Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on prohibiting products made with forced labour on the Union market
Date: 2022-09-14
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: EU customs procedure, EU market, common commercial policy, export monitoring, human rights, market supervision, originating product, slavery, trade regulations

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   EUROPEAN COMMISSION  Brussels, 14.9.2022  COM(2022) 453 final 2022/0269 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on prohibiting products made with forced labour on the Union market (Text with EEA relevance)  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The  international  community  has  committed  to  eradicating  forced  labour  by  2030  (United 
Nations  Sustainable  Development  Goal  8.7).1  However,  its  use  remains  widespread.  The 
International Labour Organisation (ILO) has estimated the global number of people in forced 
labour at 27.6 million2. 

In  line  with  the  EU  Treaties,  the  EU  promotes  the  respect  for  human  rights  worldwide, 
including  related  labour  rights  for  example  as  part  of  its  commitment  to  promoting  decent 
work.  In  this  context,  combating  forced  labour  and  promoting  corporate  sustainability  due 
diligence standards are priorities of the EU’s agenda on human rights. 

The objective of this proposal is to effectively prohibit the placing and making available on 
the  EU  market  and  the  export  from  the  EU  of  products  made  with  forced  labour,  including 
forced  child  labour.  The  prohibition  covers  domestically  produced  and  imported  products. 
Building  on  international  standards  and  complementing  existing  horizontal  and  sectoral  EU 
initiatives,  in  particular  the  corporate  sustainability  due  diligence  and  reporting  obligations, 
the  proposal  lays  down  a  prohibition  supported  by  a  robust,  risk-based  enforcement 
framework. 

The  initiative  was  first  announced  by  President  von  der  Leyen  in  her  State  of  the  Union 
speech on 15 September 20213. The general elements of this proposal were laid down on 23 
February  2022  in  the  Commission  Communication  on  decent  work  worldwide4  and  in  the 
Commission proposal for a directive on corporate sustainability due diligence5. 

• 

Consistency with existing policy provisions in the policy area 

Both  the  Communication  on  decent  work  worldwide  and  the  Commission  proposal  for  a 
directive  on  corporate  sustainability  due  diligence  announced  that  the  Commission  was 
preparing  a  new  legislative  initiative,  which  would  effectively  prohibit  the  placing  and 
making available on the EU market of products made with forced labour. 

Forced labour impacts are covered by the proposed directive on corporate sustainability due 
diligence.  In  particular,  the  Annex  to  the  proposed  directive  lists  forced  labour  among  the 
violations of rights and prohibitions, as included in relevant international agreements, such as 
the  ILO  Convention  No.29  on  forced  labour,  Protocol  of  2014  to  the  Forced  Labour 
Convention 2014 Protocol, and the ILO Convention No.105 on the abolition of forced labour. 

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5 

https://www.unodc.org/roseap/en/sustainable-development-goals.html. 
The  2021  Global  Estimates  of  Modern  Slavery,  https://www.ilo.org/wcmsp5/groups/public/---
ed_norm/---ipec/documents/publication/wcms_854733.pdf. 
State of the Union 2021 | European Commission (europa.eu). 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council  and  the  European 
Economic  and  Social  Committee  on  decent  work  worldwide  for  a  global  just  transition  and  a 
sustainable recovery, COM(2022) 66 final, 23.2.2022. 
Proposal for a directive of the European Parliament and of the Council on Corporate Sustainability Due 
Diligence and amending Directive (EU) 2019/1937, COM(2022) 71 final, 23.2.2022. 

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The Commission’s proposal for a directive on corporate sustainability due diligence addresses 
corporate  behaviour  and  due  diligence  processes  for  the  companies  falling  in  its  scope  and 
does  not  provide  for  measures  specifically  intended  to  prevent  the  placing  and  making 
available  on  the  EU  market  of  products  made  with  forced  labour.  The  proposal  focuses  on 
establishing a system within company law and corporate governance to address human rights 
and  environmental  abuses  in  companies’  own  operations,  their  subsidiaries’  operations  and 
their  value  chains.  Companies  are  required  to  engage  with  business  partners  in  their  value 
chains to remedy the violations. Disengagement remains the last resort where adverse impacts 
cannot  be  mitigated.  While  it  includes  sanctions  in  case  of  non-compliance  with  the  due 
diligence obligations, it does not require Member States or companies to prohibit the placing 
and making available of any product on the market. 

The EU Charter of Fundamental Rights6 in its Article 5(2) explicitly prohibits forced labour. 
This  prohibition  is  well  enshrined  in  current  EU  legislation  and  forthcoming  legislative 
initiatives, as well as addressed by international and European initiatives. 

In July 2021, the Commission and the European External Action Service published guidance7 
to assist EU businesses in taking appropriate measures to address the risk of forced labour in 
their operations and supply chains, based on international standards. That document served as 
a bridge towards legislation targeting forced labour. This proposal is in line with the approach 
of that guidance, which will be taken into account when addressing the actions of economic 
operators. 

Forced  labour  is  a  form  of  labour  exploitation,  which  is  punishable  under  Directive 
2011/36/EU  on  preventing  and  combating  trafficking  in  human  beings  and  protecting  its 
victims8.  Moreover,  the  Directive  establishes  the  liability  of  legal  persons,  accompanied  by 
administrative and criminal sanctions, for the exploitations referred to in that Directive, where 
they  were  committed  for  their  benefit  by  any  person  who  has  a  leading  position  within  the 
legal  person  or  where  the  offence  was  possible  due  to  lack  of  supervision  or  control.  This 
proposal  will  complement  that  Directive  and  will  not  impede  the  competent  authorities, 
including  law  enforcement,  from  taking  actions  within  their  competence,  with  regard  to  the 
alleged  or  confirmed  human  trafficking  offence  related  to  forced  labour  and  labour 
exploitation. 

The Employers’ Sanctions Directive9 prohibits the employment of irregularly staying non-EU 
nationals,  including  victims  of  trafficking  in  human  beings.  This  proposal  will  also 
complement that Directive. 

The  continued  existence  of  forced  labour  illustrates  the  need  for  additional  measures,  also 
aimed at products, to prevent the placing and making available of products made with use of 
forced labour. 

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Charter of Fundamental Rights of the European Union, OJ C 326, 26.10.2012, p. 391.  
Guidance on due diligence for EU businesses to address the risk of forced labour in their operations and 
supply chains. 
Directive 2011/36/EU of the European Parliament and of the Council of 5 April 2011 on preventing and 
combating  trafficking  in  human  beings  and  protecting  its  victims,  and  replacing  Council  Framework 
Decision 2002/629/JHA, OJ L 101, 15.4.2011, p.1. 
Directive  2009/52/EC  of  the  European  Parliament  and  of  the  Council  of  18  June  2009  providing  for 
minimum  standards  on  sanctions  and  measures  against  employers  of  illegally  staying  third-country 
nationals, OJ L 168, 30.6.2009, p. 24. 

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• 

Consistency with other EU policies 

The EU’s 2020-2024 action plan on human rights and democracy10 includes as a priority on 
the  part  of  the  EU  and  Member  States  to  promote  the  eradication  of  forced  labour  and  the 
implementation  of  international  standards  on  responsible  business  conduct,  such  as  the  UN 
Guiding  Principles  on  Business  and  Human  Rights  and  the  Organisation  for  Economic  Co-
operation  and  Development  (OECD)  Guidelines  on  Multinational  Enterprises  and  Due 
Diligence11. This proposal is in line with the priorities of that action plan. It also complements 
the EU strategy on the rights of the child12, which in line with Article 32 of the EU Charter of 
Fundamental Rights, commits the EU to a zero-tolerance approach against child labour and to 
ensuring that supply chains of EU companies are free of it. 

This  proposal  has  no  bearing  on  the  application  of  other  human  rights  requirements.  It  will 
also  complement  the  EU’s  regulatory  environment,  which  currently  does  not  include  a 
prohibition  of  placing  and  making  available  products  made  with  forced  labour  on  the  EU 
market.  International  cooperation  with  authorities  of  non-EU  countries  will  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. The High Representative in his/her functions as Vice-President of the Commission will 
ensure consistency with the different areas of the external action within the Commission. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

This  proposal  is  based  on  Articles  114  and  207  of  the  Treaty  on  the  Functioning  of  the 
European Union (TFEU).  

Article 114 TFEU establishes that the Parliament and the Council are to adopt the measures 
for the approximation of the provisions laid down by law, regulation or administrative action 
in Member States which have as their object the establishment and functioning of the internal 
market. 

The  aim  of  the  Regulation  is  to  avoid  the  obstacles  to  the  free  movement  of  goods  and  to 
remove  the  distortions  of  competition  in  the  internal  market  that  would  result  from 
divergences  in  national  laws,  regulations  or  administrative  provisions  regarding  the  placing 
and making available on the Union market of products made with forced labour. 

There is an increasing attention for the persistence of the problem of forced labour and for the 
need to avoid that products made with forced labour are made available. Several parliaments 
and  governments  of  Member  States  have  announced  the  need  to  adopt  legislation  to  ensure 
that  products  made  with  forced  labour  do  not  end  up  in  their  markets.  Against  that 
background,  there  is  a  concrete  risk  that  Member  States  will  adopt  national  laws  that  are 
prohibiting  the  placing  and  making  available  of  goods  made  with  forced  labour  on  their 
territory. Those laws are likely to diverge. Such divergence is likely to lead to circumvention 

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https://www.eeas.europa.eu/sites/default/files/eu_action_plan_on_human_rights_and_democracy_2020-
2024.pdf 
For the list of sectoral guidance documents, see http://mneguidelines.oecd.org/sectors/. 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council  and  the  European 
Economic and Social Committee and the Committee of the Regions ”EU strategy on the rights of the 
child”, COM(2021) 142 final, 24.3.2021. 

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efforts that would affect the movement of goods within the internal market. It follows that a 
divergence in  the laws of the Member States  regarding the placing  and  making available  of 
products  made  with  forced  labour  on  their  national  market  risks  creating  distortions  in  the 
internal market and creating unjustified barriers for the freedom of movement for goods. 

Under  Article  207  TFEU  the  common  commercial  policy  must  be  based  on  uniform 
principles,  e.g.,  with  regard  to  export  policy.  Since  this  proposal  will  have  direct  and 
immediate effects on trade, in the form of an export prohibition on products made with forced 
labour,  and  a  prohibition  on  products  proven  to  have  been  made  with  forced  labour  from 
entering the EU market, Article 207 should be a legal basis. 

• 

Subsidiarity (for non-exclusive competence)  

The implementation of this proposal, particularly the investigations and decisions to prohibit 
the  products  made  with  forced  labour,  will  fall  within  the  competence  of  Member  States’ 
national authorities. Customs authorities will act, primarily based on the decisions issued by 
Member  States’  competent  authorities,  at  the  EU  external  borders  to  identify  and  stop 
products made with forced labour entering or leaving the EU market. However, Member State 
legislation alone in that area is not likely to be sufficient and efficient, and the objectives of 
the  proposal  cannot  be  adequately  achieved  by  legislation  at  Member  State  level  only.  EU 
legislation and enforcement co-ordination are necessary for the following reasons: 

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– 

The functioning of EU market requires common provisions in this area. Divergence 
in the laws of the Member States risks creating distortions in the internal market and 
unjustified barriers for the freedom of movement for goods.  

The  enforcement  effort  must  be  uniform  across  the  EU.  If  enforcement  is  less 
stringent  in  some  parts  of  the  EU,  weak  areas  are  created,  which  may  threaten  the 
public interest and create unfair trading conditions. 

Risks  related  to  forced  labour  in  companies’  value  chains  often  have  cross-border 
effects,  reaching  into  several  EU  Member  States  and/or  non-EU  countries.  This 
highlights the need for an EU-wide approach, with legal certainty and a level playing 
field for companies operating across the internal market and beyond. 

The proposal is therefore necessary to ensure strong and uniform enforcement in this area, 
to  prevent  distortions  in  the  functioning  of  the  internal  market,  preserve  the  public  interests 
defended in this context, and to ensure a level playing field for businesses established within 
and outside the EU. 

• 

Proportionality 

Since this proposal targets products made with forced labour of any type and provenance, all 
economic operators placing and making available those products on the EU market would be 
within scope. Nevertheless, efficient enforcement will require competent authorities to focus 
their  efforts  where  the  risks  of  forced  labour  are  most  prevalent,  and  where  the  impact  is 
likely  to  be  largest.  This  means  that  emphasis  will  likely  be  placed  on  larger  economic 
operators at early stages of the EU value chain (e.g., importers, manufacturers, producers or 
product suppliers). 

The  proposal  lays  down  a  common  set  of  powers  for  all  competent  authorities  in  Member 
States,  which  should  help  strengthen  enforcement.  Enforcement  powers  will  lie  with  the 
Member  States.  Some  Member  States  may  need  to  adapt  their  national  procedural  laws  to 
ensure  that  their  enforcement  authorities  can  effectively  use  their  powers  in  a  cross-border 

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context,  to  cooperate  and  to  address  non-compliant  products  within  the  EU.  The  level  of 
harmonisation  chosen  is  necessary  to  ensure  smooth  cooperation  and  exchange  of  evidence 
among competent authorities.  

The proposal will improve enforcement cooperation and coherence by establishing a network 
of relevant authorities, without imposing a disproportionate or excessive burden on Member 
State  authorities.  Therefore,  the  proposal  does  not  exceed  what  is  necessary  to  attain  its 
objectives. 

• 

Choice of the instrument 

A regulation is necessary to achieve the objectives of effective enforcement and compliance. 
A  directive  would  not  achieve  the  objectives  since  jurisdictional  discrepancies  may  persist 
after its transposition, putting harmonised enforcement at risk. 

The  Commission  will  issue  guidelines  to  provide  support  to  Member  State  enforcement 
authorities and to companies, providing  general and background information with advice on 
how to apply and comply with the proposal. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

The  consultation  included  the  publication  of  the  call  for  evidence,  the  targeted  consultation 
and other outreach activities and ad hoc feedback. The aim of the consultation strategy was to 
receive  input  from  relevant  stakeholders  from  both  EU  and  non-EU  countries.  The  main 
stakeholders consulted included: 

 

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companies  (including  micro,  small  and  medium-sized  enterprises  41  (SMEs) 
and their representative organisations and other operators in supply chains that 
may be affected by forced labour; 

trade union organisations; 

EU Member States and non-EU countries; 

international organisations (notably the ILO and the OECD); 

civil society organisations/ non-governmental organisations (NGOs). 

The targeted consultation took place from 19 May 2022 until 23 June 2022. The consultation 
drew on input from relevant Member State authorities and stakeholders through meetings of 
existing platforms and networks. The envisaged initiative was presented at 14 such meetings, 
including the European Product Compliance Network, DG TRADE’s Civil Society Dialogue, 
the Commission Expert Group on Trade and Sustainable Development, and the exchange of 
views with the European social partner organisations. Representatives of Member States and 
more than 450 other stakeholders participated in the targeted consultation. 

In general, all stakeholders agreed that forced labour is a complex issue and that it needs to be 
tackled and brought to an end. However, some of them indicated that in the EU this should be 
done through Member States’ national criminal laws. Both representatives of Member States 
and  other  stakeholders  underlined  that  the  envisaged  EU  instrument  has  to  be  WTO-

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compatible  and  based  on  international  standards,  such  as  the  ILO’s  definition  of  forced 
labour. All stakeholders questioned the absence of a dedicated impact assessment. 

