Question Period Note: Import Prohibition on Goods Produced by Forced Labour

As a result of the Canada-United States-Mexico Agreement (CUSMA), Canada banned the import of goods produced by forced labour in July 2020.

• The Government of Canada is committed to upholding human rights and international labour standards.

• It is working across a number of federal departments and agencies to combat forced labour in supply chains.

• Employment and Social Development Canada’s (ESDC) Labour Program researches relevant facts related to problematic supply chains and prepares reports signaling when goods are likely mined, manufactured or produced by forced labour. These reports are shared with the Canada Border Services Agency (CBSA).

• The CBSA may use this information in its risk analyses to identify, intercept, and prohibit shipments containing such goods.

Goods suspected of being produced by forced labour will be detained at the border for inspection by a CBSA officer. If the officer judges the goods were produced by forced labour (based on the information received from ESDC and other sources), the officer will prohibit the goods from entering Canada.

Importers may appeal the classification, re-export the goods or abandon the goods.

Canada has imposed an importation ban on goods that were produced by forced labour, as described in An Act to implement the Agreement between Canada, the United States of America and the United Mexican States, which received Royal Assent on March 13, 2020.

As described in paragraph 202(8), Chapter 98, item No. 9897.00.00 of the Customs Tariff, the law has been amended to include a reference prohibiting goods mined, manufactured or produced wholly or in part by forced labour. These amendments made under the Act came into force in Canada on July 1, 2020.

Employment and Social Development Canada (ESDC) is the Government of Canada’s lead department for labour-related programs and the CBSA works closely with ESDC to identify goods produced by forced labour and prevent their entry into Canada. ESDC’s Labour Program monitors and researches evidence related to problematic supply chains, and documented evidence of goods being produced with forced labour is sent to the CBSA for consideration. The CBSA may use this information to identify and intercept shipments containing goods that may have been produced by forced labour.

The CBSA and ESDC entered into a Memorandum of Understanding on February 24, 2021, which establishes the enforcement strategy for preventing goods produced by forced labour from being imported. As mentioned earlier, when the CBSA officer judges that goods were produced by forced labour, the officer will apply the tariff classification under Item 9897 and prohibit the goods from entering Canada. Importers of these goods may appeal the classification, re-export the goods or abandon them.

In accordance with paragraph 58(1) of the Customs Act, tariff classification determinations are made on a case-by-case basis for each specific shipment, based on available evidence and analysis. The Customs Tariff can’t be used to prohibit goods from being imported solely on its originating country or region (though it can serve as a key indicator of risk). Implementing restrictions based on the location of origin instead falls under the purview of Global Affairs Canada.

The CBSA is also working closely with the United States Customs and Border Protection Agency to identify goods entering Canada that are suspected of being produced by forced labour.

The Customs Tariff import prohibition is the only legislative enforcement tool in Canadian law that addresses the importation of goods produced by forced labour.

Importers are encouraged to work with their foreign suppliers to ensure that any goods imported into Canada have not been mined, manufactured or produced wholly or in part by forced or compulsory labour.

The Government of Canada expects companies to take every step possible to ensure their supply chains conform to Canadian law. It is the responsibility of the importing company to conduct due diligence on its supply chains to ensure that it is not directly or indirectly sourcing products from entities implicated in forced labour or other human rights violations.

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