Sittings · Document

OPINION (COM(2022)453 – C90307/2022 – 2022/0269(COD)) 2023-07-04

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

Committee on Development · Rapporteur: Ilan De Basso

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SHORT JUSTIFICATION

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.

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.

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.

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 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.

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.

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.

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.

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.

AMENDMENTS

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:

Amendment 1

Proposal for a regulation

Recital 1 a (new)

Text proposed by the Commission

Amendment

(1 a) Several ILO standards explicitly prohibit forced labour or related practices among specific categories of vulnerable workers. These include the Worst Forms of Child Labour Convention, 1999 (No. 182), the Migrant Workers (Supplementary Provisions) Convention, 1975 (No. 143), and the Indigenous and Tribal Peoples Convention, 1989 (No. 169).

Amendment 2

Proposal for a regulation

Recital 2

Text proposed by the Commission

Amendment

(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, and its prevalence has risen in the last years. 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.

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

Amendment 3

Proposal for a regulation

Recital 2 a (new)

Text proposed by the Commission

Amendment

(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.

Amendment 4

Proposal for a regulation

Recital 2 b (new)

Text proposed by the Commission

Amendment

(2 b) 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 4.9 million of them were in sexual exploitation. Women are more likely to be coerced through wage non-payment and abuse of vulnerability. 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 forced labour, 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.

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

Amendment 5

Proposal for a regulation

Recital 2 c (new)

Text proposed by the Commission

Amendment

(2 c) The ILO forced labour instruments, the Protocol to Prevent, Suppress and Punish Trafficking in Persons, especially Women and Children and the Global Compact for Migration, together make clear that trafficking in persons for the purpose of forced labour cannot be eliminated through criminal law enforcement alone. Rather, a broad multidisciplinary approach is needed that is grounded in adherence to human rights, encompassing the need for effective gender- and age-responsive measures. Such measures, along with criminal justice responses, must focus on preventing and addressing the root causes of forced labour and on ensuring protection and remedies for the people already affected by it.

Amendment 6

Proposal for a regulation

Recital 2 d (new)

Text proposed by the Commission

Amendment

(2 d) In 2021, more than 3.3 million of children are in forced labour, which represents almost 12% of all those in forced labour.1a Taking into account that forced child labour is one of the components of child labour, the Union, through this Regulation and in its relations with the wider world, should uphold and promote its values, which are in accordance with the international instruments ratified, the European Convention on Human Rights and the jurisprudence of the European Court of Human Rights, and enshrined in its core treaties, namely, TEU, TFEU and the EU Charter of Fundamental Rights of the European Union, all of which protect the rights of the child. The 2021-2024 EU Strategy on Child Rights, the Council-led European Child Guarantee initiative and the UN Sustainable Development Goal 8.7 of eradicating child labour by 2025 and forced labour by 2030 are also proof of commitment. Children, like women, are disproportionately affected by forced labour. Therefore, it is fundamental for competent authorities to ensure particular attention to the specific cases and needs of the children, like for women, in forced labour, throughout all the steps of this Regulation. Moreover, any guidelines formed by the Commission regarding the centralised complaint mechanism must be able to reach children as well.

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

Amendment 7

Proposal for a regulation

Recital 2 e (new)

Text proposed by the Commission

Amendment

(2 e) Forced labour can be found in a large number of sectors, some of them, such as textiles, services, manufacturing, construction, agriculture, and domestic work, and to a smaller extent, mining and fishers aboard fishing vessels, are particularly affected. The textile, clothing, leather and footwear sector (TCLF) is one of the largest sectors in the global economy and is characterised by poor working conditions and workers’ rights violations, with the majority of workers being women and children.

Amendment 8

Proposal for a regulation

Recital 3

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

(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. This Regulation aims to ban from the EU market products that have been produced, extracted, harvested, manufactured, stored or transported using forced labour and contribute to eradicate forced labour by addressing its root causes. Through this Regulation, the Union should strengthen political dialogue with third countries, especially with developing countries, with regards to forced labour. Moreover, Article 5(2) of the Charter of Fundamental Rights of the European Union (‘the Charter’) 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 Article 5 of the Charter also explicitly prohibits slavery, servitude, forced or compulsory labour and human trafficking.

