EU: Forced Labor in Your Supply Chain? Time To Think About How To Ensure Compliance.
- Arne Mielken
- Feb 4, 2024
- 4 min read
How can EU businesses prepare for the upcoming EU forced labour legislation?
The EU's Forced Labour Law
The European Union (EU) discusses a law prohibiting the export of items manufactured using forced labour from the EU and selling such products on the EU market. Restrictions will apply to all categories of products, regardless of whether they are produced inside the EU or imported into the EU, that are created entirely or substantially via the use of forced labour, which includes child labour.
When will the EU's Forced Labour Law Apply?
Restrictions will apply to all categories of products, regardless of whether they are produced inside the EU or imported into the EU, that are created entirely or substantially via the use of forced labour, which includes child labour. The proposed legislation is anticipated only to cover the situation in which forced labour is used during the production, manufacturing, harvesting, and extraction of goods. It will not cover operations that are considered to be service activities, such as transportation or distribution.
What is the role of Customs in enforcing the EU Labour Law?
The customs authorities will have the authority to stop the release of items for free circulation or export if they determine that the products in question are in breach of the restriction. This ban will be primarily organised via the regulations and screening procedures of the customs department.
What should businesses start contemplating regarding the new EU Forced Labour Law?
Companies established in high-risk areas or producing high-risk goods will be required to demonstrate that they do not use forced labour to comply with the current proposal that the Parliament has presented. Additionally, any workers involved in forced labour will be entitled to compensation, although the specifics of who will pay this and the legal mechanisms for remediation are still to be decided. Furthermore, It is unclear if the Commission has the authority to launch investigations or the enforcement capabilities to carry them out.
How can EU businesses prepare for the upcoming EU forced labour legislation?
At Customs Manager Ltd, we advise customers on the U.S. Forced Labor Prevention Act and carefully follow and report on the developments in the EU. We would be pleased to support you with a due diligence solution and invite you to schedule a free, no-obligation call with us at www.customsmanager.org -> Book Expert Call.
More Information & Links
Taking a Stand Against Forced Labor: The EU's Proposal for a Ban on Goods made that way.
What are the due diligence requirements for the EU when implementing the ban on products made using forced labour, including child labour? Download the report.
Fighting Forced Labor: Understanding the U.S. Forced Labor Prevention Act
Understanding the U.S. Forced Labor Prevention Act: A Crucial Step in the Fight Against Forced Labor: Our Guide. Article
EU Forced Labour Law: Our Briefing
The EU Council has adopted its position (negotiating mandate) on the regulation prohibiting products made with forced labour on the EU market. Briefing here.
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