A  majority  of  stakeholders  also  stressed  that  the  new  instrument  should  be  compatible  and 
interlinked  with  the  proposal  for  a  directive  on  corporate  sustainability  due  diligence,  but 
should  not  duplicate  it,  especially  with  regards  to  implementation  and  enforcement  of  both 
instruments. 

Many stakeholders argued that greater emphasis be placed on proportionality, indicating that 
putting  an  additional  burden  on  companies,  particularly  SMEs,  has  to  be  avoided. 
Stakeholders also asked for guidance, particularly to help them in the risk identification. Some 
stakeholders  raised  the  issue  of  how  to  avoid  differences  in  implementation  of  the  new 
instrument in different Member States. 

The call for evidence  for the proposal was published13 on the Better Regulation  portal (also 
known as 'Have Your Say') to give stakeholders an opportunity to comment on the need for 
action and the envisaged initiative, as well as to provide input on any further issue to consider 
target  audience  consisted  of  experts  and 
when  developing 
representatives  of 
importers  and 
manufacturers, consumers, NGOs, trade unions, retail businesses and national representatives, 
including national authorities in charge of enforcing relevant rules. 

this  policy  field.  The 
interested  parties,  such  as  business  associations, 

The call for evidence was open for public comments and feedback from 23 May 2022 until 20 
June 2022. In total 107 responses were received, 76 of which had additional information or a 
position paper attached to them. 

The  respondents  were  mainly  business  associations  (33%),  representatives  of  NGOs  (31%) 
and  companies/business  organisations  (15%),  followed  by  trade  unions,  citizens,  public 
authorities, and academic/research institutions. 

Stakeholders from 22 countries on five continents provided their feedback. Most of responses 
came from stakeholders  based in  Belgium (33  – this also includes those who provided their 
feedback through their representation in Belgium), Germany (19) and the USA (12). 

Regarding the scope of the instrument, the main point of contention was whether it should be 
limited to each specific  consignment  being looked at  individually, or  whether  it should also 
allow  for  increased  scrutiny  for  specific  products,  industries,  production  sites,  regions  and 
countries. 

Stakeholders  largely agreed on using the  ILO’s  definition of forced labour  as  established in 
Forced  Labour  Convention,  1930  (No.  29)  and  the  ILO’s  11  indicators  of  forced  labour14. 
Stakeholders  also  often  referred  to  the  OECD  Guidelines  for  Multinational  Enterprises,  and 
the OECD Due Diligence Guidance on Responsible Business Conduct, as well as to the UN 
Guiding  Principles  on  Business  and  Human  Rights.  They  often  noted  that  they  already 
adhered to those guidelines and asked for the proposal to be in line with them. 

There  were  disagreements  between  what  evidence  is  needed  by  authorities  to  withhold  a 
consignment  at  the  point  of  entry.  Stakeholders  from  civil  society  expressed  the  desire  for 

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Effectively banning products produced, extracted or harvested with forced labour (europa.eu) 
https://www.ilo.org/global/topics/forced-labour/publications/WCMS_203832/lang--en/index.htm 

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rebuttable  presumption  for  specific  products,  industries,  production  sites,  regions  and 
countries that have a significant incidence of forced labour. National authorities should also 
be  allowed  to  initiate  investigations  if  they  have  reasonable  suspicion  that  the  products 
contain  elements  of  forced  labour  in  the  value  chain.  In  addition,  a  complaint  mechanism 
should  be  installed  to  allow  civil  society  and  trade  unions  to  submit  complaints  for 
investigation.  The  private  sector  would  prefer  a  country-  and  product-agnostic  view,  where 
investigations are initiated based on reasonable suspicion. Submissions also diverged in terms 
of  the  burden  of  proof,  namely  whether  it  should  be  up  to  the  importer  to  prove  that  their 
goods do not contain traces of forced labour, or whether it is the responsibility of the customs 
authority to  prove that  forced labour was used in the production process of the investigated 
shipment.  In  any  case,  most  stakeholders  agree  that  concrete  processes  and  investigative 
standards should be in place, to ensure predictability and uniformity. 

On enforcement, most stakeholders agreed that the same standards should be in place for all 
Member States, and that the risk of fragmentation should be avoided. It is therefore necessary 
to provide national enforcement authorities with clear guidelines and the resources needed to 
effectively monitor and enforce the proposed regulation (including for training and to ensure 
national authorities have enough staff on hand), and for the EU to play a coordination role. 

Consistency  with  existing  EU  and  national  regulations  was  often  mentioned  by  respondents 
from the private sector, with a view to avoiding the duplication of efforts by companies and 
increased red tape. Other submissions rather see this initiative as complementing gaps in other 
regulations, as for example the exemption of SMEs from the proposed directive on corporate 
sustainability due diligence. 

On the issue of SMEs,  views are also  divergent. Representatives of  civil  society  underlined 
that  SMEs  should  not  benefit  from  exclusions  or  special  provisions,  as  they  did  for  the 
proposed directive on corporate sustainability due diligence. As SMEs make up the majority 
of  companies  in  the  EU,  their  full  inclusion  is  crucial  for  the  new  instrument  to  have  a 
meaningful  impact.  On  the  other  hand,  a  significant  number  of  representatives  of  business 
associations  or  companies/business  organisations  advocated  for  SMEs  to  receive  special 
treatment,  by  either  providing  them  with  detailed  guidelines,  specific  provisions  or  even 
exclusions  from  the  instrument.  The  main  argument  in  this  respect  was  that  smaller 
companies  have  less  resources  to  conduct  in  depth  due  diligence  and  that  they  have  less 
market power to put pressure on suppliers to make additional efforts or provide access to their 
production sites and employees. 

The new proposal would need to make sure that  products found to be produced with forced 
labour  should  not  only  be  banned  from  the  EU  single  market,  but  also  that  they  cannot  be 
rerouted to countries that do not have a ban in place, or do not have the capacity to investigate 
and/or enforce. Hence, increasing cooperation with authorities in non-EU countries to ensure 
that products prohibited from entering their market, do not end up in the EU single market and 
vice versa is paramount. 

The  added  value  of  a  database  was  also  stressed  in  the  feedback  received.  Stakeholders 
suggested that public authorities could provide a registry of penalised and banned entities and 
products.  This  would  help  companies,  especially  SMEs,  as  they  could  avoid  problematic 
suppliers. A number of stakeholders also requested that customs authorities disclose their data 
for  transparency  reasons.  Representatives  of  civil  society  organisations  demanded  that 
importers should be required to map and provide details on all of their suppliers. 

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Many stakeholders presented the company- or sector-specific initiatives they have put in place 
to address forced labour in their value chains, and the results they have achieved. 

• 

Impact assessment 

The issue to be addressed – forced labour – is in direct opposition to the respect  for human 
dignity and the universality and indivisibility of human rights as laid down in Article 21 of the 
Treaty  on  European  Union,  as  well  as  in  Article  5(2)  of  the  EU  Charter  of  Fundamental 
Rights and in Article 4 of the European Convention on Human Rights. 

Against  this  background,  forced  labour  requires  urgent  action,  which  does  not  allow  for  an 
impact  assessment.  However,  the  evidence  collected  in  the  impact  assessments  of  other 
initiatives such as the proposal for a directive on corporate sustainability due diligence and the 
Sustainable Product Initiative have fed into the drafting of this proposal. For that reason and 
given  the  importance  and  urgency  of  the  initiative,  a  derogation  was  granted  under  the 
Commission’s Better Regulation  Guidelines. The analysis and supporting evidence  will  still 
be  presented  in  a  staff  working  document  within  three  months  of  the  publication  of  this 
proposal. 

In terms of costs, the proposal will mainly entail enforcement costs for public authorities and 
compliance costs for economic operators. The Commission will also incur limited costs. 

The compliance costs are costs that companies will face to ensure they do not place and make 
available  on  the  EU  market  products  made  with  forced  labour.  Their  costs  will  depend  on 
whether  or  not  they  are  already  covered  by  due  diligence  provisions  (for  example,  the 
proposed  directive  on  corporate  sustainability  due  diligence)  or  whether  they  have  already 
carried out due diligence on a voluntary basis. 

Concerning the costs for Member States that will implement the proposal, this will depend on 
the  existing  administrative  structure  at  national  level  (i.e.,  are  authorities  already  in  place 
performing similar tasks or not), national legislation already in place for connected issues and 
the potential update of the customs systems. 

• 

Regulatory fitness and simplification 

All  economic  operators  making  products  available  on  the  EU  market  or  exporting  from  it 
should be covered. This is necessary to effectively prohibit products made with forced labour 
from being made available on the EU market. 

SMEs  could  have  limited  resources  and  expertise  to  implement  effective  due  diligence 
systems.  Withdrawing  goods  from  the  market  could  also  mean  higher  burdens  for  SMEs 
compared to a large company. 

For  SMEs,  several  adjustments  will  therefore  be  needed.  One  way  of  accommodating  the 
particular  needs  and  constraints  of  SMEs  could  theoretically  be  to  exempt  such  companies 
from the scope of this proposal. This is not a viable option, however, since the proposal will 
have to focus on products suspected of having been made with forced labour, irrespective of 
the size of the economic operators involved. It cannot be excluded beforehand that the entities 
which  authorities  may  approach  when  they  launch  forced  labour  investigations  are  in  some 
cases  SMEs.  Exempting  SMEs  would  therefore  affect  the  effectiveness  of  the  proposal  and 
create uncertainty. Furthermore, it is important to consider that since SMEs are usually part of 
value  chains,  policies  addressing  large  enterprises  within  these  supply  chains  also  impact 

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SMEs,  who need to  have due  diligence procedures to  gain access  to financing, and to meet 
demands  from  larger  buyers/suppliers  that  exercise  due  diligence.  As  pointed  out  in  the 
Commission’s  recommendations  in  the  Annual  Report  on  European  SMEs  2021/202242,  it 
may  well  be  more  appropriate  for  legislation  to  consider  simplified  voluntary  tools  and 
mitigating measures that allow SMEs to demonstrate their sustainability commitments. 

The Commission evaluated the merits of introducing a threshold for the volume and/or value 
of products, below which authorities would not launch forced labour investigations under this 
proposal.  As  it  may  be  more  likely  that  SMEs  make  smaller  quantities  available  on  the 
market,  such a  de minimis clause could  in  principle serve  as a way  of taking their situation 
into consideration and largely exempting them from investigations. However, establishing de 
minimis  thresholds  would  distort  the  level  playing  field  in  the  internal  market,  creating 
loopholes.  It would  also  not  be a  guarantee that  SMEs always fall outside the scope of this 
proposal,  since  smaller  economic  operators  could  certainly  make  considerable  volumes  of 
products available on the market, depending on the sector. 

Therefore,  rather  than  a  clear-cut  exemption  for  SMEs,  or  a  de  minimis  threshold,  their 
situation  should  be  addressed  through  the  design  of  the  measure,  including  the  risk-based 
enforcement and the support tools. This will include, for example: 

Design of the measure: When deciding on the time limits for submission of information the 
competent  authorities  will  consider  the  size  and  resources  of  the  economic  operators 
concerned,  knowing  that  smaller  companies  would  not  have  as  many  resources  for  value 
chain overview and mapping as larger companies. 

Risk-based enforcement: Competent authorities should focus their enforcement efforts where 
they are likely to have the best effect, namely, on the economic operators involved in the steps 
of the value chain  as  close as possible to  where the  risk of  forced labour  is  likely to  occur. 
They  should  also  take  into  account  the  size  and  economic  resources  of  the  economic 
operators, the quantity of products concerned, as well as the scale of suspected forced labour. 

Support  tools:  As  experience  has  shown  that  SMEs  benefit  from  support  tools  such  as 
guidelines or templates that require lower costs, the Commission will issue guidance, which 
shall take into account the size and economic resources of economic operators. 

4. 

BUDGETARY IMPLICATIONS 

The  legislative  financial  statement  attached  to  this  proposal  sets  out  the  implications  for 
budgetary, human and administrative resources. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The Commission will actively monitor the implementation of the proposed regulation and will 
ensure that the proposed regulation achieves its objectives. Monitoring will focus in particular 
on effectively preventing products made with forced labour from being made available on the 
EU  market  or  exported  from  the  EU,  and  on  ensuring  effective  cooperation  between 
competent authorities. It will also take into account the impact on business and in particular 
on SMEs.  

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• 

Detailed explanation of the specific provisions of the proposal 

Chapter  I  contains  the  general  provisions:  the  subject  matter  (Article  1),  the  definitions 
(Articles  2)  and  the  prohibition  of  products  made  with  forced  labour,  namely  making  them 
available on the EU market and exporting them (Article 3). 

Chapter II details investigations and decisions by competent authorities. Member States will 
be  required  to  designate  one  or  more  competent  authorities  responsible  for  carrying  out  the 
obligations arising from this proposal (Article 12). At the preliminary phase of investigations, 
the competent authorities will be required to follow a risk-based approach, and, in particular, 
assess the risk of a violation of the above-mentioned prohibition (Article 4). If the competent 
authority  determines  that  there  is  a  substantiated  concern  of  such  a  violation,  it  will  be 
required  to  investigate  the  products  and  economic  operators  concerned  (Article  5).  The 
chapter also specifies the decisions of competent authorities (Article 6), their content (Article 
7),  review  (Article  8)  and  recognition  (Article  14).  The  competent  authorities  will  have 
obligations to inform the Commission and the competent authorities of other Member States 
reciprocal 
(Article  9)  and  obligations 
communication  (Article  13).  The  chapter  also  contains  provisions  on  the  submission  of 
information on alleged violations (Article 10) and the database of forced labour risks areas or 
products (Article 11). 

regarding  administrative  cooperation  and 

Chapter  III  concerns  provisions  for  products  entering  or  leaving  the  EU  market.  Specific 
provisions  for  customs  controls  are  necessary,  as  Regulation  (EU)  2019/1020  is  not  fit  for 
purpose  in  this  case,  and  customs  authorities  cannot  act  as  a  first  line  of  defence  as  they 
usually do under Regulation (EU) 2019/1020. Therefore, they will rely on the decisions of the 
competent  authorities.  Furthermore,  customs  authorities  must  have  available  specific 
information on the natural and legal persons involved in the manufacturing process, as well as 
on the product itself, in order for them to be able to stop in an effective manner products made 
with forced labour entering or leaving the EU market, as per the decisions of the competent 
authorities. 

Therefore, Chapter III includes provisions for customs controls (Article 15), information to be 
made  available  to  customs  authorities  by  the  economic  operator  (Article  16),  suspension  of 
the  release  for  free  circulation  or  the  export  of  products  that  may  be  in  violation  of  the 
prohibition  (Article  17),  their  release  for  free  circulation  or  export  in  case  of  no  violation 
(Article 18), refusal of their release for free circulation or export (Article 19) and disposal of 
the  products  refused  for  release  for  free  circulation  or  export  (Article  20),  as  well  as 
provisions on the exchange of information and cooperation between competent authorities and 
customs authorities (Article 21). 

Chapter IV contains provisions on information systems (Article 22), on the guidelines that the 
Commission will have to issue in order to help competent authorities implement this proposed 
regulation  and  economic  operators  comply  with  it,  as  well  as  provisions  ensuring  clarity  of 
tasks  and  consistency  of  action  among  competent  authorities  (Article  23)  and  on  the 
establishment,  composition  and  tasks  of  the  EU  Forced  Labour  Product  Network  that  will 
serve as a platform for structured coordination and cooperation between competent authorities 
and the Commission (Article 24). 

