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

Recent media coverage regarding a court application submitted by the refugee support group Canadians in Support of Refugees in Dire Need (CSRDN) to pressure the Government of Canada to ban the importation of goods from the Xinjiang Uyghur Autonomous Region unless the importer can show proof that the items were not made using forced labour.

• 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.

• ESDC Labour program is actively monitoring and researching evidence related to problematic supply chains, and evidence of goods produced by forced labour is shared with the CBSA.

• The CBSA uses that information in its risk analyses to identify, intercept, and prohibit shipments containing such 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 that have been produced by forced labour and prevent their entry into Canada. ESDC’s Labour Program is actively monitoring and researching evidence related to problematic supply chains, and documented evidence of goods being produced with forced labour is transmitted for CBSA’s consideration. The CBSA conducts risk analyses on goods entering the country to determine if they are admissible. The CBSA may use this information to identify and intercept shipments containing goods that have been identified as suspected to 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 the importation of goods produced by forced labour.

Shipments containing goods suspected of being produced by forced labour will be detained at the border for inspection by a border services officer. If in the judgement of the officer the goods were produced by forced labour, the officer will apply the tariff classification under chapter 9897 and prohibit the goods from entering Canada. Importers of goods classified under tariff item No. 9897.00.00 may appeal the classification as prohibited, re-export the goods or abandon the goods.

Tariff Classification determinations are made on a case-by-case basis for each specific shipment, based on available supporting evidence and analysis. As such, the Customs Tariff can not be used to prohibit the importation of goods solely on the basis of originating from a specific country or region, though it can serve of as a key indicator of risk. Implementing such restrictions would fall under the purview of Global Affairs Canada.

The Customs Tariff import prohibition is the only legislative enforcement tool in Canadian law regarding 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 that their supply chains conform to Canadian law with respect to the prohibition on the import of forced labour. 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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