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From · report parliamentary committee draft · 2023-04-28 CJ33-PR-746734 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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To · opinion parliamentary committee draft · 2023-03-06 DEVE-PA-742681 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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SHORT JUSTIFICATION

* Consultation procedure

The Union and other members of the international community have committed to eradicating forced labour by 2030, in line with the United Nations Agenda 2030. Yet, it is estimated that about 27.6 million people were in forced labour in 2021, including 3.9 million people in forced labour imposed by state authorities. Further action is needed to contribute to the fight against forced labour worldwide. In this context, the Commission proposal of 14 September 2022 seeks to prohibit products made with forced labour on the EU market.

*** Consent procedure

This Regulation represents a very important step forward in this area. As such, the Rapporteur welcomes the proposal and its overarching objective. Nevertheless, the Rapporteur believes that improvements are needed to ensure that the perspective of developing countries is taken into account, a matter of crucial importance for the credibility of the Union as a promoter of fundamental rights and values. The Rapporteur introduces a number of amendments to address this.

***I Ordinary legislative procedure (first reading)

The Rapporteur considers it crucial to ensure the coherence of this Regulation with the future Corporate Due Diligence legislation. In this sense, a series of amendments are proposed to stress the importance of the implementation of effective due diligence measures by the economic operators. In particular, the subject matter and the power of the competent authorities have been reinforced to reflect this approach. Additionally, definitions of forced labour risk areas and forced labour risk products have been included.

***II Ordinary legislative procedure (second reading)

For the victims of forced labour, the consequences and damage can be severe and last for generations. In order to ensure that the victims’ interests are put at centre of the Regulation, amendments that introduce the matter of remediation for affected workers are introduced, whereby proof of effective remediation for workers victims of forced labour is added as a condition for the withdrawal of the ban. As such, the amendments enable the Regulation to go beyond serving as a vehicle for consumer information to respond to the needs of affected workers and encourage effective preventive measures.

***III Ordinary legislative procedure (third reading)

Amendments have also been introduced to formalise the inclusion of civil society organisations as well as trade unions and other workers’ representatives, who promote, represent or defend the issues related to the Regulation. In order to avoid any negative consequences of decisions, it is crucial that the competent authorities listen to those potentially affected. As such, an assessment of the impacts on affected workers and partner countries of any decision to be adopted shall be carried out with the meaningful engagement of relevant stakeholders.

~~(The type of procedure depends on the legal basis proposed by the draft act.)~~

With the end-goal being the eradication of forced labour, a set of amendments are introduced to increase the transparency of value chains and balance the burden of proof. To this purpose, an Article is introduced to ensure that companies map their value chain and publicly disclose relevant information on their value chain, as the complexity of global value chains make it difficult for authorities alone to reach sufficient standard of proof.

~~Amendments to a draft act~~

In order to facilitate the submission of complaints on alleged violations to the legislation, amendments state that the Commission shall establish a centralised mechanism to receive complaints by any stakeholder, where complaints may be lodged anonymously.

~~Amendments by Parliament set out in two columns~~

Finally, the Rapporteur has also suggested amendments to ensure that stakeholders are provided with information and effective support to exercise the rights provided to them in the Regulation. Furthermore, the Rapporteur suggests that the Commission should provide guidelines in order to support stakeholders to participate and meaningfully engage in the procedure, as well as to support companies to fulfil their obligations.

~~Deletions are indicated in bold italics in the left-hand column. Replacements are indicated in bold italics in both columns. New text is indicated in bold italics in the right-hand column.~~

AMENDMENTS

The first and second lines of the header of each amendment identify the relevant part of the draft act under consideration. If an amendment pertains to an existing act that the draft act is seeking to amend, the amendment heading includes a third line identifying the existing act and a fourth line identifying the provision in that act that Parliament wishes to amend.

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

~~Amendments by Parliament in the form of a consolidated text~~

New text is highlighted in bold italics. Deletions are indicated using either the ▌symbol or strikeout. Replacements are indicated by highlighting the new text in bold italics and by deleting or striking out the text that has been replaced.

~~By way of exception, purely technical changes made by the drafting departments in preparing the final text are not highlighted.~~

~~DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION~~

~~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~~

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

~~(Ordinary legislative procedure: first reading)~~

~~– having regard to the Commission proposal to Parliament and the Council (COM(2022)0453),~~

– having regard to Article 294(2) and Articles 114 and 207 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C90307/2022),

~~– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,~~

~~– having regard to the opinion of the European Economic and Social Committee of 24 January 2023,~~

~~– having regard to Rule 59 of its Rules of Procedure,~~

~~– having regard to the joint deliberations of the Committee on International Trade and the Committee on the Internal Market and Consumer Protection under Rule 58 of the Rules of Procedure,~~

–– having regard to the opinions of the Committee on Foreign Affairs, the Committee on Employment and Social Affairs, the Committee on Development, the Committee on Fisheries and the Committee on Legal Affairs,

~~– having regard to the report of the Committee on International Trade and the Committee on the Internal Market and Consumer Protection (A90000/2023),~~

~~1. Adopts its position at first reading hereinafter set out;~~

~~2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;~~

~~3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.~~

Amendment 1

Proposal for a regulation

Recital 32

Text proposed by the Commission

Amendment

(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

(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. Even when it is not state imposed, forced labour is often a consequence of a lack of good governance of certain economic operators.

(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, including 3.9 million people in forced labour imposed by state authorities.18 Vulnerable and marginalised groups in a society are particularly susceptible to be pressured into performing forced labour. Even when it is not state imposed, forced labour is often a consequence of a lack of good governance of certain economic operators.

__________________

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

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

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

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

Or. en

Proposal for a regulation

~~Recital 6~~

Recital 2 a (new)

Text proposed by the Commission

Amendment

(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. Moreover, unilateral trade preferences under the Union’s General Scheme of Preferences could be withdrawn for serious and systematic violations of ILO Convention No. 29 and ILO Convention No. 105.

(2 a) The Union and other members of the international community have committed to eradicating forced labour by 2030 in line with the target 8.7 of the United Nations Sustainable Development Goals. They have therefore pledged their commitment to take effective measures to eradicate forced labour.

(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 chapters and provisions establish a gender lens that is essential for the economic empowerment of women in order to combat gendered forced labour. Moreover, unilateral trade preferences under the Union’s General Scheme of Preferences could be withdrawn for serious and systematic violations of ILO Convention No. 29 and ILO Convention No. 105.

Or. en

Proposal for a regulation

~~Recital 6 a (new)~~

Recital 3

Text proposed by the Commission

Amendment

(6a) 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 should therefore aim to achieve the objectives of 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, the ILO Convention 169, as well as other relevant international agreements and conventions.

(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

(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. Furthermore, in its relations with the wider world, the Union should uphold and promote its values and contribute to the protection of human rights, in particular the rights of the child, as well as the strict observance and the development of international law in accordance with Article 3(5) of the Treaty on European Union. The respect, promotion and protection of human rights constitute an objective of the development cooperation which shall be taken into account in the policies that the Union implements which are likely to affect developing countries in accordance with Article 208 of the Treaty on the Functioning of the European Union. Moreover, 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

__________________

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

Or. en

Proposal for a regulation

Recital 168

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.

(8) [In particular, Directive 20XX/XX/EU on Corporate Sustainability Due Diligence sets out horizontal due diligence obligations to identify, prevent, mitigate and account for actual and potential adverse impacts on human rights, including forced labour, and the environment in the company’s own operations, its subsidiaries and in its value chains, in accordance with international human and labour rights standards and environmental conventions. Those obligations apply to large companies over a certain threshold in terms of number of employees and net turnover, and to smaller companies in high-impact sectors over a certain threshold in terms of number of employees and net turnover.22 ] In order to ensure coherence with this Directive, the current Regulation reinforces the subject matter by including a concrete reference to the due diligence measures, introduces some definitions such as ‘stakeholders’, ‘value chain’ or ‘forced labour risks products’, while emphasising the adoption of due diligence measures by the economic operator as instrumental to achieve an effective implementation of the Regulation. The Regulation will therefore complement the EU toolbox of legislation and policy to address the root causes of forced labour, including the due diligence legislation.

__________________

22 Directive 20XX/XX/EU of the European Parliament and of the Council on Corporate Sustainability Due Diligence and amending Directive (EU) 2019/1937, OJ XX, XX.XX.20XX, p. XX.