Chapter  V  sets  out  the  final  provisions:  on  confidentiality  (Article  25),  international 
cooperation  (Article  26),  delegated  acts  (Article  27),  urgency  procedure  (Article  28), 

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committee procedure (Article 29), penalties (Article 30) and the entry into force and date of 
application of this proposed regulation (Article 31). 

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2022/0269 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on prohibiting products made with forced labour on the Union market 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 114 and Article 207 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee15, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

15 
16 

17 

18 

As recognised in the Preamble to the 2014 Protocol to Convention No. 29 on forced 
labour  (‘ILO  Convention  No.  29’)  of  the  International  Labour  Organization  (‘ILO’), 
forced labour constitutes a serious violation of human dignity and fundamental human 
rights. The ILO declared the elimination of all forms of forced or compulsory labour 
as a principle concerning the fundamental rights. The ILO classifies ILO Convention 
No. 29, the 2014 Protocol to Convention No. 29 and the ILO Convention No.105 on 
the  abolition  of  forced  labour  (‘ILO  Convention  No.105’)  as  fundamental  ILO 
Conventions16. Forced labour covers a wide variety of coercive labour practices where 
work  or  service  is  exacted  from  persons  that  have  not  offered  it  themselves 
voluntarily.17 

The  use  of  forced  labour  is  widespread  in  the  world.  It  is  estimated  that  about  27.6 
million people were in forced labour in 2021.18 Vulnerable and marginalised groups in 
a  society  are  particularly  susceptible  to  be  pressured  into  performing  forced  labour. 
Even when it is not state imposed, forced labour is often a consequence of a lack of 
good governance of certain economic operators.  

The eradication of forced labour is a priority for the Union. Respect for human dignity 
and the universality and indivisibility of human rights are firmly enshrined in Article 
21  of  the  Treaty  on  European  Union.  Article  5(2)  of  the  Charter  of  Fundamental 

OJ C , , p. . 
https://www.ilo.org/global/standards/introduction-to-international-labour-standards/conventions-and-
recommendations/lang--en/index.htm. 
The  ILO definition of  forced labour according to the ILO Forced Labour Convention, 1920 (No. 29), 
What  is  forced  labour,  modern  slavery  and  human  trafficking  (Forced  labour,  modern  slavery  and 
human trafficking) (ilo.org).  
The  2021  Global  Estimates  of  Modern  Slavery,  https://www.ilo.org/wcmsp5/groups/public/---
ed_norm/---ipec/documents/publication/wcms_854733.pdf. 

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(4) 

(5) 

(6) 

(7) 

(8) 

Rights  of  the  European  Union  and  Article  4  of  the  European  Convention  on  Human 
Rights provide that no one is to be required to perform forced or compulsory labour. 
The  European  Court  of  Human  Rights  has  repeatedly  interpreted  Article  4  of  the 
European  Convention  on  Human  Rights  as  requiring  Member  States  to  penalise  and 
effectively prosecute any act maintaining a person in the situations described set out in 
Article 4 of the European Convention on Human Rights.19 

All  Member  States  have  ratified  the  fundamental  ILO  Conventions  on  forced  labour 
and child labour.20 They are therefore legally obliged to prevent and eliminate the use 
of forced labour and to report regularly to the ILO. 

Through its policies and legislative initiatives the Union seeks to eradicate the use of 
forced  labour.  The  Union  promotes  due  diligence  in  accordance  with  international 
guidelines and principles established by international organisations, including the ILO, 
the Organisation for Economic Co-operation and Development (hereinafter “OECD”) 
and the United Nations (hereinafter “UN”), to ensure that forced labour does not find a 
place in the value chains of undertakings established in the Union.  

Union  trade  policy  supports  the  fight  against  forced  labour  in  both  unilateral  and 
bilateral trade relationships. The trade and sustainable development chapters of Union 
trade  agreements  contain  a  commitment  to  ratify  and  effectively  implement  the 
fundamental  ILO  Conventions,  which  include  ILO  Convention  No.  29  and  ILO 
Convention  No.  105.  Moreover,  unilateral  trade  preferences  under  the  Union’s 
General  Scheme  of  Preferences  could  be  withdrawn  for  serious  and  systematic 
violations of ILO Convention No. 29 and ILO Convention No. 105. 

The Anti-trafficking Directive (Directive 2011/36/EU) of the European Parliament and 
of  the  Council21  (the  Anti-trafficking  Directive)  harmonises  the  definition  of 
trafficking  in  human  beings,  including  forced  labour  or  services,  and  establishes 
minimum  penalties.  Any  rules  laid  down  concerning  the  prohibition  of  placing  and 
making  available  on  the  Union  market  domestic  or  imported  products  made  with 
forced  labour,  or  exporting  such  products,  and  the  obligation  to  ensure  that  such 
products are withdrawn from the Union market (‘the prohibition’), should be without 
prejudice to that Directive, and in particular to the competence of law enforcement and 
judicial  authorities  to  investigate  and  prosecute  offences  on  trafficking  in  human 
beings, including labour exploitation. 

[In particular, Directive 20XX/XX/EU on Corporate Sustainability Due Diligence sets 
out horizontal due diligence obligations to identify, prevent, mitigate and account for 
actual and potential adverse impacts on human rights, including forced labour, and the 
environment in the company’s own operations, its subsidiaries and in its value chains, 
in accordance with international human and labour rights standards and environmental 
conventions.  Those  obligations  apply  to  large  companies  over  a  certain  threshold  in 
terms  of  number  of  employees  and  net  turnover,  and  to  smaller  companies  in  high-

19 
20 

21 

For instance paras. 89 and 102 in Siliadin v. France or para. 105 in Chowdury and Others v. Greece. 
https://www.ilo.org/wcmsp5/groups/public/---europe/---ro-geneva/---ilo-
brussels/documents/publication/wcms_195135.pdf.  
Directive 2011/36/EU of the European Parliament and of the Council of 5 April 2011 on preventing and 
combating  trafficking  in  human  beings  and  protecting  its  victims,  and  replacing  Council  Framework 
Decision 2002/629/JHA, OJ L 101, 15.4.2011, p.1. 

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(9) 

impact  sectors  over  a  certain  threshold  in  terms  of  number  of  employees  and  net 
turnover.22] 

In  addition,  Regulation  (EU)  2017/821  of  the  European  Parliament  and  of  the 
Council23  requires  Union  importers  of  minerals  falling  under  the  scope  of  that 
Regulation  to  carry  out  due  diligence  obligations  consistent  with  Annex  II  to  the 
OECD  Due  Diligence  Guidance  for  Responsible  Supply  Chains  of  Minerals  from 
Conflict-Affected  and  High-Risk  Areas,  and  the  due  diligence  recommendations  set 
out  therein.  [Regulation  (EU) No XX/20XX concerning batteries and waste batteries 
contains obligations for economic operators to carry out due diligence in their supply 
chains,  including  with  respect  to  labour  rights.24]  [Regulation  (EU)  XX/20XX  on 
making  available  on  the  Union  market  as  well  as  export  from  the  Union  of  certain 
commodities  and  products  associated  with  deforestation  and  forest  degradation25 
requires due diligence regarding the legal and deforestation free character of products 
and commodities within its scope, including with respect to human rights.] 

(10)  Articles [XX] of Directive 2013/34/EU of the European Parliament and of the Council 
require Member States to ensure that certain economic operators annually publish non-
financial  statements  in  which  they  report  on  the  impact  of  their  activity  on 
environmental,  social  and  employee  matters,  respect  for  human  rights,  including 
regarding forced labour, anti-corruption and bribery matters.26 [Furthermore, Directive 
20XX/XX/EU  on  Corporate  Sustainability  Reporting  puts  forward  detailed  reporting 
requirements for covered companies regarding the respect of human rights, including 
in  global  supply  chains.  The  information  that  undertakings  disclose  about  human 
rights  should  include,  where  relevant,  information  about  forced  labour  in  their  value 
chains.27] 

(11) 

In  July  2021,  the  Commission  and  the  European  External  Action  Service  published 
guidance to assist Union businesses in taking appropriate measures to address the risk 
of forced labour in their operations and supply chains.28  

(12)  As  recognised  in  the  Commission’s  Communication  on  decent  work  worldwide29, 
notwithstanding  the  current  policies  and  legislative  framework,  further  action  is 

22 

23 

24 

25 

26 

27 

28 

29 

Directive  20XX/XX/EU  of  the  European  Parliament  and  of  the  Council  on  Corporate  Sustainability 
Due Diligence and amending Directive (EU) 2019/1937, OJ XX, XX.XX.20XX, p. XX. 
Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 laying down 
supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and 
gold originating from conflict-affected and high-risk areas, OJ L 130, 19.5.2017, p. 1. 
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL concerning batteries 
and waste batteries, repealing Directive 2006/66/EC and amending Regulation (EU) No 20XX/XX, OJ 
XX, XX.XX.20XX, p. XX. 
Regulation of the European Parliament and of the Council on the making available on the Union market 
as well as export from the Union of certain commodities and products associated with deforestation and 
forest degradation and repealing Regulation (EU) No XXX/20XX, OJ XX, XX.XX.20XX, p. XX. 
Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large 
undertakings and groups, OJ 
Directive  20XX/XX/EU  of  the  European  Parliament  and  of  the  Council  amending  Directive 
2013/34/EU,  Directive  2004/109/EC,  Directive  2006/43/EC  and  Regulation  (EU)  No  537/2014,  as 
regards corporate sustainability reporting, OJ XX, XX.XX.20XX, p. XX. 
Guidance on due diligence for EU businesses to address the risk of forced labour in their operations and 
supply chains.  
Communication 23 March 2022 from the Commission to the European Parliament, the Council and the 
European Economic and Social Committee on decent work worldwide for a global just transition and a 
sustainable recovery (COM(2022) 66 final). 

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needed to achieve the objectives of eliminating forced-labour products from the Union 
market and, hence, further contributing to the fight against forced labour worldwide.  

(13)  The  European  Parliament  in  its  resolutions  strongly  condemned  forced  labour  and 
called  for  a  ban  on  products  made  with  forced  labour.30  It  is  therefore  a  matter  of 
public moral concern that products made with forced labour could be available on the 
Union market or exported to third countries without an effective mechanism to ban or 
withdraw such products. 

(14)  To complete the Union legislative and policy framework on forced labour, the placing 
and  making  available  on  the  Union  market  products  made  with  forced  labour  or 
exporting domestically produced or imported products made with forced labour should 
be  prohibited  and  it  should  be  ensured  that  those  products  are  withdrawn  from  the 
Union market.  

(15)  Currently  there  is  no  Union  legislation  that  empowers  Member  States’  authorities  to 
directly  detain,  seize,  or  order  the  withdrawal  of  a  product  on  the  basis  of  a  finding 
that it was made, whether in whole or in part, with forced labour.  

(16) 

In order to ensure the effectiveness of the prohibition, such prohibition should apply to 
products  for  which  forced  labour  has  been  used  at  any  stage  of  their  production, 
manufacture,  harvest  and  extraction,  including  working  or  processing  related  to  the 
products.  The  prohibition  should  apply  to  all  products,  of  any  type,  including  their 
components, and should apply to products regardless of the sector, the origin, whether 
they  are  domestic  or  imported,  or  placed  or  made  available  on  the  Union  market  or 
exported.  

(17)  The prohibition should contribute to the international efforts to abolish forced labour. 
The definition of  ‘forced labour’  should therefore be aligned with  the definition laid 
down  in  ILO  Convention  No.  29.  The  definition  of  ‘forced  labour  applied  by  state 
authorities’  should  be  aligned  with  ILO  Convention  No.  105, which  prohibits 
specifically  the  use  of  forced  labour  as  punishment  for  the  expression  of  political 
views, for the purposes of economic development, as a means of labour discipline, as a 
punishment  for  participation  in  strikes,  or  as  a  means  of  racial,  religious  or  other 
discrimination.31 

(18)  Micro, small and medium-sized enterprises  (’SMEs’) can have limited resources and 
ability to ensure that the products they place or make available on the Union market 
are free from forced labour. The Commission should therefore issue guidelines on due 
diligence in relation to forced labour, which should take into account also the size and 
economic resources of economic operators. In addition, the Commission should issue 
guidelines  on  forced-labour  risk  indicators  and  on  publicly  available  information  in 
order  to  help  SMEs,  as  well  as  other  economic  operators,  to  comply  with  the 
requirements of the prohibition. 

(19)  The competent authorities of the Member States should monitor the market to identify 
violations of the prohibition. In appointing those competent authorities, Member States 

30 

31 

See Resolutions: MOTION FOR A RESOLUTION on a new trade instrument to ban products made by 
forced  labour  (europa.eu),  Texts  adopted  -  Forced  labour  and  the  situation  of  the  Uyghurs  in  the 
Xinjiang  Uyghur  Autonomous  Region  -  Thursday,  17  December  2020  (europa.eu),  Texts  adopted  - 
Forced labour in the Linglong factory and environmental  protests in Serbia  - Thursday, 16 December 
2021 (europa.eu).  
What  is  forced  labour,  modern  slavery  and  human  trafficking  (Forced  labour,  modern  slavery  and 
human trafficking) (ilo.org) and the ILO Conventions No. 29 and No. 105 referred therein. 

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should  ensure  that  those  authorities  have  sufficient  resources  and  that  their  staff  has 
the  necessary  competences  and  knowledge,  especially  with  regard  to  human  rights, 
value  chain  management  and  due  diligence  processes.  Competent  authorities  should 
closely coordinate with national labour inspections and judicial and law enforcement 
authorities,  including  those  responsible  for  the  fight  against  trafficking  in  human 
beings in such a way as to avoid jeopardising investigations by such authorities. 

(20) 

In order to increase the effectiveness of the prohibition, competent authorities should 
grant reasonable time to economic operators to identify, mitigate, prevent and bring to 
an end the risk of forced labour. 

(21)  When  identifying  potential  violations  of  the  prohibition,  the  competent  authorities 
should  follow  a  risk-based  approach  and  assess  all  information  available  to  them. 
Competent  authorities  should  initiate  an  investigation  where,  based  on  their 
assessment  of  all  available  information,  they  establish  that  there  is  a  substantiated 
concern of a violation of the prohibition. 

(22)  Before  initiating  an  investigation,  competent  authorities  should  request  from  the 
economic  operators  under  assessment  information  on  actions  taken  to  mitigate, 
prevent or bring to an end risks of forced labour in their operations and value chains 
with  respect  to  the  products  under  assessment.  Carrying  out  such  due  diligence  in 
relation  to  forced  labour  should  help  the  economic  operator  to  be  at  a  lower  risk  of 
having  forced  labour  in  its  operations  and  value  chains.  Appropriate  due  diligence 
means that forced labour issues in the value chain have been identified and addressed 
in accordance with relevant Union legislation and international standards. That implies 
that where the competent authority considers that there is no substantiated concern of a 
violation  of  the  prohibition,  for  instance  due  to,  but  not  limited  to  the  applicable 
legislation,  guidelines,  recommendations  or  any  other  due  diligence  in  relation  to 
forced labour being applied in a way that mitigates, prevents and brings to an end the 
risk of forced labour, no investigation should be initiated. 

