Global Forced Labor Import Restrictions by Bloomberg Law
Editor's Note: Many countries are implementing laws to combat forced labor in supply chains. These laws often apply not only to businesses headquartered in a country, but also to any company that does business in the country, including importing goods or services. Mechanisms to deal with forced labor can include a ban on the importation of goods made with forced labor, public reporting requirements, and/or due diligence requirements. The table below compares recently-adopted and proposed forced-labor laws in the US, Canada, Mexico, the EU, the UK, and Australia.
| Topic | US | Canada | Mexico | EU | UK | Australia |
|---|---|---|---|---|---|---|
| Law and Effective Date/Status | Tariff Act of 1930, Section 307 Uyghur Forced Labor Prevention Act, effective from 6/21/22 |
Fighting Against Forced Labour and Child Labour in Supply Chains Act (Bill S-211), effective 1/1/24 | Forced Labor Regulation (Ministry of Labor Resolution of 2/17/23, effective 5/18/23) | 1. Corporate Sustainability Reporting Directive (CSRD) Directive (EU) 2022/2464, entered into force 1/5/23 (with a phase-in period from 1/1/24-1/1/26) 2. Corporate Sustainability Due Diligence Directive (CS3D) proposed in 2022 3. Regulation on Prohibiting Products Made with Forced Labor proposed in 2022 |
UK Modern Slavery Act (effective 3/26/15) | Australian Modern Slavery Act 2018 (fully effective from Jan. 1, 2019) |
| Geographic Scope—Goods Covered | Section 307 applies to goods worldwide; UFLPA targets the Xinjiang region of China | Global supply chains | Global supply chains | Global supply chains | Global supply chains | Global supply chains |
| Product/Sector Scope | All products, with an emphasis on certain high-risk goods | All products | Ministry of Labor issues resolutions designating specific goods as being made with forced labor. In the absence of a resolution, goods are deemed to comply with the regulation. | N/A | N/A | N/A |
| Definition of Forced Labor/Applicable Standards (International Labor Organization, statutory definitions) | Includes forced labor, indentured labor, and child labor Sec. 307 | Uses ILO Forced Labor Convention definition and includes child labor | Uses ILO Forced Labor Convention definition and includes child labor | References ILO conventions for what information should be disclosed | Use existing criminal code definition of forced labor | Uses existing criminal code definition of modern slavery and child labor as defined in the ILO Worst Forms Child Labor Convention Worst Forms Child Labor Convention |
| Import Prohibition? | Yes, applies to all imported goods; no de minimis exceptions | Yes, existing ban on imported goods made with forced labor extended to child labor. | Yes, for covered products | No (ban included in proposed Forced Labor Regulation) | No (existing ban on prison-made goods) | No |
| Company Size/Value Threshold | None | Canadian stock-exchange listed companies; companies that have a place of business or assets in Canada, or do business in Canada that meet asset, revenue, and/or employee thresholds | None | CSRD: Large or listed EU companies, including subsidiaries of Non-EU companies; Parent companies of large companies; Non-EU companies with net turnover of €150 million with EU branch or subsidiary; SMEs generally excluded CS3D: limited to large companies in both EU and non-EU companies meeting certain thresholds for turnover and employment; SMEs are exempt |
Both UK and non-UK companies and subsidiaries, with annual turnover in the UK of £36 million or more | Both Australian entities and non-Australian entities with annual revenue in Australia of at least AU $100 million |
| Reporting Requirements | None for businesses; CBP must report exceptions it grants to Congress and public | Covered businesses must publish an annual report and submit the report to the Ministry of Public Safety | None | Specified information, including supply chain/value chain information, must be included in the annual management report | Covered businesses must publish an annual statement with specified information on their websites | Annual report indicating supply-chain risks and remediation steps published in the publicly-available modern slavery register |
| Due Diligence Requirements | Required | None | None | None in CSRD, CS3D as proposed establishes due diligence as a corporate duty | Due diligence processes must be outlined in the annual report | Due diligence processes must be outlined in the annual report |
| Penalties for Noncompliance | No monetary penalties; goods may be detained, seized, or excluded | Corrective measures, criminal liability for certain actions | No monetary penalties; goods may be denied entry | Administrative sanctions levied by Member States | None for reporting requirements | Remediation or public notification of failure to comply |
| Who Can Enforce Noncompliance | CBP, no private right of action | CBSA, no private right of action | Procedures may be self-initiated by the Ministry of Labor at the request of private parties | Member states | N/A | Attorney-General, no private right of action |
| Other ESG Matters Covered? | No | No | No | Yes: Environmental issues | No | No |
[1] Credit to Bloomberg Law / Practical Guidance / Commercial, Comparison Table – Global Forced Labor Import Restrictions (https://www.bloomberglaw.com/external/document/XCIUVTQS000000/commercial-comparison-table-global-forced-labor-import-restricti)