Or. en

Proposal for a regulation

Recital 1810

Text proposed by the Commission

Amendment

(10) Articles [XX] of Directive 2013/34/EU of the European Parliament and of the Council require 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.26 [Furthermore, Directive 20XX/XX/EU on Corporate Sustainability Reporting puts forward 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.27 ]

(18) 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 how to submit information and on how to engage in dialogue with competent authorities in order to help economic operators, 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. 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.

(10) Articles [XX] of Directive 2013/34/EU of the European Parliament and of the Council require 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.26 [Furthermore, Directive 20XX/XX/EU on Corporate Sustainability Reporting puts forward detailed reporting requirements for covered companies regarding the respect of human rights, including in global value chains. The information that undertakings disclose about human rights should include, where relevant, information about forced labour in their value chains.27 ]

__________________

26 Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups, OJ

27 Directive 20XX/XX/EU of the European Parliament and of the Council amending Directive 2013/34/EU, Directive 2004/109/EC, Directive 2006/43/EC and Regulation (EU) No 537/2014, as regards corporate sustainability reporting, OJ XX, XX.XX.20XX, p. XX.

Or. en

Proposal for a regulation

Recital 1918

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 human and financial resources and that their staff has the necessary competences and knowledge, especially with regard to human rights, labour rights, gender equality, 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.

(18) 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 and refer to remediation measures. In addition, the Commission should issue guidelines on forced-labour risk indicators, on publicly available information and on value chain mapping in order to help SMEs, as well as other economic operators, to comply with the requirements of the prohibition. The Commission should also issue guidelines for stakeholders on filing a complaint and meaningfully engage in the procedures set out in the Regulation.

Or. en

Proposal for a regulation

Recital 2119

Text proposed by the Commission

Amendment

(21) When identifying potential violations of the prohibition, the competent authorities should follow a risk-based approach and assess all information available to them. 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, they establish that there is a substantiated concern of a violation of the prohibition. Before initiating an investigation, competent authorities should be able to request additional information from economic operators under assessment but also from other relevant stakeholders, including the persons or associations having submitted relevant information to competent authorities and any other stakeholder working on the products or regions related to the assessment, as well as from diplomatic representations of the Union in relevant third countries.

(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, expertise and knowledge, especially with regard to human rights, forced labour, 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.

Or. en

Proposal for a regulation

Recital 2220

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.

(20) 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.

(22) 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 value 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 value chains. Appropriate due diligence could mean 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, 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 and ensures remediation of forced labour and its victims, no investigation should be initiated.

(20) In order to increase the effectiveness of the prohibition, competent authorities should grant reasonable time to economic operators to identify, prevent, mitigate, remediate and bring to an end the risk of forced labour.

Or. en

Proposal for a regulation

~~Recital 23 a (new)~~

Recital 26

Text proposed by the Commission

Amendment

~~(23a)~~(26) ~~Considering~~Competent ~~the~~authorities ~~robust~~should ~~amount~~bear ofthe ~~evidence~~burden ~~available~~of ~~regarding~~establishing that forced labour ~~cases,~~has inbeen ~~particular~~used ~~products,~~at ~~regions~~any orstage ~~sectors,~~of ~~competent~~production, ~~authorities~~manufacture, ~~should,~~harvest ~~after~~or aextraction ~~risk-assessment,~~of ~~focus~~a ~~their~~product, ~~investigations~~including onworking ~~situations~~or ~~that~~processing ~~present~~related ato ~~higher~~the ~~risk~~product ofon ~~use~~the basis of ~~forced~~all ~~labour~~information and ~~that~~evidence ~~have~~gathered anduring ~~increased~~the ~~societal~~investigation, ~~and~~including ~~economic~~its ~~impact,~~preliminary ~~due~~phase. toTo ~~the~~ensure ~~large~~their ~~dimension~~right ofto due process, economic operators orshould ~~their~~have ~~presence~~the opportunity to provide information in atheir ~~large~~defence ~~number~~to ofthe ~~supply~~competent ~~chains.~~authorities throughout the investigation.

(26) Competent authorities should primarily 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.

Or. en

Proposal for a regulation

Recital 2526 a (new)

Text proposed by the Commission

Amendment

(25a) The Commission should call upon external expertise to provide an indicative, non-exhaustive, verifiable and regularly updated database of forced labour risks in specific geographic areas or with respect to specific products including with regard to forced labour imposed by state authorities. The database should be based on independent and verifiable information, including reports from international organisations, in particular the International Labour Organization, civil society, business organisations, social partners, and experience from implementing Union law setting out due diligence requirements with respect to forced labour. The database should include a list of all open investigations and a list of all decisions of competent authorities, including information on the provision of remediation of forced labour cases that enabled the withdrawal of the ban.

(26 a) The Commission, after consultation with competent authorities and other stakeholders, should be empowered to declare a presumption of forced labour for products and production sites included in the forced labour risk areas or products database. In these cases, competent authorities should immediately declare that there is a substantiated concern of a violation of the prohibition. Competent authorities should then inform the economic operator and provide a time limit for the economic operator to demonstrate that the products concerned are free of forced labour and that due diligence measures, including remediation, have been implemented. During the investigation phase, the competent authority shall take necessary precautionary measures, including a temporary suspension of the circulation on the Union market of the products concerned to ensure the effectiveness of its final decision.

Or. en

Proposal for a regulation

~~Recital 25 b (new)~~

Recital 32

Text proposed by the Commission

Amendment

(25b) Where there is clear and reliable evidence that specific products produced in specific geographic areas present a high risk of having been made with forced labour, experts should be able to identify those products as “high risk products”. For those specific products, economic operators should bear the burden of establishing that forced labour has not been used at any stage of production, manufacture, harvest, extraction, packaging, transportation or distribution of a product, including working or processing related to the product.

(32) The Commission should establish a centralised mechanism to receive complaints by any stakeholders who consider that products made with forced labour are placed and made available on the Union market. Complaints may be lodged anonymously. The complaint mechanism should be secure and accessible. The stakeholders should be informed of the outcome of the assessment of their complaints, as well as all the decisions made by competent authorities, referring to their complaints.

Or. en

Proposal for a regulation

~~Recital 26~~

Recital 32 a (new)

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.

(32 a) It is estimated that about 11.8 million women and girls were in forced labour in 2021, which represents almost 43% of the total.1a It is therefore fundamental to ensure that this Regulation is implemented in a gender-responsive manner. Human rights violations are not gender neutral and should not be treated as such. Women are often disproportionately affected by adverse business practices, which requires a specific response to their needs. Competent authorities should apply a gender lens throughout all of the steps of the Regulation prohibiting products made with forced labour on the Union market, collect gender-disaggregated data and encourage economic operators to provide the requested information in a gender-sensitive way.

(26) Competent authorities should bear the burden of establishing that forced labour has been used at any stage of production, manufacture, harvest, extraction, packaging, 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.

__________________

1a The 2021 Global Estimates of Modern Slavery, https://www.ilo.org/wcmsp5/groups/public/---ed_norm/---ipec/documents/publication/wcms_854733.pdf.

Or. en

Proposal for a regulation

Recital 2735

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.

(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.

(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 donate the products to charitable or public interest purposes. If such products cannot be donated, economic operators 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.

Or. en

Proposal for a regulation

Recital 3044

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 are donated to charitable or public interest purposes. If such products cannot be donated, economic operators 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 at the expense of the economic operators.

(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, trade unions and other workers’ representatives, civil society representatives, international organisations and third countries’ competent authorities. The European Agency for Fundamental Rights, the European Labour Authority and other Union agencies with relevant expertise in the areas covered by the Regulation should also be invited to join the Network. 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.

Or. en

Proposal for a regulation

~~Recital 32~~

Article 1 – paragraph 1

Text proposed by the Commission

Amendment

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.

(32) 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 should be addressed to one or more competent authorities. Adequate protection measures should be put in place to ensure the safety of any person associated with the submission or the information contained within it, including from retaliation and reprisals. To ensure ease of use for the submission of information and the standardisation of the information provided, the Commission should set up a mechanism for the submission of information, available in all official languages of the institutions of the Union, and free of charge, and ensure that it is user-friendly.

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 and (thereby) ensuring that economic operators eradicate the use of forced labour in the production sites in their value chain by implementing effective due diligence measures.