(23) 

In order to ensure cooperation among competent authorities designated under this and 
other  relevant  legislation  and  in  order  to  ensure  consistency  in  their  actions  and 
decisions,  competent  authorities  designated  under  this  Regulation  should  request 
information  from  other  relevant  authorities,  where  necessary,  on  whether  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. 

(24)  During the preliminary phase of investigation, competent authorities should focus on 
the economic operators involved in the steps of the value chain where there is a higher 
risk of forced labour with respect to the products under investigation, also taking into 
account their size and economic resources, the quantity of products concerned and the 
scale of the suspected forced labour.  

(25)  Competent  authorities,  when  requesting  information  during  the  investigation,  should 
prioritise  to  the  extent  possible  and  consistent  with  the  effective  conduct  of  the 
investigation the economic operators under investigation that are involved in the steps 
of the value chain as close as possible to where the likely risk of forced labour occurs 
and take into account the size and economic resources of the economic operators, the 
quantity of products concerned, as well as the scale of suspected forced labour. 

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(26)  Competent  authorities  should  bear  the  burden  of  establishing  that  forced  labour  has 
been used at any stage of production, manufacture, harvest or extraction of a product, 
including working or processing related to the product on the basis of all information 
and  evidence  gathered  during  the  investigation,  including  its  preliminary  phase.  To 
ensure their  right  to  due process,  economic operators should have the opportunity to 
provide  information  in  their  defence  to  the  competent  authorities  throughout  the 
investigation. 

(27)  Competent authorities that establish that economic operators violated the prohibition, 
should  without  delay  prohibit  the  placing  and  making  available  of  such  products  on 
the Union market and their export from the Union, and require the economic operators 
that have been investigated to withdraw the relevant products already made available 
from  the  Union  market  and  have  them  destroyed,  rendered  inoperable,  or  otherwise 
disposed  of  in  accordance  with  national  law  consistent  with  Union  law,  including 
Union legislation on waste management.  

(28) 

(29) 

(30) 

In  that  decision,  competent  authorities  should  state  the  findings  of  the  investigation, 
and the information underpinning the findings, and set a reasonable time within which 
the  economic  operators  should  comply  with  the  decision,  as  well  as  information 
allowing  for  the  identification  of  the  product  to  which  the  decision  applies.  The 
Commission  should  be  empowered  to  adopt  the  implementing  acts  necessary  to 
specify the details about the information to be contained in such decisions. 

In  setting  a  reasonable  time  to  comply  with  the  order,  competent  authorities  should 
take  into  account  the  size  and  economic  resources  of  the  economic  operators 
concerned. 

If the economic operators fail to comply with the decision of the competent authorities 
by the end of the established timeframe, the competent authorities should ensure that 
the relevant products are prohibited from being placed or made available on the Union 
market,  exported  or  withdrawn  from  the  Union  market  and  that  any  such  products 
remaining with the relevant economic operators are destroyed, rendered inoperable, or 
otherwise  disposed  of  in  accordance  with  national  law  consistent  with  Union  law, 
including  Union  legislation  on  waste  management  at  the  expense  of  the  economic 
operators.  

(31)  Economic operators should have the possibility to request a review of the decisions by 
the  competent  authorities,  after  having  provided  new  information  showing  that  it 
cannot  be  concluded  that  the  relevant  products  have  been  made  with  forced  labour. 
Competent  authorities  should  withdraw  their  decision  where  they  establish  on  the 
basis of that new information, that it cannot be established that the products have been 
made with forced labour. 

(32)  Any person, whether it is a natural or legal person, or any association not having legal 
personality,  should  be  allowed  to  submit  information  to  the  competent  authorities 
when it considers that products made with forced labour are placed and made available 
on  the  Union  market  and  to  be  informed  of  the  outcome  of  the  assessment  of  their 
submission. 

(33)  The  Commission  should  issue  guidelines  in  order  to  facilitate  the  implementation  of 
the  prohibition  by  economic  operators  and  competent  authorities.  Such  guidelines 
should  include  guidance  on  due  diligence  in  relation  to  forced  labour  and 
the 
complementary 
prohibition. The guidance on due diligence in relation to forced labour should build on 

the  competent  authorities 

information  for 

implement 

to 

EN 

17 

  EN 

the  Guidance  on  due  diligence  for  Union  businesses  to  address  the  risk  of  forced 
labour  in  their  operations  and  supply  chains  published  by  the  Commission  and  the 
European  External  Action  Service  in  July  2021.  The  guidelines  should  be  consistent 
with  other  Commission  guidelines 
international 
organisations’  guidelines.  The  reports  from  international  organisations,  in  particular 
the ILO, as well as other independent and verifiable sources of information should be 
considered for the identification of risk indicators. 

this  regard  and  relevant 

in 

(34)  Decisions  of  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  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. 

(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 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 
identification of the product (such as a type, reference, model, batch or serial number 
affixed on the product, or provided on the packaging or in a document accompanying 
the product, or unique identifier of the digital product passport) as well as details on 
the  manufacturer  or  producer  and  the  product  suppliers,  including  for  each  of  them 
their  name,  trade  name  or  registered  trademark,  their  contact  details,  their  unique 
identification  number  in  the  country  they  are  established  and,  where  available,  their 
Economic  Operators  Registration  and  Identification  (EORI)  number.  The  review  of 
the  Union  Customs  Code  will  consider  introducing  in  the  customs  legislation  the 

32 

Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying 
down the Union Customs Code (recast) (OJ L 269, 10.10.2013, p. 1). 

EN 

18 

  EN 

                                                 
information  required to  be made available to  customs  by the economic  operators  for 
the enforcement of this Regulation and more broadly to strengthen the transparency of 
the supply chain. 

(36)  Customs  authorities  that  identify  a  product  that  may  be  covered  by  a  decision 
communicated  by  competent  authorities  establishing  a  violation  of  the  prohibition 
should  suspend  the  release  of  that  product  and  notify  the  competent  authorities 
immediately.  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  the  competent  authorities  should  be  authorised  to  require  maintaining  the 
suspension  of  its  release.  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. 

(37)  Where  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 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. 

(38)  The  conditions  applicable  to  products  during  the  suspension  of  their  release  for  free 
circulation or export, including their storage or destruction and disposal of in case of a 
refusal of release for circulation, should be determined by customs authorities, where 
applicable  pursuant  to  Regulation  (EU)  No  952/2013.  Should  products  entering  the 
Union market  require further processing, they are to  be placed under the appropriate 
customs  procedure  allowing  such  processing  in  accordance  with  Articles  220,  254, 
256, 257 and 258 of Regulation (EU) No 952/2013. 

(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.  

(40)  For  the  collection,  processing  and  storage  of  information,  in  a  structured  form,  on 
issues relating to the enforcement of the prohibition, the competent authorities should 
use  ICSMS.  The  Commission,  competent  authorities  and  customs  authorities  should 
have access to that system to carry out their respective duties under this Regulation.  

(41) 

In order to optimise and unburden the control process of products entering or leaving 
the Union market, it is necessary to allow for an automated data transfer between the 
ICSMS and customs systems. Three different data transfers should be distinguished in 
view  of  their  respective  purposes.  Firstly,  decisions  establishing  a  violation  of  the 
prohibition should be communicated from the ICSMS to the Electronic Customs Risk 
Management System (CRMS) referred to in Article 36 of Commission Implementing 
Regulation (EU) 2015/244733, without prejudice to any future evolution of the customs 

33 

Commission  Implementing  Regulation  (EU)  2015/2447  of  24  November  2015  laying  down  detailed 
rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament 
and of the Council laying down the Union Customs Code, OJ L 343, 29.12.2015, p. 558. 

EN 

19 

  EN 

                                                 
risk management environment, for use by customs authorities to identify products that 
may  correspond  to  such  a  decision.  The  available  interfaces  of  the  customs 
environment  should  be  used  for  those  first  data  transfers.  Secondly,  where  customs 
authorities  identify  such  a  product,  case  management  will  be  necessary  to,  among 
others,  transfer  the  notification  of  the  suspension,  the  conclusion  of  competent 
authorities and the outcome of the actions taken by customs. The EU Single Window 
Environment for customs should support those second data transfers between ICSMS 
and  national  customs  systems.  Thirdly,  customs  systems  contain  information  on 
products entering and leaving the Union market that would be relevant for competent 
authorities  to  carry  out  their  duties  but  that  is  not  accessible  to  them.  The  relevant 
information  should  therefore  be  extracted  and  transmitted  to  the  ICSMS.  The  three 
interconnections  should  be  highly  automated  and  easy-to-use,  so  as  to  limit  any 
additional burden for customs  authorities. The Commission  should be empowered to 
adopt,  in  cooperation  with  customs  authorities  and  competent  authorities,  the 
implementing acts necessary to determine the procedural rules, practical arrangements 
and data elements to be transferred between the ICSMS and customs systems and any 
other ancillary requirement. 

(42)  To  ensure  effective  enforcement  decisions  taken  by  a  competent  authority  in  one 
Member State should be recognised and enforced by competent authorities in the other 
Member States regarding products with the same identification from the same supply 
chain for which forced labour has been found. 

(43)  Where,  for  the  prohibition,  it  is  necessary  to  process  personal  data,  such  processing 
should be carried out in accordance with Union law on the protection of personal data. 
Any processing of personal data under the prohibition should be subject to Regulation 
(EU) 2016/679 of the European Parliament and of the Council34 and Regulation (EU) 
2018/1725 of the European Parliament and of the Council35. 

(44)  To  ensure  effective  enforcement  of  the  prohibition,  it  is  necessary  to  establish  a 
network  aimed  at  structured  coordination  and  cooperation  between  the  competent 
authorities  of  the  Member  States  and,  where  appropriate,  experts  from  customs 
authorities,  and  the  Commission.  That  network  should  also  aim  at  streamlining  the 
practices  of 
the 
implementation  of  joint  enforcement  activities  by  Member  States,  including  joint 
investigations.  That  administrative  support  structure  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. 

the  competent  authorities  within 

that  facilitate 

the  Union 

(45)  Since forced labour is a global problem and given the interlinkages of the global value 
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 

34 

35 

Regulation  (EU)  2016/679  of  the  European  Parliament  and  of  the  Council  of  27  April  2016  on  the 
protection of natural persons with regard to the processing of personal data and on the free movement of 
such data, and repealing Directive 95/46/EC (General Data Protection Regulation), OJ L 119, 4.5.2016, 
p. 1. 
Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the 
protection of natural persons with regard to the  processing of personal data by the Union institutions, 
bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 
45/2001 and Decision No 1247/2002/EC, OJ L 295, 21.11.2018, p. 39. 

EN 

20 

  EN 

                                                 
(46) 

(47) 

(48) 

with  authorities  of  third  countries  and  international  organisations  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. 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Regulation, 
implementing powers should be conferred on the Commission. Those powers should 
be  exercised  in  accordance  with  Regulation  (EU)  No  182/2011  of  the  European 
Parliament and of the Council36. 

In order to supplement or amend certain non-essential elements of this Regulation, the 
power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of 
the European Union (TFEU) should be delegated to the Commission. It is of particular 
importance  that  the  Commission  carries  out  appropriate  consultations  during  its 
preparatory  work,  including  at  expert  level.  The  Commission,  when  preparing  and 
drawing  up  delegated  acts,  should  ensure  a  simultaneous,  timely  and  appropriate 
transmission of relevant documents to the European Parliament and to the Council. 

In  order  to  ensure  that  the  customs  authorities  are  provided  with  all  the  necessary 
information about the product to act effectively, including the information identifying 
the  relevant  product,  information  about  the  manufacturer  or  the  producer  and 
information  about  the  product  suppliers  as  regards  products  entering  or  leaving  the 
Union market, the power to adopt acts in accordance with Article 290 TFEU should be 
delegated  to  the  Commission.  Customs  authorities  need  to  be  enabled  to  obtain 
information rapidly on specific products, identified in the decisions of the competent 
authorities in order to take actions and measures effectively and swiftly. In such cases, 
delegated acts should be adopted in an urgent procedure. 

(49)  Since the objective of this Regulation, namely, the prohibition, cannot be sufficiently 
achieved  by  the  Member  States  but  can  rather,  by  reason  of  its  scale  and  effects,  be 
better achieved at Union level, the Union may adopt measures, in accordance with the 
principle  of  subsidiarity  as  set  out  in  Article  5  of  the  Treaty  on  European  Union.  In 
accordance  with  the  principle  of  proportionality,  as  set  out  in  that  Article,  this 
Regulation does not go beyond what is necessary in order to achieve that objective. 

(50) 

In  order  to  allow  for  the  prompt  application  of  the  measures  provided  for  in  this 
Regulation,  this  Regulation  should  enter  into  force  on  the  day  following  that  of  its 
publication in the Official Journal of the European Union, 

HAVE ADOPTED THIS REGULATION: 

Chapter I 

General provisions 

Article 1 

Subject matter and scope 

36 

Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16 February  2011 
laying down the rules and general principles concerning mechanisms for control by the Member States 
of the Commission's exercise of implementing powers, OJ L 55, 28.2.2011, p. 13. 

EN 

21 

  EN 

                                                 
1. 

2. 

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.  

This Regulation shall not cover the withdrawal of products which have reached the 
end-users in the Union market. 

Article 2 

Definitions 

For the purposes of this Regulation, the following definitions apply: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

‘forced  labour’  means  forced  or  compulsory  labour  as  defined  in  Article  2  of  the 
Convention  on  Forced  Labour,  1930  (No.  29)  of  the  International  Labour 
Organization, including forced child labour; 

‘forced  labour  imposed  by  state  authorities’  means  the  use  of  forced  labour  as 
described  in  Article  1  of  the  Convention  on  the  Abolition  of  Forced  Labour,  1957 
(No. 105) of the International Labour Organization; 

‘due diligence in relation to forced labour’ means the efforts by economic operator to 
implement  mandatory  requirements,  voluntary  guidelines,  recommendations  or 
practices  to  identify,  prevent,  mitigate  or  bring  to  an  end  the  use  of  forced  labour 
with respect to products that are to be made available on the Union market or to be 
exported; 

‘making  available  on  the  market’  means  any  supply  of  a  product  for  distribution, 
consumption  or  use  on  the  Union  market  in  the  course  of  a  commercial  activity, 
whether in return for payment or free of charge and in the case where the product is 
offered for sale online or through other means of distance sales, the making available 
on the market is deemed to take place when the offer for sale is targeted at users in 
the Union; 

‘placing on the market’ means the first making available of a product on the Union 
market; 

‘product’ means any product that can be valued in money and is capable, as such, of 
forming  the  subject  of  commercial  transactions,  whether  it  is  extracted,  harvested, 
produced  or  manufactured,  including  working  or  processing  related  to  a  product  at 
any stage of its supply chain; 

‘product made with forced labour’ means a product for which forced labour has been 
used  in  whole  or  in  part  at  any  stage  of  its  extraction,  harvest,  production  or 
manufacture, including working or processing related to a product at any stage of its 
supply chain; 

‘economic operator’ means any natural or legal person or association of persons who 
is placing or making available products on the Union market or exporting products;  

‘manufacturer’  means  the  manufacturer  of  the  product  pursuant  to  the  Union 
legislation applicable to that product; 

‘producer’ means the producer of agricultural products as referred to in Article 38(1) 
TFEU or of raw materials; 

EN 

22 

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(k) 

(l) 

(m) 

(n) 

(o) 

(p) 

(q) 

(r) 

(s) 

(t) 

(u) 

‘product supplier’ means any natural or legal person or association of persons in the 
supply chain who extracts, harvests, produces or manufactures a product in whole or 
in part, or intervenes in the working or processing related to a product at any stage of 
its supply chain, whether as manufacturer or in any other circumstances; 

‘importer’  means  any  natural  or  legal  person  or  association  of  persons  established 
within the Union who places a product from a third country on the Union market; 

‘exporter’  means  the  exporter  as  defined  in  Article  1,  point  (19)  of  Commission 
Delegated Regulation (EU) 2015/244637; 

‘substantiated  concern’  means  a  well-founded  reason,  based  on  objective  and 
verifiable  information,  for  the  competent  authorities  to  suspect  that  products  were 
likely made with forced labour; 

‘customs authorities’ means customs authorities as defined in Article 5, point (1), of 
Regulation (EU) No 952/2013; 

‘products entering the Union market’ means products from third countries intended 
to be placed on the Union market or intended for private use or consumption within 
the customs territory of the Union and placed under the customs procedure ‘release 
for free circulation’;  

‘products  leaving  the  Union  market’  means  products  placed  under  the  customs 
procedure ‘export’;  

‘release  for  free  circulation’  means  the  procedure  laid  down  in  Article  201  of 
Regulation (EU) No 952/2013; 

‘export’  means  the  procedure  laid  down  in  Article  269  of  Regulation  (EU)  No 
952/2013; 

‘EU  Customs  Single  Window  Certificates  Exchange  System’  or  (EU  CSW-
CERTEX)  means  the  system  established  by  Article  4  of  the  [Regulation  (EU) 
XX/20XX  establishing  the  European  Union  Single  Window  Environment  for 
Customs and amending Regulation (EU) No 952/2013 COM/2020/673 final];  

“National  single  window  environments  for  customs”  means  the  national  single 
window environments for customs as defined in point 9 of Article 2 of  [Regulation 
(EU) XX/20XX of the European Parliament and of the Council38]. 

