Legal provisions of COM(2022)453 - Prohibiting products made with forced labour on the Union market - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2022)453 - Prohibiting products made with forced labour on the Union market. |
|---|---|
| document | COM(2022)453  |
| date | November 27, 2024 |
CHAPTER I
GENERAL PROVISIONS
Article 1
Subject matter, objective and scope
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 in order to improve the functioning of the internal market, while contributing to the fight against forced labour.
2. This Regulation does not cover the withdrawal of products which have reached end users in the Union market.
3. This Regulation does not create additional due diligence obligations for economic operators other than those already provided for in Union or national law.
Article 2
Definitions
For the purposes of this Regulation, the following definitions apply:
| (1) | ‘forced labour’ means forced or compulsory labour as defined in Article 2 of ILO Convention No 29, including forced child labour; |
| (2) | ‘forced labour imposed by state authorities’ means the use of forced labour as described in Article 1 of ILO Convention No 105; |
| (3) | ‘due diligence in relation to forced labour’ means efforts by economic operators 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 placed or to be made available on the Union market or to be exported; |
| (4) | ‘making available on the market’ means any supply of a product for distribution, consumption or use on the Union market in the course of a commercial activity, whether in return for payment or free of charge; |
| (5) | ‘placing on the market’ means the first making available of a product on the Union market; |
| (6) | ‘product’ means any item that can be valued in money and is capable, as such, of being the subject of commercial transactions, whether it is extracted, harvested, produced or manufactured; |
| (7) | ‘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 in the working or processing related to a product at any stage of its supply chain; |
| (8) | ‘supply chain’ means the system of activities, processes and actors involved at all stages upstream of a product being made available on the market, namely the extraction, harvesting, production and manufacturing of a product in whole or in part, including in the working or processing related to the product at any of those stages; |
| (9) | ‘economic operator’ means any natural or legal person or association of persons placing or making available products on the Union market or exporting products; |
| (10) | ‘manufacturer’ means any natural or legal person who manufactures a product or has a product designed or manufactured, and markets that product under its name or trademark; |
| (11) | ‘producer’ means the producer of agricultural products as referred to in Article 38(1) of the Treaty on the Functioning of the European Union, or the producer of raw materials; |
| (12) | ‘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, as a manufacturer or in any other capacity; |
| (13) | ‘end user’ means any natural or legal person residing or established in the Union to whom a product has been made available either as a consumer outside of any trade, business, craft or profession or as a professional end user in the course of its industrial or professional activities; |
| (14) | ‘importer’ means any natural or legal person or association of persons established within the Union who places a product from a third country on the Union market; |
| (15) | ‘exporter’ means an exporter as defined in Article 1, point (19), of Commission Delegated Regulation (EU) 2015/2446 (26); |
| (16) | ‘substantiated concern’ means a reasonable indication based on objective, factual and verifiable information for the Commission or competent authorities to suspect that it is likely that a product was made with forced labour; |
| (17) | ‘lead competent authority’ means the authority responsible, pursuant to Article 15, for assessing submissions of information, conducting investigations, and taking decisions, namely a Member State competent authority or the Commission; |
| (18) | ‘customs authorities’ means customs authorities as defined in Article 5, point (1), of Regulation (EU) No 952/2013; |
| (19) | ‘products entering the Union market’ means products from third countries intended to be placed on the Union market or intended for private use or consumption within the customs territory of the Union and to be placed under the customs procedure ‘release for free circulation’; |
| (20) | ‘products leaving the Union market’ means products to be placed under the customs procedure ‘export’; |
| (21) | ‘release for free circulation’ means the procedure laid down in Article 201 of Regulation (EU) No 952/2013; |
| (22) | ‘export’ means the procedure laid down in Article 269 of Regulation (EU) No 952/2013. |
Article 3
Prohibition of products made with forced labour
Economic operators shall not place or make available on the Union market products that are made with forced labour, nor shall they export such products.
Article 4
Distance sales
Products offered for sale online or through other means of distance sales shall be deemed to be made available on the market if the offer is targeted at end users in the Union. An offer for sale shall be considered to be targeted at end users in the Union if the relevant economic operator directs, by any means, its activities to a Member State.
Article 5
Competent authorities
1. Each Member State shall designate one or more competent authorities to be responsible for carrying out the obligations set out in this Regulation. Member State competent authorities and the Commission shall work in close cooperation and be responsible for ensuring the effective and uniform implementation of this Regulation throughout the Union.
2. Where a Member State has designated more than one competent authority, it shall clearly demarcate their respective duties and establish communication and coordination mechanisms that enable those authorities to collaborate closely and exercise their duties effectively.
3. No later than 14 December 2025, Member States shall, through the information and communication system referred to in Article 7(1), provide the Commission and the other Member States with the following information:
| (a) | the names, addresses and contact details of the competent authority or authorities; and |
| (b) | the areas of competence of the competent authority or authorities. |
Member States shall regularly update the information set out in points (a) and (b).
4. The Commission shall make the list of competent authorities publicly available on the Forced Labour Single Portal referred to in Article 12 and shall regularly update that list, based on the updates received from Member States.
5. Member States shall ensure that their competent authorities exercise their powers impartially, transparently and with due respect for the obligations of professional secrecy. Member States shall ensure that their competent authorities have the necessary powers, expertise, and resources to carry out investigations, including sufficient budgetary resources.
6. Member States shall ensure that their competent authorities coordinate closely and exchange information with the relevant national authorities, such as labour inspection authorities and judicial and law enforcement authorities, including those responsible for the fight against trafficking in human beings, and the authorities designated by Member States under Directive (EU) 2019/1937.
7. Member States shall confer on their competent authorities the power to impose penalties in accordance with Article 37, either directly, in cooperation with other authorities, or by way of an application to the competent judicial authorities.