Or. en

Justification

Coherence with CSDDD is ensured by explicit reference for economic operators to implement effective due diligence measures to eradicate forced labour in the production sites in their value chain.

Amendment 16

Proposal for a regulation

~~Recital 37~~

Article 2 – paragraph 1 – point c

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.

(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;

(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 donated to charitable or public interest purposes. If such products cannot be donated, they should be recycled, and if that is not possible, they 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.

(c) ‘due diligence in relation to forced labour’ means the efforts by economic operator to respect and ensure the respect of workers’ rights and children’s rights in their operations and products value chain and implement mandatory due diligence requirements as provided by the Union and Member States legislation, voluntary guidelines, recommendations or practices to identify, prevent, mitigate, remediate and bring to an end the use of forced labour in their operations and value chain with respect to products that are to be made available on the Union market or to be exported;

Or. en

Justification

In order to ensure coherence with the current proposal on CSDDD, it seems crucial to adapt the definition of due diligence in relation to forced labour in order to reflect that due diligence entails the respect of human rights.

Amendment 17

Proposal for a regulation

~~Recital 44~~

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;

(44) To ensure effective enforcement of the prohibition, it is necessary to establish a network aimed at structured coordination and cooperation between the Commission, the competent authorities of the Member States and, where appropriate, experts from customs authorities. 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, facilitate capacity building activities, such as the organisation of training programmes for competent authorities and other relevant stakeholders, promote exchanges of personnel between competent authorities and, where appropriate, with the authorities of partner third countries or with international organisations, assist in the organisation of information campaigns and voluntary mutual visit programmes between competent authorities, involve and facilitate the diplomatic representations of the Union to assist in the information gathering efforts of this Regulation. The administrative support structure to be provided by the Commission 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.

(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 or transported including working or processing related to a product at any stage of its value chain;

Or. en

Proposal for a regulation

~~Recital 44 a (new)~~

Article 2 – paragraph 1 – point g

Text proposed by the Commission

Amendment

(44a) The Commission should ensure the effective and uniform application of this Regulation and to that effect support and encourage cooperation between enforcement authorities through the Network. Furthermore, the Commission should set up a harmonised approach for penalties, and, in particular, it should lay down harmonised rules on penalties applicable to non-compliance with the decision of competent authorities.

(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;

(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, manufacture or transport including working or processing related to a product at any stage of its value chain;

Or. en

Proposal for a regulation

~~Recital 48 a (new)~~

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

Text proposed by the Commission

Amendment

(48a) The Commission should carry out an evaluation of this Regulation in light of the objective it pursues, and should submit a report thereon to the European Parliament, to the Council and to the European Economic and Social Committee. The report should 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, while taking into account the impact on business, in particular on SMEs.

(g a) ‘value chain’ has the meaning attributed to it in Article 3 of the Directive 20XX/XX/EU on Corporate Sustainability Due Diligence of the European Parliament and of the Council;

Or. en

Justification

Coherence with the CSDDD requires the inclusion of the concept of value chain with an expressed reference to the CSDDD proposal.

Amendment 20

Proposal for a regulation

Article 2 – paragraph 1 – point ~~b a (new)~~k

Text proposed by the Commission

Amendment

(ba) ‘remediation’ means both the process of providing remedy for a negative human rights impact and the substantive outcomes that can counteract, or make good, the negative impact, such as apologies, restitution, rehabilitation, financial or non-financial compensation, and punitive sanctions, whether criminal or administrative, such as fines, as well as the prevention of harm through, for example, injunctions or guarantees of non-repetition;

(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;

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

Or. en

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(m a) ‘stakeholders’ means:

(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, transported or distributed, including working or processing related to a product at any stage of its supply chain;

(i) the economic operator’s employees, the employees of its subsidiaries and value chains’ workers, including smallholders and informal workers’ and other individuals, groups, communities or entities, civil society organisations, as well as trade unions and other workers’ representatives, whose rights or interests are or could be affected by the use of forced labour by the economic operator, its subsidiaries and its business relationships, including through the value chain;

(ii) other legal or natural persons engaging, promoting, representing, protecting and defending, as part of their statutory purpose or otherwise, issues related to this Regulation;

Or. en

Justification

In order to ensure the coherence with the CSDDD, it is necessary to introduce the concept of stakeholder for this Regulation. In this sense, the Regulation will enjoy more legal clarity, facilitating the identification of those entitled to exercise the rights recognised to them in this legal act.

Amendment 22

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(u a) ‘forced labour risks areas’ means those countries or regions where there is evidence of wide-spread forced labour, including state-imposed forced labour, in an entire product group or product site in a specific industry included in the database of Article 11;

(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, manufacture, packaging, transport or distribution, including working or processing related to a product at any stage of its supply chain;

Or. en

Justification

In order to ensure the internal coherence of the Regulation, a definition of forced labour risks areas has been included.

Amendment 23

Proposal for a regulation

Article 2 – paragraph 1 – point ku b (new)

Text proposed by the Commission

Amendment

(u b) ‘forced labour risks products’ means those products coming from the forced labour risks areas, as well as products linked to high risks sectors of economic activity identified by the Directive 20XX/XX/EU on Corporate Sustainability Due Diligence of the European Parliament and of the Council and included in the database of Article 11.

(k) ‘product supplier’ means any natural or legal person or association of persons in the supply chain who extracts, harvests, produces, manufactures, packs, 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;

Or. en

Justification

In order to ensure the internal coherence of the Regulation, a definition of forced labour risks products has been included. This definition also refers to the products linked to high risks sectors foreseen in the CSDDD proposal thereby ensuring coherence with this legislation.

Amendment 24

Proposal for a regulation

Article 24 – paragraph 1 – ~~point m a~~introductory ~~(new)~~part

Text proposed by the Commission

Amendment

(ma) ‘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;

1. Competent authorities shall follow a risk-based approach in assessing the likelihood that economic operators violated Article 3. That assessment shall be based on all relevant information available to them, including the following information:

1. Competent authorities shall follow a risk-based approach in assessing the likelihood that economic operators violated Article 3. That assessment shall be done with reference to the indicators of forced labour set out by the International Labour Organization which shall be detailed by the Commission in accordance with Article 23 and shall be based on all relevant information available to them, including the following information:

Or. en

Proposal for a regulation

Article 4 – paragraph 1 – point ba

Text proposed by the Commission

Amendment

~~(b) the risk indicators and other information pursuant to Article 23, points (b) and (c);~~

(a) submissions made by natural or legal persons or any association not having legal personality pursuant to Article 10;

~~deleted~~

(a) complaints made by stakeholders pursuant to Article 10;

Or. en

Proposal for a regulation

Article 4 – paragraph 1 – point ~~e a (new)~~c

Text proposed by the Commission

Amendment

~~(ea) any issues arising from meaningful consultation with relevant stakeholders.~~

Or. en

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.

2. In their assessment of the likelihood that economic operators violated Article 3, competent authorities shall focus on the economic operators ~~and relevant product suppliers~~ 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,~~occur, the quantity of products concerned, as well as the scale of suspected forced labour.

Or. en

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:

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

Or. en

Proposal for a regulation

Article 4 – paragraph 3 – ~~subparagraph 1 a~~point ~~(new)~~d

Text proposed by the Commission

Amendment

Competent authorities may request information on those actions from other relevant stakeholders, including the persons or associations having submitted relevant information pursuant to Article 10 and any other stakeholder working on the products or regions related to the assessment, as well as from diplomatic representations of the Union in relevant third countries.

(d) any other due diligence in relation to forced labour.

(d) any other due diligence requirements in relation to forced labour.

Or. en

Proposal for a regulation

Article 4 – paragraph 46

Text proposed by the Commission

Amendment

4. Economic operators shall respond to the request of the competent authority referred to in paragraph 3 within 15 working days from the day they received such request. Economic operators may provide to competent authorities any other information they may deem useful for the purposes of this Article.

4. Economic operators and relevant product suppliers shall respond to the request of the competent authority referred to in paragraph 3 within 15 working days from the day they received such request. Economic operators may provide to competent authorities any other information they may deem useful for the purposes of this Article.

