Changes from plenary report to adopted text

RemovedRecital 34: (34) Decisions of the Commission or the competent authorities establishing a violation of the prohibition should be communicated to customs authorities, who should aim at identifying the product concerned amongst products declared for release for free circulation or export. The Commission and Member States should ensure that the customs authorities have sufficient resources to carry out these controls. The Commission and the competent authorities should be responsible for the overall enforcement of the prohibition with regard to the internal market as well as products entering or leaving the Union market. Since forced labour is part of the manufacturing process and does not leave any trace on the product, and Regulation (EU) 2019/1020 covers only manufactured products and its scope is limited to release for free circulation, the customs authorities would be unable to act autonomously under Regulation (EU) 2019/1020 for the application and enforcement of the prohibition. The specific organisation of controls of each Member State should be without prejudice to Regulation (EU) No 952/2013 of the European Parliament and of the Council32 and its general provisions on the control and supervisory powers of customs authorities.

RemovedRecital 35: (35) The information currently made available to customs authorities by economic operators includes only general information on the products but lacks information on the manufacturer or producer and product suppliers as well as specific information on products. In order for customs authorities to be able to identify products entering or leaving the Union market that may violate the Regulation and should accordingly be stopped at the EU external borders, economic operators should submit to customs authorities information allowing matching a decision of the Commission or the competent authorities with the product concerned. This should include information on the manufacturer or producer and the product suppliers as well as any other information on the product itself. To this end, the Commission should be empowered to adopt delegated acts identifying the products for which such information should be provided using, amongst others, the database established under this Regulation as well as the information and decisions of the competent authorities encoded in the information and communication system set out in Article 34 of Regulation (EU) 2019/1020 (‘ICSMS’). Moreover, the Commission should be empowered to adopt, the implementing acts necessary to specify the details of the information to be made available to customs by the economic operators. This information should include the description, name or brand of the product, specific requirements under Union legislation for the identi…

RemovedRecital 36: (36) Customs authorities that identify a product that may be covered by a decision communicated by the Commission or competent authorities establishing a violation of the prohibition should suspend the release of that product and notify the competent authorities immediately. The Commission or the competent authorities should reach a conclusion within a reasonable timeframe on the case notified to them by the customs authorities, either by confirming or by denying that the product concerned is covered by a decision. Where necessary and duly justified, the Commission or the competent authorities should be authorised to require maintaining the suspension of its release, taking into account the potential damage for the economic operator. In the absence of a conclusion by competent authorities within the specified time limit, customs authorities should release the products if all other applicable requirements and formalities are fulfilled. Generally, the release for free circulation or export should also not be deemed to be proof of compliance with Union law, since such a release does not necessarily include a complete control of such compliance.

RemovedRecital 37: (37) Where the Commission or the competent authorities conclude that a product corresponds to a decision establishing a violation of the prohibition, they should immediately inform customs authorities which should refuse its release for free circulation or export. The product should be donated to charitable or public interest purposes if it is perishable. If such products are not perishable, they should be recycled, and if that is not possible, they should be destroyed, rendered inoperable, or otherwise disposed of in accordance with national law consistent with Union law, including legislation on waste management, which excludes re-export in case of non-Union goods.

RemovedRecital 37 a (new): (37a) The Commission should take into due consideration the risk of disengagement by economic operators who are either related to products or regions in the database, or who have had their product removed from the Union market, as well as the consequences on affected workers. The Commission should therefore, where appropriate, support economic operators in adopting and carrying out measures suitable and effective for bringing forced labour to an end. Responsible disengagement entails, as a minimum, complying with collective agreements and articulating escalation measures.

RemovedRecital 39: (39) A uniform enforcement of the prohibition as regards products entering or leaving the Union market can only be achieved through systematic exchange of information and cooperation amongst competent authorities, customs authorities and the Commission. This cooperation should be coordinated by the Commission.

