1). Closing the investigation shall not preclude the launch of a new investigation into the same product and economic operator in case new relevant information arises.

2. The Commission shall continue to engage in a dialogue with countries identified as non-cooperating and facilitate capacity building as well as compliance with international obligations in relation to combating the use of forced labour. The Commission shall continue to monitor the situation.

▌

Article 21f

4. Where lead competent authorities establish that the products concerned have been placed or made available on the market or are being exported in violation of Article 3, they shall without delay adopt a decision containing:

Removal from the list of non-cooperating third countries

~~(a) a prohibition to place or make the products concerned available on the Union market and to export them;~~

1. The Council, acting by qualified majority on a proposal from the Commission, shall remove a third country from the list of non-cooperating third countries if the third country concerned demonstrates that the situation that warranted its listing has been rectified. A removal decision shall also take into consideration whether the identified third countries concerned have taken concrete measures capable of achieving a lasting improvement of the situation.

(b) an order for the economic operators that have been subject to the investigation to withdraw from the Union market the products concerned that have already been placed or made available on the market or to remove content from an online interface referring to the products or listings of the products concerned;

2. Following a decision taken pursuant to paragraph 1 of this Article, the Commission shall, without delay, notify Member States of the lifting of the measures laid down in Article 21e in respect of the third country concerned.

(c) an order for the economic operators that have been subject to the investigation to dispose of the products concerned in accordance with Article 25 or, if the parts of the product, which are found to be in violation of Article 3, are replaceable, an order to dispose of the respective parts of products.

Article 21g

▌ Where relevant, the prohibition referred to in point (a) of this paragraph and the order referred to in point (c) of this paragraph shall identify the parts of the product found to be in violation of Article 3, which must be replaced in order for the product to be placed or made available on the market or exported.

Publicity of the list of non-cooperating third countries

▌

1. The Commission shall publish the list of non-cooperating third countries in the Official Journal of the European Union and take any measure necessary to ensure publicity of this list, including by making it available on its website and in the database referred to in Article 11. The Commission shall regularly update the list and shall provide for a system to automatically notify updates to Member States, relevant international organisations and any citizen and member of the civil society that should so request. Furthermore, the Commission shall transmit the list of non-cooperating third countries to relevant international organisations for the purposes of enhancing cooperation between the Union and those organisations aimed at preventing, deterring and eliminating forced labour.

5. By way of exception from paragraph 4, point (c) and where appropriate in view of preventing disruptions of a supply chain of strategic or critical importance for the Union, the lead competent authorities may refrain from imposing an order to dispose of the product concerned in the decision referred to in paragraph 4. The lead competent authorities may instead order the product concerned to be withheld for a defined period of time, which shall be no longer than the time necessary to eliminate forced labour for the product concerned, at the cost of the economic operators:

Amendment 54

(a) if economic operators demonstrate, during this period of time, that they have eliminated forced labour from the supply chain of the products concerned, without changing that product and by having brought to an end the forced labour as identified in the decision referred to in paragraph 4, the lead competent authority shall review its decision in accordance with Article 21;

Proposal for a regulation

(b) if economic operators do not demonstrate, during this period of time, that they have eliminated forced labour from the supply chain of the products concerned, without changing that product and by having brought to an end the forced labour as identified in the decision referred to in paragraph 4, paragraph 4, point (c) shall apply.

Article 22 – paragraph 1

6. Where the Commission acts as lead competent authority, decisions referred to in paragraph 4 shall be adopted by means of implementing acts in the form of a decision. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 35(2).

Text proposed by the Commission

7. Lead competent authorities shall notify the final decision to all economic operators to which it is addressed and communicate it to all competent authorities, through the information and communication system referred to in Article 7(1).

Amendment

8. Decisions taken pursuant to paragraph 4 by a competent authority in one Member State shall be recognised and enforced by competent authorities in the other Member States, in so far as they relate to products with the same identification and from the same supply chain for which forced labour has been found.