CHAPTER II
GOVERNANCE
Article 6
Union Network Against Forced Labour Products
1. A Union Network Against Forced Labour Products (the Network) is hereby established.
2. The Network shall serve as a platform for structured coordination and cooperation between the competent authorities of the Member States and the Commission, and for streamlining the enforcement of this Regulation, within the Union, thereby making enforcement more effective and coherent.
3. The Network shall be composed of representatives from each Member State, representatives from the Commission and, where appropriate, representatives from customs authorities.
4. The Commission shall coordinate the work of the Network. A representative from the Commission shall chair the meetings of the Network.
5. The secretariat of the Network shall be provided by the Commission. The secretariat shall organise the meetings of the Network and provide it with technical and logistical support.
6. Members of the Network shall participate actively to ensure efficient coordination and cooperation, and to contribute to the uniform implementation of this Regulation.
7. The Network shall have the following tasks:
| (a) | to facilitate the identification of common enforcement priorities in order to achieve the objective of this Regulation as set out in Article 1; |
| (b) | to facilitate the coordination of investigations; |
| (c) | to follow-up on the enforcement of decisions referred to in Article 20; |
| (d) | upon request from the Commission, to contribute to the development of guidelines referred to in Article 11; |
| (e) | to facilitate and coordinate the collection and exchange of information, expertise and best practices with regard to the implementation of this Regulation; |
| (f) | to contribute to uniform risk-based approaches and administrative practices for the implementation of this Regulation; |
| (g) | to promote best practices in the application of penalties provided for in Article 37; |
| (h) | to cooperate, as appropriate, with the relevant Commission services, Union bodies, offices and agencies and Member State authorities on the implementation of this Regulation, |
| (i) | to promote the cooperation, exchange of personnel and visiting programmes among competent authorities and customs authorities, as well as among those competent authorities and competent authorities of third countries and international organisations; |
| (j) | to facilitate the organisation of training and capacity building activities, regarding the implementation of this Regulation, for the Commission and Union delegations in third countries and competent authorities, customs authorities and other relevant authorities of Member States; |
| (k) | upon request from the Commission, to provide assistance to the Commission on the development of a coordinated approach to engagement and cooperation with third countries pursuant to Article 13; |
| (l) | to monitor situations of systemic use of forced labour; |
| (m) | to assist in the organisation of information and awareness-raising campaigns on this Regulation; |
| (n) | to promote and facilitate collaboration with regard to exploring possibilities for using new technologies for the enforcement of this Regulation and the traceability of products; |
| (o) | to collect data on remediation linked to the decisions and evaluation of their effectiveness. |
8. Other relevant Member State authorities may attend meetings of the Network on an ad hoc basis. Experts and stakeholders, including representatives from trade unions and other workers’ organisations, civil society and human rights organisations, business organisations, international organisations, relevant authorities of third countries, the European Union Agency for Fundamental Rights, the European Labour Authority, the relevant Commission services, Union delegations and Union bodies, offices and agencies with expertise in the areas covered by this Regulation may be invited to attend meetings of the Network or to provide written contributions.
9. The Network shall meet at regular intervals and, where necessary, at the duly motivated request of the Commission or a Member State.
10. The Commission and the Member States shall ensure that the Network has the necessary resources to carry out the tasks referred to in paragraph 7, including sufficient budgetary resources.
11. The Network shall establish its rules of procedure.
Article 7
Information and communication systems
1. For the purposes of Chapters I, III, IV and V of this Regulation, the Commission and competent authorities shall use the information and communication system referred to in Article 34 of Regulation (EU) 2019/1020 in accordance with the implementing act referred to in paragraph 7, point (a), of this Article. The Commission, competent authorities and customs authorities shall have access to that system for the purposes of this Regulation.
2. Decisions communicated pursuant to Article 26(3) shall be entered in the relevant customs risk management environment.
3. The Commission shall develop an interconnection to enable the automated communication of the decisions referred to in Article 26(3) from the information and communication system referred to in paragraph 1 of this Article to the environment referred to in paragraph 2 of this Article. That interconnection shall start operating no later than 2 years from the date of the adoption of the implementing act referred to in paragraph 7, point (b), of this Article.
4. Requests and notifications between competent authorities and customs authorities pursuant to Chapter V, Section II, as well as the ensuing messages shall be exchanged via the information and communication system referred to in paragraph 1.
5. An interconnection between the information and communication system referred to in paragraph 1 and the EU Single Window Environment for Customs shall be established in accordance with Regulation (EU) 2022/2399 for the purposes of exchanging requests and notifications between customs and competent authorities pursuant to Chapter V, Section II of this Regulation. That interconnection shall be established at the latest within 4 years from the date of adoption of the implementing act referred to in paragraph 7, point (a). The requests, notifications and ensuing messages referred to in paragraph 4 shall be exchanged through that interconnection as soon as it is operational.
6. The Commission may extract, from the surveillance system referred to in Article 56(1) of Implementing Regulation (EU) 2015/2447, information on products entering or leaving the Union market related to the implementation of this Regulation and transmit it to the information and communication system referred to in paragraph 1 of this Article.
7. The Commission may adopt implementing acts to specify the procedural rules and the details of the implementation arrangements for this Article, including:
| (a) | the functionalities, data elements and data processing, as well as the rules on the processing of personal data, confidentiality and controllership of the information and communication system referred to in paragraph 1; |
| (b) | the functionalities, data elements and data processing, as well as the rules on the processing of personal data, confidentiality and controllership for the interconnection referred to in paragraph 3; |
| (c) | the data to be transmitted, as well as the rules on its confidentiality and controllership, in accordance with paragraph 6. |
Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 35(2).
Article 8
Database of forced labour risk areas or products
1. The Commission shall establish a database, with the assistance of external expertise if needed. This database shall provide indicative, non-exhaustive, evidence-based, verifiable and regularly updated information on forced labour risks in specific geographic areas or with respect to specific products or product groups, including with regard to forced labour imposed by state authorities. The database shall prioritise the identification of widespread and severe forced labour risks.
