The International Labor Organization (ILO) estimated that in 2021, on any given day, 27.6 million people were forced to labor against their will globally. The products of that forced labor entered global supply chains and made their way to consumers around the world, competing against products made with unforced labor.
Canada has recently increased its efforts to keep these products out of the Canadian market. Part of that effort has been directed at amending and enhancing the enforcement of the Customs Tariff which prohibits importing products that are mined, produced, or manufactured, wholly or in part, by forced or child labor.1
Recently the Government of Canada opened a Public Consultation to seek the views of stakeholders on the potential benefits and risks of the following possible measures:
- Publication of a list of specified goods at risk of forced labour informed by the International Labour Organization's (ILO) forced labour indicators and definitions and supplemented by other sources of information
- Creation of a supply chain "minimum traceability"
process in which importers of specified goods appearing on the
above-cited public list would be required to provide documentation
regarding the imported goods' supply chain journey
- This process would be an addition to the current import ban on goods made with forced labour, the overall ban and previous assessment processes would remain in place for those goods not on the public list
- A revised cost-recovery model, whereby the importer of goods deemed to be made by forced labour would be responsible for the payment of all costs associated with the detention, removal, abandonment, and/or forfeiture, including any transport, storage, and/or disposal fees resulting from the import of forced labour goods
- Creation of a streamlined mechanism for settling disagreements between importers and the government on decisions that prevent entry into the market of specific goods
- A strengthening of the legislative and regulatory authorities regarding information collection/sharing, enforcement and disposition, including enhanced collaboration within North America
Instructions on how to participate can be found on the Public Consultation website.
The consultations are part of the growing overall commitment by Canada to eradicating forced labor from the global supply chain. Companies are encouraged to start developing an internal anti-forced labor program in preparation for the increased enforcement of the import ban.
Cassels continues to monitor developments in forced labor regulation and their potential impact on customers and businesses going forward.
Footnote
1 Section 136 of the Customs Tariff Act prohibits the import of goods classified under tariff item 9897.00.00.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.