RemovedRecital 42 a (new): (42a) Acknowledging current developments in traceability technology to facilitate monitoring of supply chains, the Commission should support economic operators in the uptake of such technology, including through financial and technical assistance.

RemovedRecital 44: (44) To ensure effective enforcement of the prohibition, it is necessary to establish a network, coordinated by the Commission, aimed at structured coordination and cooperation between the Commission, the competent authorities of the Member States and, where appropriate, experts from customs authorities. That network should also aim at streamlining the practices of the competent authorities within the Union that facilitate the implementation of joint enforcement activities by Member States, including joint investigations, facilitate capacity building activities, such as the organisation of training programmes for competent authorities and other relevant stakeholders, promote exchanges of personnel between competent authorities and, where appropriate, with the authorities of partner third countries or with international organisations, assist in the organisation of information campaigns and voluntary mutual visit programmes between competent authorities, involve and facilitate the diplomatic representations of the Union to assist in the information gathering efforts of this Regulation. The administrative support structure to be provided by the Commission should allow the pooling of resources and maintain a communication and information system between Member States and the Commission, thereby helping to strengthen the enforcement of the prohibition.

RemovedRecital 44 a (new): (44a) The Commission should ensure the effective and uniform application of this Regulation and to that effect support and encourage cooperation between enforcement authorities through the Network.

RemovedRecital 45: (45) Since forced labour is a global problem and given the interlinkages of the global supply chains, it is necessary to promote international cooperation against forced labour, which would also improve the efficiency of applying and enforcing the prohibition. The Commission should as appropriately cooperate with and exchange information with authorities of third countries and international organisations, as well as with other actors, to enhance the effective implementation of the prohibition. International cooperation with authorities of non-EU countries should take place in a structured way as part of the existing dialogue structures, for example Human Rights Dialogues with third countries, or, if necessary, specific ones that will be created on an ad hoc basis. Existing dialogue structures with third countries include the (sub)committees on trade and sustainable development in trade agreements or the dialogue foreseen within the Generalised System of Preferences. The Commission should ensure coherence and synergies between relevant external policies, in particular development cooperation and projects focusing on the eradication of forced labour, and it should also foster the creation of enabling environments in third countries to promote and protect human rights, including capacity building to support workers and local communities in their efforts to root out forced labour from global supply chains. Additionally, the Commission should have regular contact and cooperation i…

RemovedRecital 48 a (new): (48a) In order to ensure that penalties are effective and fair and to prevent a distorted approach to penalties in the internal market, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission. The Commission should define the method for the calculation of financial penalties and the thresholds applicable, define where they are to be used, and specify mitigating and aggravating circumstances to guide Member States in designing their penalty regimes.

RemovedRecital 48 b (new): (48b) The Commission should carry out an evaluation of this Regulation in light of the objective it pursues, and should submit a report thereon to the European Parliament, to the Council and to the European Economic and Social Committee. The report should assess whether this Regulation achieved its objectives, in particular with regard to reducing the number of products on the Union market made with forced labour, improving cooperation between competent authorities and strengthening the controls on products entering the Union market, the impact on business of administrative procedures, the cost of compliance, the impact on trade and on competitiveness of companies operating in the internal market, the alignment with other relevant Union law, the contribution to fight forced labour globally, and the overall cost-benefit and effectiveness.

RemovedArticle 1 – paragraph 1: 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, and contributes to the fight against forced labour.

RemovedArticle 2 – paragraph 1 – point a: (a) ‘forced labour’ means all work or service that is exacted from a person under the menace of a penalty and for which that person has not offered himself or herself voluntarily in accordance with Article 2 of the Convention on Forced Labour, 1930 (No. 29) of the International Labour Organization, including forced child labour, and can occur along the value chain;