6. The competent authority shall duly take into account where the economic operator demonstrates that it carries out due diligence on the basis of identified forced labour impact in its value chain, adopts and carries out measures suitable and effective for bringing to an end forced labour and provide remediation in a short period of time. The competent authority shall declare that there is a substantiated concern of violation of Article 3 when the economic operator does not demonstrate that forced labour was eradicated and remediation provided once this period of time has expired.

Or. en

Proposal for a regulation

Article 4 – paragraph 56 a (new)

Text proposed by the Commission

Amendment

5. Within 30 working days from the date of receipt of the information submitted by economic operators pursuant to paragraph 4, the 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 paragraph 1 and the information submitted by economic operators pursuant to paragraph 4.

6 a. The competent authority shall declare that there is a substantiated concern of violation of Article 3 for the products presumed of being made with forced labour in accordance with Article 11.

5. Within 30 working days from the date of receipt of the information submitted by economic operators and relevant product suppliers pursuant to paragraph 4, the 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 paragraph 1 and the information submitted by economic operators pursuant to paragraph 4.

Or. en

Justification

With regards to the products presumed made with forced labour, the procedure should be simplified meaning the competent authority shall immediately declare that there is a substantiated concern in order to initiate the investigation phase.

Amendment 32

Proposal for a regulation

Article 4 – paragraph ~~5 a (new)~~7

Text proposed by the Commission

Amendment

5a. Notwithstanding paragraph 5, competent authorities may conclude that there is substantiated concern, on the basis of any other facts available where it was not possible to gather information and evidence pursuant to Article 4(4).

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.

Or. en

Proposal for a regulation

Article 45 – paragraph 61

Text proposed by the Commission

Amendment

1. Competent authorities that, pursuant to Article 4(5), determine that there is a substantiated concern of a violation of Article 3, shall decide to initiate an investigation on the products and economic operators concerned.

~~deleted~~

1. Competent authorities that, pursuant to Article 4(5), determine that there is a substantiated concern of a violation of Article 3, and in cases provided for in Article 4(5a), shall decide to initiate an investigation on the products and economic operators concerned.

Or. en

Proposal for a regulation

Article 45 – paragraph 73 – introductory part

Text proposed by the Commission

Amendment

3. Where requested to do so by competent authorities, economic operators under investigation shall submit to those competent authorities any information that is relevant and necessary for the investigation, including information identifying the products under investigation, the manufacturer or producer of those products and the product suppliers. In requesting such information, competent authorities shall to the extent possible:

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, 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 3 being applied in a way that mitigates, prevents and brings to an end the risk of forced labour and remediates forced labour cases.

3. Where requested to do so by competent authorities, economic operators under investigation shall submit to those competent authorities any complete and substantive evidence that is relevant and necessary for the investigation, including information identifying the products under investigation, the manufacturer or producer of those products and the product suppliers. In requesting such information, competent authorities shall to the extent possible:

Or. en

Proposal for a regulation

Article 5 – paragraph 13 – point b

Text proposed by the Commission

Amendment

(b) 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.

1. Competent authorities that, pursuant to Article 4(5) or to the information contained in the database referred to in Article 11, determine that there is a substantiated concern of a violation of Article 3, shall decide to initiate an investigation on the products and economic operators concerned.

(b) take into account the size and economic resources of the economic operators, the quantity of products concerned, the scale of suspected forced labour, as well as the context in which those economic operators, their subsidiaries and their business partners operate, in particular in developing countries.

Or. en

Proposal for a regulation

Article 5 – paragraph ~~2 – point d~~4 a (new)

Text proposed by the Commission

Amendment

~~(da) the requirement for the economic operator to demonstrate that Article 3 has not been violated with regard to cases included in the database referred to in Article 11(1b).~~

4 a. In the case of the products presumed made with forced labour in accordance with Article 11, the competent authority shall inform the economic operator and provide a time limit for the economic operator to demonstrate that the products concerned are free of forced labour and that appropriate due diligence measures, including remediation, have been effectively implemented.

Or. en

Justification

The procedure designed in this Regulation has introduced a presumption of forced labour for certain products appearing in the future database that the Commission will create. Consequently, the procedure must allow the possibility for the operator to rebut this presumption.

Amendment 37

Proposal for a regulation

Article 5 – paragraph ~~3 –~~5 ~~introductory~~a ~~part~~(new)

Text proposed by the Commission

Amendment

5 a. During the investigation phase, the competent authority shall take necessary precautionary measures, including a temporary suspension of the circulation on the Union market of the products concerned to ensure the effectiveness of its final decision.

3. Where requested to do so by competent authorities, economic operators under investigation and relevant product suppliers shall submit to those competent authorities any information that is relevant and necessary for the investigation, including information identifying the products under investigation, the manufacturer or producer of those products and the product suppliers. In requesting such information, competent authorities shall to the extent possible:

Or. en

Justification

In order to guarantee the effectiveness of the Regulation, it shall envisage the adoption of precautionary measures. In particular, for the products already on the Union market and subject of investigation such as the suspension of their circulation on the market during the investigation phase. This would prevent that products already on the market can be readily rerouted to other markets.

Amendment 38

Proposal for a regulation

Article 5 – paragraph ~~3 –~~5 ~~point~~b a(new)

Text proposed by the Commission

Amendment

~~(a) prioritise the economic operators under investigation involved in the steps of the value chain as close as possible to where the likely risk of forced labour occurs and~~

5 b. Once the competent authority initiates an investigation it shall assess the possible impacts of any decision to be adopted pursuant Article 6(4) on the affected workers and partner countries. That assessment shall be carried out with the meaningful engagement of relevant stakeholders, as well as in consultation with authorities of the affected or potentially affected third countries, and in particular developing countries.

(a) prioritise the economic operators under investigation and relevant product suppliers involved in the steps of the value chain as close as possible to where the likely risk of forced labour occurs and

Or. en

Justification

The quality of legislation affecting developing countries is determined, among other parameters, by its legitimacy and effectiveness, which in turn depend on how responsive that legislation is to the needs of the countries concerned and whether its implementation achieves the desired results without causing harm (EP resolution on better regulation, p. 22). In order to avoid any negative consequences of the decisions, it is crucial for the competent authorities to listen to those potentially affected.

Amendment 39

Proposal for a regulation

Article 5 – paragraph 46

Text proposed by the Commission

Amendment

~~4. Economic operators shall submit the information within 15 working days from the request referred to in paragraph 3 or make a justified request for an extension of that time limit.~~

6. Competent authorities may carry out all necessary checks and inspections including investigations in third countries, provided that the economic operators concerned give their consent and that the government of the Member State or third country in which the inspections are to take place has been officially notified and raises no objection.

4. Economic operators and relevant product suppliers shall submit the information within 15 working days from the request referred to in paragraph 3 or make a justified request for an extension of that time limit.

6. Competent authorities may carry out all necessary checks and inspections including investigations in third countries, without prior warning to the economic operators concerned, except where prior notification is necessary in order to ensure the effectiveness of the checks and inspections, and provided that the government of the Member State or third country in which the inspections are to take place has been officially notified and raises no objection.

Or. en

Proposal for a regulation

Article 56 – paragraph 64 a (new)

Text proposed by the Commission

Amendment

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

4 a. Taking into account the outcome of the consultation process with stakeholders referred to Article 5(5b), as well as other information gathered during the investigation, the competent authority shall be empowered to adopt a decision requesting the economic operator to urgently adopt and implement effective due diligence measures to prevent, mitigate, remediate and bring to an end forced labour in their product value chain.

Or. en

Proposal for a regulation

Article 6 – paragraph 16

Text proposed by the Commission

Amendment

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).

6. Where economic operators provide evidence to the competent authorities that they have complied with the decision referred to in paragraph 4, and that they have eliminated forced labour from their operations or supply chain with respect to the products concerned, the competent authorities shall withdraw their decision for the future and inform the economic operators.

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).

6. Where economic operators provide evidence to the competent authorities that they have complied with the decision referred to in paragraphs 4 and 4 a, and that they have eliminated forced labour from their operations or value chain with respect to the products concerned, the competent authorities shall withdraw their decision for the future and inform the economic operators.

