Canada Tightens Ban on Forced Labour Goods

Summary#

This bill changes how Canada blocks imports made with forced labour or child labour. It requires border officers to hold certain shipments until proof shows they were not made with forced or child labour. It also creates a presumption (assumed true unless an importer proves otherwise) that goods from designated countries/areas or listed entities involve forced or child labour.

• Customs officers must detain covered goods until satisfied they are not prohibited (Customs Act s.101(2)).
• Goods from designated countries/areas or listed entities are presumed to be made with forced or child labour and treated as prohibited under tariff item 9897.00.00, unless the importer rebuts the presumption (Customs Tariff s.136.1(2)-(3)).
• Importers can rebut by doing supply chain tracing, meeting certification rules, and showing due diligence as set by regulation (Customs Tariff s.132(1)(m.1), s.136.1(3)).
• The Governor in Council can designate countries/areas of concern and can list entities; the list must be reviewed every 5 years (Customs Tariff ss.136.2, 136.3).
• The bill uses the definitions of “forced labour” and “child labour” from the Fighting Against Forced Labour and Child Labour in Supply Chains Act (Customs Tariff s.136.1(1)).

What it means for you#

• Households

  • Some goods from designated countries/areas or from listed entities can be held at the border until cleared. This can delay those products reaching stores (Customs Act s.101(2); Customs Tariff s.136.1(2)-(3)).
  • No new duties for individual consumers are created in the bill. It targets import conditions at the border (Bill text).

• Workers

  • Workers in logistics, retail, and manufacturing that rely on imported inputs could see shipment schedules slow if goods are detained for review (Customs Act s.101(2)).
  • No changes to individual employment rights are included in the bill (Bill text).

• Businesses (Importers, wholesalers, retailers, brands)

  • If you import goods that are mined, made, or produced “wholly or in part” in a designated country/area, or by a listed entity, your goods will be presumed to involve forced or child labour. Officers must detain them unless you rebut the presumption (Customs Tariff s.136.1(2); Customs Act s.101(2)).
  • To rebut, you must: perform prescribed supply chain tracing; take supply management measures; provide required certifications and information within set time limits; and show prescribed due diligence. Officers must then be satisfied the goods are not covered by the ban (Customs Tariff s.136.1(3)).
  • The government may set detailed rules by regulation for tracing, certifications, due diligence, and information formats and deadlines. You will need to comply with these when issued (Customs Tariff s.132(1)(m.1)).
  • The “wholly or in part” standard means even a component or processing step in a designated area or by a listed entity can trigger the presumption (Customs Tariff s.136.1(2)).
  • You must monitor government orders that designate countries/areas and the list of entities, and adjust sourcing or documentation accordingly (Customs Tariff ss.136.2, 136.3).

• Local governments

  • No direct new duties or programs for provinces, territories, or municipalities are created by the bill (Bill text).

Expenses#

Estimated net cost: Data unavailable.

• The bill does not include an appropriation or fees. It adds duties for customs officers to detain and assess certain goods and creates new regulatory functions (Bill text).
• Administrative costs to develop and enforce regulations, process detentions, and manage designations and listings are likely, but no fiscal note or official estimate is provided. Data unavailable.
• Total costs will depend on how many countries/areas are designated, how many entities are listed, and the volume of affected imports. Data unavailable.

Proponents' View#

• Strengthens enforcement by shifting the burden of proof: goods from designated areas or listed entities are presumed to involve forced or child labour unless the importer proves otherwise (Customs Tariff s.136.1(2)-(3)).
• Prevents entry of suspect goods by requiring detention until officers are satisfied, which reduces the risk that prohibited goods reach the Canadian market (Customs Act s.101(2)).
• Creates clear tools for targeting risk: the executive can designate problem countries/areas and list entities, update names, and remove entities that improve practices, with a mandatory 5-year review (Customs Tariff s.136.2; s.136.3(1)-(3)).
• Promotes consistent standards by using definitions from an existing federal Act and by enabling detailed regulations on tracing, certification, and due diligence (Customs Tariff s.136.1(1); s.132(1)(m.1); s.136.1(3)).
• Addresses complex supply chains by covering goods made “wholly or in part,” closing potential loopholes for partial production in high‑risk locations (Customs Tariff s.136.1(2)).

Opponents' View#

• Overbreadth risk: the “wholly or in part” rule and area/entity‑based presumption could capture goods with minor inputs, leading to broad detentions and compliance burdens (Customs Tariff s.136.1(2)).
• Trade friction and delays: mandatory detention until proof is accepted can slow shipments and raise logistics costs, especially where tracing and certification are complex (Customs Act s.101(2); Customs Tariff s.132(1)(m.1), s.136.1(3)).
• Regulatory uncertainty: key requirements (tracing methods, certifications, due diligence standards, timelines) are left to future regulations, making planning difficult until rules are issued (Customs Tariff s.132(1)(m.1); s.136.1(3)).
• Governance concerns: designations and listings are executive decisions based on “reasonable grounds,” with reviews every 5 years; opponents may seek clearer criteria, transparency, or faster review cycles (Customs Tariff s.136.2; s.136.3(3)).
• Resource strain: CBSA will need capacity to detain and assess shipments and verify documentation; without added resources or streamlined processes, backlogs could occur. Data unavailable.