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

Amendment 9

Proposal for a regulation

Recital 5

Text proposed by the Commission

Amendment

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

(5) Through its policies, legislative initiatives and financial instruments, in particular the NDICI-Global Europe, the Union seeks to eradicate the use of forced labour, address its root causes, support civil society on this regard and promote decent work and labour rights, while policy coherence for development and cooperation at all levels remains an indispensable principle to put those policies into practice. To these effects, corporate sustainability due diligence, along with the adoption of accompanying measures, represents important tools. The Union promotes due diligence in accordance with international guidelines and principles established by international organisations, including the ILO, the Organisation for Economic Co-operation and Development (hereinafter “OECD”) and the United Nations (hereinafter “UN”), to ensure that forced labour does not find a place in the value chains of undertakings established in the Union.

Amendment 10

Proposal for a regulation

Recital 7

Text proposed by the Commission

Amendment

(7) The Anti-trafficking Directive (Directive 2011/36/EU) of the European Parliament and of the Council21(the Anti-trafficking Directive) harmonises the definition of trafficking in human beings, including forced labour or services, and establishes minimum penalties. Any rules laid down concerning the prohibition of placing and making available on the Union market domestic or imported products made with forced labour, or exporting such products, and the obligation to ensure that such products are withdrawn from the Union market (‘the prohibition’), should be without prejudice to that Directive, and in particular to the competence of law enforcement and judicial authorities to investigate and prosecute offences on trafficking in human beings, including labour exploitation.

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21 Directive 2011/36/EU of the European Parliament and of the Council of 5 April 2011 on preventing and combating trafficking in human beings and protecting its victims, and replacing Council Framework Decision 2002/629/JHA, OJ L 101, 15.4.2011, p.1.

Amendment 11

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(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.

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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.

Amendment 12

Proposal for a regulation

Recital 8 a (new)

Text proposed by the Commission

Amendment

(8 a) Throughout, effective due diligence requires the meaningful engagement of stakeholders, including workers, their representative organisations, and community members, as they are best positioned to identify local risks and help formulate the most appropriate mitigation strategies. Attention should focus on identifying, prioritizing, and acting on “hotspots” where the risk of forced labour and other human rights abuses is highest in terms of both severity and scale. Particularly important in this context are the informal micro- and small enterprises operating at the lower links of supply chains in high-risk sectors and locations, often in raw materials extraction and production, where forced labour and other human rights abuses are often most pronounced.

Amendment 13

Proposal for a regulation

Recital 10

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 ]

(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 ]

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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.

Amendment 14

Proposal for a regulation

Recital 12

Text proposed by the Commission

Amendment

(12) As recognised in the Commission’s Communication on decent work worldwide29, notwithstanding the current policies and legislative framework, further action is needed to achieve the objectives of eliminating forced-labour products from the Union market and, hence, further contributing to the fight against forced labour worldwide. The eradication of forced labour can only be achieved if other objectives of decent work, such as sustainable business conduct, social dialogue, freedom of association, collective bargaining and social protection, are promoted. Through the EU decent work agenda, the EU commits to address forced labour and to promote decent work and labour rights including in global supply chains.

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29 Communication 23 March 2022 from the Commission to the European Parliament, the Council and the European Economic and Social Committee on decent work worldwide for a global just transition and a sustainable recovery (COM(2022) 66 final).

Amendment 15

Proposal for a regulation

Recital 12 a (new)

Text proposed by the Commission

Amendment

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

Amendment 16

Proposal for a regulation

Recital 12 b (new)

Text proposed by the Commission

Amendment

(12 b) Businesses can also contribute to addressing some of the more structural root causes of forced labour linked to their business operations and value chains, by taking, for example, measures to advance the fair recruitment and the decent work agenda of all workers and vulnerable stakeholders, as a way to contribute to the eradication of unfair trading practices.

