Sittings · Document

DRAFT OPINION (COM(2022)453 – C90307/2022 – 2022/0269(COD)) 2023-03-06

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 workers victims of forced labour is added as a condition for the withdrawal of the ban. As such, the amendments enable the Regulation to go beyond serving as a vehicle for consumer information to respond to the needs of affected workers and encourage effective preventive measures.

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 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. 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.

Or. en

Amendment 2

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.

Or. en

Amendment 3

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. Moreover, Article 5(2) of the Charter of Fundamental Rights of the European Union and Article 4 of the European Convention on Human Rights provide that no one is to be required to perform forced or compulsory labour. The European Court of Human Rights has repeatedly interpreted Article 4 of the European Convention on Human Rights as requiring Member States to penalise and effectively prosecute any act maintaining a person in the situations described set out in Article 4 of the European Convention on Human Rights. 19

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

Or. en

Amendment 4

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.

Or. en

Amendment 5

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.

Or. en

Amendment 6

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 economic resources of economic operators. In addition, the Commission should issue guidelines on forced-labour risk indicators and on publicly available information in order to help SMEs, as well as other economic operators, to comply with the requirements of the prohibition.

(18) Micro, small and medium-sized enterprises (’SMEs’) can have limited resources and ability to ensure that the products they place or make available on the Union market are free from forced labour. The Commission should therefore issue guidelines on due diligence in relation to forced labour, which should take into account also the size and economic resources of economic operators and refer to remediation measures. In addition, the Commission should issue guidelines on forced-labour risk indicators, on publicly available information and on value chain mapping in order to help SMEs, as well as other economic operators, to comply with the requirements of the prohibition. The Commission should also issue guidelines for stakeholders on filing a complaint and meaningfully engage in the procedures set out in the Regulation.

Or. en

Amendment 7

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.

Or. en

Amendment 8

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.

Or. en

Amendment 9

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.

Or. en

Amendment 10

Proposal for a regulation

Recital 26 a (new)

Text proposed by the Commission

Amendment

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

Or. en

Amendment 11

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. The complaint mechanism should be secure and accessible. The stakeholders should be informed of the outcome of the assessment of their complaints, as well as all the decisions made by competent authorities, referring to their complaints.

Or. en

Amendment 12

Proposal for a regulation

Recital 32 a (new)

Text proposed by the Commission

Amendment

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

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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.

Or. en

Amendment 13

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.

Or. en

Amendment 14

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, trade unions and other workers’ representatives, civil society representatives, international organisations and third countries’ competent authorities. The European Agency for Fundamental Rights, the European Labour Authority and other Union agencies with relevant expertise in the areas covered by the Regulation should also be invited to join the Network. That network should also aim at streamlining the practices of the competent authorities within the Union that facilitate the implementation of joint enforcement activities by Member States, including joint investigations. That administrative support structure should allow the pooling of resources and maintain a communication and information system between Member States and the Commission, thereby helping to strengthen the enforcement of the prohibition.

Or. en

Amendment 15

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

Or. en

Justification

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

Amendment 16

Proposal for a regulation

Article 2 – paragraph 1 – point c

Text proposed by the Commission

Amendment

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

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

Or. en

Justification

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

Amendment 17

Proposal for a regulation

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

Or. en

Amendment 18

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

Or. en

Amendment 19

Proposal for a regulation

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

Text proposed by the Commission

Amendment

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

Or. en

Justification

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

Amendment 20

Proposal for a regulation

Article 2 – paragraph 1 – point 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 or transports a product in whole or in part, or intervenes in the working or processing related to a product at any stage of its value chain, whether as manufacturer or in any other circumstances;

Or. en

Amendment 21

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

Or. en

Justification

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

Amendment 22

Proposal for a regulation

Article 2 – paragraph 1 – point 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 forced labour, including state-imposed forced labour, in an entire product group or product site in a specific industry included in the database of Article 11;

Or. en

Justification

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

Amendment 23

Proposal for a regulation

Article 2 – paragraph 1 – point 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.