2. The database referred to in paragraph 1 shall be based on independent and verifiable information from international organisations, in particular the ILO and the UN, or institutional, research or academic organisations.
The database shall not publicly disclose information that names economic operators directly.
The database shall indicate specific economic sectors in specific geographic areas for which there is reliable and verifiable evidence that forced labour imposed by state authorities exists.
3. The Commission shall ensure that the database is easily accessible, including for persons with disabilities, and made publicly available, in all official languages of the institutions of the Union, by 14 June 2026.
Article 9
Single information submission point
1. The Commission shall set up a dedicated centralised mechanism for the submission of information (single information submission point). The single information submission point shall be available in all official languages of the institutions of the Union. It shall be user-friendly and made available free of charge.
2. Information on alleged violations of Article 3 shall be submitted via the single information submission point by any natural or legal person or any association that does not have a legal personality. Submissions of information shall contain information on the economic operators or products concerned, provide the reasons and evidence substantiating the alleged violations, and where possible, supporting documents. The Commission may adopt implementing acts to specify the procedural rules, templates and details in relation to those submissions of information. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 35(2).
3. The Commission shall discard any submissions of information to the single information submission point that are manifestly incomplete, unfounded or made in bad faith and distribute the retained submissions of information for assessment by the lead competent authority according to the method for the allocation of investigations set out in Article 15.
4. The lead competent authority in charge of the assessment referred to in paragraph 3 shall acknowledge receipt of the submission of information, diligently and impartially assess the information and inform the natural or legal person or association concerned of the outcome of the assessment of its submission of information as soon as possible.
5. The lead competent authority may ask the person or association referred to in paragraph 2 to provide additional information.
6. In cases where there is a significant lapse of time between the submission of information to the single information submission point and a decision to proceed with an investigation pursuant to Chapter III, the lead competent authority shall, to the extent possible, consult the person or association submitting the information to verify whether the situation has, to the best of their knowledge, changed significantly.
7. Directive (EU) 2019/1937 shall apply to the reporting of breaches of this Regulation and the protection of persons reporting such breaches.
Article 10
Support measures for SMEs
The Commission shall develop accompanying measures to support the efforts of economic operators and their business partners in the same supply chain, in particular SMEs. Where appropriate, information on those measures shall be made available through the Forced Labour Single Portal referred to in Article 12.
Competent authorities shall designate contact points to provide information to SMEs regarding matters related to the application of this Regulation. Those contact points may also provide assistance to SMEs on those matters.
Member States’ competent authorities may also organise training sessions for economic operators on forced labour risk indicators and on how to engage in dialogue with those competent authorities throughout an investigation.
Article 11
Guidelines
The Commission, in consultation with relevant stakeholders, shall make available, by 14 June 2026, and regularly update, guidelines which shall include the following:
| (a) | guidance for economic operators on due diligence in relation to forced labour, including forced child labour, which shall take into account applicable Union and national law, 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, different types of suppliers along the supply chain, and different sectors; |
| (b) | guidance for economic operators on best practices for bringing to an end and remediating different types of forced labour; |
| (c) | guidance for competent authorities on the practical implementation of this Regulation, in particular Articles 8, 17 and 18, including benchmarks for assisting competent authorities in their risk-based assessments in the context of investigations and guidelines on the applicable standard of evidence; |
| (d) | guidance for customs authorities and economic operators on the practical implementation of Article 27 and, where appropriate, any other provision laid down in Chapter V, Section II; |
| (e) | information on the risk indicators of forced labour, including how to identify such indicators, which shall be based on independent and verifiable information, including reports from international organisations, in particular the ILO, civil society, business organisations and trade unions, and on experience from implementing Union law setting out due diligence requirements regarding forced labour; |
| (f) | guidance for economic operators on due diligence in relation to forced labour imposed by state authorities; |
| (g) | guidance for economic operators and product suppliers on how to engage in dialogue with competent authorities pursuant to Chapter III, in particular on the type of information to be submitted; |
| (h) | guidance on how to submit information pursuant to Article 9; |
| (i) | guidance for Member States on the method for calculating financial penalties and the applicable thresholds; |
| (j) | further information to facilitate the competent authorities’ implementation of and the economic operator’s compliance with this Regulation. |
The guidance referred to in points (a), (b) and (f), shall focus in particular on assisting SMEs to comply with this Regulation.
The guidelines referred to in the first paragraph shall be consistent with guidelines provided in accordance with other relevant Union law.
Article 12
Forced Labour Single Portal
The Commission shall establish and regularly update a single website (Forced Labour Single Portal), making available to the public, in the same place and in all the official languages of the institutions of the Union, the following items:
| (a) | the names, addresses and contact details of the competent authorities; |
| (b) | the guidelines; |
| (c) | the database; |
| (d) | a list of publicly available information sources of relevance for the implementation of this Regulation, including sources which make disaggregated data available on the impact and victims of forced labour, such as gender-disaggregated data or data about forced child labour, allowing age and gender-specific trends to be identified; |
| (e) | the single information submission point; |
| (f) | any decision to ban a product; |
| (g) | any withdrawal of a ban; |
| (h) | the result of reviews. |
Article 13
International Cooperation
1. In order to facilitate the effective implementation and enforcement of this Regulation, the Commission shall, as appropriate, cooperate and exchange information with the authorities of third countries, international organisations, civil society representatives, trade unions, business organisations and other relevant stakeholders.
2. International cooperation with the authorities of third countries shall take place in a structured way, for example in the context of existing dialogues with third countries, such as human rights and political dialogues, dialogues on the implementation of the trade and sustainable development commitments of trade agreements or the Generalised Scheme of Preferences, and Union development cooperation initiatives. If necessary, specific dialogues may be created on an ad hoc basis. International cooperation may involve exchanges of information on forced labour risk areas or products, of best practices for bringing forced labour to an end, and of information on decisions to ban products, including their reasons and evidence, in particular with third countries that have similar legislation in place.