Amendment 17

Proposal for a regulation

Recital 16

Text proposed by the Commission

Amendment

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

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

Amendment 18

Proposal for a regulation

Recital 18

Text proposed by the Commission

Amendment

(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 resources of economic operators and refer to remediation measures. In addition, the Commission should issue guidelines on forced-labour risk indicators, taking into account the ILO forced labour indicators, including its ‘Hard to see, harder to count – Survey guidelines to estimate forced labour of adults and children’, 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.

Amendment 19

Proposal for a regulation

Recital 19

Text proposed by the Commission

Amendment

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

(19) The competent authorities of the Member States should monitor the market to identify violations of the prohibition. In appointing those competent authorities, Member States should ensure that those authorities have sufficient resources and that their staff has the necessary competences, 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.

Amendment 20

Proposal for a regulation

Recital 20

Text proposed by the Commission

Amendment

(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.

(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.

Amendment 21

Proposal for a regulation

Recital 22

Text proposed by the Commission

Amendment

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

Amendment 22

Proposal for a regulation

Recital 26

Text proposed by the Commission

Amendment

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

(26) Competent authorities should 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.

Amendment 23

Proposal for a regulation

Recital 28

Text proposed by the Commission

Amendment

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

Amendment 24

Proposal for a regulation

Recital 31

Text proposed by the Commission

Amendment

(31) Economic operators should have the possibility to request a review of the decisions by the competent authorities, after having provided new information showing that it cannot be concluded that the relevant products have been made with forced labour. Competent authorities should withdraw their decision where they establish on the basis of that new information, that it cannot be established that the products have been made with forced labour.

(31) Economic operators should have the possibility to request a review of the decisions by the competent authorities, after having provided new relevant information showing that it cannot be concluded that the relevant products have been made with forced labour. Competent authorities should withdraw their decision where they establish on the basis of that new information, that it cannot be established that the products have been made with forced labour.

Amendment 25

Proposal for a regulation

Recital 32

Text proposed by the Commission

Amendment

(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.

(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 and confidentiality shall be automatic, unless otherwise specified by the complainant. The complaint mechanism should be secure and accessible. The stakeholders should be informed of the reasoning and outcome of the assessment of their complaints, as well as all the decisions made by competent authorities, referring to their complaints.

Amendment 26

Proposal for a regulation

Recital 35

Text proposed by the Commission

Amendment

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

Amendment 27

Proposal for a regulation

Recital 44

Text proposed by the Commission

Amendment

(44) To ensure effective enforcement of the prohibition, it is necessary to establish a network aimed at structured coordination and cooperation between the competent authorities of the Member States and, where appropriate, experts from customs authorities, and the Commission, as well as the European Agency for Fundamental Rights, the European Labour Authority and other Union agencies with relevant expertise in the areas covered by the Regulation. Trade unions and other workers’ representatives, civil society organisations, human rights defenders, international organisations and third countries’ competent authorities shall be invited to collaborate with 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 contributing to coherence in the implementation and helping to strengthen the enforcement of the prohibition. The network should include an area for external cooperation, including relevant consultation and cooperation with third countries' competent authorities, international organisations, trade unions, civil society organisations and human rights defenders operating outside the EU.

Amendment 28

Proposal for a regulation

Recital 45

Text proposed by the Commission

Amendment

(45) Since forced labour is a global problem and given the interlinkages of the global value chains, it is necessary to promote international cooperation against forced labour, which would also improve the efficiency of applying and enforcing the prohibition and increase efforts to tackle root causes of forced labour. The EU should continue close collaboration with international organisations in the form of joint projects, technical assistance and funding of initiatives targeting forced labour. The Commission should as appropriately cooperate with and exchange information with authorities of third countries, especially authorities of developing countries, and international organisations, as well as with other relevant actors including civil society, to enhance the effective implementation of the prohibition. International cooperation with authorities of non-EU countries should take place in a structured way as part of the existing dialogue structures, for example Human Rights Dialogues with third countries, especially with developing countries, or, if necessary, specific ones that will be created on an ad hoc basis. Team Europe, and particularly the EU delegations, shall have a central role within the aim of effectively eradicating forced labour as well as for dissemination of the Regulation and possibility of third parties to provide information on existence of forced labour on a determined product. The EU may also expand, where appropriate, the use of restrictive measures in the framework of its Common Foreign and Security Policy against persons or entities that have been involved in the promotion or implementation of forced labour.