1. For the purposes of Chapters II and III, competent authorities shall use the information and communication system referred to in Article 34 of Regulation (EU) 2019/1020. The Commission, competent authorities and customs authorities shall have access to that system for the purposes of this Regulation.

~~Article 21 Review of decisions adopted regarding the violation of Article 3~~

1. For the purposes of Chapters II and III, competent authorities shall use the information and communication system referred to in Article 34 of Regulation (EU) 2019/1020. The Commission, competent authorities in the Member States and customs authorities shall have access to that system for the purposes of this Regulation.

1. Lead competent authorities shall provide economic operators affected by a decision adopted pursuant to Article 20 with the possibility of requesting a review of that decision at any time. The request for a review shall contain information which demonstrates that the products are placed or made available on the market or to be exported in compliance with Article 3. That information shall contain new substantial information that was not brought to the attention of the competent authority during the investigation.

Amendment 55

~~2. A lead competent authority shall take a decision on the request for review within 30 working days from the date of receipt of the request.~~

Proposal for a regulation

3. Where economic operators have demonstrated that they have complied with the decision referred to in Article 20, and that they have eliminated forced labour from their operations or supply chain with respect to the products concerned, the lead competent authority shall withdraw its decision for the future, inform the economic operators and remove it from the Forced Labour Single Portal referred to in Article 12.

Article 23 – paragraph 1 – point b

4. Where the Commission acts as lead competent authority, the withdrawal referred to in paragraph 3 shall be implemented via an implementing act. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 35(2). On duly justified imperative grounds of urgency relating to the protection of rights of defence and of property of the economic operators concerned, the Commission shall adopt immediately applicable implementing acts in accordance with the procedure referred to in Article 35(3). Those acts shall remain in force for a period not exceeding 12 months.

Text proposed by the Commission

5. Economic operators that have been affected by a decision of a Member State competent authority pursuant to this Regulation shall have access to a court or a tribunal to review the procedural and substantive legality of the decision.

Amendment

~~6. Paragraph 4 shall be without prejudice to any provision of national law which requires that administrative review procedures be exhausted prior to recourse to judicial proceedings.~~

(b) information on risk indicators of forced labour, which shall be based on independent and verifiable information, including reports from international organisations, in particular the International Labour Organization, civil society, business organisations, and experience from implementing Union legislation setting out due diligence requirements with respect to forced labour;

7. Decisions adopted by Member State competent authorities pursuant to this Regulation are without prejudice to any decisions of a judicial nature taken by national courts or tribunals of the Member States with respect to the same economic operators or products.

(b) information on risk indicators of forced labour, which shall be based on independent and verifiable information, including reports from international organisations, in particular the International Labour Organization, clear benchmarks, definition of hot spots, civil society, business organisations, and experience from implementing Union legislation setting out due diligence requirements with respect to forced labour;

~~Article 22 Content of the decision~~

Amendment 56

~~1. The decision referred to in Article 20 shall contain all of the following:~~

Proposal for a regulation

~~(a) the findings of the investigation and the information and evidence underpinning the findings;~~

Article 23 a (new)

(b) ▌ reasonable time limits for the economic operators to comply with the orders, which shall not be less than 30 working days. In case of perishable goods, animals and plants, the time limit shall not be less than 10 working days. When setting the time limits, the lead competent authority shall take into account the economic operator’s size and economic resources, including whether the operator is an SME, the share of the part of the product and whether it is replaceable. The time limits shall be proportionate to the time needed to comply with the different orders and no longer than necessary;

Text proposed by the Commission

(c) all relevant information and in particular the details allowing the identification of the product, to which the decision applies, including details about the manufacturer, producer, the product suppliers and, where appropriate, production site;

Amendment

~~(d) where available and applicable, information required under customs legislation as defined in Article 5(2) of Regulation (EU) No 952/2013;~~

Article23a

~~(e) information on the possibilities for a judicial review against a decision.~~

Analysis of the subsectors: for fisheries it would be the supply chain, catching, processing and marketing.