3. For the purposes of paragraph 2, the Commission and Member States may consider the development of cooperation initiatives and accompanying measures to support the efforts of economic operators, in particular SMEs, as well as civil society organisations, social partners and third countries to tackle forced labour and its root causes.
CHAPTER III
INVESTIGATIONS
Article 14
Risk-based approach
1. The Commission and the competent authorities of Member States shall follow a risk-based approach when assessing the likelihood of a violation of Article 3, when initiating and conducting the preliminary phase of the investigations and when identifying the products and economic operators concerned.
2. In their assessment of the likelihood of a violation of Article 3, the Commission and the competent authorities shall use the following criteria, as appropriate, in order to prioritise products suspected to have been made with forced labour:
| (a) | the scale and severity of the suspected forced labour, including whether forced labour imposed by state authorities could be a concern; |
| (b) | the quantity or volume of products placed or made available on the Union market; |
| (c) | the share of the part of the product suspected to have been made with forced labour in the final product. |
3. The assessment of the likelihood of a violation of Article 3 shall be based on all relevant, factual, and verifiable information available to the Commission and competent authorities, including, but not limited to, the following:
| (a) | information and decisions encoded in the information and communication system referred to in Article 7(1), including any previous cases of compliance or non-compliance of an economic operator with Article 3; |
| (b) | the database referred to in Article 8; |
| (c) | the risk indicators and other information pursuant to Article 11, point (e); |
| (d) | submissions of information made pursuant to Article 9; |
| (e) | information received by the Commission or the competent authority from other authorities relevant for the implementation of this Regulation, such as Member States’ due diligence, labour, health or fiscal authorities, on the products and economic operators under assessment; |
| (f) | any issues arising from meaningful consultations with relevant stakeholders, such as civil society organisations and trade unions. |
4. When initiating a preliminary investigation pursuant to Article 17, the lead competent authority shall, to the extent possible, focus on the economic operators and, where relevant, product suppliers involved in the steps of the supply chain as close as possible to where the forced labour is likely occurring, and with the highest leverage to prevent, mitigate and bring to an end the use of forced labour. The lead competent authority shall also take into account the size and economic resources of the economic operators concerned, in particular whether the economic operator is an SME, and the complexity of the supply chain.
Article 15
Allocation of investigations
1. Where the suspected forced labour is taking place outside the territory of the Union, the Commission shall act as the lead competent authority.
2. Where the suspected forced labour is taking place in the territory of a Member State, a competent authority of that Member State shall act as the lead competent authority.
Article 16
Coordination of investigations and mutual assistance
1. The Commission and competent authorities shall cooperate closely with each other and provide each other with mutual assistance in order to implement this Regulation in a consistent and efficient manner.
2. The lead competent authority shall respect the right of the economic operator to be heard at all stages of the process.
3. The lead competent authority shall, at any time and without undue delay, communicate via the information and communication system referred to in Article 7(1) in the event that it discovers new information about suspected forced labour taking place in a territory for which it is not competent pursuant to Article 15.
4. The lead competent authority may request the support of other relevant competent authorities. This may include requesting support in order to contact economic operators whose place of establishment is within the territory of that Member State or whose language of operation is that of a Member State. Other competent authorities that have an interest in the investigation may request to be closely involved in the investigation.
5. A competent authority that has received, through the information and communication system referred to in Article 7(1), a request for information from another competent authority shall provide an answer within 20 working days of the date of receipt of the request.
6. The competent authority that has received a request for information may ask the requesting competent authority to complement the information contained in the request if it concludes that the information provided initially is not sufficient.
7. The competent authority that has received a request for information may refuse to comply with that request only if it demonstrates that complying with the request would substantially impair the execution of its own activities.
Article 17
Preliminary phase of investigations
1. Before initiating an investigation in accordance with Article 18(1), the lead competent authority shall request information from the economic operators under assessment and, where relevant, other product suppliers, on the relevant actions they have taken in order to identify, prevent, mitigate, bring to an end or remediate risks of forced labour in their operations and supply chains with respect to the products under assessment, including on the basis of any of the following, unless it would jeopardise the outcome of the assessment:
| (a) | applicable Union or national law setting out due diligence and transparency requirements with respect to forced labour; |
| (b) | the guidelines issued by the Commission; |
| (c) | due diligence guidelines or recommendations of the UN, ILO, OECD or other relevant international organisations, in particular guidelines and recommendations relating to geographic areas, production sites and economic activities in certain sectors in which there are systematic and widespread forced labour practices; |
| (d) | any other meaningful due diligence or other information in relation to forced labour in their supply chain. |
The lead competent authority may request information on those actions from other relevant stakeholders, including the persons or associations that have submitted relevant, factual, and verifiable information pursuant to Article 9 and any other natural or legal persons related to the products and geographical areas under assessment, as well as from the European External Action Service and Union delegations in relevant third countries.
2. Economic operators shall respond to the request referred to in paragraph 1 of this Article within 30 working days of the day they received such request. Economic operators may provide any other information they may deem useful for the purposes of this Article. Where necessary, economic operators may request support from a contact point referred to in Article 10, on how to engage with the lead competent authority.
3. Within 30 working days from the date of receipt of the information submitted by economic operators pursuant to paragraph 2 of this Article, the lead competent authority shall conclude the preliminary phase of its investigation regarding whether there is a substantiated concern that there has been a violation of Article 3, on the basis of the assessment referred to in Article 14(3) and the information submitted by economic operators pursuant to paragraph 2 of this Article.
4. Notwithstanding paragraph 3 of this Article, the lead competent authority may conclude that there is a substantiated concern that there has been a violation of Article 3 on the basis of any other facts available, where a lead competent authority has refrained from requesting information in accordance with paragraph 1 of this Article or in the situations referred to in Article 20(2), points (a) to (e).
