The European Commission (EC) proposed this Wednesday (14.9.2022) Ban all products produced or harvested using forced labour from the European Union (EU) market, both those manufactured in the EU for domestic consumption and export, and those imported.
The community proposal, which is not directed at specific companies or industries, aims to make a difference against "Modern slavery", said in a statement the Executive Vice-President of the Commission responsible for Trade, Valdis Dombrovskis.
According to EC data, 27.6 million people perform forced labor in the world, mostly in the private economy but also by imposition of the states.
“Our aim is to remove from the EU market all products produced using forced labour, regardless of where they are made,” Dombrovskis said.
According to the proposal, The competent authorities and customs will work together to strengthen the systemThey will thus be empowered to withdraw products manufactured using forced labour from the EU market after carrying out an investigation.
Based on different sources of information, they will have to identify the risks of forced labour in certain products or geographical areas, as well as the due diligence that companies must carry out to avoid this phenomenon.
In this process, national authorities will launch investigations into suspicious products and may request information from companies and carry out checks and inspections, even in countries outside the EU.
If national authorities discover the existence of forced labour, they will order the withdrawal of products already on the market and prohibit their marketing and export, the Commission said.
In addition, companies will be required to dispose of the products and customs authorities in member states will be tasked with enforcing the rules at EU borders.
In the event that national authorities are unable to gather all the necessary evidence due to the lack of cooperation of a company or an authority from a non-EU State, they may take a decision based on the available facts.
Brussels proposes that the competent authorities assess the risks and apply proportionality throughout the process, so that, for example, the situation of SMEs is taken into account.
Situation of SMEs
Small and medium-sized enterprises will not be exempt from regulation, but will benefit from a specific design of the same, taking into account the size and resources of the economic operators affected, as well as the magnitude of the risk of forced labour, before initiating a formal investigation.
EU sources explained that the regulation seeks a “balance” between what authorities and companies can do.
As they said, Of the billions of products imported into the EU, “only a small fraction will actually be contaminated, let's say, by forced labour”, which is why they also count on international cooperation with third countries to effectively detect cases, they stressed.
The Commission plans to publish guidelines within 18 months of the entry into force of this regulation containing guidance on corporate due diligence on forced labour and information on risk indicators.
In addition, a new network on forced labour products will be promoted, which will serve as a platform for coordination and cooperation on this phenomenon between the competent authorities and the Commission.
Next steps
According to the communication, the The proposal must be debated and approved by the European Parliament and the Council of the Union. to be able to enter into force. From that moment, it must be applied within the following 24 months. (EC statement)
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