Article 3 

Prohibition of products made with forced labour 

Economic operators shall not place or make available on the Union market products that are 
made with forced labour, nor shall they export such products. 

37 
Commission  Delegated  Regulation  (EU)  2015/2446  of  28  July  2015  supplementing  Regulation  (EU) 
No  952/2013  of  the  European  Parliament  and  of  the  Council  as  regards  detailed  rules  concerning  certain 
provisions of the Union Customs Code, OJ L 343, 29.12.2015, p. 1.  

38 

Regulation (EU) XX/20XX of the European Parliament and of the Council of ....... ,OJ, ....... 

EN 

23 

  EN 

 
                                                 
Chapter II 

Investigations and decisions of competent authorities 

Article 4 

Preliminary phase of investigations 

1. 

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 information available to them, including the following information:  

(a) 

(b) 

(c) 

(d) 

(e) 

submissions  made  by  natural  or  legal  persons  or  any  association  not  having 
legal personality pursuant to Article 10;  

the risk indicators and other information pursuant to Article 23, points (b) and 
(c); 

the database referred to in Article 11; 

information  and  decisions  encoded  in  the  information  and  communication 
system referred to in Article 22(1), including any past cases of compliance or 
non-compliance of an economic operator with Article 3;  

information  requested  by  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.  

2. 

3. 

In  their  assessment  of  the  likelihood  that  economic  operators  violated  Article  3, 
competent authorities shall focus on the economic operators involved in the steps of 
the  value  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 quantity of products concerned, as well as the scale of suspected forced 
labour. 

Before  initiating  an  investigation  in  accordance  with  Article  5(1),  the  competent 
authority shall request from the economic operators under assessment information on 
actions taken to identify, prevent, mitigate or bring to an end risks of forced labour in 
their  operations  and  value  chains  with  respect  to  the  products  under  assessment, 
including on the basis of any of the following: 

(a) 

(b) 

(c) 

applicable Union legislation or Member States legislation setting out due 
diligence and transparency requirements with respect to forced labour; 

the  guidelines  issued  by  the  Commission  pursuant  to  Article  23,  point 
(a); 

due diligence guidelines or recommendations of the UN, ILO, OECD or 
other relevant international organisations;  

(d) 

any other due diligence in relation to forced labour.  

4. 

Economic operators shall respond to the request of the competent authority referred 
to in paragraph 3 within 15 working days from the day they received such request. 

EN 

24 

  EN 

5. 

6. 

7. 

1. 

2. 

3. 

Economic operators may provide to competent authorities any other information they 
may deem useful for the purposes of this Article.  

Within  30  working  days  from  the  date  of  receipt  of  the  information  submitted  by 
economic operators pursuant to paragraph 4, 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  pursuant  to 
paragraph 4. 

The  competent  authority  shall  duly  take  into  account  where  the  economic  operator 
demonstrates that it carries out due diligence on the basis of identified forced labour 
impact in its supply chain, adopts and carries out measures suitable and effective for 
bringing to an end forced labour in a short period of time. 

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 competent authorities consider that 
there is no substantiated concern of a violation of Article 3, 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. 

Article 5 

Investigations 

Competent  authorities  that,  pursuant  to  Article  4(5),  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. 

Competent  authorities  that  initiate  an  investigation  pursuant  to  paragraph  1  shall 
inform  the  economic  operators  subject  to  the  investigation,  within  3  working  days 
from the date of the decision to initiate such investigation about the following:  

(a) 

the initiation of the investigation and the possible consequences thereof; 

(b) 

the products subject to the investigation; 

(c) 

(d) 

the reasons for the initiation of the investigation, unless it would jeopardise the 
outcome of the investigation;  

the  possibility  for  the  economic  operators  to  submit  any  other  document  or 
information to the competent authority, and the date by which such information 
has to be submitted.  

Where  requested  to  do  so  by  competent  authorities,  economic  operators  under 
investigation  shall  submit  to  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, competent authorities shall to the 
extent possible: 

(a) 

prioritise  the  economic  operators  under  investigation  involved  in  the  steps  of 
the  value  chain  as  close  as  possible  to  where  the  likely  risk  of  forced  labour 
occurs and  

EN 

25 

  EN 

4. 

5. 

6. 

1. 

2. 

3. 

4. 

(b) 

take into account the size and economic resources of the economic operators, 
the  quantity  of  products  concerned,  as  well  as  the  scale  of  suspected  forced 
labour. 

Economic  operators  shall  submit  the  information  within  15  working  days  from  the 
request referred to in paragraph 3 or make a justified request for an extension of that 
time limit. 

When  deciding  on  the  time  limits  referred  to  in  this  Article,  competent  authorities 
shall consider the size and economic resources of the economic operators concerned. 

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. 

Article 6 

Decisions of competent authorities  

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  a  reasonable  period  of  time  from  the  date  they  initiated  the  investigation 
pursuant to Article 5(1). 

Notwithstanding paragraph 1, 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 5(3) or (6). 

Where 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. 

Where  competent  authorities  establish  that  Article  3  has  been  violated,  they  shall 
without delay adopt a decision containing: 

(a) 

(b) 

(c) 

a prohibition to place or make the products concerned available on the Union 
market and to export them;  

an order for the economic operators that have been subject to the investigation 
to  withdraw  from  the  Union  market  the  relevant  products  that  have  already 
been placed or made available on the market; 

an order for the economic operators that have been subject to the investigation 
to dispose of the respective products in accordance with national law consistent 
with Union law.  

5. 

Where  an  economic  operator  has  failed  to  comply  with  the  decision  referred  to  in 
paragraph 4, the competent authorities shall ensure all of the following:  

(a) 

(b) 

that it is  prohibited to  place or  make  available the products  concerned on the 
market; 

that the products already placed or made available on the market are withdrawn 
from the Union market; 

EN 

26 

  EN 

(c) 

that any product remaining with the economic operator concerned is disposed 
of in accordance with national law consistent with Union law at the expense of 
the economic operator. 

6. 

Where  economic  operators  provide  evidence  to  the  competent  authorities  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,  the  competent  authorities  shall  withdraw  their  decision  for  the 
future and inform the economic operators.  

Article 7 

Content of the decision  

1. 

The decision referred to in Article 6(4) shall contain all of the following:  

(a) 

(b) 

the findings of the investigation and the information underpinning the findings;  

a  reasonable  time  limit  for  the  economic  operators  to  comply  with  the  order, 
which shall not be less than 30 working days and no longer than necessary to 
withdraw  the  respective  products.  When  setting  such  a  time  limit,  the 
competent  authority  shall  take  into  account  the  economic  operator’s  size  and 
economic resources;  

(c) 

all relevant information and in particular the details allowing the identification 
of  the  product,  to  which  the  decision  applies,  including  details  about  the 
manufacturer or producer and the product suppliers;  

(d)  where available and applicable, information required under customs legislation 

as defined in Article 5(2) of Regulation (EU) No 952/2013. 

The Commission shall adopt implementing acts further specifying the details of the 
information to be included in the decisions. Those details shall as a minimum include 
details of information to be made available to customs authorities in accordance with 
Article  16(3).  Those  implementing  acts  shall  be  adopted  in  accordance  with  the 
examination procedure pursuant to Article 29. 

Article 8 

Review of decisions  

Competent  authorities  shall  provide  economic  operators  affected  by  a  decision 
adopted  pursuant  to  Article  6(4)  the  possibility  of  requesting  a  review  of  that 
decision within 15 working days from the date of receipt of that decision. In case of 
perishable  goods,  animals  and  plants,  that  time  limit  shall  be  5  working  days.  The 
request for review shall contain information which demonstrates that the products are 
placed or made available on the market or to be exported in compliance with Article 
3.  

A request for a review of a decision adopted pursuant Article 6(4) shall contain new 
information  that was  not brought  to  the attention of the competent  authority during 
the  investigation.  The  request  for  a  review  shall  delay  the  enforcement  of  the 
decision adopted pursuant to Article 6(4) until the competent authority decides on the 
request for the review.  

2. 

1. 

2. 

EN 

27 

  EN 

3. 

4. 

5. 

6. 

7. 

1. 

2. 

1. 

A  competent  authority  shall  take  a  decision  on  the  request  for  review  within  15 
working  days  from  the  date  of  receipt  of  the  request.  In  case  of  perishable  goods, 
animals and plants that time limit shall be 5 working days. 

Where  a  competent  authority  considers  that  after  taking  into  account  the  new 
information  provided  by  the  economic  operator  in  accordance  with  paragraph  1  it 
cannot establish that the products have been placed or made available on the market 
or are being exported in violation of Article 3, it shall withdraw its decision adopted 
pursuant to Article 6(4).  

Economic operators that have been affected by a decision of a competent  authority 
pursuant to this Regulation shall have access to a court to review the procedural and 
substantive legality of the decision.  

Paragraph  5  shall  be  without  prejudice  to  any  provision  of  national  law  which 
requires  that  administrative  review  procedures  be  exhausted  prior  to  recourse  to 
judicial proceedings. 

Decisions adopted by competent authorities pursuant to Article 6 and to this Article 
are without prejudice to any decisions of a judicial nature taken by national courts or 
tribunals  of  the  Member  States  with  respect  to  the  same  economic  operators  or 
products. 

Article 9 

Information obligations of the competent authorities 

The  competent  authority  shall  without  delay  inform  the  Commission  and  the 
competent  authorities  of  other  Member  States  using 
information  and 
communication system referred to in Article 22(1) about the following:  

the 

(a) 

any  decision  not  to  initiate  an  investigation  following  a  preliminary  phase  of 
investigation, referred to in Article 4(7); 

(b) 

any decision to initiate an investigation referred to in Article 5(1); 

(c) 

any  decision  to  prohibit  placing  and  making  available  of  the  products  on  the 
market  and  their  export,  as  well  as  to  order  the  withdrawal  of  the  products 
already placed or made available on the market and  their disposal referred to 
in Article 6(4);  

(d) 

any decision to close the investigation referred to in Article 6(3);  

(e) 

(f) 

any withdrawal of the decision referred to in Article 6(6); 

any request of an economic operator for a review referred to in Article 8(1);  

(g) 

any result of the review referred to in Article 8(4). 

The Commission shall make available the decisions, and the withdrawals referred to 
in the paragraph 1, points (c), (d), (e) and (g) on a dedicated website.  

Submission of information regarding violations of Article 3 

Article 10 

Submissions  of  information  by  any  natural  or  legal  person  or  any  association  not 
having legal personality, to competent authorities on alleged violations of Article 3 

EN 

28 

  EN 

2. 

3. 

1. 

2. 

3. 

1. 

2. 

3. 

shall  contain  information  on  the  economic  operators  or  products  concerned  and 
provide the reasons substantiating the allegation.  

The competent authority shall, as soon as possible, inform the person or association 
referred to in paragraph 1 of the outcome of the assessment of their submission.  
Directive  (EU)  2019/1937  of  the  European  Parliament  and  of  the  Council39  shall 
apply to the reporting of all breaches of this Regulation and the protection of persons 
reporting such breaches. 

Article 11 

Database of forced labour risk areas or products 

The  Commission  shall  call  upon  external  expertise  to  provide  an  indicative,  non-
exhaustive,  verifiable  and  regularly  updated  database  of  forced  labour  risks  in 
specific geographic areas or with respect to specific products including with regard 
to  forced  labour  imposed  by  state  authorities.  The  database  shall  be  based  on  the 
guidelines  referred  to  in  Article  23,  points  (a),  (b)  and  (c),  and  relevant  external 
sources  of  information  from,  amongst  others,  international  organisations  and  third 
country authorities.  

The  Commission  shall  ensure  that  the  database  is  made  publicly  available  by  the 
external expertise at the latest 24 months after the entry into force of this Regulation.  

Economic  operators  placing  or  making  available  on  the  Union  market  or  exporting 
products which are not mentioned in the database referred to in paragraph 1 of this 
Article, or which come from areas that are not mentioned in that database, shall also 
be required to comply with Article 3. 

Article 12 

Competent authorities 

Member  States  shall  designate  one  or  more  competent  authorities  responsible  for 
carrying  out  the  obligations  set  out  in  this  Regulation.  Designated  Member  State 
competent  authorities  shall  be  responsible  for  ensuring  the  effective  and  uniform 
implementation of this Regulation throughout the Union. 

Where Member States have designated more than one competent authority, they shall 
clearly  demarcate 
the  respective  duties  and  establish  communication  and 
coordination  mechanisms  that  enable  those  authorities  to  collaborate  closely  and 
exercise their duties effectively.  

No  later  than  three  months  after  the  date  of  entry  into  force  of  this  Regulation, 
Member States shall, through the information and communication system referred to 
in  Article  22(1),  provide  the  Commission  and  the  other  Member  States  with  the 
following information: 

(a) 

the names, addresses and contact details of the designated competent authority 
or authorities;  

39 

Directive (EU) 2019/1937 of the European Parliament and  of the Council of 23 October 2019 on the 
protection of persons who report breaches of Union law, OJ L 305, 26.11.2019, p. 17. 

EN 

29 

  EN 

                                                 
(b) 

the areas of competence of the designated competent authority or authorities.  

Member States shall regularly update the information set out in points (a) and (b) of 
the first sub-paragraph of this paragraph. 

The Commission shall make the list of the designated competent authorities publicly 
available  on  its  website  and  shall  regularly  update  that  list,  based  on  the  updates 
received from Member States. 