Or. en

Proposal for a regulation

Article 67 – paragraph 21 – point a

Text proposed by the Commission

Amendment

2. Notwithstanding paragraph 1, 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 5(3) or (6).

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

(a) the findings of the investigation and the information underpinning the findings, including the due diligence measures that the economic operator must implement and the potential impacts of competent authority decisions;

Or. en

Proposal for a regulation

Article 67 – paragraph 21 a– ~~(new)~~point b

Text proposed by the Commission

Amendment

~~2a. Notwithstanding paragraph 1, for cases included in the database referred to in Article 11(1b), economic operators shall demonstrate that Article 3 has not been violated.~~

(b) a reasonable time limit for the economic operators to comply with the order, which shall not be less than 30 working days and no longer than necessary to withdraw the respective products. When setting such a time limit, the competent authority shall take into account the economic operator’s size and economic resources. Appropriate time limit shall be set up for the operator to effectively implement the due diligence measures foreseen in Article 6(4a), including the provision of remediation to affected workers;

Or. en

Proposal for a regulation

Article 69 – paragraph ~~4 – point c~~2

Text proposed by the Commission

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.~~

2. The Commission shall make available the decisions, and the withdrawals referred to in the paragraph 1, points (c), (d), (e) and (g) on a dedicated website.

~~(c) an order for the economic operators that have been subject to the investigation to:~~

2. The Commission shall make available the decisions, and the withdrawals referred to in the paragraph 1 on a dedicated website.

Or. en

Proposal for a regulation

~~Article 6 – paragraph 4 – point c – point i (new)~~

Article 10 – title

Text proposed by the Commission

Amendment

~~i) donate the products concerned to charitable organisations or organisations that benefit public interest;~~

Submission of information regarding violations of Article 3

Complaint procedure regarding violations of Article 3

Or. en

Justification

The European Parliament in its resolution of 9 June 2022 on a new trade instrument to ban products made by forced labour (paragraph 7) called for a formalised and secure complaints procedure such as through the Single Entry Point. This complaint system will facilitate the clear identification of the system by any stakeholders concerning the possibility to file complaints.

Amendment 46

Proposal for a regulation

Article 610 – paragraph ~~4 – point c – point ii~~-1 (new)

Text proposed by the Commission

Amendment

~~ii) where donation is not possible, recycle the products concerned;~~

-1. The Commission shall establish a centralised mechanism to receive complaints by any stakeholder on alleged violations of Article 3. Complaints may be lodged anonymously. The complaint mechanism should be secure and accessible.

Or. en

Proposal for a regulation

Article 610 – paragraph ~~4 – point c – point iii (new)~~1

Text proposed by the Commission

Amendment

~~iii) where points (i) and (ii) are not possible, dispose of the products concerned in accordance with national law consistent with Union law.~~

1. Submissions of information by any natural or legal person or any association not having legal personality, to competent authorities on alleged violations of Article 3 shall contain information on the economic operators or products concerned and provide the reasons substantiating the allegation.

1. Complaints shall contain information on the economic operators or products concerned and provide the reasons substantiating the allegation.

Or. en

Proposal for a regulation

Article 610 – paragraph ~~5 –~~1 ~~point~~a c(new)

Text proposed by the Commission

Amendment

~~(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.~~

1 a. The Commission shall determine the rules and procedures to assign complaints to the competent authorities.

~~(c) that any product remaining with the economic operator concerned is:~~

Or. en

Proposal for a regulation

Article 610 – paragraph ~~5 – point c – point i (new)~~2

Text proposed by the Commission

Amendment

~~i) donated to charitable organisations or organisations that benefit public interest;~~

2. The competent authority shall, as soon as possible, inform the person or association referred to in paragraph 1 of the outcome of the assessment of their submission.

2. The competent authority shall, as soon as possible, inform the stakeholder referred to in paragraph 1 of the outcome of the assessment of their complaint, as well as all the decisions referred to in Article 9.

Or. en

Proposal for a regulation

Article 610 – paragraph ~~5 – point c – point ii (new)~~3

Text proposed by the Commission

Amendment

~~ii) where donation is not possible, recycled;~~

3. Directive (EU) 2019/1937 of the European Parliament and of the Council39 shall apply to the reporting of all breaches of this Regulation and the protection of persons reporting such breaches.

3. Directive (EU) 2019/1937 of the European Parliament and of the Council39 shall apply to the reporting of all breaches of this Regulation and the protection of stakeholders reporting such breaches.

__________________

39 Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law, OJ L 305, 26.11.2019, p. 17.

Or. en

Proposal for a regulation

~~Article 6 – paragraph 5 – point c – point iii (new)~~

Article 11 – title

Text proposed by the Commission

Amendment

~~iii) where points (i) and (ii) are not possible, disposed of in accordance with national law consistent with Union law at the expense of the economic operator.~~

Database of forced labour risk areas or products

Forced labour risk areas or products

Or. en

Proposal for a regulation

Article 611 – paragraph 62

Text proposed by the Commission

Amendment

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.

6. Where competent authorities establish that economic operators have provided evidence that they have complied with the decision referred to in paragraph 4, and that they have eliminated forced labour from their operations or supply chain and remediated forced labour cases with respect to the products concerned, the competent authorities shall withdraw their decision for the future and inform the economic operators.

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. This database shall be easily accessible to all.

Or. en

Proposal for a regulation

Article 711 – paragraph ~~1 –~~2 ~~point~~a c(new)

Text proposed by the Commission

Amendment

(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 or producer and the product suppliers;

2 a. The Commission, after consultation with competent authorities and other stakeholders, shall be empowered to declare a presumption of forced labour for products or groups of products, as well as production sites or groups of production sites included in the database referred to in paragraph 1. This decision shall be encoded in the same database.

Or. en

Justification

An effective enforcement mechanism requires a balanced burden of proof. In the proposal, the authorities bear a heavy burden to investigate and prove that there has been a violation of Article 3. This represents an obstacle for the functioning of the system. Global supply chains are complex and it will be extremely difficult for authorities to reach such a high standard of proof. Working with a reversal of the burden of proof could be a good tool to overcome this problem.

Amendment 54

Proposal for a regulation

~~Article 8 – paragraph 3~~

Article 11 a (new)

Text proposed by the Commission

Amendment

3. A competent authority shall take a decision on the request for review within 15 working days from the date of receipt of the request. In case of perishable goods, animals and plants that time limit shall be 5 working days.

Article 11 a

3. A competent authority shall take a decision on the admissibility of the request for review, within 15 working days from the date of receipt of the request. In case of perishable goods, animals and plants that time limit shall be 5 working days.

Disclosure of value chains

1. The economic operators shall map their value chains and publicly disclose relevant information including names, locations and types of products concerning their subsidiaries, suppliers, contractors and business partners in the value chain.

2. The Commission shall set up a public database containing the relevant information foreseen in paragraph 1 with due regard for commercial confidentiality, in order to facilitate the accessibility and transparency of the information for competent authorities and stakeholders to implement this Regulation.

3. Economic operators shall feed their relevant information into the system and ensure that such information is up to date.

Or. en

Justification

In order to make the Regulation achieve its effective objectives and contribute to make structural impacts and enable efficient implementation, companies should be required to map and publicly disclose their suppliers, sub-suppliers and business partners in their whole value chains. Making this essential information systematic and public would also assist companies to assess the risks of forced labour in their value chains and undertake effective due diligence measures.

Amendment 55

Proposal for a regulation

Article 912 – paragraph ~~1 – point -a (new)~~5

Text proposed by the Commission

Amendment

~~(-a) the existence of a substantiated concern following the preliminary phase of investigation, referred to in Article 4(5);~~

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 and resources to carry out the investigations, including sufficient budgetary and other resources and coordinate closely with the national labour inspections and judicial and law enforcement authorities, including those responsible for the fight against trafficking in human beings.

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 and coordinate closely with the national labour inspections and judicial and law enforcement authorities, including those responsible for the fight against trafficking in human beings.

Or. en

Proposal for a regulation

Article 914 – paragraph ~~2 a (new)~~1

Text proposed by the Commission

Amendment

~~2 a. The competent authority shall communicate to the public any decision referred to in Article 6(4) and 6(6).~~

1. Decisions taken 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. Decisions taken 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 value chain for which forced labour has been found.

Or. en

Proposal for a regulation

Article 1016 – paragraph 12

Text proposed by the Commission

Amendment

2. Customs authorities shall be provided with information identifying the product, information about the manufacturer or the producer and information about the product suppliers as regards products entering or leaving the Union market that have been identified by the Commission pursuant to paragraph 1, 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.