2. The Commission shall adopt implementing acts further specifying the details of the information to be included in the decisions. Those details shall as a minimum include details of information to be provided or made available to customs authorities in accordance with Article 27(3) to enable the identification of products requested by Article 26(4). Those implementing acts shall be adopted in accordance with the examination procedure pursuant to Article 35(2).

Amendment 57

~~CHAPTER V Enforcement~~

Proposal for a regulation

~~Section I Competent authorities~~

Article 24 – title

~~Article 23 Enforcement of the decisions by competent authorities~~

Text proposed by the Commission

1. Where within the reasonable time limit referred to in Article 22(1), point (b) an economic operator has failed to comply with the decision referred to in Article 20(4), the competent authorities shall be responsible of the enforcement of the decision and shall ensure all of the following:

Amendment

~~(a) that it is prohibited to place or make available the products concerned on the Union market and to export them;~~

Union Network Against Forced Labour Products

~~(b) that the products concerned already placed or made available on the market are withdrawn from the Union market by relevant authorities, in accordance with Union and national laws;~~

Union Network Against Forced Labour

~~(c) that the products concerned remaining with the economic operator are disposed of in accordance with Article 25, at the expense of the economic operator;~~

Amendment 58

~~(d) that access to the products and to listings referring to the products concerned is restricted by requesting the relevant third party to implement such measures.~~

Proposal for a regulation

2. If the economic operator has failed to comply with the decision, the competent authority shall impose either directly, in cooperation with other authorities or by application to the competent judicial authorities, penalties on the economic operator pursuant to Article 37.

Article 24 – paragraph 1

~~Article 24 Withdrawal of products made with forced labour~~

Text proposed by the Commission

1. Any decision to order the withdrawal of the products already placed or made available on the Union market and their disposal referred to in Article 20(4) shall be communicated, through the information and communication system referred to in Article 7(1), to the Market surveillance authorities as referred to in Article 10 of Regulation (EU) 2019/1020 or the other authorities relevant for the product concerned.

Amendment

~~2. The enforcement of the withdrawal of products shall be of the responsibility of the competent authority, in coordination with any other relevant authorities for the product concerned.~~

1. A Union Network Against Forced Labour Products (‘the Network’) is established. The Network shall serve as a platform for structured coordination and cooperation between the competent authorities of the Member States and the Commission, and to streamline the practices of enforcement of this Regulation within the Union, thereby making enforcement more effective and coherent.

~~Article 25 Disposal of products made with forced labour~~

1. A Union Network Against Forced Labour (‘the Network’) is established and led by the Commission. The Network shall serve as a platform for structured and mandatory coordination and cooperation between the competent authorities of the Member States and the Commission, including with the involvement of third-country authorities, when applicable, and to streamline the practices of enforcement of this Regulation within the Union, thereby making enforcement more effective and coherent. The network can also serve to coordinate activities and cooperation with third-country authorities in order to facilitate the identification and elimination of forced labour.

In line with the waste hierarchy set out in Directive 2008/98/EC of the European Parliament and of the Council, economic operators and Member States competent authorities responsible for the disposal of products, pursuant to Article 20(4), point (c) shall dispose of the products concerned by recycling them or, when that is not possible, by rendering those products inoperable. In case of perishable products, the disposal shall be done by donating the products concerned for charitable or public interest purposes or, when that is not possible, by rendering those products inoperable.

Amendment 59

▌

Proposal for a regulation

~~Section II Customs authorities~~

Article 24 – paragraph 2

~~Article 26 Controls by customs authorities~~

Text proposed by the Commission

~~1. Products entering or leaving the Union market shall be subject to the controls and measures laid down in this Section.~~

Amendment

2. The application of this Section is without prejudice to any other Union legal acts governing customs risk management, customs controls and the release for free circulation of goods and export, in particular Regulation (EU) No 952/2013.

2. The Network shall be composed of representatives from each Member States’ competent authority, representatives from the Commission and, where appropriate, experts from the customs authorities.

3. The lead competent authority shall without delay communicate to the customs authorities of Member States decisions to prohibit the placing or making available of the products on the Union market and their export, pursuant to Article 20(4).