Member States shall ensure that the designated competent  authorities exercise their 
powers impartially, transparently and with due respect for obligations of professional 
secrecy.  Member  States  shall  ensure  that  their  competent  authorities  have  the 
necessary  powers  and  resources  to  carry  out  the  investigations,  including  sufficient 
budgetary  and  other  resources  and  coordinate  closely  with  the  national  labour 
inspections and judicial and law enforcement authorities, including those responsible 
for the fight against trafficking in human beings. 

Member  States  shall  confer  on  their  competent  authorities  the  power  to  impose 
penalties in accordance with Article 30. 

Article 13 

Administrative cooperation and communication among competent authorities 

The Commission shall ensure efficient cooperation among the competent authorities 
of  the  Member  States  through  facilitating  and  coordinating  the  exchange  and 
collection  of  information  and  best  practices  with  regard  to  the  application  of  this 
Regulation. 

Competent authorities shall actively participate in the Network referred to in Article 
24. 

Article 14 

Recognition of decisions  

Decisions  taken by a competent  authority in  one Member State shall be recognised 
and enforced by competent authorities in the other Member States  in so far as they 
relate  to  products  with  the  same  identification  and  from  the  same  supply  chain  for 
which forced labour has been found. 

A competent authority that has received, through the information and communication 
system referred to in Article 22(1), a request from a competent authority of another 
Member  State  for  information  to  verify  any  evidence  provided  by  an  economic 
operator  shall  provide  that  information  within  15  working  days  from  the  date  of 
receipt of the request. 

Where two or more competent authorities initiate investigations concerning the same 
products  or  economic  operators,  the  lead  authority  shall  be  the  one  which  first 
informed the Commission and the competent authorities of other Member States of 
the decision to initiate an investigation in accordance with Article 9(1), point (b).  

Before initiating an investigation in accordance with Article 5, a competent authority 
shall verify in the information and communication system referred to in Article 22(1) 
whether  there  is  a  lead  authority  referred  to  in  paragraph  3  investigating  the  same 
product and economic operator. 

4. 

5. 

6. 

1. 

2. 

1. 

2. 

3. 

4. 

EN 

30 

  EN 

5. 

6. 

1. 

2. 

3. 

4. 

5. 

1. 

2. 

Where there is  a lead authority  as referred to  in paragraph 3,  competent  authorities 
shall share all the evidence and information they may have with that lead authority to 
facilitate the investigation and shall not start a separate investigation. 

The  lead  authority  shall  carry  out  the  investigation  and  adopt  a  decision  in 
accordance with Article 6 on the basis of the assessment of all evidence before it. 

Chapter III 

Products entering or leaving the Union market 

Article 15 

Controls 

Products  entering  or  leaving  the  Union  market  shall  be  subject  to  the  controls  and 
measures laid down in this Chapter.  

The  application  of  this  Chapter  is  without  prejudice  to  other  Union  legislation 
governing the release for free circulation or export of products, in particular Articles 
46, 47, 134 and 267 of Regulation (EU) No 952/2013. 

The competent authority shall without delay, where no request for a review has been 
introduced within the time limits referred in Article 8(1) or the decision is definitive 
in  case of a  request  for  a review as  referred to  in Article 8(3), communicate to  the 
customs authorities of Member States:  

(a) 

any decision to prohibit the placing or making available of the products on the 
Union  market  and  their  export,  as  well  as  to  order  the  withdrawal  of  the 
products  already  placed  or  made  available  on  the  Union  market  and  their 
disposal referred to in Article 6(4);  

(b) 

any decision following the review referred to in Article 8(3).  

Customs authorities shall rely on the decisions communicated pursuant to paragraph 
3 to identify products that may not comply with the prohibition laid down in Article 
3. For that purpose, they shall carry out controls on products entering or leaving the 
Union  market  in  accordance  with  Articles  46  and  47  of  Regulation  (EU)  No 
952/2013. 

The competent authority shall without delay communicate to the customs authorities 
of Member States a withdrawal of the decision referred to in Article 6(6). 

Article 16 

Information to be made available to customs authorities 

The Commission is empowered to adopt delegated acts in accordance with Article 27 
to  supplement  this  Regulation  by  identifying  the  products  or  product  groups  for 
which  the  information  referred  to  in  paragraph  2  shall  be  provided  to  customs 
authorities, amongst others, on the basis of the database referred to in Article 11 or f 
information  and  decisions  encoded  in  the  information  and  communication  system 
referred to in Article 22(1). 

Customs  authorities  shall  be  provided  with  information  identifying  the  product, 
information  about  the  manufacturer  or  the  producer  and  information  about  the 

EN 

31 

  EN 

product suppliers as regards products entering or leaving the Union market that have 
been identified by the Commission pursuant to paragraph 1, unless the provision of 
such  information  is  already  required  pursuant  to  customs  legislation  referred  to  in 
Article 5(2) of Regulation (EU) No 952/2013. 

The Commission may  adopt  implementing acts  further specifying the details  of the 
information to be made available to customs authorities pursuant to paragraph 1.  

The implementing acts referred to in paragraph 3 shall be adopted in accordance with 
the examination procedure pursuant to Article 29. 

Where a specific product has been identified in a decision referred to in Article 6(4), 
in  order  for  the  customs  authorities  to  be  able  to  act  immediately,  the  procedure 
provided  for  in  Article  28  shall  apply  to  delegated  acts  adopted  pursuant  to  this 
Article. 

3. 

4. 

5. 

Article 17 

Suspension 

Where customs authorities identify a product entering or leaving the Union market that may, 
in accordance with a decision received pursuant to Article 15(3), be in violation of Article 3, 
they  shall  suspend  the  release  for  free  circulation  or  the  export  of  that  product.  Customs 
authorities shall immediately notify the relevant competent authorities of the suspension and 
transmit all relevant information to enable them to establish whether the product is covered by 
a decision communicated pursuant to Article 15(3). 

Article 18 

Release for free circulation or export  

1. 

2. 

1. 

Where the release for free circulation or the export of a product has been suspended 
in  accordance  with  Article  17,  the  product  shall  be  released  for  free  circulation  or 
exported where all the other requirements and formalities relating to such a release or 
export have been fulfilled and where either of the following conditions is satisfied: 

(a)  within 4 working days of the suspension, if the competent authorities have not 
requested  the  customs  authorities  to  maintain  the  suspension.  In  case  of 
perishable products, animals and plants that time limit shall be 2 working days; 

(b) 

the competent authorities informed the customs authorities of their approval for 
release for free circulation or export pursuant to this Regulation. 

The  release  for  free  circulation  or  export  shall  not  be  deemed  proof  of  compliance 
with Union law and, in particular, with this Regulation. 

Article 19 

Refusal to release for free circulation or export 

Where  the  competent  authorities  conclude  that  a  product  that  has  been  notified  to 
them in accordance with Article 17 is a product made with forced labour pursuant to 
a  decision  referred  to  in  Article  6(4),  they  shall  require  customs  authorities  not  to 
release it for free circulation nor to allow its export.  

EN 

32 

  EN 

2. 

Competent  authorities  shall  immediately  enter  that  information  in  the  information 
and  communication  system  referred  to  in  Article  22(1)  and  notify  the  customs 
authorities  accordingly.  Upon  such  notification,  customs  authorities  shall  not  allow 
the  release  for  free  circulation  or  export  of  that  product  and  shall  also  include  the 
following notice in the customs data-processing system and, where possible, on the 
the  product  and  on  any  other  relevant 
commercial 
accompanying document: 

invoice  accompanying 

‘Product made with forced labour - release for free circulation/export not authorised - 
Regulation (EU) XX/20XX’ [OP to indicate reference of this Regulation]. 

Measures on products refused for release for free circulation or export 

Article 20 

Where the release for free circulation or export of a product has been refused in accordance 
with  Article  19,  customs  authorities  shall  take  the  necessary  measures  to  ensure  that  the 
product concerned is disposed of in accordance with national law consistent with Union law. 
Articles 197 and 198 of Regulation (EU) No 952/2013 shall apply accordingly.  

Article 21  

Exchange of information and cooperation  

1. 

2. 

1. 

2. 

To enable a  risk-based approach for products  entering or leaving  the Union market 
and  to  ensure  that  controls  are  effective  and  performed  in  accordance  with  the 
requirements of this Regulation, competent authorities and customs authorities shall 
cooperate closely and exchange risk-related information.  

Cooperation  among  authorities  and  exchange  of  risk  information  necessary  for  the 
fulfilment  of  their  respective  functions  under  this  Regulation,  including  through 
electronic means, shall take place between the following authorities: 

(a) 

(b) 

customs  authorities  in  accordance  with  Article  46(5)  of  Regulation  (EU)  No 
952/2013;  

competent authorities and customs authorities in accordance with Article 47(2) 
of Regulation (EU) No 952/2013. 

Chapter IV 

Information systems, guidelines and coordinated enforcement 

Article 22  

Information and communication systems 

For  the  purposes  of  Chapters  II  and  III,  competent  authorities  shall  use  the 
information and communication system referred to in Article 34 of Regulation (EU) 
2019/1020.  The  Commission,  competent  authorities  and  customs  authorities  shall 
have access to that system for the purposes of this Regulation.  

The  decisions  communicated  pursuant  to  Article  15(3)  shall  be  entered  in  the 
relevant customs risk management environment.  

EN 

33 

  EN 

3. 

4. 

5. 

6. 

7. 

The  Commission  shall  develop  an  interconnection  to  enable  the  automated 
communication  of  decisions  referred  to  in  Article  15(3)  from  the  information  and 
communication  system  referred  to  in  paragraph  1  to  the  environment  referred  to  in 
paragraph 4. That interconnection shall start operating no later than two years from 
the date of the adoption of the implementing act referred to in paragraph 7, point (b), 
in respect of that interconnection. 

Requests  and  notifications  exchanged  between  competent  authorities  and  customs 
authorities  pursuant  to  Articles  17  to  20  of  this  Regulation  as  well  as  the  ensuing 
messages  shall  take  place  by  means  of  the  information  and  communication  system 
referred to in paragraph 1. 

The  Commission  shall  interconnect  the  national  single  window  environments  for 
customs with the information and communication system referred to in paragraph 1 
to enable the exchange of requests and notifications between customs and competent 
authorities pursuant to Articles 17 to 20 of this Regulation. That interconnection shall 
be provided through [EU CSW-CERTEX pursuant to Regulation XX/20XX]40 within 
four years from the date of adoption of the implementing act referred to in paragraph 
7(c).  The  exchanges  referred  to  in  paragraph  4  shall  take  place  through  that 
interconnection as soon as it is operational. 

The  Commission  may  extract  from  the  surveillance  system  referred  to  in  Article 
56(1)  of  Commission  Implementing  Regulation  (EU)  2015/2447  information  on 
products entering or leaving the Union market related to the implementation of this 
Regulation and transmit it to the information and communication system referred to 
in paragraph 1. 

The  Commission  is  empowered  to  adopt  implementing  acts  in  accordance  with  the 
examination procedure pursuant to Article 29 to specify the procedural rules and the 
details of the implementation arrangements for this Article, including: 

(a) 

(b) 

(c) 

the  functionalities,  data  elements  and  data  processing,  as  well  as  the  rules  on 
the  processing  of  personal  data,  confidentiality  and  controllership,  of  the 
information and communication system referred to in paragraphs 1 and 4; 

the  functionalities,  data  elements  and  data  processing,  as  well  as  the  rules  on 
the  processing  of  personal  data,  confidentiality  and  controllership  for  the 
interconnection referred to in paragraph 3; 

the data to be transmitted between the information and communication system 
referred  to  in  paragraph  1  and  the  national  single  window  environments  for 
customs for the purposes of paragraph 5; 

(d) 

the  data  to  be  transmitted,  as  well  as  the  rules  on  its  confidentiality  and 
controllership, in accordance with paragraph 6. 

Article 23 

Guidelines  

The Commission shall issue guidelines  no later than 18 months  after the entry into force of 
this Regulation, which shall include the following: 

40 

Established by the Regulation on the EU Single Window Environment for Customs (EU SWE-C). 

EN 

34 

  EN 

                                                 
(a) 

(b) 

(c) 

(d) 

(e) 

guidance  on  due  diligence  in  relation  to  forced  labour,  which  shall  take  into 
account  applicable  Union  legislation  setting  out  due  diligence  requirements 
with  respect 
labour,  guidelines  and  recommendations  from 
international  organisations,  as  well  as  the  size  and  economic  resources  of 
economic operators;  

to  forced 

information  on  risk  indicators  of  forced  labour,  which  shall  be  based  on 
independent  and  verifiable  information,  including  reports  from  international 
organisations, in particular the International Labour Organization, civil society, 
business  organisations,  and  experience  from  implementing  Union  legislation 
setting out due diligence requirements with respect to forced labour;  

a  list  of  publicly  available  information  sources  of  relevance  for  the 
implementation of this Regulation; 

further  information  to  facilitate  the  competent  authorities’  implementation  of 
this Regulation;  

guidance for the practical implementation of Article 16 and, where appropriate, 
any other provision laid down in Chapter III of this Regulation. 

Article 24 

Union Network Against Forced Labour Products 

1. 

2. 

A  Union  Network  Against  Forced  Labour  Products  (‘the  Network’)  is  established. 
The  Network  shall  serve  as  a  platform  for  structured  coordination  and  cooperation 
between the competent authorities of the Member States and the Commission, and to 
streamline the practices of enforcement of this Regulation within the Union, thereby 
making enforcement more effective and coherent. 

The  Network  shall  be  composed  of  representatives  from  each  Member  States’ 
competent  authority,  representatives  from  the  Commission  and,  where  appropriate, 
experts from the customs authorities.  

3. 

The Network shall have the following tasks: 

(a) 

facilitate the identification of common priorities for enforcement activities, to 
exchange information, expertise and best practices; 

(b) 

conduct joint investigations; 

(c) 

(d) 

(e) 

facilitate  capacity  building  activities  and  contribute  to  uniform  risk-based 
approaches  and  administrative  practices  for  the  implementation  of  this 
Regulation in the Member States; 

contribute to the development of guidance to ensure the effective and uniform 
application of this Regulation;  

promote  and  facilitate  collaboration  to  explore  possibilities  for  using  new 
technologies  for  the  enforcement  of  this  Regulation  and  the  traceability  of 
products; 

(f) 

to  promote  the  cooperation  and  exchange  of  expertise  and  best  practices 
between competent authorities and customs authorities; 

4. 

The  Commission  shall  support  and  encourage  cooperation  between  enforcement 
authorities through the Network and participate in the meetings of the Network. 

EN 

35 

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5. 

The Network shall establish its rules of procedure. 

CHAPTER V 

Final provisions 

Article 25 

Confidentiality 

1. 

2. 

3. 

1. 

2. 

1. 

2. 

The  competent  authorities  shall  only  use  information  received  pursuant  to  this 
Regulation for the purpose of applying this Regulation.  

Where  requested,  the  Commission,  Member  States  and  competent  authorities  shall 
treat the identity of those who provide information, or the information provided, as 
confidential.  A  request  for  confidentiality  shall  be  accompanied  by  a  non-
confidential  summary  of  the  information  supplied  or  by  a  statement  of  the  reasons 
why the information cannot be summarised in a non-confidential manner. 

Paragraph 2 shall not preclude the Commission from disclosing general information 
in  a  summary  form,  provided  such  general  information  does  not  contain  any 
information which allows the identification of the provider of the information. Such 
disclosure  of  general  information  in  a  summary  form  shall  take  into  account  the 
legitimate  interest  of  the  parties  concerned  in  preventing  the  disclosure  of 
confidential information. 