Amendment 29

Proposal for a regulation

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.

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, including state-imposed 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, including remediation.

Amendment 30

Proposal for a regulation

Article 2 – paragraph 1 – point c

Text proposed by the Commission

Amendment

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

(c) ‘due diligence in relation to forced labour’ means the obligations 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 and in line with the UN Guiding Principles on Business and Human rights, mandatory and 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;

Amendment 31

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(c a) ‘bring to an end the use of forced labour’ means effective measures to address the root causes of forced labour that supplies the economic operator that places or makes the product available in the EU market. It shall not mean disengagement as first resort;

Amendment 32

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(c b) 'root causes of forced labour' means the multi-faceted fundamental reasons for the occurrence of forced labour; this shall particularly look into exploitation, poverty, migration, prices below cost of production, lack of living incomes and living wages and unfair purchasing practices;

Amendment 33

Proposal for a regulation

Article 2 – paragraph 1 – point f

Text proposed by the Commission

Amendment

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

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

Amendment 34

Proposal for a regulation

Article 2 – paragraph 1 – point g

Text proposed by the Commission

Amendment

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

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

Amendment 35

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(g a) ‘value chain’ shall have 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 to the extent applicable;

Amendment 36

Proposal for a regulation

Article 2 – paragraph 1 – point k

Text proposed by the Commission

Amendment

(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, stores 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;

Amendment 37

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(m a) ‘stakeholders’ means:

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

Amendment 38

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(m b) ‘vulnerable stakeholders’ shall have 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 to the extent applicable;

Amendment 39

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(m c) ‘meaningful engagement with stakeholders’ means an interactive, responsive, ongoing and gender-inclusive process of engagement with potentially affected suppliers, workers and their representative organisations, as well as other stakeholders, such as civil society organisations including trade unions and NGOs and local communities, with particular attention to vulnerable stakeholders;

Amendment 40

Proposal for a regulation

Article 2 – paragraph 1 – point n

Text proposed by the Commission

Amendment

(n) ‘substantiated concern’ means a well-founded reason, based on objective and verifiable information, for the competent authorities to suspect that products were likely made with forced labour;

(n) ‘substantiated concern’ means a well-founded reason, based on objective and verifiable information, for the competent authorities to suspect that forced labour is likely to have been used in the production or transport of products;

Amendment 41

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(s a) 'SMEs’ means micro, small and medium-sized enterprises as defined in Directive 2013/34/EU;

Amendment 42

Proposal for a regulation

Article 2 – paragraph 1 – point u 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 and/or systemic forced labour, including state-imposed forced labour, in an entire product group or product site in a specific industry;

Amendment 43

Proposal for a regulation

Article 2 – paragraph 1 – point u 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.

Amendment 44

Proposal for a regulation

Article 4

Text proposed by the Commission

Amendment

Preliminary phase of investigations

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:

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

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

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

(d) information and decisions encoded in the information and communication system referred to in Article 22(1), including any past cases of compliance or non-compliance of an economic operator with Article 3;

(e) information requested by the competent authority from other relevant authorities, where necessary, on whether the economic operators under assessment are subject to and carry out due diligence in relation to forced labour in accordance with applicable Union legislation or Member States legislation setting out due diligence and transparency requirements with respect to forced labour.

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 involved in the steps of the value chain as close as possible to where the risk of forced labour is likely to occur, the quantity of products concerned, as well as the scale of suspected forced labour.

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 information on actions taken to identify, prevent, mitigate, remediate, protect and 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:

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

(b) the guidelines issued by the Commission pursuant to Article 23, point (a);

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

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

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.

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. 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 remediating and 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.

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.

Amendment 45

Proposal for a regulation

Article 5

Text proposed by the Commission

Amendment

Investigations

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.

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

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

(b) the products subject to the investigation;

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

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:

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:

(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

(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.