5. The lead competent authority shall not initiate an investigation pursuant to Article 18, and shall inform the economic operators under assessment accordingly, where, on the basis of the assessment referred to in Article 14(3) and, if any, of the information submitted by economic operators pursuant to paragraph 2 of this Article, it considers that there is no substantiated concern that there has been a violation of Article 3, or that the reasons that motivated the existence of a substantiated concern have been eliminated, for instance due to, but not limited to, the applicable legislation, guidelines, recommendations or any other due diligence in relation to forced labour as referred to in paragraph 1 of this Article being applied in a way that mitigates, prevents and brings to an end the risk of forced labour.
6. The lead competent authority shall communicate, through the information and communication system referred to in Article 7(1), the outcome of its assessment pursuant to paragraph 5 of this Article.
Article 18
Investigations
1. The lead competent authority that determines, pursuant to paragraphs 3 or 4 of Article 17, that there is a substantiated concern that there has been a violation of Article 3, shall initiate an investigation on the products and economic operators concerned and inform the economic operators subject to the investigation, within 3 working days of the date of the decision to initiate such investigation, of the following:
| (a) | the initiation of the investigation and the possible consequences thereof; |
| (b) | the products subject to the investigation; |
| (c) | the reasons for the initiation of the investigation, unless it would jeopardise the outcome of the investigation; |
| (d) | the right of the economic operators to submit documents or information to the lead competent authority, and the date by which such information is to be submitted. |
2. The lead competent authority shall communicate, through the information and communication system referred to in Article 7(1), that an investigation has been initiated pursuant to paragraph 1 of this Article.
3. Where requested by the lead competent authority, economic operators under investigation shall submit any information that is relevant and necessary for the investigation, including information identifying the products under investigation and, where appropriate, identifying the part of the product to which the investigation should be limited, as well as the manufacturer, producer, product supplier, the importer or the exporter of those products or parts thereof. In requesting such information, the lead competent authority shall, to the extent possible, prioritise the economic operators under investigation involved in the steps of the supply chain as close as possible to where the forced labour is likely occurring, and take into account the size and economic resources of the economic operators, in particular whether the economic operator is an SME, the quantity of products concerned, the complexity of the supply chain, as well as the scale of suspected forced labour. Where necessary, economic operators may request support from a contact point referred to in Article 10 on how to engage with the lead competent authority.
4. The lead competent authority shall set a deadline of at least 30 working days and no longer than 60 working days for economic operators to submit the information referred to in paragraph 3. Economic operators may request an extension of that deadline with a justification. When deciding whether to grant such an extension, the lead competent authority shall consider the size and economic resources of the economic operators concerned, including whether the economic operator is an SME.
5. The lead competent authority may collect information from or interview any relevant natural or legal person who consents to be interviewed for the purpose of collecting information relating to the subject matter of the investigation, including relevant economic operators or any other stakeholders.
6. The lead competent authority may, where necessary, carry out all necessary checks and inspections in accordance with Article 19.
Article 19
Field inspections
1. In exceptional situations where the lead competent authority deems it necessary to conduct field inspections, it shall do so taking into consideration where the risk of forced labour is located.
2. Where the risk of forced labour is located in the territory of the Member State, the lead competent authority may conduct its own inspections, in accordance with national law in compliance with Union law. If necessary, the lead competent authority may request cooperation from other national authorities relevant for the implementation of this Regulation, such as labour, health or fiscal authorities.
3. Where the risk of forced labour is located outside the territory of the Union, the Commission acting as lead competent authority may carry out all necessary checks and inspections provided that the economic operators concerned give their consent and that the government of the third country in which the inspections are to take place has been officially notified and raises no objection. The Commission may request assistance from the European External Action Service, as appropriate, to facilitate such contacts.
CHAPTER IV
DECISIONS
Article 20
Decisions regarding the violation of Article 3
1. The lead competent authority shall assess all information and evidence gathered pursuant to Chapter III, and, on that basis, establish whether the products, that have been placed or made available on the market or are being exported, are in violation of Article 3, within a reasonable period of time from the date it initiated the investigation pursuant to Article 18(1). The lead competent authority shall endeavour to adopt the decision referred to in paragraph 4 of this Article or close the investigation within 9 months from the date it initiated the investigation.
2. Notwithstanding paragraph 1 of this Article, the lead competent authority may establish that Article 3 has been violated on the basis of any other facts available where it was not possible to gather information and evidence pursuant to Article 17(1) and Article 18(3), in particular where, in response to a request for information, an economic operator or a public authority:
| (a) | refuses to provide the information requested without a valid justification; |
| (b) | fails to provide the information requested within the time limit prescribed without a valid justification; |
| (c) | provides incomplete or incorrect information with the objective of blocking the investigation; |
| (d) | provides misleading information; or |
| (e) | otherwise impedes the investigation, including when a risk of forced labour imposed by state authorities is identified during the preliminary phase of the investigation or during the investigation. |
3. Where the lead competent authority cannot establish that the products concerned have been placed or made available on the market or are being exported in violation of Article 3, it shall close the investigation and inform the economic operators that have been subject to the investigation thereof. It shall also inform all other competent authorities through the information and communication system referred to in Article 7(1). Closing the investigation shall not preclude the initiation of a new investigation into the same product and economic operator in the case of new relevant information.
