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(BRUSSELS) – Products made with forced labour are to be banned from the EU market under the provisional deal agreed Tuesday by the European Parliament and EU Council.
A new regulation would create a framework for enforcing this ban, including through investigations, new IT solutions and cooperation with other authorities and countries.
Roughly 27.6 million people are in forced labour around the world, in many industries. Most forced labour takes place in the private sector, while some is imposed by public authorities.
According to the agreed text, national authorities or, if third countries are involved, the EU Commission, will investigate suspected use of forced labour in companies’ supply chains. If the investigation concludes that forced labour has been used, the authorities can demand that relevant goods be withdrawn from the EU market and online marketplaces, and confiscated at the borders. The goods would then have to be donated, recycled or destroyed. Goods of strategic or critical importance for the Union may be withheld until the company eliminates forced labour from its supply chains.
Firms that do not comply can be fined. However, if they eliminate forced labour from their supply chains, banned products can be allowed back on the market.
The Commission will draw up a list of specific economic sectors in specific geographical areas where state-imposed forced labour exists. This will then become a criterion to assess the need to open an investigation.
The EU executive can also identify products or product groups for which importers and exporters will have to submit extra details to EU customs, such as information on the manufacturer and suppliers of these products.
A new ‘Forced Labour Single Portal’ would be set up to help enforce the new rules. This would include guidelines, information on bans, database of risk areas and sectors, as well as publicly available evidence and a whistleblower portal. A ‘Union Network Against Forced Labour Products’ would help to improve cooperation between authorities.
The rules foresee cooperation with third countries, and this may include information exchange on risk areas or products and sharing best practices, in particular with countries with similar legislation in place. The Commission acting as a lead competent authority may also carry out checks and inspections in third countries, if the relevant company and the government of the third country agree to it.
The Parliament and Council now both have to give their final green light to the provisional agreement. The regulation will then be published in the Official Journal and enter into force the following day. EU countries will then have 3 years to start applying the new rules.