(b) take into account the size and 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.

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.

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.

5. When deciding on the time limits referred to in this Article, competent authorities shall consider the size and economic resources of the economic operators concerned.

5. When deciding on the time limits referred to in this Article, competent authorities shall consider the size and resources of the economic operators concerned.

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.

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 but also the economic operators taking into account their size and resources. 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.

5 c. 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(1) or (4).

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.

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 within a delimited timeframe.

Amendment 46

Proposal for a regulation

Article 6 – paragraph 3

Text proposed by the Commission

Amendment

3. Where competent authorities cannot establish that Article 3 has been violated, they shall take a decision to close the investigation and inform the economic operator thereof.

3. Where competent authorities cannot establish that Article 3 has been violated, they shall take a decision to close the investigation and inform the economic operator thereof. This closing of the investigation for lack of proof shall not preclude the right of competent authority to start a new investigation into the same product should new information be made available.

Amendment 47

Proposal for a regulation

Article 6 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

4 a. Taking into account the outcome of the impact assessment 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.

Amendment 48

Proposal for a regulation

Article 6 – paragraph 6

Text proposed by the Commission

Amendment

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.

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, and provided the proof of effective remediation for victims of forced labour, the competent authorities shall withdraw their decision for the future and inform the economic operators.

Amendment 49

Proposal for a regulation

Article 6 – paragraph 6 a (new)

Text proposed by the Commission

Amendment

6 a. To eliminate forced labour, the Commission’s Guidance on Due Diligence for EU businesses shall enable disengagement from a business relationship as a last resort solution only, in consistency with the United Nations Guiding Principles on Business and Human Rights (UNGPs).

Amendment 50

Proposal for a regulation

Article 7

Text proposed by the Commission

Amendment

Content of the decision

1. The decision referred to in Article 6(4) shall contain all of the following:

(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;

(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 resources. Reasonable 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;

(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;

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

2. The Commission shall adopt implementing acts further specifying the details of the information to be included in the decisions. Those details shall as a minimum include details of information to be made available to customs authorities in accordance with Article 16(3). Those implementing acts shall be adopted in accordance with the examination procedure pursuant to Article 29.

Amendment 51

Proposal for a regulation

Article 8 – paragraph 2

Text proposed by the Commission

Amendment

2. A request for a review of a decision adopted pursuant Article 6(4) shall contain new information that was not brought to the attention of the competent authority during the investigation. The request for a review shall delay the enforcement of the decision adopted pursuant to Article 6(4) until the competent authority decides on the request for the review.

2. A request for a review of a decision adopted pursuant Article 6(4) shall contain relevant new information that was not brought to the attention of the competent authority during the investigation for reasons other than negligence. The request for a review shall delay the enforcement of the decision adopted pursuant to Article 6(4) until the competent authority decides on the request for the review.

Amendment 52

Proposal for a regulation

Article 9 – paragraph 2

Text proposed by the Commission

Amendment

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.

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

Amendment 53

Proposal for a regulation

Article 10

Text proposed by the Commission

Amendment

Submission of information regarding violations of Article 3

Complaint procedure regarding violations of Article 3

-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, and ensure that the identity of the complainant is not disclosed without explicit consent.

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, products, production sites and high-risk areas concerned and provide the reasons substantiating the allegation.

1 a. The Commission shall determine the rules and procedures to assign complaints to the competent authorities, taking into account the specifics of the complaint, the domicile of the economic operator and the capacities of the competent authorities in concerned Member States.

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 complainant referred to in paragraph 1 of the outcome of the reasoning and the assessment of their complaint, as well as all the decisions referred to in Article 9.

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.

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..

Amendment 54

Proposal for a regulation

Article 11

Text proposed by the Commission

Amendment

Database of forced labour risk areas or products

Forced labour risk areas or products

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.

1. The Commission shall call upon external expertise to provide an indicative, non-exhaustive, verifiable, evidence-based 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, civil society organisations, international organisations and third country authorities.

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.

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 transparent and easily accessible to all.

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.