RemovedArticle 2 – paragraph 1 – point b: (b) ‘forced labour imposed by state authorities’ means the use of forced labour: / (i) as a means of political coercion or education or as a punishment for holding or expressing political views or opinions ideologically opposed to the established political, social or economic system; / (ii) as a method of mobilising and using labour for purposes of economic development; / (iii) as a means of labour discipline; / (iv) as a punishment for having participated in strikes; / (v) as a means of racial, social, national or religious discrimination; / as listed in Article 1 of the Convention on the Abolition of Forced Labour, 1957 (No. 105) of the International Labour Organization;

RemovedArticle 2 – paragraph 1 – point b a (new): (ba) ‘remediation’ means both the process of providing remedy to victims of forced labour for a negative human rights impact and the substantive outcomes that can counteract, or make good, the negative impact of forced labour, such as public apologies, restitution, rehabilitation, compensation, contribution to investigations, and compliance with measures adopted by relevant public authorities, as well as prevention of additional harm;

RemovedArticle 2 – paragraph 1 – point g a (new): (ga) 'supply chain' means the activities of the company’s upstream business partners related to the extraction, harvest, production or manufacturing of a product, including working or processing related to the product at any stage of those activities;

RemovedArticle 2 – paragraph 1 – point m a (new): (ma) ‘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 his or her industrial or professional activities;

RemovedArticle 2 – paragraph 1 – point n: (n) ‘substantiated concern’ means a well-founded reason, based on objective, factual and verifiable information, for the competent authorities to suspect that products were likely made with forced labour;

RemovedChapter II – title: Investigations and decisions of competent authorities and the Commission

RemovedArticle 4 – paragraph 1 – introductory part: 1. The Commission and competent authorities shall follow a risk-based approach in assessing the likelihood that economic operators violated Article 3. That assessment shall be based on all relevant factual and verifiable information available to them, including the following information:

RemovedArticle 4 – paragraph 1 – point b: (b) the risk indicators and other information pursuant to Article 23, point (b);

RemovedArticle 4 – paragraph 1 – point e: (e) information requested by the Commission or the competent authority from other relevant authorities, where necessary, on whether the economic operators under assessment are subject to and carry out due diligence in relation to forced labour in accordance with applicable Union legislation or Member States legislation setting out due diligence and transparency requirements with respect to forced labour;

RemovedArticle 4 – paragraph 1 – point e a (new): (ea) any issues arising from meaningful consultations with relevant stakeholders.

RemovedArticle 4 – paragraph 2: 2. In their assessment of the likelihood that economic operators violated Article 3, the Commission and competent authorities shall focus on the economic operators and relevant product suppliers involved in the steps of the supply chain as close as possible to where the risk of forced labour is likely to occur and take into account the size and economic resources of the economic operators, the share of forced labour component in the final product, the quantity of products concerned, as well as the scale of suspected forced labour and whether state-imposed forced labour could be a concern.

RemovedArticle 4 – paragraph 2 a (new): 2a. The right of the economic operator to be heard shall be respected at all stages of the process.

RemovedArticle 4 – paragraph 3 – introductory part: 3. Before initiating an investigation in accordance with Article 5(1), the Commission or the competent authority shall request from the economic operators under assessment and relevant product suppliers information on actions taken to identify, prevent, mitigate or bring to an end risks of forced labour and remediate forced labour cases in their operations and supply chains with respect to the products under assessment, including on the basis of any of the following:

RemovedArticle 4 – paragraph 3 – point c: (c) due diligence guidelines or recommendations of the UN, ILO, OECD or other relevant international organisations, as well as of social partners, in particular those guidelines and recommendations relating to geographic areas, productions sites and economic activities in certain sectors, in specific areas with systematic and widespread forced labour practices;

RemovedArticle 4 – paragraph 3 – subparagraph 1 a (new): The Commission and competent authorities may request information on those actions from other relevant stakeholders, including the persons or associations having submitted relevant information pursuant to Article 10 and any other stakeholder working on the products or regions related to the assessment, as well as from diplomatic representations of the Union in relevant third countries.