Article 26 

International Cooperation 

In  order  to  facilitate  effective  implementation  and  enforcement  of  this  Regulation, 
the  Commission  may  as  appropriate  cooperate,  engage  and  exchange  information 
with, amongst others, authorities of third countries, international organisations, civil 
society  representatives  and  business  organisations.  International  cooperation  with 
authorities  of  third  countries  shall  take  place  in  a  structured  way  as  part  of  the 
existing  dialogue  structures  with  third  countries  or,  if  necessary,  specific  ones  that 
will be created on an ad hoc basis. 

For  the  purposes  of  paragraph  1,  cooperation  with,  amongst  others,  international 
organisations,  civil  society  representatives,  business  organisations  and  competent 
authorities  of  third  countries  may  result  in  the  Union  developing  accompanying 
measures to support the efforts of companies and partner countries efforts and locally 
available capacities in tackling forced labour. 

Article 27 

Delegated Acts and Exercise of the Delegation 

The  power  to  adopt  delegated  acts  is  conferred  on  the  Commission  subject  to  the 
conditions laid down in this Article.  

The power to adopt delegated acts referred to in Article 16(1) shall be conferred on 
the Commission for an indeterminate period of time from date of entry force of this 
Regulation.  

EN 

36 

  EN 

3. 

4. 

5. 

6. 

1. 

2. 

1. 

2. 

The delegation of power referred to in Article 16(1) may be revoked at any time by 
the European Parliament or by the Council. A decision to revoke shall put an end to 
the  delegation  of  the  power  specified  in  that  decision.  It  shall  take  effect  the  day 
following  the  publication  of  the  decision  in  the  Official  Journal  of  the  European 
Union  or  at  a  later  date  specified  therein.  It  shall  not  affect  the  validity  of  any 
delegated acts already in force.  

Before adopting a delegated act, the Commission shall consult experts designated by 
each  Member  State 
the 
in  accordance  with 
Interinstitutional Agreement on Better Law-Making of 13 April 201641. 

the  principles 

laid  down 

in 

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to 
the European Parliament and to the Council. 

A  delegated  act  adopted  pursuant  to  Article  16(1)  shall  enter  into  force  only  if  no 
objection  has  been  expressed  either  by  the  European  Parliament  or  the  Council 
within a period of two months of notification of that act to the European Parliament 
and the Council or if, before the expiry of that period, the European Parliament and 
the  Council  have  both  informed  the  Commission  that  they  will  not  object.  That 
period shall be extended by two months at the initiative of the European Parliament 
or of the Council. 

Article 28 

Urgency procedure  

Delegated  acts  adopted  under  this  Article  shall  enter  into  force  without  delay  and 
shall apply as long as no objection is expressed in accordance with paragraph 2. The 
notification  of  a  delegated  act  to  the  European  Parliament  and  to  the  Council  shall 
state the reasons for the use of the urgency procedure. 

Either  the  European  Parliament  or  the  Council  may  object  to  a  delegated  act  in 
accordance  with  the  procedure  referred  to  in  Article  27  (6).  In  such  a  case,  the 
Commission  shall  repeal  the  act  immediately  following  the  notification  of  the 
decision to object by the European Parliament or by the Council. 

Article 29 

Committee procedure 

The  Commission  shall  be  assisted  by  a  committee.  That  committee  shall  be  a 
committee within the meaning of Article 3(2) of Regulation (EU) No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU)  No 
182/2011 shall apply. 

Article 30  

Penalties  

41 

Interinstitutional Agreement between the European Parliament, the Council of the European Union and 
the European Commission on Better Law-Making (OJ L 123, 12.5.2016, p. 1) 

EN 

37 

  EN 

                                                 
1. 

2. 

3. 

The  Member  States  shall  lay  down  the  rules  on  penalties  applicable  to  non-
compliance  with  a  decision  referred  to  in  Article  6(4)  and  shall  take  all  measures 
necessary to ensure that they are implemented in accordance with national law. 

The penalties provided for shall be effective, proportionate and dissuasive.  

The Member States shall, by [OP enter DATE = 24 months from entry into force of 
this  Regulation],  notify  those  provisions  to  the  Commission,  where  they  have  not 
previously  been  notified,  and  shall  notify  it,  without  delay,  of  any  subsequent 
amendment affecting them. 

Article 31 

Entry into force and date of application 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union.  

This Regulation shall apply from [OP enter DATE = 24 months from its entry into force]. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

38 

  EN 

 
 
EN 

39 

  EN 

 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1.  Title of the proposal/initiative 

1.2.  Policy area(s) concerned 

1.3.  The proposal/initiative relates to: 

1.4.  Objective(s) 

1.4.1. General objective(s) 

1.4.2. Specific objective(s) 

1.4.3. Expected result(s) and impact 

1.4.4. Indicators of performance 

1.5.  Grounds for the proposal/initiative 

1.5.1. Requirement(s)  to  be  met  in  the  short  or  long-term  including  a  detailed 
timeline for roll-out of the implementation of the initiative 

1.5.2. Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g., 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this point 'added value of Union involvement' is the value resulting 
from  Union  intervention  which  is  additional  to  the  value  that  would  have  been 
otherwise created by Member States alone. 

1.5.3. Lessons learned from similar experiences in the past 

1.5.4. Compatibility  with  the  Multiannual  Financial  Framework  and  possible 
synergies with other appropriate instruments 

1.5.5. Assessment  of  the  different  available  financing  options,  including  scope  for 
redeployment 

1.6.  Duration and financial impact of the proposal/initiative 

1.7.  Management mode(s) planned 

2.  MANAGEMENT MEASURES 

2.1.  Monitoring and reporting rules 

2.2.  Management and control system(s) 

2.2.1. Justification  of 
mechanism(s), the payment modalities and the control strategy proposed 

the  management  mode(s), 

funding 

the 

implementation 

2.2.2. Information  concerning the risks identified and the internal control  system(s) 
set up to mitigate them 

2.2.3. Estimation  and  justification  of  the  cost-effectiveness  of  the  controls  (ratio  of 
"control  costs  ÷  value  of  the  related  funds  managed"),  and  assessment  of  the 
expected levels of risk of error (at payment & at closure) 

2.3.  Measures to prevent fraud and irregularities 

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

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40 

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3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure 
budget line(s) affected 

3.2.  Estimated financial impact of the proposal on appropriations 

3.2.1. Summary of estimated impact on operational appropriations 

3.2.2. Estimated output funded with operational appropriations 

3.2.3. Summary of estimated impact on administrative appropriations 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party contributions 

3.3.  Estimated impact on revenue 

EN 

41 

  EN 

 
 
 
 
 
 
 
 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative 

Proposal for a Regulation of the European Parliament and of the Council prohibiting 
products made with forced labour on the Union market 

1.2. 

Policy area(s) concerned  

Internal Market for goods and services 

[Common commercial policy] 

1.3. 

The proposal/initiative relates to:  

 a new action  

 a new action following a pilot project/preparatory action42  

 the extension of an existing action  

 a merger or redirection of one or more actions towards another/a new action  

1.4. 

Objective(s) 

1.4.1.  General objective(s) 

The  international  community  has  committed  to  eradicating  forced  labour  by  2030 
(United  Nations  Sustainable  Development  Goal  8.7).  However,  its  use  remains 
widespread.  The  International  Labour  Organisation  (ILO)  has  estimated  the  global 
number of people in forced labour at 27.6 million. 

The  objective  of  this  Regulation  is  to  effectively  prohibit  the  placing  and  making 
available on the Union market and the export from the Union of products made by 
forced labour, including  forced child labour. The prohibition  covers both domestic, 
international  standards  and 
imported  and  exported  products.  Building  on 
complementing existing horizontal and sectoral  EU initiatives, in particular the due 
diligence and transparency obligations, the Regulation combines a prohibition with a 
robust, risk-based enforcement framework. 

1.4.2. 

Specific objective(s) 

Specific objective No: 

1.  Eradicating  forced  labour  in  the  EU  and  contribute  to  reducing  the  recourse  to 
forced labour in the world. 

2. Putting in place and supporting competent authorities within the Member States to 
address the forced labour issues. 

1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The Proposal is expected to create a frameswork for identifying products made with 
forced labour made available in the EU and prohibiting them thereafter. 

42 

As referred to in Article 58(2)(a) or (b) of the Financial Regulation. 

EN 

42 

  EN 

                                                 
This  will  consititute  a  major  disincentive  to  use  forced  labour  to  produce,  extract, 
harvest or manufacture products and make them availble in the EU. It will also level 
the playing field and remove unfair competition based on lower prices due to the use 
of forced labour.  

As the economic operators will have to  address  the issues of forced labour in  their 
supply chain in order to confidently market these products in the EU, the number of 
forced labour victims will decrease. Furthermore, the proposed act will also include 
measures to address state –promoted forced labour.  

With the tools to be put in place for this proposal, the economic operators will have 
further  guidance  and  information  on  how  to  avoid  forced  labour  in  their  supply 
chain, and consumers will be informed of the products for which forced labour was 
used. 

1.4.4. 

Indicators of performance 

Specify the indicators for monitoring progress and achievements. 

Number of preliminary phase investigations and invetsigations carried out; 

Number of products identified containing forced labour. 

Volume of products withdrawn form the market or not allowed for free circulation at 
the border. 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative 

The proposed regulation shall enter into force on the day following the publication in 
the Official Journal of the European Union and will be applicable [24] months after 
that date. 

In  preparation  for  the  application  of  this  Regulation,  the  Commission  will  have  to 
prepare guidelines for the competent authorities and the economic operators, within 
[18] months from the entering into force (Article 23). 

The  Commission  will  aslo  provide  a  database  of  forced  labour  risks  areas  and 
products, calling on external expertise (Article 11). 

The  Commission  will  be  empowered  to  adopt  implementing  acts  to  define  the 
procedural  rules  and  the  details  of  the  implementation  arrangements  for  the 
information  and  communictaion  systems  (Article  22)  and  to  further  specify  the 
details of the information to be included in the decisions of the competent authorities 
(Article 7).  

1.5.2.  Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g., 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this point 'added value of Union involvement' is the value resulting 
from  Union  intervention  which  is  additional  to  the  value  that  would  have  been 
otherwise created by Member States alone. 

Reasons for action at European level (ex-ante) 

The extent of forced labour in the world and the importance of the Union market for 
the producers using forced labour are compelling reasons to act at EU level to stop 

EN 

43 

  EN 

stop the placing and making available on the union market of such products with aim 
to contribute to the eradication of this phenomenon.  

Action at the Member States’ legislation alone in the area is not likely to be sufficient 
and  efficient  to  attain  the  objectives  of  the  proposal.  European  legislation  and 
enforcement co-ordination is necessary for the following reasons:  

-The functioning of Union market will require common provisions in this area. 

-  The  enforcement  effort  must  be  uniform  across  the  Union.  If  enforcement  is  less 
stringent  in  some  parts  of  the  EU,  weak  areas  are  created  which  may  threaten  the 
public interest and create unfair trading conditions. 

- Risks related to forced labour in companies’ value chains often have cross-border 
effects,  reaching  into  several  Union  Member  States  and/or  third  countries.  This 
highlights the need for an EU-wide approach, with legal certainty and a level-playing 
field for companies operating across the internal market and beyond. 

Expected generated Union added value (ex-post)  

By prohibiting products made iwith forced labour from being made available on the 
Union  market,  the  Union  will  contribute  significantly  to  the  eradication  of  forced 
labour all over the world. This  will also  benefit the victims of forced labour as the 
economic operators will address forced labour by taking the appropriate measures of 
paying  compensations,  correcting  the  employment  contracts,  etc.  in  line  with  the 
international due diligence standards. 

1.5.3.  Lessons learned from similar experiences in the past 

The present regulation is a new action and there is no experience in the past in the 
EU.  However,  in  developing  it,  we  have  learned  from  the  experience  of  similar 
measures  adopted  by  international  organisations  and  partner  countries,  the  United 
States of America, in particular. 

1.5.4.  Compatibility  with  the  Multiannual  Financial  Framework  and  possible  synergies 

with other appropriate instruments 

The proposal is a political priority of the European Commission and delivers on the 
commitment to promote the respect of human rights worldwide. It is complementary 
to other legislative proposals of the Commission such as the proposal for a Directive 
on  Corporate  Sustainability  Due  Diligence  and  the  proposal  for  a  Regulation  on 
Corporate Sustainability Reporting. 

It  builds  on  the  logic  of  other  product  related  legislation  such  as  the  Market 
Surveillance  Regulation.  Furthermore, 
information  and  communication 
instrument  necessary  for  the  enforcement  of  this  regulation  is  built  on  the  system 
created for the Market Surveillance Regulation. 

the 

Regarding  the  work  of  the  customs  authorities  and  the  customs  procedures,  the 
systems already in place for them will be adapted to allow for the implementation of 
this regulation 

1.5.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 

redeployment 

As all the products being made available on the Union market fall in the scope of the 
Regulation  and  due  to  the  newness  of  the  activities,  it  will  necessitate  additional 
human resources, and administrative resources, as well as operational appropriations. 

EN 

44 

  EN 

The following provisions will imply annual costs for the Commission:  

Guidelines  and  database  of  forced  labour  risk  areas  or  products  (Articles  11 

• 
and 23)  

Union  Forced  Labour  Product  Network  (Article  24)  and  Committee  (Article 

• 
27)  

• 

Information and Communication System (Article 22)  

The  proposal  will  be  of  unlimited  duration.  The  Commission  will  serve  as  the 
secretariat for the Union Forced Labour Product Network, requiring constant human 
resources. As concerns the Information and Communication System, a new module 
will  need  to  be  established  of  the  existing  information  and  communication  system 
referred to in Article 34 of Regulation (EU) 2019/1020, as well as adaptations of the 
information  systems  for  the  customs.  The  guidelines  and  the  database  (where 
external  input  will  be  provided)  will  also  require  administration  from  the 
Commission. All tasks are estimated to require more human resources in the first two 
years of implementation. 

These  provisions  are  preliminarily  estimated  to  require  human  resources  as  shown 
below  in  Full  Time  Equivalents  (FTEs).  The  FTEs  would  be  divided  between  DG 
GROW, DG TRADE and DG TAXUD, and involve AD as well as AST staff. 

year 

First 
adoption 

after 

Second  year  after 
adoption 

Subsequent years 

Guidelines and 
database 

Union Forced 
Labour Product 
Network, 
Committee 

Information and 
Communication 
System 

3 

6 

4 

3 

3 

3 

3 

3 

2 

In addition, the proposal will incur other administrative expenditures. These concern 
mainly  costs  related  to  the  Information  and  Communication  System,  but  also 
administrative costs related to hosting of the database, publication of guidelines, and 
organisation  of  meetings  of  the  Network  and  the  Committee.  Such  costs  are 
estimated at 4.3 million EUR. 

EN 

45 

  EN 

 
 
1.6. 

Duration and financial impact of the proposal/initiative 

 limited duration  

–    in effect from [DD/MM]YYYY to [DD/MM]YYYY  

–    Financial  impact  from  YYYY  to  YYYY  for  commitment  appropriations  and 

from YYYY to YYYY for payment appropriations.  

 unlimited duration 

–  Implementation with a start-up period from 2024 to [2025], 

–  followed by full-scale operation. 