Amendment 55

Proposal for a regulation

Article 11 a (new)

Text proposed by the Commission

Amendment

Article 11 a

Disclosure of value chains

1. The economic operators should 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, privacy, and competition law in order to facilitate the accessibility and transparency of the information for competent authorities and stakeholders to implement this Regulation.

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

Amendment 56

Proposal for a regulation

Article 12 – paragraph 5

Text proposed by the Commission

Amendment

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.

Amendment 57

Proposal for a regulation

Article 12 – paragraph 6

Text proposed by the Commission

Amendment

6. Member States shall confer on their competent authorities the power to impose penalties in accordance with Article 30.

6. Member States shall confer on their competent authorities the power to impose penalties in accordance with Article 30, including with respect to the provision of remediation.

Amendment 58

Proposal for a regulation

Article 14 – paragraph 1

Text proposed by the Commission

Amendment

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.

Amendment 59

Proposal for a regulation

Article 16 – paragraph 2

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.

Amendment 60

Proposal for a regulation

Article 23

Text proposed by the Commission

Amendment

Guidelines

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:

(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 with a gender-responsive and child-friendly approach, including financial and non-financial compensation, restitution, rehabilitation, effective preventive measures, such as injunctions 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. The guidelines shall also incorporate measures to cover the states' obligation to protect, to provide immediate assistance and rehabilitation and aim to contribute to the access to long-term sustainable solutions;

(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;

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

(d) further information to facilitate the competent authorities’ implementation of this Regulation;

(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 the practical implementation of Article 16 and, where appropriate, any other provision laid down in Chapter III of this Regulation;

(e a) guidelines to assist economic operators in the setting up of a value chain mapping process and for the identification of victims and risks, including references to specific high-risk sectors and areas;

(e b) guidance for the stakeholders to file a complaint and facilitate access to justice, remedy and protection, as well as participate and meaningfully engage in the procedures set out in the Regulation.

Amendment 61

Proposal for a regulation

Article 24

Text proposed by the Commission

Amendment

Union Network Against Forced Labour Products

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

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, including EU delegations, and, where appropriate, experts from the customs authorities, as well as the European Agency for Fundamental Rights, the European Labour Authority and other Union agencies with relevant expertise in the areas covered by the Regulation. Trade unions and other workers’ representatives, civil society organisations, human rights defenders, international organisations, and third countries’ competent authorities shall be invited to collaborate with the Network.

3. The Network shall have the following tasks:

(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 and especially in developing countries, to exchange information, expertise and best practices ensuring a gender-responsive and child-friendly approach;

(b) conduct joint investigations;

(b) conduct joint investigations, including in third countries, and reinforce national and transnational referral mechanisms;

(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;

(d) contribute to the development of guidance to ensure the effective and uniform application of this Regulation;

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

(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, especially developing countries’ authorities, as well as trade unions, civil society organisations, human rights defenders and international organisations;

(f a) manage the centralised complaint system.

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

5. The Network shall establish its rules of procedure.

Amendment 62

Proposal for a regulation

Article 25 – paragraph 2

Text proposed by the Commission

Amendment

2. Where requested, the Commission, Member States and competent authorities shall treat the identity of those who provide information, or the information provided, as confidential. A request for confidentiality shall be accompanied by a non-confidential summary of the information supplied or by a statement of the reasons why the information cannot be summarised in a non-confidential manner.

2. Where requested, the Commission, Member States and competent authorities shall treat the identity of those who provide information, or the information provided, as confidential. A request for confidentiality shall be accompanied by comprehensive protection services, when requested, and by a non-confidential summary of the information supplied or by a statement of the reasons why the information cannot be summarised in a non-confidential manner.

Amendment 63

Proposal for a regulation

Article 26

Text proposed by the Commission

Amendment

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 cooperate, engage and exchange information with, amongst others, authorities of third countries, especially of developing countries, international organisations, trade unions and other workers’ representatives, civil society representatives and business organisations and any other stakeholder. International cooperation with authorities of third countries, especially developing 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 and through the Network foreseen in Article 24.