Or. en

Justification

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

Amendment 24

Proposal for a regulation

Article 4 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

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

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

Or. en

Amendment 25

Proposal for a regulation

Article 4 – paragraph 1 – point a

Text proposed by the Commission

Amendment

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

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

Or. en

Amendment 26

Proposal for a regulation

Article 4 – paragraph 1 – point c

Text proposed by the Commission

Amendment

Or. en

Amendment 27

Proposal for a regulation

Article 4 – paragraph 2

Text proposed by the Commission

Amendment

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.

Or. en

Amendment 28

Proposal for a regulation

Article 4 – paragraph 3 – introductory part

Text proposed by the Commission

Amendment

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 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:

Or. en

Amendment 29

Proposal for a regulation

Article 4 – paragraph 3 – point d

Text proposed by the Commission

Amendment

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

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

Or. en

Amendment 30

Proposal for a regulation

Article 4 – paragraph 6

Text proposed by the Commission

Amendment

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

Or. en

Amendment 31

Proposal for a regulation

Article 4 – paragraph 6 a (new)

Text proposed by the Commission

Amendment

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

Or. en

Justification

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

Amendment 32

Proposal for a regulation

Article 4 – paragraph 7

Text proposed by the Commission

Amendment

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

Or. en

Amendment 33

Proposal for a regulation

Article 5 – paragraph 1

Text proposed by the Commission

Amendment

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

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

Or. en

Amendment 34

Proposal for a regulation

Article 5 – paragraph 3 – introductory part

Text proposed by the Commission

Amendment

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

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

Or. en

Amendment 35

Proposal for a regulation

Article 5 – paragraph 3 – point b

Text proposed by the Commission

Amendment

(b) take into account the size and economic resources of the economic operators, the quantity of products concerned, as well as the scale of suspected forced labour.

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

Or. en

Amendment 36

Proposal for a regulation

Article 5 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

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

Or. en

Justification

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

Amendment 37

Proposal for a regulation

Article 5 – paragraph 5 a (new)

Text proposed by the Commission

Amendment

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

Or. en

Justification

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

Amendment 38

Proposal for a regulation

Article 5 – paragraph 5 b (new)

Text proposed by the Commission

Amendment

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

Or. en

Justification

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

Amendment 39

Proposal for a regulation

Article 5 – paragraph 6

Text proposed by the Commission

Amendment

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.

Or. en

Amendment 40

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

Or. en

Amendment 41

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, the competent authorities shall withdraw their decision for the future and inform the economic operators.

Or. en

Amendment 42

Proposal for a regulation

Article 7 – paragraph 1 – point a

Text proposed by the Commission

Amendment

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

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

Or. en

Amendment 43

Proposal for a regulation

Article 7 – paragraph 1 – point b

Text proposed by the Commission

Amendment

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

Or. en

Amendment 44

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.

Or. en

Amendment 45

Proposal for a regulation

Article 10 – title

Text proposed by the Commission

Amendment

Submission of information regarding violations of Article 3

Complaint procedure regarding violations of Article 3

Or. en

Justification

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

Amendment 46

Proposal for a regulation

Article 10 – paragraph -1 (new)

Text proposed by the Commission

Amendment

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

Or. en

Amendment 47

Proposal for a regulation

Article 10 – paragraph 1

Text proposed by the Commission

Amendment

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

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

Or. en

Amendment 48

Proposal for a regulation

Article 10 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

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

Or. en

Amendment 49

Proposal for a regulation

Article 10 – paragraph 2

Text proposed by the Commission

Amendment

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

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

Or. en

Amendment 50

Proposal for a regulation

Article 10 – paragraph 3

Text proposed by the Commission

Amendment

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

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

__________________

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

Or. en

Amendment 51

Proposal for a regulation

Article 11 – title

Text proposed by the Commission

Amendment

Database of forced labour risk areas or products

Forced labour risk areas or products

Or. en

Amendment 52

Proposal for a regulation

Article 11 – paragraph 2

Text proposed by the Commission

Amendment

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

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

Or. en

Amendment 53

Proposal for a regulation

Article 11 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

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

Or. en

Justification

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

Amendment 54

Proposal for a regulation

Article 11 a (new)

Text proposed by the Commission

Amendment

Article 11 a

Disclosure of value chains

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

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

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

Or. en

Justification

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

Amendment 55

Proposal for a regulation

Article 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.