RemovedArticle 4 – paragraph 3 a (new): 3a. Notwithstanding paragraph 2a, the Commission and competent authorities may refrain from requesting information from the economic operator and relevant product suppliers if they have a well-founded reason to believe, based on objective information, that it represents a risk to the investigation.

RemovedArticle 4 – paragraph 4: 4. Economic operators and relevant product suppliers shall respond to the request of the Commission or competent authority referred to in paragraph 3 within 30 working days from the day they received such request. Economic operators may provide to the Commission or competent authorities any other information they may deem useful for the purposes of this Article.

RemovedArticle 4 – paragraph 5: 5. Within 30 working days from the date of receipt of the information submitted by economic operators and relevant product suppliers pursuant to paragraph 4, the Commission or the competent authorities shall conclude the preliminary phase of their investigation as to whether there is a substantiated concern of violation of Article 3 on the basis of the assessment referred to in paragraph 1 and the information submitted by economic operators and relevant product suppliers pursuant to paragraph 4.

RemovedArticle 4 – paragraph 5 a (new): 5a. Notwithstanding paragraph 5, the Commission or competent authorities may conclude that there is substantiated concern on the basis of any other facts available where it was not possible to gather information and evidence pursuant to paragraph 4, or where the competent authorities or the Commission have refrained from requesting information in accordance with paragraph 3a.

RemovedArticle 4 – paragraph 6: deleted

RemovedArticle 4 – paragraph 7: 7. The Commission or competent authorities shall not initiate an investigation pursuant to Article 5, and shall inform the economic operators under assessment accordingly, where, on the basis of the assessment referred to in paragraph 1 and the information submitted by economic operators pursuant to paragraph 4, the Commission or the competent authorities consider that there is no substantiated concern of 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 referred to in paragraph 3 being applied in a way that mitigates, prevents and brings to an end the risk of forced labour.

RemovedArticle 5 – paragraph 1: 1. The Commission or competent authorities that, pursuant to Article 4(5) or to the information contained in the delegated act referred to in Article 11a, determine that there is a substantiated concern of a violation of Article 3, shall decide to initiate an investigation on the products and economic operators concerned.

RemovedArticle 5 – paragraph 2 – introductory part: 2. The Commission or competent authorities that initiate an investigation pursuant to paragraph 1 shall inform the economic operators subject to the investigation, within 2 working days from the date of the decision to initiate such investigation about the following:

RemovedArticle 5 – paragraph 2 – point d: (d) the possibility for the economic operators to submit any other document or information to the competent authority or the Commission, and the date by which such information has to be submitted;

RemovedArticle 5 – paragraph 2 – point d a (new): (da) the requirement for the economic operator to demonstrate that Article 3 has not been violated with regard to the products coming from the geographic areas and the economic sectors listed in the delegated act adopted pursuant to Article 11a.

RemovedArticle 5 – paragraph 3 – introductory part: 3. Where requested to do so by the Commission or competent authorities, economic operators under investigation and relevant product suppliers shall submit to the Commission or those competent authorities any information that is relevant and necessary for the investigation, including information identifying the products under investigation, the manufacturer or producer of those products and the product suppliers. In requesting such information, the Commission or competent authorities shall to the extent possible:

RemovedArticle 5 – paragraph 3 – point a: (a) after identifying the individual responsibilities, along the supply chain, of different product suppliers down to the level where forced labour is taking place, prioritise the economic operators under investigation and relevant product suppliers involved in the steps of the supply chain as close as possible to where the forced labour likely occurs and with the highest leverage to prevent, mitigate, bring to an end and remediate the use of forced labour, and

RemovedArticle 5 – paragraph 3 – point b: (b) take into account the size and economic resources of the economic operators, in particular whether the operator is an SME, the quantity of products concerned, the complexity of the supply chain, as well as the scale of suspected forced labour.

RemovedArticle 5 – paragraph 4: 4. Economic operators and relevant product suppliers shall submit the information within 30 working days from the request referred to in paragraph 3 or make a justified request for an extension of that time limit.