2. The Network shall be composed of representatives from each Member States’ competent authority, representatives from the Commission and, where appropriate, experts from the customs authorities, as well as representatives from third countries, economic operators, civil society organisations, or social partners - such as trade unions - following a comprehensive pre-screening of financial transparency, of which information should be made publicly available succeeding clearance.

4. Customs authorities shall rely on the decisions communicated pursuant to paragraph 3 to identify products that may not comply with the prohibition laid down in Article 3. For that purpose, they shall carry out controls on products entering or leaving the Union market based on risk management as laid down in Regulation (EU) No 952/2013.

Amendment 60

5. The lead competent authority shall without delay communicate to the customs authorities of Member States any withdrawal, as well as any changes of a decision referred to in Article 20(4) pursuant to Article 21.

Proposal for a regulation

▌

Article 24 – paragraph 3 – introductory part

~~Article 27 Additional information to be provided or made available to customs authorities~~

Text proposed by the Commission

1. The Commission is empowered to adopt delegated acts in accordance with Article 33 to supplement this Regulation by identifying the products or product groups for which the information referred to in paragraph 2 shall be provided to customs authorities. The products or product group concerned shall be chosen following a proportionate approach, building, amongst others, on the information available in the database, information encoded in the information and communication system, and substantiated information exchanged in the Network.

Amendment

2. The person intending to place a product covered by a delegated act adopted pursuant to paragraph 1 of this Article under the customs procedures ‘release for free circulation’ or ‘export’ shall provide or make available to customs authorities information identifying the product, information about the manufacturer or the producer and information about the product suppliers, unless the provision of such information is already required pursuant to customs legislation referred to in Article 5(2) of Regulation (EU) No 952/2013.

3. The Network shall have the following tasks:

3. The Commission may adopt implementing acts specifying the detailed arrangements for implementing paragraphs 1 and 2 of this Article, and defining the details of the information to be provided or made available to customs ▌ pursuant to paragraph 1.

3. The Network shall also have the following tasks:

~~4. Those implementing acts ▌ shall be adopted in accordance with the examination procedure pursuant to Article 35(2).~~

Amendment 61

5. Where a specific product has been identified in a decision referred to in Article 20(4), in order for the customs authorities to be able to act immediately on that specific product, the procedure provided for in Article 34 shall apply to delegated acts adopted pursuant to paragraph 1.

Proposal for a regulation

~~Article 28 Suspension~~

Article 24 – paragraph 3 – point b

Where customs authorities identify, through their relevant risk management system, a product entering or leaving the Union market that may, according to a decision communicated pursuant to Article 26(3), be in violation of Article 3, they shall suspend the release for free circulation or the export of that product. Customs authorities shall immediately notify the ▌ competent authorities of their respective Member State of the suspension and transmit all relevant information to enable them to establish whether the product is covered by a decision communicated pursuant to Article 26(3).

Text proposed by the Commission

~~Article 29 Release for free circulation or export~~

Amendment

1. Where the release for free circulation or the export of a product has been suspended in accordance with Article 28, the product shall be released for free circulation or exported where all the other requirements and formalities relating to such a release or export have been fulfilled and where either of the following conditions is satisfied:

(b) conduct joint investigations;

(a) within 4 working days of the suspension, if the competent authorities have not requested the customs authorities to maintain the suspension. In case of perishable products, animals and plants that time limit shall be 2 working days;

(b) conduct joint investigations, mandate research or monitor situation of wide-spread and systemic forced labour including in order to expand the database referred to in Article 11;

~~(b) the competent authorities informed the customs authorities of their approval for release for free circulation or export pursuant to this Regulation.~~

Amendment 62

~~2. The release for free circulation or export shall not be deemed proof of compliance with Union law and, in particular, with this Regulation.~~

Proposal for a regulation

~~Article 30 Refusal to release for free circulation or export~~

Article 24 – paragraph 3 – point d a (new)

1. Where the competent authorities conclude that a product that has been notified to them in accordance with Article 28 is a product made with forced labour pursuant to a decision referred to in Article 20, they shall require customs authorities not to release it for free circulation nor to allow its export.