Or. en

Amendment 56

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.

Or. en

Amendment 57

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.

Or. en

Amendment 58

Proposal for a regulation

Article 23 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

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

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

Or. en

Amendment 59

Proposal for a regulation

Article 23 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) guidance on due diligence in relation to forced labour, which shall take into account applicable Union legislation setting out due diligence requirements with respect to forced labour, guidelines and recommendations from international organisations, as well as the size and economic resources of economic operators. More specifically, the guidelines shall refer to remediation measures which should include, for example, financial and non-financial compensation, restitution, rehabilitation, effective preventive measures and guarantees of non-recurrence of forced labour and apologies. In all cases, remediation must be adapted to the specific context and condition of the rightsholder;

Or. en

Amendment 60

Proposal for a regulation

Article 23 – paragraph 1 – point b

Text proposed by the Commission

Amendment

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

(b) information on risk indicators of forced labour, which shall be based on the indicators for forced labour set out by the ILO including in its ‘Hard to see, harder to count – Survey guidelines to estimate forced labour of adults and children’, on independent and verifiable information, including reports from international organisations, in particular the International Labour Organization, civil society, business organisations, and experience from implementing Union legislation setting out due diligence requirements with respect to forced labour;

Or. en

Amendment 61

Proposal for a regulation

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

Text proposed by the Commission

Amendment

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

Or. en

Amendment 62

Proposal for a regulation

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

Text proposed by the Commission

Amendment

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

Or. en

Amendment 63

Proposal for a regulation

Article 24 – paragraph 2

Text proposed by the Commission

Amendment

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

2. The Network shall be composed of representatives from each Member States’ competent authority, representatives from the Commission and, where appropriate, experts from the customs authorities, trade unions and other workers’ representatives, civil society representatives, international organisations and third countries’ competent authorities.

Or. en

Amendment 64

Proposal for a regulation

Article 24 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

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

Or. en

Amendment 65

Proposal for a regulation

Article 24 – paragraph 3 – point a

Text proposed by the Commission

Amendment

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

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

Or. en

Amendment 66

Proposal for a regulation

Article 24 – paragraph 3 – point b

Text proposed by the Commission

Amendment

(b) conduct joint investigations;

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

Or. en

Amendment 67

Proposal for a regulation

Article 24 – paragraph 3 – point c

Text proposed by the Commission

Amendment

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

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

Or. en

Amendment 68

Proposal for a regulation

Article 24 – paragraph 3 – point f

Text proposed by the Commission

Amendment

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

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

Or. en

Amendment 69

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(f a) manage the centralised complaint system;

Or. en

Amendment 70

Proposal for a regulation

Article 26 – paragraph 1

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 may as appropriate cooperate, engage and exchange information with, amongst others, authorities of third countries, international organisations, trade unions and other workers’ representatives, civil society representatives, business organisations and any other stakeholder. International cooperation with authorities of third countries shall take place in a structured way as part of the existing dialogue structures with third countries or, if necessary, specific ones that will be created on an ad hoc basis and through the Network foreseen in Article 24.

Or. en

Amendment 71

Proposal for a regulation

Article 26 – paragraph 2

Text proposed by the Commission

Amendment

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 may 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).

Or. en

Amendment 72

Proposal for a regulation

Article 26 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

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

Or. en

Justification

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

Amendment 73

Proposal for a regulation

Article 26 – paragraph 2 b (new)

Text proposed by the Commission

Amendment

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

Or. en

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

Anti-Slavery International

Clean Clothes Campaign European Coalition (CCC – European Coalition)

European Center for Constitutional and Human Rights (ECCHR)

Fair Trade Advocacy Office (FTAO)

French National Consultative Commission on Human Rights

Fundación Libera

German Institute for Human Rights

International Dalit Solidarity Network (IDSN)