International Trade Today is a Warren News publication.

European Council Proposes Clarifications to Ban on Forced Labor Imports

The European Council on Jan. 26 adopted a negotiating mandate on the proposed regulation barring goods made with forced labor from the EU market, the council announced. The mandate included a host of changes to the regulation, including a clarification that the measure's scope would include "products offered for distance sales," the creation of a single forced labor portal and a stronger role for the European Commission in investigating the use of forced labor.

Sign up for a free preview to unlock the rest of this article

If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.

The mandate gives the council presidency a directive to negotiate with the European Parliament, which formalized its position Nov. 8. The council said talks will start "as soon as possible."

The creation of a "forced labour single portal" would include a "single information submission point, a database and guidelines, and easy access to information on decisions taken," the council said. The negotiating mandate also called for the establishment of the "Union Network against Forced Labour Products" to ensure cooperation between the "competent authorities" and the European Commission in applying the regulation.

The European Commission's role would be strengthened, leaving the commission to assess whether goods under investigation for forced labor are of "Union interest," the council said. "Union interest" exists when the "scale and severity of suspected forced labour is significant," the risks of the forced labor are found outside the EU and the products at issue have a "significant impact on the internal market." It said goods are presumed to have a significant impact when they are in at least three member states.

Should a "Union interest" be found, "the Commission will automatically take over the pre-investigation phase," the council said. "Otherwise, the pre-investigation phase will be carried out by a national competent authority." During investigations, the council would have proceedings led by a single "lead competent authority," which would start the preliminary phase and ensure other authorities participate. Where an investigation is needed in a third country, the commission would "establish contacts" with that nation as necessary, the council said.