Forced Labour Products Prohibition

Introduction

Regulation (EU) 2024/3015, commonly known as the EU Forced Labour Regulation, establishes a framework to prohibit products made with forced labour from being placed on or exported from the Union market. This legislation complements the Corporate Sustainability Due Diligence Directive (CSDDD) by focusing specifically on the product level rather than the company level, ensuring that goods produced via human rights violations do not circulate within the EU.

Main Goal

The primary objective is to eradicate forced labour from the single market by empowering authorities to investigate suspected cases and banning verified products, thereby removing the economic incentive for using forced labour.

Relations to Other Laws

• Directive (EU) 2019/1937 (Whistleblower Directive): Amended by this Regulation to protect persons reporting forced labour breaches.
• CSDDD (Directive (EU) 2024/1760): While CSDDD addresses corporate due diligence duties, this Regulation acts as a market ban mechanism for specific products.
• Customs Code: Interacts with customs authorities to stop products at the border.

Who It Applies To

The Regulation applies to all economic operators (manufacturers, producers, suppliers, importers, exporters) regardless of their size or sector, who:

• Place products on the Union market.
• Make products available on the Union market.
• Export products from the Union.

Key Dates

• Entry into Force: 13 December 2024.
• Operational Setup (Network/Database): Starts immediately from Dec 2024.
• Full Application (Enforcement of Ban): 14 December 2027.

Exemptions

There are no sector-specific or company-size exemptions regarding the prohibition. However, the size and resources of economic operators (specifically SMEs) are taken into account by authorities when requesting information, setting deadlines, and determining penalties.

Key Provisions

• Investigations: Competent authorities (national or the Commission for non-EU risks) follow a risk-based approach to investigate suspected forced labour.
• Forced Labour Database: The Commission will maintain a database of high-risk areas and products.
• Single Portal: A centralized submission point for whistleblowers and information resources.
• Risk-Based Approach: Authorities prioritize cases based on scale, severity, and volume of products.

Obligations & Requirements

• Prohibition: Companies must not place, make available, or export products made with forced labour.
• Cooperation: Economic operators must provide information actions taken to identify and mitigate forced labour risks when requested by authorities.
• Compliance with Decisions: If a violation is found, operators must withdraw the product from the market and dispose of/recycle it (or donate perishable goods).

Penalties

If an economic operator fails to comply with a decision to ban/withdraw a product:

• Ban & Withdrawal: The primary consequence is the prohibition of the product and mandatory withdrawal/disposal.
• Financial Penalties: Member States will lay down effective, proportionate, and dissuasive penalties (fines) for non-compliance with the decision.
• Customs Action: Products will be refused release for free circulation or export.