2. Customs authorities shall be provided with information identifying the product, information about the manufacturer, the producer or the transporter and information about the product suppliers as regards products entering or leaving the Union market that have been identified by the Commission pursuant to paragraph 1, 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.

Or. en

Proposal for a regulation

Article 1023 – paragraph 1 a– ~~(new)~~introductory part

Text proposed by the Commission

Amendment

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

The Commission shall issue guidelines no later than 18 months after the entry into force of this Regulation, which shall include the following:

The Commission shall issue guidelines no later than 6 months after the entry into force of this Regulation, which shall include the following:

Or. en

Proposal for a regulation

Article 1023 – paragraph 1 b– ~~(new)~~point a

Text proposed by the Commission

Amendment

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.

(a) guidance on due diligence in relation to forced labour, which shall take into account applicable 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. More specifically, the guidelines shall refer to remediation measures which should include, for example, financial and non-financial compensation, restitution, rehabilitation, effective preventive measures and guarantees of non-recurrence of forced labour and apologies. In all cases, remediation must be adapted to the specific context and condition of the rightsholder;

Or. en

Proposal for a regulation

Article 1023 – paragraph 21 a– ~~(new)~~point b

Text proposed by the Commission

Amendment

2a. In cases where there is a significant time interval between the submission of information and the outcome of the assessment, competent authorities shall confirm with such person or association that the situation has not significantly changed.

(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;

(b) information on risk indicators of forced labour, which shall be based on the indicators for forced labour set out by the ILO including in its ‘Hard to see, harder to count – Survey guidelines to estimate forced labour of adults and children’, 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;

Or. en

Proposal for a regulation

Article 1023 – paragraph 31 – point e a (new)

Text proposed by the Commission

Amendment

~~3. Directive (EU) 2019/1937 of the European Parliament and of the Council39 shall apply to the reporting of all breaches of this Regulation and the protection of persons reporting such breaches.~~

(e a) guidelines to assist economic operators in the setting up of a value chain mapping process;

~~deleted~~

~~__________________~~

~~39 Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law, OJ L 305, 26.11.2019, p. 17.~~

Or. en

~~Justification~~

~~Moved to new article 10a~~

Amendment 62

Proposal for a regulation

~~Article 10 a (new)~~

Article 23 – paragraph 1 – point e b (new)

Text proposed by the Commission

Amendment

~~Article 10a~~

(e b) guidance for the stakeholders to file a complaint, as well as participate and meaningfully engage in the procedures set out in the Regulation;

~~Protection of individuals~~

~~1. Directive (EU) 2019/1937 of the European Parliament and of the Council1a shall apply to the reporting of all breaches of this Regulation and the protection of persons reporting such breaches.~~

2. Competent authorities shall ensure the protection of persons at risk of threats or reprisals as a result of having shared information in relation to products made using forced labour. Whistleblowers, workers, and others who address cases of forced labour who face threats or reprisals as a result of having shared information in relation to the objectives or implementation of this Regulation shall be eligible for support, legal aid or physical protection.

~~__________________~~

~~1a Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law, OJ L 305, 26.11.2019, p. 17~~

Or. en

Proposal for a regulation

Article 1124 – paragraph 12

Text proposed by the Commission

Amendment

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 with respect to specific products 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 relevant external sources of information from, amongst others, international organisations and third country authorities.

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.

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, trade unions and other workers’ representatives, civil society representatives, international organisations and third countries’ competent authorities.

Or. en

~~Justification~~

~~Deletion moved to paragraph below~~

Amendment 64

Proposal for a regulation

Article 1124 – paragraph 12 a (new)

Text proposed by the Commission

Amendment

1a. The database shall be based on independent and verifiable information, including reports from international organisations, in particular the International Labour Organization, civil society, business organisations, social partners, and experience from implementing Union law setting out due diligence requirements with respect to forced labour.

2 a. The Commission shall invite the European Agency for Fundamental Rights, the European Labour Authority and other Union agencies with relevant expertise in the areas covered by this Regulation to join the Network.

Or. en

Proposal for a regulation

Article 1124 – paragraph 13 b– ~~(new)~~point a

Text proposed by the Commission

Amendment

~~1b. Based on reliable evidence, external experts may identify specific products produced in specific geographic areas as products that are in high-risk of violating Article 3.~~

(a) facilitate the identification of common priorities for enforcement activities, to exchange information, expertise and best practices;

(a) facilitate the identification of common priorities for enforcement activities, including in third countries, to exchange information, expertise and best practices;

Or. en

Proposal for a regulation

Article 1124 – paragraph 13 c– ~~(new)~~point b

Text proposed by the Commission

Amendment

~~1c. The database shall include a list of all open investigations pursuant to Article 5(1).~~

(b) conduct joint investigations;

(b) conduct joint investigations, including in third countries;

Or. en

Proposal for a regulation

Article 1124 – paragraph 13 d– ~~(new)~~point c

Text proposed by the Commission

Amendment

~~1d. The database shall include a list of all decisions of competent authorities pursuant to Article 6, paragraphs (3), (4) and (6).~~

(c) facilitate capacity building activities and contribute to uniform risk-based approaches and administrative practices for the implementation of this Regulation in the Member States;

(c) facilitate capacity building activities and contribute to uniform risk-based approaches and administrative practices for the implementation of this Regulation in the Member States and third countries;

Or. en

Proposal for a regulation

Article 1124 – paragraph 13 e– ~~(new)~~point f

Text proposed by the Commission

Amendment

1e. The database shall include a list of publicly available information sources relevant to 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, allowing to identify gender-specific trends.

(f) to promote the cooperation and exchange of expertise and best practices between competent authorities and customs authorities;

(f) to promote the cooperation and exchange of expertise and best practices between competent authorities and customs authorities and, where appropriate, with third countries’ competent authorities, as well as civil society organisations and international organisations;

Or. en

Proposal for a regulation

Article 1124 – paragraph 23 – point f a (new)

Text proposed by the Commission

Amendment

~~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.~~

(f a) manage the centralised complaint system;

~~2. The Commission shall ensure that the database is made publicly available by the external expertise at the latest 18 months after the entry into force of this Regulation.~~

Or. en

Proposal for a regulation

~~Article 11 – paragraph 3~~

~~Text proposed by the Commission~~

~~Amendment~~

3. Economic operators placing or making available on the Union market or exporting products which are not mentioned in the database referred to in paragraph 1 of this Article, or which come from areas that are not mentioned in that database, shall also be required to comply with Article 3.

~~deleted~~

~~Or. en~~

~~Amendment 71~~

~~Proposal for a regulation~~

~~Article 12 – paragraph 1 a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

1a. The Commission is also empowered to carry out the obligations set out in this Regulation, and it shall also contribute to an effective and uniform implementation of this Regulation throughout the Union.

~~Or. en~~

~~Amendment 72~~

~~Proposal for a regulation~~

~~Article 13 – paragraph 1~~

~~Text proposed by the Commission~~

~~Amendment~~

1. The Commission shall ensure efficient cooperation among the competent authorities of the Member States through facilitating and coordinating the exchange and collection of information and best practices with regard to the application of this Regulation.

1. The Commission shall ensure efficient cooperation and coordination among the competent authorities of the Member States through facilitating and coordinating the exchange and collection of information and best practices with regard to the application of this Regulation.

~~Or. en~~

~~Amendment 73~~

~~Proposal for a regulation~~

~~Article 14 – paragraph 1~~

~~Text proposed by the Commission~~

~~Amendment~~

1. Decisions taken by the Commission or 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.

~~Or. en~~

~~Amendment 74~~

~~Proposal for a regulation~~

~~Article 20 – paragraph 1~~

~~Text proposed by the Commission~~

~~Amendment~~

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.

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 or public interest purposes. If such products cannot be donated, they should be recycled, and if that is not possible, they should be disposed of in accordance with national law consistent with Union law. Articles 197 and 198 of Regulation (EU) No 952/2013 shall apply accordingly.

~~Or. en~~

~~Amendment 75~~

~~Proposal for a regulation~~

~~Article 21 – paragraph 1~~

~~Text proposed by the Commission~~

~~Amendment~~

1. To enable a risk-based approach 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, competent authorities and customs authorities shall cooperate closely and exchange risk-related information.