4. Where the lead competent authority establishes that the products concerned have been placed or made available on the market or are being exported in violation of Article 3, it shall, without delay, adopt a decision containing:
| (a) | a prohibition on the placing or making available of the products concerned on the Union market and on exporting them; |
| (b) | an order requiring the economic operators that have been subject to the investigation to withdraw the products that have already been placed or made available on the Union market or to remove content from an online interface referring to the products or listings of the products concerned; |
| (c) | an order requiring the economic operators that have been subject to the investigation to dispose of the products concerned in accordance with Article 25 or, if parts of the product which are found to be in violation of Article 3 are replaceable, an order requiring those economic operators to dispose of those parts of that product. |
Where relevant, the prohibition referred to in point (a) of the first subparagraph and the order referred to in point (c) of the first subparagraph shall identify the parts of the product found to be in violation of Article 3, that must be replaced in order for the product to be placed or made available on the market or exported.
5. By way of derogation from paragraph 4, first subparagraph, point (c), and, where appropriate, in order to prevent disruptions to a supply chain of strategic or critical importance for the Union, the lead competent authority may refrain from imposing an order to dispose of the product concerned pursuant to paragraph 4. The lead competent authority may instead order that the product concerned be withheld for a defined period of time, which shall be no longer than the time necessary to eliminate forced labour with regard to the product concerned, at the cost of the economic operators.
If economic operators demonstrate, during that period of time, that they have eliminated forced labour from the supply chain with regard to the product concerned, without changing that product and by bringing to an end the forced labour identified in the decision referred to in paragraph 4 of this Article, the lead competent authority shall review its decision in accordance with Article 21.
If economic operators do not demonstrate, during that period of time, that they have eliminated forced labour from the supply chain with regard to the product concerned, without changing that product and by bringing to an end the forced labour identified in the decision referred to in paragraph 4, point (c) of that paragraph shall apply.
6. Where the Commission acts as the lead competent authority, the decision referred to in paragraph 4 of this Article shall be adopted by means of an implementing act. Such implementing acts shall be adopted in accordance with the examination procedure referred to in Article 35(2).
7. The lead competent authority shall notify the decision referred to in paragraph 4 of this Article to all of the economic operators it is addressed to and communicate it to all competent authorities and, where applicable, to the Commission through the information and communication system referred to in Article 7(1).
8. Decisions taken by a lead competent authority of a Member State, pursuant to paragraph 4, shall be recognised and enforced by competent authorities in the other Member States, insofar as they relate to products with the same identification information and as originating from the same supply chain which has been found to be using forced labour.
Article 21
Review of decisions regarding the violation of Article 3
1. The lead competent authority shall allow economic operators affected by a decision referred to in Article 20 to request a review of that decision at any time. The request for a review shall contain information which demonstrates that the products are placed or made available on the market or are to be exported in compliance with Article 3. That information shall contain new substantial information that was not brought to the attention of the lead competent authority during the investigation.
2. The lead competent authority shall take a decision on the request referred to in paragraph 1 within 30 working days of the receipt of that request.
3. Where economic operators have demonstrated that they have complied with the decision referred to in Article 20, and that they have eliminated forced labour from their operations or supply chain with respect to the products concerned, the lead competent authority shall withdraw its decision for the future, inform the economic operators and remove it from the Forced Labour Single Portal.
4. Where the Commission acts as the lead competent authority, the withdrawal referred to in paragraph 3 of this Article shall be implemented by means of an implementing act. Such implementing acts shall be adopted in accordance with the examination procedure referred to in Article 35(2). On duly justified imperative grounds of urgency relating to the protection of rights of defence and of property of the economic operators concerned, the Commission shall adopt immediately applicable implementing acts in accordance with the procedure referred to in Article 35(3). Those implementing acts shall remain in force for a period not exceeding 12 months.
5. Economic operators that have been affected by a decision referred to in Article 20 of a lead competent authority of a Member State shall have access to a court or tribunal to review the procedural and substantive legality of the decision.
6. Paragraph 5 is without prejudice to any provision of national law which requires that administrative review procedures be exhausted prior to recourse to judicial proceedings.
7. Decisions referred to in Article 20 adopted by a lead competent authority of a Member State are without prejudice to any decisions of a judicial nature taken by national courts or tribunals of the Member States with respect to the same economic operators or products.
Article 22
Content of decisions
1. The decision referred to in Article 20 shall contain all of the following:
| (a) | the findings of the investigation and the information and evidence underpinning the findings; |
| (b) | reasonable time limits for the economic operators to comply with the orders, which shall not be less than 30 working days; in the case of perishable goods, animals and plants, the time limit shall not be less than 10 working days; when setting the time limits, the lead competent authority shall take into account the economic operator’s size and economic resources, including whether the operator is an SME, the share of the part of the product and whether it is replaceable; the time limits shall be proportionate to the time needed to comply with the different orders and no longer than necessary; |
| (c) | all relevant information, in particular the details allowing the identification of the product to which the decision applies, including details about the manufacturer, producer, the product suppliers, the importer, the exporter and, where appropriate, the production site; |
| (d) | where available and applicable, information required under customs legislation as defined in Article 5, point 2, of Regulation (EU) No 952/2013; |
| (e) | information on the taking of a judicial review against a decision. |
2. The Commission shall adopt implementing acts further specifying the details of the information to be included in the decision referred to in Article 20. Those details shall, at minimum, include details of the information to be provided or made available to customs authorities in accordance with Article 27(3) in order to enable the identification of products pursuant to Article 26(4). Those implementing acts shall be adopted in accordance with the examination procedure pursuant to Article 35(2).
CHAPTER V
ENFORCEMENT
Section I
Competent authorities
Article 23
Enforcement of decisions
1. Where, within the reasonable time limit referred to in Article 22(1), point (b), an economic operator has failed to comply with the decision referred to in Article 20, the competent authorities shall be responsible for the enforcement of that decision and shall ensure all of the following:
| (a) | the prohibition on the placing or making available of the products concerned on the Union market and on the export of them; |
| (b) | the withdrawal from the Union market by relevant authorities of products that have already been placed or made available on the market, in accordance with Union and national law; |
| (c) | the disposal of withdrawn products and products remaining with the economic operator in accordance with Article 25, at the expense of that economic operator; |
| (d) | the restriction of access to the products concerned and to listings referring to those products by requesting the relevant third party to implement such restriction. |
2. If the economic operator has failed to comply with the decision referred to in Article 20, the competent authority shall impose either directly, in cooperation with other authorities, or by way of an application to the competent judicial authorities, penalties on the economic operator concerned pursuant to Article 37.