1.7.  Management mode(s) planned43  

 Direct management by the Commission 

–   by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated; 

–   international organisations and their agencies (to be specified); 

–   the EIB and the European Investment Fund; 

–   bodies referred to in Articles 70 and 71 of the Financial Regulation; 

–   public law bodies; 

–   bodies governed by private law with a public service mission to the extent that 

they are provided with adequate financial guarantees; 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  are  provided  with 
adequate financial guarantees; 

–    persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act. 

– 

If more than one management mode is indicated, please provide details in the ‘Comments’ section. 

Comments  

43 

Details of management modes and references to the Financial Regulation may be found on the 
BudgWeb site: 
https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx  

EN 

46 

  EN 

 
                                                 
2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

The  standard  rules  for  monitoring 
implementation of this Reagulation apply. 

the  Commission  expenditures  for 

the 

2.2.  Management and control system(s)  

2.2.1. 

Justification of the management mode(s), the funding implementation mechanism(s), 
the payment modalities and the control strategy proposed 

The management mode  for this initiative is  direct  management  by the Commission 
and  its  responsibilities  in  implanting  it  will  pertain  to  its  departments.  The  reasons 
are: 

- the high policy content such as with the development of the guidelines ; 

- the information and communication systems required for the implementation of this 
legislation are already under the control of the Commission services. 

The Commission will be assisted by a committee composed of representatives of the 
Member  States.  That  committee  shall  be  a  committee  within  the  meaning  of 
Regulation (EU) No 182/2011 of the European Parliament and of the Council.  

2.2.2. 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

Operational risks regard the information and communication systems and that it fails 
to  effectively  support  the  cooperation  between  the  competent  authorities  and  their 
cooperation with customs authorities. 

Operational risks regarding the database on how operational and informative it would 
be for the competent authorities.  

Guidance: 

This  includes  explaining  how  the  root  causes  of  high  error  rates  in  the  previous 
programme(s)  are  being  addressed  now,  e.g.  by  simplifying  previously  complex 
modalities which were prone to error and/or by intensifying the (ex-ante and/or ex-
post) controls for inherently high-risk activities. 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio of "control 
costs ÷ value of the related funds managed"), and assessment of the expected levels 
of risk of error (at payment & at closure)  

The  costs  of  controls  are  negligible  compared  to  the  appropriations  for  the 
enforcement of the legislation. 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy. 

The measures implemented by the Commission will be subject to the ex-ante and ex-
post controls in accordance with the Financial Regulation. Contracts and agreements 
the 
financing 

this  Regulation  will  expressly  entitle 

implementation  of 

the 

EN 

47 

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Commission,  including  OLAF  and  the  Court  of  Auditors  to  conduct  audits,  on  the 
spot checks and inspections. 

EN 

48 

  EN 

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 

Heading(s) of the multiannual financial framework and expenditure budget line(s) affected  

  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Heading of 
multiannual 
financial 
framework 

Number  

Type of  
expenditure 

Diff./Non-
diff.44 

Contribution  

from 
EFTA 
countries
45 

from 
candidate 
countries46 

from third 
countries 

within the 
meaning of 
Article 21(2)(b) of 
the Financial 
Regulation  

1 

1 

1 

6 

03.010101  -  Support  expenditure  for 
the Single Market Programme 

Non-diff. 

YES 

YES47 

YES6 

NO 

- 

03.020101 
and 
development of the internal market of 
goods and services 

Operation 

Diff. 

YES 

TBD6 

TBD6 

NO 

03.020107 – Market Surveillance 

Diff. 

YES 

TBD6 

TBD6 

14.200402  -  External  trade  relations 
and Aid for Trade 

Diff. 

NO 

NO 

NO 

NO 

NO 

44 
45 
46 
47 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 
Negotiations for participation of candidate and third countries in the Single Market Programme ongoing 

EN 

49 

EN 

 
 
 
 
 
                                                 
3.2. 

Estimated financial impact of the proposal on appropriations  

3.2.1. 

Summary of estimated impact on operational appropriations  

–    The proposal/initiative does not require the use of operational appropriations  

–   The proposal/initiative requires the use of operational appropriations, as explained below: 

Heading of multiannual financial  

framework  

1 

Single Market, Innovation and Digital 

EUR million (to three decimal places) 

DG: GROW 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

Following 
years 

TOTAL 

 Operational appropriations  

Budget 
line  03.020101  -  Operation  and 
development  of  the  internal  market  of  goods 
and services 

Commitments 

(1a) 

0.602 

0.612 

0.425 

0.375 

0.000 

Payments 

(2a) 

0.301 

0.607 

0.519 

0.400 

0.187 

Budget line 03.020107 – Market Surveillance 

Commitments 

Payments 

(1b) 

(2b) 

0.182 

0.050 

0.182 

0.134 

0.075 

0.155 

0.075 

0.100 

0.000 

0.075 

Appropriations  of  an  administrative  nature  financed  from  the 
envelope of specific programmes48  

2.014 

2.014 

0.514 

0.514 

Budget  line  03.010101  -  Support  expenditure 
for the Single Market Programme 

(3) 

0 

0 

0.062 

0.062 

0.000 

0.124 

TOTAL appropriations 

Commitments 

=1a+1b 
+3 

0.784 

0.794 

0.562 

0.512 

0.000 

2.652 

48 

Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 

EN 

50 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
for DG GROW49 

Payments 

=2a+2b 

+3 

0.351 

0.741 

0.736 

0.562 

0.150 

2.652 

TOTAL operational appropriations  

Commitments 

Payments 

(4) 

(5) 

0.784 

0.794 

0.500 

0.450 

0.000 

0.351 

0.741 

0.674 

0.500 

0.262 

 TOTAL appropriations of an administrative nature financed 
from the envelope for specific programmes  

(6) 

0.000 

0.000 

0.062 

0.062 

0.000 

TOTAL appropriations  
under HEADING 1 
 of the multiannual financial 
framework 

Commitments 

=4+ 6 

0.784 

0.794 

0.562 

0.512 

0.000 

Payments 

=5+ 6 

0.351 

0.741 

0.736 

0.562 

0.262 

2.528 

2.528 

0.124 

2.652 

2.652 

Heading of multiannual financial  
framework  

6 

Neighborhood and the World 

49 
the EU Customs Single Window Certificate Exchange system (EU CSW-CERTEX), as well as the Common Risk Management System (CRMS 2). 

The operational appropriations from DG GROW covers also DG TAXUD costs of EUR 1.5 million for the period 2024-2027 for the integration with 

EN 

51 

EN 

 
 
 
 
 
 
 
 
 
                                                 
DG: TRADE 

 Operational appropriations  

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

Following 
years 

TOTAL 

Budget  line  -  14.200402  -  External  trade 
relations and Aid for Trade50 

Commitments 

Payments 

(1a) 

(2a) 

0,750 

0,300 

0,300 

0,300 

0.000 

0.200 

0.600 

0.300 

0.300 

0.250 

Appropriations  of  an  administrative  nature  financed  from  the 
envelope of specific programmes51  

Budget line  

TOTAL appropriations 
for DG TRADE 

 TOTAL operational appropriations  

Commitments 

Payments 

Commitments 

Payments 

  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(3) 

=1a+1b 
+3 

=2a+2b 

+3 

(4) 

(5) 

(6) 

0,750 

0,300 

0,300 

0,300 

0.000 

0.200 

0.600 

0.300 

0.300 

0.250 

0,750 

0.200 

0,300 

0.600 

0,300 

0.300 

0,300 

0.300 

0.000 

0.250 

1.650 

1.650 

1.650 

1.650 

1.650 

1.650 

TOTAL appropriations  

Commitments 

=4+ 6 

0,750 

0,300 

0,300 

0,300 

0.000 

1.650 

50 
51 

This budget line will cover the costs of the development of the risk indicators and the database. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 

EN 

52 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
under HEADING 6 
of the multiannual financial framework 

Payments 

=5+ 6 

0.200 

0.600 

0.300 

0.300 

0.250 

1.650 

If more than one operational heading is affected by the proposal / initiative, repeat the section above: 

 TOTAL  operational  appropriations  (all 
operational headings) 

Commitments 

Payments 

 TOTAL appropriations of an administrative nature financed 
from  the  envelope  for  specific  programmes  (all  operational 
headings) 

(4) 

(5) 

(6) 

1.534 

1.094 

0.800 

0.750 

0.000 

0.551 

1.341 

0.974 

0.800 

0.512 

4.178 

4.178 

0.000 

0.000 

0.062 

0.062 

0.000 

0.124 

TOTAL appropriations  
under HEADINGS 1 to 6 
 of the multiannual financial 
framework 
 (Reference amount) 

Commitments 

=4+ 6 

1.534 

1.094 

0.862 

0.812 

0.000 

4.302 

Payments 

=5+ 6 

0.551 

1.341 

1.036 

0.862 

0.512 

4.302 

EN 

53 

EN 

 
 
 
  
 
 
Heading of multiannual financial  
framework  

7 

‘Administrative expenditure’ 

This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative 
Financial Statement (Annex V to the internal rules), which is uploaded to DECIDE for interservice consultation purposes. 

EUR million (to three decimal places) 

DG: GROW 

 Human resources  
 Other administrative expenditure  

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

0.883 

0.484 

0.327 

0.327 

2.021 

TOTAL DG GROW 

Appropriations  

0.883 

0.484 

0.327 

0.327 

2.021 

Year 
 2024 

Year 
 2025 

Year 
 2026 

Year 
 2027 

TOTAL 

DG: TAXUD 

 Human resources  

0.242 

0.242 

0.242 

0.242 

0.968 

 Other administrative expenditure  

TOTAL DG TAXUD 

Appropriations  

0.242 

0.242 

0.242 

0.242 

0.968 

EN 

54 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
 
 
DG: TRADE 

 Human resources  
 Other administrative expenditure  

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

0.484 

0.399 

0.399 

0.399 

1.681 

TOTAL DG TRADE 

Appropriations  

0.484 

0.399 

0.399 

0.399 

1.681 

TOTAL appropriations 
under HEADING 7 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

1.609 

1.125 

0.968 

0.968 

4.670 

Year 
 2024 

Year 
 2025 

Year 
 2026 

Year 
 2027 

Following years 

TOTAL 

EUR million (to three decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 7 
 of the multiannual financial 
framework  

Commitments 

3.143 

2.219 

1.830 

1.780 

Payments 

2.160 

2.466 

2.004 

1.830 

0.000 

0.512 

8.972 

8.972 

3.2.2.  Estimated output funded with operational appropriations  

Indicate 
objectives and 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show the 
duration of the impact (see point 1.6) 

TOTAL 

Commitment appropriations in EUR million (to three decimal places) 

EN 

55 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
OUTPUTS 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost 

o
N

Cost 

Total 
No 

Total 
cost 

outputs  

 

Type52 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 153… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTALS 

52 
53 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in point 1.4.2. ‘Specific objective(s)…’  

EN 

56 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3. 

Summary of estimated impact on administrative appropriations  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–   The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to three decimal places) 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

HEADING 7 
of the multiannual 
financial framework 

Human resources  

1.609 

1.125 

0.968 

0.968 

4.670 

Other administrative 
expenditure  

Subtotal HEADING 7 
of the multiannual 
financial framework  

Outside HEADING 754  
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 7 
of the multiannual 
financial framework  

1.609 

1.125 

0.968 

0.968 

4.670 

 0.000 

0.000 

0.062 

0.062 

0.124 

 0.000 

0.000 

0.062 

0.062 

0.124 

TOTAL 

1.609 

1.125 

1.030 

1.030 

4.794 

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature  will  be  met  by 
appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the 
DG,  together  if  necessary  with  any  additional  allocation  which  may  be  granted  to  the  managing  DG  under  the  annual 
allocation procedure and in the light of budgetary constraints. 

54 

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU programmes 
and/or actions (former ‘BA’ lines), indirect research, direct research. 

EN 

57 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.1.  Estimated requirements of human resources  

–    The proposal/initiative does not require the use of human resources.  

–    The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Estimate to be expressed in full time equivalent units 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

7 

5 

4 

4 

20 01 02 01 (Headquarters and Commission’s 
Representation Offices) 

20 01 02 03 (Delegations) 

01 01 01 01 (Indirect research) 

 01 01 01 11 (Direct research) 

Other budget lines (specify) 

20 02 01 (AC, END, INT from the ‘global envelope’) 

6 

4 

4 

4 

20 02 03 (AC, AL, END, INT and JPD in the 
delegations) 

XX 01 xx yy zz 55 

- at Headquarters 

- in Delegations  

01 01 01 02 (AC, END, INT - Indirect research) 

 01 01 01 12 (AC, END, INT - Direct research) 

Other budget lines (specify) 

TOTAL 

13 

9 

8 

8 

XX is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to management of the 
action  and/or  have  been  redeployed  within  the  DG,  together  if  necessary  with  any  additional  allocation  which 
may  be  granted  to  the  managing  DG  under  the  annual  allocation  procedure  and  in  the  light  of  budgetary 
constraints. 

Description of tasks to be carried out: 

Officials and temporary staff 

External staff 

Officials  and  temporary  staff  will  draft  guidelines  for  the  economic  operators  and 
competent  authorities,  set  up  meetings  and  coordinate  with  among  the  Commission 
services  for  the  enforcement  of  the  proposed  regulation.  They  will  also  prepare  the 
network  meetings  and  ensure  facilitation  and  cooperation  between  competent 
authorities,  manage  the  ICSMS  and  website  and  make  sure  that  queries  of  all 
stakeholders are answered when appropriate. 

The External staff will provide additional assistance to Officials and temporary staff in 
the completion of their duties. In addition they will complete tasks that are not covered 
by the competencies of Officials and temporary staff, and other exceptional tasks that 
might arise, including specialised work. 

55 

Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

EN 

58 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.4.  Compatibility with the current multiannual financial framework  

The proposal/initiative: 

–   can be fully financed through redeployment within the relevant heading of the 

Multiannual Financial Framework (MFF). 

Redeployment will be considered first within the Single Market Programme. 

requires use of the unallocated margin under the relevant heading of the MFF 

 
and/or use of the special instruments as defined in the MFF Regulation. 

Explain  what  is  required,  specifying  the  headings  and  budget  lines  concerned,  the  corresponding 
amounts, and the instruments proposed to be used. 

–    requires a revision of the MFF. 

Explain what is required, specifying the headings and budget lines concerned and the corresponding 
amounts. 

3.2.5.  Third-party contributions  

The proposal/initiative: 

–   does not provide for co-financing by third parties 

–    provides for the co-financing by third parties estimated below: 

Appropriations in EUR million (to three decimal places) 

Year 
N56 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary 
to show the duration of the 
impact (see point 1.6) 

Total 

Specify  the  co-financing 
body  

TOTAL appropriations 
co-financed  

56 

Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the 
expected first year of implementation (for instance: 2021). The same for the following years. 

EN 

59 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Estimated impact on revenue  

–   The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

– 

– 

– 

 

 

on own resources  

on other revenue 

please indicate, if the revenue is assigned to expenditure lines  

EUR million (to three decimal places) 

Appropriations 
available for 
the current 
financial year 

Budget revenue line: 

Article …………. 

Impact of the proposal/initiative57 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show 
the duration of the impact (see point 1.6) 

For assigned revenue, specify the budget expenditure line(s) affected. 

Other  remarks  (e.g.  method/formula  used  for  calculating  the  impact  on  revenue  or  any  other 
information). 

57 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e., gross amounts after deduction of 20 % for collection costs. 

EN 

60 

  EN