Text proposed by the Commission

2. Competent authorities shall immediately enter that information in the information and communication system referred to in Article 7(1) and notify the customs authorities accordingly. Upon such notification, customs authorities shall not allow the release for free circulation or export of that product and shall also include the following notice in the customs data-processing system and, where possible, on the commercial invoice accompanying the product and on any other relevant accompanying document:

Amendment

~~‘Product made with forced labour - release for free circulation/export not authorised - Regulation (EU) …/…’ [OP to indicate reference of this Regulation].~~

(d a) detect any misalignments of the Regulation's enforcement among Member States due to a potential discrepancy of power for customs authorities in different Member States;

3. Where the release for free circulation or export of a product has been refused in accordance with paragraph 1, customs authorities shall dispose of the product concerned ▌ in accordance with national law in compliance with Union law. ▌

Amendment 63

4. Upon request of a competent authority and on behalf and under the responsibility of that competent authority, customs authorities may alternatively seize that product and put it at the disposal of and under the authority of that competent authority. In such cases, that competent authority shall take the necessary measures to ensure that the product concerned is disposed of in accordance with Article 25.

Proposal for a regulation

~~Article 31 Exchange of information and cooperation~~

Article 24 – paragraph 3 – point e a (new)

1. To enable a risk-based analysis for products entering or leaving the Union market and to ensure that controls are effective and performed in accordance with the requirements of this Regulation, the Commission, competent authorities and customs authorities shall cooperate closely and exchange risk-related information, in which the Commission will take on a coordination role.

Text proposed by the Commission

2. Cooperation among authorities and exchange of risk-related information necessary for the fulfilment of their respective functions under this Regulation, including through electronic means, shall take place in accordance with Regulation (EU) No 952/2013:

Amendment

~~(a) between customs authorities ▌ ;~~

(e a) provide systematic information and recommendations to the Commission and the European External Action Service in case of detection of forced labour practices ; involve the Union delegations, particularly in the specific geographical high-risk regions or countries where forced labour practices are systematic and widespread as listed in the database under Article 11, and monitor measures taken to support the implementation of this Regulation by addressing the root causes of forced labour;

~~(b) between competent authorities and customs authorities ▌ .~~

Amendment 64

~~Chapter VI Final provisions~~

Proposal for a regulation

~~Article 32 Confidentiality~~

Article 24 – paragraph 3 – point e b (new)

1. The competent authorities shall only use information received pursuant to this Regulation for the purpose of applying this Regulation, unless otherwise required by Union or national law in compliance with Union law.▌

Text proposed by the Commission

2. ▌The Commission, Member States and competent authorities shall treat the identity of those who provide information, or the information provided, as confidential, in accordance with Union or national law in compliance with Union law, unless stated otherwise by those who provided the information ▌ .

Amendment

3. Paragraph 2 shall not preclude the Commission from disclosing general information in a summary form, provided such general information does not contain any information which allows the identification of the provider of the information. Such disclosure of general information in a summary form shall take into account the legitimate interest of the parties concerned in preventing the disclosure of confidential information.

(e b) ensure good collaboration and exchange of information with authorities involved in implementing rules in relation to IUU-fishing and traceability for fisheries- and aquaculture products;

▌

Amendment 65

~~Article 33 ▌ Exercise of the Delegation~~

Proposal for a regulation

~~1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.~~

Article 24 – paragraph 3 – point f a (new)

~~2. The power to adopt delegated acts referred to in Article 27(1) shall be conferred on the Commission for an indeterminate period of time from … [date of entry force of this Regulation].~~

Text proposed by the Commission

3. The delegation of power referred to in Article 27(1) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

Amendment

4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

(f a) promote the cooperation and exchange of expertise and best practices with third countries and/or international entities on control, identification and eradication of forced labour.