Article 24
Withdrawal and disposal of products made with forced labour
1. An order to withdraw and dispose of products placed or made available on the Union market pursuant to Article 20(4) of this Regulation shall be communicated, through the information and communication system referred to in Article 7(1) of this Regulation, to the market surveillance authorities referred to in Article 10 of Regulation (EU) 2019/1020 and any other relevant authorities for the products concerned.
2. The enforcement of the withdrawal and disposal of the products referred to in paragraph 1 shall be the responsibility of the competent authority, in coordination with any other relevant authorities for the products concerned.
Article 25
Manner of disposal of products made with forced labour
In line with the waste hierarchy set out in Directive 2008/98/EC of the European Parliament and of the Council (27), economic operators and the Member States competent authorities responsible for the disposal of products, as required by Article 20(4), point (c), and Article 23(1), point (c), of this Regulation, respectively, shall dispose of those products by recycling them or, when that is not possible, by rendering those products inoperable. Perishable products, shall be donated for charitable or public interest purposes or, when that is not possible, be rendered inoperable.
Section II - Customs authorities
Article 26
Controls by customs authorities
1. Products entering or leaving the Union market shall be subject to the controls and measures laid down in this Section.
2. The application of this Section is without prejudice to any other Union legal act governing customs risk management, customs controls and the release of goods for free circulation and export, in particular Regulation (EU) No 952/2013.
3. The lead competent authority shall, without delay, communicate to the customs authorities of Member States decisions referred to in Article 20 to prohibit the placing or making available of products on the Union market and their export.
4. Customs authorities shall rely on the decisions communicated pursuant to paragraph 3 of this Article to identify products that may not comply with the prohibition laid down in Article 3 of this Regulation. For that purpose, they shall carry out controls on products entering or leaving the Union market based on risk management as laid down in Regulation (EU) No 952/2013.
5. The lead competent authority shall, without delay, communicate to the customs authorities of Member States any withdrawal of, as well as any changes to a decision pursuant to a review in accordance with Article 21.
Article 27
Additional information to be provided or made available to customs authorities
1. The Commission is empowered to adopt delegated acts in accordance with Article 33 to supplement this Regulation by identifying the products or product groups for which the information referred to in paragraph 2 of this Article shall be provided to customs authorities. The products or product group concerned shall be chosen following a proportionate approach, building, inter alia, on the information available in the database, information encoded in the information and communication system referred to in Article 7(1), and substantiated information exchanged in the Network.
2. The person intending to place a product, covered by a delegated act adopted pursuant to paragraph 1 of this Article, under the customs procedures ‘release for free circulation’ or ‘export’ shall provide or make available to customs authorities information identifying the product, information about the manufacturer or the producer and information about the product suppliers, unless the provision of such information is already required pursuant to customs legislation referred to in Article 5, point 2, of Regulation (EU) No 952/2013.
3. The Commission may adopt implementing acts specifying the detailed arrangements for implementing paragraphs 1 and 2 of this Article, and defining the details of the information to be provided or made available to customs authorities pursuant to paragraph 2 of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 35(2).
4. Where a specific product has been identified in a decision referred to in Article 20, in order for the customs authorities to be able to act immediately on that specific product, the procedure provided for in Article 34 shall apply to delegated acts adopted pursuant to paragraph 1 of this Article.
Article 28
Suspension
Where customs authorities identify, through their relevant risk management system, that a product entering or leaving the Union market might, according to a decision communicated pursuant to Article 26(3), be in violation of Article 3, they shall suspend the release of that product for free circulation or export. Customs authorities shall immediately notify the competent authorities of their Member State of that suspension and transmit all relevant information to enable them to establish whether the product is covered by a decision communicated pursuant to Article 26(3).
Article 29
Release for free circulation or export
1. Where the release for free circulation or the export of a product has been suspended in accordance with Article 28, that product shall be released for free circulation or exported where all the other requirements and formalities relating to such a release or export have been fulfilled and where either of the following conditions is satisfied:
| (a) | within 4 working days of the suspension, if the competent authorities have not requested the customs authorities to maintain the suspension; in case of perishable products, animals and plants that time limit shall be 2 working days; |
| (b) | the competent authorities informed the customs authorities of their approval for release for free circulation or export pursuant to this Regulation. |
2. The release for free circulation or export pursuant to paragraph 1 shall not be deemed proof of compliance with Union law and, in particular, with this Regulation.
Article 30
Refusal to release for free circulation or export
1. Where the competent authorities conclude that a product, which has been notified to them in accordance with Article 28, is a product made with forced labour pursuant to a decision referred to in Article 20, they shall require customs authorities not to release it for free circulation or to allow its export.
2. Competent authorities shall immediately enter the information referred to in paragraph 1 of this Article in the information and communication system referred to in Article 7(1) and notify the customs authorities accordingly. Upon receipt of such notification, customs authorities shall not allow the release for free circulation or export of that product and shall also include the following notice in the customs data-processing system and, where possible, on the commercial invoice accompanying the product and any other relevant accompanying document:
‘Product made with forced labour – release for free circulation/export not authorised – Regulation (EU) 2024/3015’.
3. Where the release for free circulation or export of a product has been refused in accordance with paragraph 1, customs authorities shall dispose of that product in accordance with national law in compliance with Union law.
4. Upon the request of a competent authority, and on behalf and under the responsibility of that competent authority, customs authorities may alternatively seize the product the release for free circulation or export of which has been refused and put it at the disposal of and under the authority of that competent authority. In such cases, that competent authority shall take the necessary measures to ensure that the product concerned is disposed of in accordance with Article 25.