1. To enable a risk-based approach 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.

~~Or. en~~

~~Amendment 76~~

~~Proposal for a regulation~~

~~Article 22 – paragraph 3~~

~~Text proposed by the Commission~~

~~Amendment~~

3. The Commission shall develop an interconnection to enable the automated communication of decisions referred to in Article 15(3) from the information and communication system referred to in paragraph 1 to the environment referred to in paragraph 4. That interconnection shall start operating no later than two years from the date of the adoption of the implementing act referred to in paragraph 7, point (b), in respect of that interconnection.

3. The Commission shall develop an interconnection to enable the automated communication of decisions referred to in Article 15(3) from the information and communication system referred to in paragraph 1 to the environment referred to in paragraph 4. That interconnection shall start operating no later than one year from the date of the adoption of the implementing act referred to in paragraph 7, point (b), in respect of that interconnection.

~~Or. en~~

~~Amendment 77~~

~~Proposal for a regulation~~

~~Article 22 – paragraph 5~~

~~Text proposed by the Commission~~

~~Amendment~~

5. The Commission shall interconnect the national single window environments for customs with the information and communication system referred to in paragraph 1 to enable the exchange of requests and notifications between customs and competent authorities pursuant to Articles 17 to 20 of this Regulation. That interconnection shall be provided through [EU CSW-CERTEX pursuant to Regulation XX/20XX]40 within four years from the date of adoption of the implementing act referred to in paragraph 7(c). The exchanges referred to in paragraph 4 shall take place through that interconnection as soon as it is operational.

5. The Commission shall interconnect the national single window environments for customs with the information and communication system referred to in paragraph 1 to enable the exchange of requests and notifications between customs and competent authorities pursuant to Articles 17 to 20 of this Regulation. That interconnection shall be provided through [EU CSW-CERTEX pursuant to Regulation XX/20XX]40 within two years from the date of adoption of the implementing act referred to in paragraph 7(c). The exchanges referred to in paragraph 4 shall take place through that interconnection as soon as it is operational.

~~__________________~~

~~40 Established by the Regulation on the EU Single Window Environment for Customs (EU SWE-C).~~

~~Or. en~~

~~Amendment 78~~

~~Proposal for a regulation~~

~~Article 23 – title~~

~~Text proposed by the Commission~~

~~Amendment~~

~~Guidelines~~

~~Guidelines and support~~

~~Or. en~~

~~Amendment 79~~

~~Proposal for a regulation~~

~~Article 23 – paragraph 1 – point a a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(aa) guidance on how to submit information pursuant to Article 10;~~

~~Or. en~~

~~Amendment 80~~

~~Proposal for a regulation~~

~~Article 23 – paragraph 1 – point a b (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(ab) guidance for economic operators and product suppliers on how to engage in dialogue with competent authorities pursuant to Articles 4 and 5;~~

~~Or. en~~

~~Amendment 81~~

~~Proposal for a regulation~~

~~Article 23 – paragraph 1 – point b~~

~~Text proposed by the Commission~~

~~Amendment~~

~~deleted~~

~~Or. en~~

~~Justification~~

~~Added directly to the database~~

~~Amendment 82~~

~~Proposal for a regulation~~

~~Article 23 – paragraph 1 – point c~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(c) a list of publicly available information sources of relevance for the implementation of this Regulation;~~

~~deleted~~

~~Or. en~~

~~Justification~~

~~Added directly to the database~~

~~Amendment 83~~

~~Proposal for a regulation~~

~~Article 23 – paragraph 1 – point e~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(e) guidance for the practical implementation of Article 16 and, where appropriate, any other provision laid down in Chapter III of this Regulation.~~

(e) guidance for competent authorities on the practical implementation of Articles 4 and 5, Article 11, Article 16 and, where appropriate, any other provision laid down in Chapter III of this Regulation.

~~Or. en~~

~~Amendment 84~~

~~Proposal for a regulation~~

~~Article 23 – paragraph 1 a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

The guidance referred to in paragraph 1, point (a), shall focus in particular on assisting SMEs in complying with this Regulation. The Commission shall develop accompanying measures to support the efforts of economic operators and their business partners in the same value chain, in particular SMEs.

~~Or. en~~

~~Amendment 85~~

~~Proposal for a regulation~~

~~Article 23 – paragraph 1 b (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~The Commission shall consult relevant stakeholders and partners when drafting the guidelines referred to in this Article.~~

~~Or. en~~

~~Amendment 86~~

~~Proposal for a regulation~~

~~Article 24 – paragraph 1 a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

1a. The Commission and the Member States shall ensure that the Network has the necessary powers and resources to carry out the tasks referred to in paragraph 3, including sufficient budgetary and other resources.

~~Or. en~~

~~Amendment 87~~

~~Proposal for a regulation~~

~~Article 24 – paragraph 2 a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~2a. The secretariat shall be composed of Commission staff. It shall organise the meetings of the Network and provide technical and logistical support.~~

~~Or. en~~

~~Amendment 88~~

~~Proposal for a regulation~~

~~Article 24 – paragraph 3 – point c~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(c) facilitate capacity building activities and contribute to uniform risk-based approaches and administrative practices for the implementation of this Regulation in the Member States;~~

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

~~Or. en~~

~~Justification~~

~~Moved below~~

~~Amendment 89~~

~~Proposal for a regulation~~

~~Article 24 – paragraph 3 – point c a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(ca) facilitate capacity-building activities, such as the organisation of training programmes for competent authorities and other relevant stakeholders;~~

~~Or. en~~

~~Amendment 90~~

~~Proposal for a regulation~~

~~Article 24 – paragraph 3 – point c b (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(cb) promote exchanges of personnel between competent authorities and, where appropriate, with the authorities of partner third countries or with international organisations;~~

~~Or. en~~

~~Amendment 91~~

~~Proposal for a regulation~~

~~Article 24 – paragraph 3 – point c c (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(cc) assist in the organisation of information campaigns and voluntary mutual visit programmes between competent authorities;~~

~~Or. en~~

~~Amendment 92~~

~~Proposal for a regulation~~

~~Article 24 – paragraph 3 – point c d (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(cd) involve and facilitate the diplomatic representations of the Union to assist in the information gathering efforts of this Regulation;~~

~~Or. en~~

~~Amendment 93~~

~~Proposal for a regulation~~

~~Article 24 – paragraph 4~~

~~Text proposed by the Commission~~

~~Amendment~~

~~4. The Commission shall support and encourage cooperation between enforcement authorities through the Network and participate in the meetings of the Network.~~

~~4. The Commission shall ensure the effective and uniform application of this Regulation and to that effect support and encourage cooperation between enforcement authorities through the Network.~~

~~Or. en~~

~~Amendment 94~~

~~Proposal for a regulation~~

~~Article 24 – paragraph 4 a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

4a. The Network may invite experts and stakeholders, including social partners and other workers’ representatives, civil society representatives, international organisations, third countries’ competent authorities, the European Agency for Fundamental Rights, the European Labour Authority or other Union agencies with relevant expertise in the areas covered by the Regulation to attend meetings of the Network or to provide written contributions.

~~Or. en~~

~~Amendment 95~~

~~Proposal for a regulation~~

~~Article 24 – paragraph 4 b (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~4b. The Network shall meet at regular intervals and, where necessary, at the duly motivated request of the Commission or a Member State.~~

~~Or. en~~

~~Amendment 96~~

~~Proposal for a regulation~~

Article 26 – paragraph 1

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. In order to facilitate effective implementation and enforcement of this Regulation, the Commission ~~shall~~may as appropriate cooperate, engage and exchange information with, amongst others, authorities of third countries, international organisations, trade unions and other workers’ representatives, civil society representatives, business organisations and ~~relevant~~any ~~stakeholders.~~other stakeholder. 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.~~basis and through the Network foreseen in Article 24.

Or. en

Amendment 9771

Proposal for a regulation

2. For the purposes of paragraph 1, cooperation with, amongst others, international organisations, civil society representatives, business organisations and competent authorities of third countries may result in the Union developing accompanying measures to support the efforts of companies and partner countries efforts and locally available capacities in tackling forced labour.

2. For the purposes of paragraph 1, ~~cooperation with, amongst others, international organisations, civil society representatives, business organisations and competent authorities of third countries may result in~~ the Union ~~developing~~may develop accompanying ~~measures~~measures, including to support the efforts of ~~companies,~~the economic operator and inits ~~particular~~business ~~SMEs,~~partners ~~and~~in ~~partner~~the ~~countries'~~value ~~efforts~~chain, ~~and~~in ~~locally~~particular ~~available~~the ~~capacities~~small inand ~~tackling~~medium-sized ~~forced~~enterprises ~~labour.~~(SMEs).