1a. The Commission, in particular in developing countries and in accordance with Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation Instrument – Global Europe, shall provide measures to contribute to the effective implementation of this Regulation, including financial support for capacity building in partner countries in order to address the root causes of forced labour, which results e.g. from, among others, discrimination, unfair purchasing practises, the absence of living wage and land rights. The Commission shall provide financial and political support to civil society organisations, human rights defenders and rightsholders, and raise awareness and support access to protection, justice and remedy for victims, among others.

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, the Union shall develop accompanying measures, including to support the efforts of the economic operator and its business partners in the value chain, in particular the small and medium-sized enterprises (SMEs).

2 a. The following accompanying measures are notably foreseen:

(a) supportive development policies to governments in producer countries to guarantee, protect and fulfil their international human rights obligations to implement decent labour conditions, inter alia by:

(i) removing barriers to freedom of expression and association, and increased recognition of land rights;

(ii) building national social protection floor, in order to reduce vulnerability to forced or compulsory labour;

(iii) providing social and economic assistance, including access to educational and training opportunities and access to decent work, notably for at-risk population groups to increase their employability and income-earning opportunities and capacity;

(iv) developing coherent policies, such as employment and labour migration policies, which take into account the risks faced by specific groups of migrants, including those in an irregular situation, and address circumstances that could result in forced labour situations.

(b) supporting partner countries to develop encompassing National Action Plans on Forced Labour, with the aim to:

(i) address the root causes of workers’ vulnerability to forced or compulsory labour;

(ii) adopt and strengthen legislation on forced labour, covering the employment relationship of all sectors of the economy;

(iii) provide effective protective measures to meet the needs of all victims, irrespective of their status (age, gender, ethnicity, migration status or any other ground for discrimination), for both immediate assistance and long-term recovery and rehabilitation;

(iv) strengthen the enforcement of laws and prosecution;

(v) raise awareness and engagement, especially for those who are most at risk of becoming victims of forced or compulsory labour, including migrants, to inform them, inter alia, about how to protect themselves against fraudulent or abusive recruitment and employment practices, their rights and responsibilities at work, how to gain access to assistance in case of need and about the sanctions for violating the prohibition on forced or compulsory labour.

2 b. 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.

2 c. 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.

ANNEX: List of entities or persons

from whom the rapporteur for the OPINION has received input

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:

Entity and/or person

Acumen Public Affairs

Anti-Slavery International

AxHa

Clean Clothes Campaign European Coalition (CCC – European Coalition)

European Center for Constitutional and Human Rights (ECCHR)

European Cocoa Association

Fair Trade Advocacy Office (FTAO)

Fediol

French National Consultative Commission on Human Rights

Fundación Brazil

Fundación Libera

German Institute for Human Rights

International Dalit Solidarity Network (IDSN)

Ovibashi Karmi Unnayan Program

Reporter Brazil

Social Awareness and Voluntary Education

The Remedy Project

Tony’s Chocolonely

Turkmen.news

Uganda Consortium for Corporate Accountability

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

Prohibiting products made with forced labour on the Union market

References

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

Committees responsible

Date announced in plenary

INTA

6.10.2022

IMCO

6.10.2022

Opinion by

Date announced in plenary

DEVE

19.1.2023

Rapporteur for the opinion

Date appointed

Ilan De Basso

26.10.2022

Rule 58 – Joint committee procedure

Date announced in plenary

16.3.2023

Discussed in committee

21.3.2023

Date adopted

28.6.2023

Result of final vote

–:

Members present for the final vote

Hildegard Bentele, Stéphane Bijoux, Mercedes Bresso, Catherine Chabaud, Christophe Clergeau, Elisabetta De Blasis, Charles Goerens, Mónica Silvana González, Pierrette Herzberger-Fofana, György Hölvényi, Rasa Juknevičienė, Beata Kempa, Karsten Lucke, Erik Marquardt, Janina Ochojska, Michèle Rivasi, Eleni Stavrou, Tomas Tobé, Miguel Urbán Crespo, Bernhard Zimniok

Substitutes present for the final vote

Marlene Mortler, Maria Noichl, María Soraya Rodríguez Ramos

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

France Jamet

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

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