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

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

A-9-2023-0306

Committee on International Trade Committee on the Internal Market and Consumer Protection · Rapporteur: Samira Rafaela, MariaManuel LeitãoMarques

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Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

Parliament's amended version of the Commission proposal for a regulation prohibiting products made with forced labour on the Union market. It bans placing, making available and exporting such products, sets up investigations by the Commission and national authorities, and requires remediation and withdrawal of banned products. It defines forced labour and forced labour imposed by state authorities by reference to ILO conventions, and adds definitions of remediation, supply chain and end user. It creates a database of forced labour risks, allows the Commission to designate high-risk sectors and areas by delegated act, and reverses the burden of proof for products from those areas. It requires the Commission to issue guidelines, sets up a Union Network Against Forced Labour Products, and provides for penalties, evaluation and cooperation with third countries.

Committee position. The committees propose to amend the Commission proposal to strengthen the ban on forced labour products, including by adding remediation, a database with high-risk designations, a reversed burden of proof, Commission investigation powers, harmonised penalties and reinforced governance.

Key points

  1. The regulation prohibits economic operators from placing, making available on the Union market or exporting products made with forced labour, and contributes to the fight against forced labour.
  2. Forced labour is defined as all work or service exacted under the menace of a penalty and not offered voluntarily, in line with ILO Convention No. 29, and can occur along the value chain.
  3. Forced labour imposed by state authorities covers five listed practices from ILO Convention No. 105, including political coercion, economic development, labour discipline, punishment for strikes and discrimination.
  4. New definitions cover remediation, supply chain and end user.
  5. The Commission and competent authorities follow a risk-based approach, may request information from economic operators and product suppliers, and must respect the right to be heard at all stages.
  6. Economic operators and product suppliers must respond to information requests within 30 working days, and the preliminary phase must conclude within 30 working days of receiving that information.
  7. Where a violation is established, the Commission or competent authorities must prohibit the products, order their withdrawal, and require donation of perishable products, recycling of non-perishable ones, or disposal.
  8. The prohibition is lifted only if economic operators demonstrate that forced labour has been eradicated from the supply chain and forced labour cases have been remediated.
  9. The Commission must set up a database of forced labour risks, and may adopt delegated acts determining specific economic sectors in specific geographic areas with a high risk of state-imposed forced labour.
  10. For products from those designated areas and sectors, economic operators bear the burden of proving that forced labour was not used.
  11. The Commission must issue guidelines no later than 12 months before the date of application, including on due diligence, risk indicators and support for SMEs.
  12. A Union Network Against Forced Labour Products is established, coordinated by the Commission, and Member States must lay down effective, proportionate and dissuasive penalties, with the Commission empowered to set calculation methods and thresholds.

Who is affected

  • Economic operators placing or exporting products on the Union market must comply with the ban and respond to information requests.
  • Micro, small and medium-sized enterprises receive guidelines, accompanying measures, a one-stop shop and national training and hotline support.
  • Member States must designate competent authorities with sufficient resources and lay down penalties for non-compliance.
  • Customs authorities must control products entering or leaving the Union market and suspend release of suspected products.
  • Victims of forced labour are covered by remediation requirements and protection measures for those submitting information.

Figures and deadlines

  • 30 working days: time for economic operators and product suppliers to respond to information requests.
  • 30 working days: time to conclude the preliminary phase of investigation after receiving information.
  • 90 working days: time to establish whether Article 3 has been violated after initiating an investigation.
  • 15 working days: time for economic operators to request a review of a decision; 5 working days for perishable goods, animals and plants.
  • 12 months before the date of application: deadline for the Commission to issue guidelines.
  • 12 months before the date of application: deadline for the database to be made publicly available.
  • 4 working days: time for customs to release a suspended product if no request to maintain suspension; 2 working days for perishable products, animals and plants.
  • 6 months from entry into force: deadline for the first delegated act on penalties.

Legal basis: Article 294(2) and Articles 114 and 207 of the Treaty on the Functioning of the European Union.