RemovedArticle 5 – paragraph 5: 5. When deciding on the time limits referred to in this Article, the Commission and competent authorities shall consider the size and economic resources of the economic operators concerned, including whether the economic operator is an SME.

RemovedArticle 5 – paragraph 6: 6. The Commission and competent authorities may carry out all necessary checks and inspections including investigations in third countries, provided that the economic operators concerned give their consent and that the government of the Member State or third country in which the inspections are to take place has been officially notified and raises no objection.

RemovedArticle 5 – paragraph 6 a (new): 6a. The Commission and competent authorities may ask diplomatic representations of the Union in relevant third countries to provide information and support.

RemovedArticle 5 – paragraph 6 b (new): 6b. The Commission and competent authorities may request relevant information from other stakeholders.

RemovedArticle 6 – title: Decisions of competent authorities and the Commission

RemovedArticle 6 – paragraph 1: 1. The Commission or competent authorities shall assess all information and evidence gathered pursuant to Articles 4 and 5 and, on that basis, establish whether Article 3 has been violated, within 90 working days from the date they initiated the investigation pursuant to Article 5(1), unless a duly justified request for the extension of the deadline in Article 5(4) was accepted.

RemovedArticle 6 – paragraph 2: 2. Notwithstanding paragraph 1, the Commission or competent authorities 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 4(3) and Article 5(3) or (6).

RemovedArticle 6 – paragraph 2 a (new): 2a. Notwithstanding paragraph 1, economic operators shall demonstrate that Article 3 has not been violated in cases concerning products coming from the geographic area and the economic sector listed in the delegated act adopted pursuant to Article 11a.

RemovedArticle 6 – paragraph 3: 3. Where the Commission or competent authorities cannot establish that Article 3 has been violated, they shall take a decision to close the investigation and inform the economic operator thereof. The decision to close the investigation shall be without prejudice to the adoption of a new decision to open an investigation under Article 5(1), in the event that the Commission or the competent authority receive new information pursuant to Article 4. Such closed investigations shall not appear in the database.

RemovedArticle 6 – paragraph 4 – introductory part: 4. Where the Commission or competent authorities establish that Article 3 has been violated, they shall without delay adopt a decision containing:

RemovedArticle 6 – paragraph 4 – point a: (a) a prohibition to place or make the products or product components concerned available on the Union market and to export them;

RemovedArticle 6 – paragraph 4 – point b: (b) an order for the economic operators that have been subject to the investigation to withdraw from the Union market the relevant products or product components that have already been placed or made available on the market;

RemovedArticle 6 – paragraph 4 – point c: (c) an order for the economic operators that have been subject to the investigation to / i) if the products are perishable, donate the products concerned to charitable organisations or organisations that benefit public interest; / ii) if the products are not perishable, recycle the products concerned; / iii) where points (i) and (ii) are not possible, dispose of the respective products in accordance with national law consistent with Union law.

RemovedArticle 6 – paragraph 5 – introductory part: 5. Where an economic operator has failed to comply with the decision referred to in paragraph 4, the Commission or the competent authorities shall ensure all of the following:

RemovedArticle 6 – paragraph 5 – point c: (c) that any product remaining with the economic operator concerned is / i) if the products are perishable, donated to charitable organisations or organisations that benefit public interest; / ii) if the products are not perishable, recycled; / iii) where points (i) and (ii) are not possible, disposed of in accordance with national law consistent with Union law at the expense of the economic operator.

RemovedArticle 6 – paragraph 6: 6. Where the Commission or competent authorities establish that economic operators have demonstrated that they have complied with the decision referred to in paragraph 4, and that they have eliminated forced labour from their operations or supply chain with respect to the products concerned and that relevant forced labour cases have been remediated, the Commission or the competent authorities shall withdraw their decision for the future and inform the economic operators.

RemovedArticle 7 – paragraph 1 – point a: (a) the findings of the investigation and the information and evidence underpinning the findings;