Article 31
Exchange of information and cooperation
1. To enable a risk-based analysis of products entering or leaving the Union market and to ensure that controls are effective and performed in accordance with the requirements of this Regulation, the Commission, competent authorities and customs authorities shall cooperate closely and exchange risk-related information. To that end, the Commission shall take on a coordination role.
2. Cooperation among authorities and exchange of risk-related information necessary for the fulfilment of their functions under this Regulation, including through electronic means, shall take place in accordance with Regulation (EU) No 952/2013:
| (a) | between customs authorities; |
| (b) | between competent authorities and customs authorities. |
CHAPTER VI
FINAL PROVISIONS
Article 32
Confidentiality
1. The competent authorities shall only use information received pursuant to this Regulation for the purpose of applying this Regulation, unless otherwise required by Union or national law in compliance with Union law.
2. The Commission, Member States and competent authorities shall treat the identity of those who provide information, or the information provided, as confidential, in accordance with Union or national law in compliance with Union law, unless stated otherwise by those who provided the information.
3. Paragraph 2 shall not preclude the Commission from disclosing general information in a summary form, provided such general information does not contain any information which allows the identification of the provider of the information. Such disclosure of general information in a summary form shall take into account the legitimate interest of the parties concerned in preventing the disclosure of confidential information.
Article 33
Exercise of the delegation
1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.
2. The power to adopt delegated acts referred to in Article 27(1) shall be conferred on the Commission for an indeterminate period of time from 13 December 2024.
3. The delegation of power referred to in Article 27(1) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.
5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.
6. A delegated act adopted pursuant to Article 27(1) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of 2 months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by 2 months at the initiative of the European Parliament or of the Council.
Article 34
Urgency procedure
1. Delegated acts adopted under this Article shall enter into force without delay and shall apply as long as no objection is expressed in accordance with paragraph 2. The notification of a delegated act to the European Parliament and to the Council shall state the reasons for the use of the urgency procedure.
2. Either the European Parliament or the Council may object to a delegated act in accordance with the procedure referred to in Article 33(6). In such a case, the Commission shall repeal the act immediately following the notification of the decision to object by the European Parliament or by the Council.
Article 35
Committee procedure
1. The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.
2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.
3. Where reference is made to this paragraph, Article 8 of Regulation (EU) No 182/2011, in conjunction with Article 5 thereof, shall apply.
Article 36
Amendment to Directive (EU) 2019/1937
In Part I.C.1 of the Annex to Directive (EU) 2019/1937, the following point is added:
| ‘(iv) | Regulation (EU) 2024/3015 of the European Parliament and of the Council of 27 November 2024 on prohibiting products made with forced labour on the Union market and amending Directive (EU) 2019/1937 (OJ L, 2024/3015, 12.12.2024, ELI: http://data.europa.eu/eli/reg/2024/3015/oj).’. |
Article 37
Penalties
1. Member States shall lay down the rules on penalties applicable to economic operators for non-compliance with a decision referred to in Article 20 and shall take all measures necessary to ensure that they are implemented in accordance with national law.
2. The penalties provided for shall be effective, proportionate and dissuasive. Competent authorities shall ensure that the penalties referred to in paragraph 1 give due regard to the following, as applicable:
| (a) | the gravity and duration of the non-compliance with a decision referred to in Article 20; |
| (b) | any relevant previous non-compliance with a decision referred to in Article 20 by the economic operator; |
| (c) | the degree of cooperation with the competent authorities; |
| (d) | any other mitigating or aggravating factor applicable to the circumstances of the case, such as financial benefits, gains or losses avoided, directly or indirectly, from the non-compliance with a decision referred to in Article 20. |
3. Member States shall, by 14 December 2026, notify the Commission of those rules and of those measures, and shall notify it, without delay, of any subsequent amendment affecting them.
4. Member States, when laying down rules on applicable penalties in accordance with paragraphs 1 and 2 of this Article, shall take utmost account of the guidance referred to in Article 11, point (i).
Article 38
Evaluation and review
1. By 14 December 2029 and every 5 years thereafter, the Commission shall carry out an evaluation of the enforcement and the implementation of this Regulation. The Commission shall present a report on the main findings to the European Parliament, the Council and to the European Economic and Social Committee. The evaluation shall in particular include an assessment of:
| (a) | whether the mechanism in place effectively contributes to the objective of this Regulation, as set out in Article 1; |
| (b) | the cooperation between competent authorities, including within the Network, as well as all other relevant authorities in applying this Regulation; |
| (c) | the effectiveness of international cooperation in contributing to the elimination of forced labour from global supply chains; |
| (d) | the impact on businesses, and in particular on SMEs, including on their competitiveness of the procedures related to the investigations and decisions; |
| (e) | the cost of compliance for economic operators, and in particular for SMEs; |
| (f) | the overall costs and benefits and the effectiveness of the prohibition. |
Where the Commission considers it appropriate, the report shall be accompanied by a legislative proposal for the amendment of the relevant provisions of this Regulation.
2. The report shall also assess whether the scope needs to be enlarged to include services ancillary to the extraction, harvesting, production or manufacturing of products.
3. As part of the assessment under paragraph 1, point (a), the report shall cover the impact of this Regulation on victims of forced labour, with particular regard to the situation of women and children. The assessment of this impact shall be based on regular monitoring of information from international organisations and relevant stakeholders.
4. In its report, the Commission shall further assess the need for a specific mechanism to address and remediate forced labour, including an impact assessment for the implementation of such a mechanism.
Article 39
Entry into force and date of application
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.
It shall apply from 14 December 2027.
However, Articles 5(3), 7, 8, 9(2), 11, 33, 35 and 37(3) shall apply from 13 December 2024.
This Regulation shall be binding in its entirety and directly applicable in all Member States.