~~5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.~~

Amendment 66

6. A delegated act adopted pursuant to Article 27(1) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

Proposal for a regulation

~~Article 34 Urgency procedure~~

Article 26 – paragraph 1

1. Delegated acts adopted under this Article shall enter into force without delay and shall apply as long as no objection is expressed in accordance with paragraph 2. The notification of a delegated act to the European Parliament and to the Council shall state the reasons for the use of the urgency procedure.

Text proposed by the Commission

2. Either the European Parliament or the Council may object to a delegated act in accordance with the procedure referred to in Article 33(6). In such a case, the Commission shall repeal the act immediately following the notification of the decision to object by the European Parliament or by the Council.

Amendment

~~Article 35 Committee procedure~~

1. In order to facilitate effective implementation and enforcement of this Regulation, the Commission may as appropriate cooperate, engage and exchange information with, amongst others, authorities of third countries, international organisations, civil society representatives and business organisations. International cooperation with authorities of third countries shall take place in a structured way as part of the existing dialogue structures with third countries or, if necessary, specific ones that will be created on an ad hoc basis.

~~1. The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of ▌ Regulation (EU) No 182/2011.~~

1. In order to facilitate effective implementation and enforcement of this Regulation, the Commission may as appropriate cooperate, engage and exchange information with, amongst others, authorities of third countries, international organisations, civil society representatives and business organisations. International cooperation with authorities of third countries, including non-cooperating third countries, shall take place in a structured way, together with the EEAS, as part of the existing dialogue structures with third countries or, if necessary, specific ones that will be created on an ad hoc basis with a view to effectively prevent, control, identify and eradicate violations of forced labour.

~~2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.~~

Amendment 67

~~3. Where reference is made to this paragraph, Article 8 of Regulation (EU) No 182/2011, in conjunction with Article 5 thereof, shall apply.~~

Proposal for a regulation

~~Article 36 Amendment to Directive (EU) 2019/1937~~

Article 30 a (new)

~~In Part I.C.1 of the Annex to Directive (EU) 2019/1937, the following point is added:~~

Text proposed by the Commission

~~‘(iv) Regulation (EU) …/… of the European Parliament and of the Council of ... on prohibiting products made with forced labour on the Union market and amending Directive (EU) 2019/1937.’.~~

Amendment

Article 3730 ~~Penalties~~a

1. ▌ Member States shall lay down the rules on penalties applicable to non-compliance with a decision referred to in Article 20 and shall take all measures necessary to ensure that they are implemented in accordance with national law.

Reporting and review

2. The penalties provided for shall be effective, proportionate and dissuasive. Competent authorities shall ensure that the penalties referred to in paragraph 1 give due regard to the following, as applicable:

1. Every two years, Member States shall transmit data to the Commission on the application of this Regulation no later than 30 April of the following calendar year. The data shall include, at least, the following information:

(a) the ~~gravity~~total ~~and~~budget ~~duration~~allocated for the application of the ~~infringement;~~Regulation;

~~(b) any relevant previous infringements by the economic operator;~~

(b) the number and type of complaints and submissions received;

~~(d) any other mitigating or aggravating factor applicable to the circumstances of the case, such as financial benefits gains, or losses avoided, directly or indirectly, from the infringement.~~

(d) the type and number of follow-up actions taken following the confirmed violations, including mitigation, prevention and remediation measures.

3. ▌ Member States shall, by ... [24 months from the date of entry into force of this Regulation], notify ▌ the Commission of those rules and of those measures, and shall notify it, without delay, of any subsequent amendment affecting them.

2. By [three years after the date of application] and every five years thereafter, the Commission shall carry out an evaluation of this Regulation taking account of its objectives and shall submit a report thereon to the European Parliament and to the Council. The report shall assess whether this Regulation achieved its objective, in particular with regard to reducing the number of products on the Union market made with forced labour, improving cooperation between competent authorities and strengthening the controls on products entering the Union market and the synergies with other Union legislations, such as Regulation (EC) No 1005/2008, Regulation (EC) No 1224/2009 and Regulation (EU) No 1379/2013, while taking into account the impact on business, in particular on SMEs. The report shall take into account the information received pursuant to paragraph one and shall include information on countries identified as non-cooperating, countries for which the status of non-cooperating has been lifted and any available information regarding the measures taken by these countries to remedy the situation.