~~Or. en~~

~~Amendment 98~~

~~Proposal for a regulation~~

~~Article 30 – paragraph 1~~

~~Text proposed by the Commission~~

~~Amendment~~

1. The Member States shall lay down the rules on penalties applicable to non-compliance with a decision referred to in Article 6(4) and shall take all measures necessary to ensure that they are implemented in accordance with national law.

1. The Commission shall lay down harmonised rules on penalties applicable to non-compliance with a decision referred to in Article 6(4) and shall take all measures necessary to ensure that they are implemented in accordance with national law.

~~Or. en~~

~~Amendment 99~~

~~Proposal for a regulation~~

~~Article 30 – paragraph 1 a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~1a. Member States shall take all measures necessary to ensure that the penalties pursuant to paragraph 1 are implemented in accordance with national law.~~

Or. en

Amendment ~~100~~72

Proposal for a regulation

Article 3026 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

~~Article 30a~~

2 a. The Union and its Member States shall support third countries, in particular developing countries, by promoting the ratification and the effective implementation of fundamental ILO’s conventions and standards related to the prohibition of forced labour and by taking measures to enable partner countries to effectively prevent, minimise, remediate and eradicate on forced labour.

~~Evaluation and review~~

1. By [five 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, to the Council and to the European Economic and Social Committee.

2. 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, while taking into account the impact on business, in particular on SMEs.

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

4. The Commission shall continuously monitor the impact of this Regulation on victims of forced labour, also paying particular regard to the situation of women and children. The monitoring shall be based on a scientific and transparent methodology and shall take into account information provided by stakeholders.

Or. en

~~Amendment 101~~

Justification

In order to ensure the effectiveness of the Regulation in developing countries, it is important to provide supporting measures, including through the NDICI-Global Europe instrument.

Amendment 73

Proposal for a regulation

Article 3126 – paragraph 2 b (new)

Text proposed by the Commission

Amendment

~~This Regulation shall apply from [OP enter DATE = 24 months from its entry into force].~~

2 b. Member States and the Commission shall provide information and effective support to relevant stakeholders to comply with and exercise the rights provided to them, in particular the right to file a complaint, as well as to monitor the implementation of the Regulation.

~~This Regulation shall apply from [OP enter DATE = 18 months from its entry into force].~~

Or. en

~~EXPLANATORY STATEMENT~~

ANNEX: List of entities or persons

The ILO Forced Labour Convention, 1930 (No. 29) defines forced labour as ‘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’.

from whom the rapporteur for the OPINION has received input

Forced labour violates the rights of more than 27 million people across the world. No region of the world is spared from forced labour, not even the European Union. The recent and multiple crises, especially the COVID19 pandemic, the climate crisis and multiple armed conflicts, most recently the Russian aggression in Ukraine, have exacerbated poverty and food insecurity, fuelling the problem of forced labour, and thus increasing the number of people in forced labour by 2,7 million from 2016 to 2021. As many other societal problems, forced labour has a disproportional negative effect on women, children and vulnerable groups in society.

The following list is drawn up on a purely voluntary basis under the exclusive responsibility of the rapporteur for the opinion. The rapporteur has received input from the following entities or persons in the preparation of the draft opinion, until the adoption thereof in committee:

~~The European Parliament has called for an instrument to ban products made by forced labour on numerous occasions, and most recently, in its resolution of 9 June 2022.~~

Entity and/or person

The Commission proposal, published in September 2022, has been naturally welcomed by the two co-Rapporteurs. The Commission proposal represents a first step in the right direction, as it sets up a straightforward instrument to ban products made using forced labour. The co-Rapporteurs strongly believe that with the instrument the Commission has proposed, the European Union has a unique opportunity to act and eradicate forced labour, both inside and outside the EU.

Anti-Slavery International

The co-Rapporteurs are convinced that the new proposal will help not only workers abroad, but also workers in the Union. This will be done two-fold: workers suffering from forced labour in the Union will be helped directly by this proposal; and companies in our internal market who play by the rules, as well as their workers, will be protected from unfair and immoral competition. Abiding by high labour standards cannot be a disadvantage, and this proposal helps to ensure this.

Clean Clothes Campaign European Coalition (CCC – European Coalition)

In order for the instrument to be more efficient and have more impact on the conditions of workers across the world, the co-Rapporteurs presented several changes to the Commission proposal. The draft Report contains the points of convergence between the two co-Rapporteurs, and it touches upon all the main elements of the draft Regulation.

European Center for Constitutional and Human Rights (ECCHR)

 In terms of scope, and more precisely, products made with forced labour, the co-Rapporteurs believe that the packaging, transportation and distribution of goods should be covered by the proposal, given the fact that these activities are an essential part of the goods supply chain and a sector where there is evidence of existence of forced labour.

Fair Trade Advocacy Office (FTAO)

 Providing remediation to the workers involved in the production of product using forced labour is an absolute priority for the co-Rapporteurs. Indeed, in the co-Rapporteur’s views, remediation should be included as a condition to clear an investigation or to withdraw a decision to ban a product.

French National Consultative Commission on Human Rights

 The co-Rapporteurs point out differentiated impact of forced labour on vulnerable and marginalised groups, including children, women, migrants, refugees or indigenous peoples. Therefore, the co-Rapporteurs consider that an intersectional and gender sensitive approach is essential to effectively fighting forced labour.

Fundación Libera

 The draft report considers more closely the protection of individuals, in particular the protection of persons at risk of threats or reprisals as a result of having shared information in relation to products made using forced labour, including their eligibility for support, legal aid or physical protection.

German Institute for Human Rights

 The co-Rapporteurs agree that the database should be a central element of this proposal. The co-Rapporteurs consider the Commission proposal as a good starting point, and in particular the involvement of external experts in the set up of the database, but they also suggest some improvements. For example, the co-Rapporteurs suggest the database should be based on independent and verifiable information, including reports from international organisations, in particular the International Labour Organization, civil society, business organisations, social partners, and experience from implementing Union legislation setting out due diligence requirements with respect to forced labour. In order to ensure public transparency, the co-Rapporteurs agree that the database should include a list of all open investigations and a list of all decisions taken.

International Dalit Solidarity Network (IDSN)

 The co-Rapporteurs go further than the Commission proposal, including a possibility for the experts to identify specific products produced in specific geographic areas as products of high-risk of Article 3 violations. For these specific products the co-Rapporteurs strongly support a reversal of the burden of proof, placing it instead on the economic operators.

 Clear and comprehensible guidelines are key to help economic operators, especially SMEs to comply with this Regulation. In the co-Rapporteurs’ view, guidelines should be ready 12 months after the entry into force of the Regulation, and should include, in particular, guidance for the submissions of complaints and cooperation with national authorities. Furthermore, the co-Rapporteurs insist that the Commission should develop accompanying measures to support the efforts of economic operators and their business partners in the same value chain, in particular the small and medium-sized enterprises (SMEs).

 Several provisions of the draft Report focus on governance and enforcement, as the co-Rapporteurs are convinced these are key elements to allow the ban on products made with forced labour to be implemented effectively and consistently throughout the Union. In the co-Rapporteurs’ view, it is essential that the Commission is given the opportunity to intervene on an equal footing as the national competent authorities, including by giving the Commission the possibility to start investigations, take decisions and ensure the compliance of economic operators. Additionally, while welcoming the setting-up of the Union Network Against Forced Labour Products, the co-Rapporteurs believes that its capacity should be reinforced and additional tasks should be added, in order to add a true European dimension to the Network and strengthen its role. Finally, in order to avoid Member States establishing different level of penalties, the co-Rapporteurs agreed to task the Commission to establish a harmonised level of penalties. Uniform, EU-wide penalties will avoid a race to the bottom among Member States and ensure a level playing field.

 Finally, the co-Rapporteurs believe that the Commission should carry out an evaluation of this Regulation, assessing whether the Regulation achieved its objective, in particular with regard to reducing the number of products made with forced labour on the Union market, improving cooperation between competent authorities and strengthening the controls on products entering the Union market, while taking into account the impact on business and in particular on SMEs.