An annual statement of compliance with this Code must be signed by an officer of each manufacturing company or contractor. Contracts for the manufacture of toys should provide that a material failure to comply with the Code or to implement a corrective action plan on a timely basis is a breach of contract for which the contract may be canceled. Because of the great diversity in the kinds of toys manufactured and the manufacturing methods used, as well as the wide range in factory sizes and numbers of employees, three annexes are attached to this Code to provide guidelines for determining compliance. A rule of reason must be used to determine applicability of the annex provisions. This Code should be posted or available for all employees in the local language.
Many countries recognize that prison labor is essential to the rehabilitation process.
This provision prohibits the exportation of prison-made goods to countries that prohibit or restrict the importation of such goods.