~~4. Member States, when laying down rules on applicable penalties in accordance with paragraphs 1 and 2, shall take utmost account of the guidance referred to in Article 11.~~

3. The report shall be accompanied, where appropriate, by a legislative proposal.

~~Article 38 Evaluation and review~~

4. The Commission shall continuously monitor the implementation of this Regulation. The monitoring shall be based on a scientific and transparent methodology and shall take into account information provided by stakeholders.

1. By 2 years after the start of the application of this Regulation and every 5 years thereafter, the Commission shall carry out an evaluation of the enforcement and the implementation of the Regulation. The Commission shall present a report on the main findings to the European Parliament, the Council and to the European Economic and Social Committee. The evaluation shall in particular include an assessment of:

PROCEDURE – COMMITTEE ASKED FOR OPINION

(a) whether the mechanism in place effectively contributes to the objectives of the Regulation, as set out in Article 1, namely the elimination of products made with forced labour from the internal market and the contribution to fight forced labour;

Title

~~(b) the cooperation between competent authorities, including within the Network, as well as all other relevant authorities in applying the Regulation;~~

Prohibiting products made with forced labour on the Union market

~~(c) the effectiveness of international cooperation to contribute to the elimination of forced labour from global supply chains;~~

References

~~(d) the impact on businesses, and in particular on SMEs, including on their competitiveness of the procedures related to the investigations and decisions;~~

COM(2022)0453 – C9-0307/2022 – 2022/0269(COD)

~~(e) the cost of compliance for economic operators, and in particular for SMEs;~~

Committees responsible

~~(f) the overall cost-benefit and effectiveness of the prohibition.~~

Date announced in plenary

~~Where the Commission finds it appropriate, the report shall be accompanied by a legislative proposal for amendment of the relevant provisions of this Regulation.~~

INTA

~~2. The report shall also assess whether the scope should be enlarged to include services ancillary to the extraction, harvesting, production or manufacturing of products.~~

6.10.2022

3. As part of the assessment under paragraph 1, point (a), the report shall cover the impact of the Regulation on victims of forced labour, with particular regard to the situation of women and children. The assessment of this impact shall be based on regular monitoring of information from international organisations and relevant stakeholders.

IMCO

4. In its report, the Commission shall further assess the need for a specific mechanism to address and remediate forced labour, including an impact assessment for the implementation of such a mechanism.

6.10.2022

~~Article 39 Entry into force and date of application~~

Opinion by

~~This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.~~

Date announced in plenary

~~It shall apply from ... [36 months from the date of entry into force of this Regulation].~~

PECH

~~However, Articles 5(3), 7, 8, 9(2), 11, 33, 34, 35 and 37(3) shall apply from ... [date of entry into force of this Regulation].~~

15.12.2022

~~This Regulation shall be binding in its entirety and directly applicable in all Member States.~~

Rapporteur for the opinion

~~Done at ...,~~

Date appointed

~~For the European Parliament For the Council~~

Rosa D’Amato

~~The President The President~~

9.1.2023

Rule 58 – Joint committee procedure

Date announced in plenary

16.3.2023

Discussed in committee

24.5.2023

Date adopted

18.7.2023

Result of final vote

–:

Members present for the final vote

Clara Aguilera, François-Xavier Bellamy, Izaskun Bilbao Barandica, Isabel Carvalhais, Maria da Graça Carvalho, Asger Christensen, Rosanna Conte, Rosa D’Amato, Niclas Herbst, Ladislav Ilčić, France Jamet, Predrag Fred Matić, Francisco José Millán Mon, Ana Miranda, Caroline Roose, Bert-Jan Ruissen, Annie Schreijer-Pierik, Marc Tarabella

Substitutes present for the final vote

Ska Keller, Gabriel Mato, Stéphanie Yon-Courtin

Substitutes under Rule 209(7) present for the final vote

Elsi Katainen, Margarida Marques

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

Key to symbols: