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

Recent media coverage regarding the import of goods suspected to be made by forced labour.

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

• The 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 Canada Border Services Agency (CBSA).

• The CBSA uses that information in its risk analyses to identify and intercept shipments containing such goods.

• Shipments containing goods suspected of being produced by forced labour are detained at the border for inspection by the CBSA.

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.
Goods produced wholly or in part by forced labour are prohibited from entering Canada pursuant to tariff item No. 9897.00.00 of the Customs Tariff, and subject to the Fighting Against Forced Labour and Child Labour in Supply Chains Act (justice.gc.ca). The CBSA is responsible for the administration and enforcement the Customs Tariff.
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.

The CBSA applies the tariff when it has sufficient evidence to do so. 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.
On May 11, 2023, Bill S-211 - An Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff received Royal Assent in Canada and came into force on January 1, 2024. This Act outlines the reporting obligations for companies with respect to labour practices in their supply chains. While the CBSA cannot speculate on the number of possible interceptions after the entry into force of the Act on January 1, 2024, we can tell you that the Act (former Bill S-211) encourages responsible business practices. It aims to increase industry awareness and transparency about forced labour and child labour by compelling certain entities and government institutions to publicly report on steps taken to address forced labour and child labour in their supply chains.
In Budget 2023, the federal government announced its intention to introduce legislation in 2024 to eradicate forced labour from Canadian supply chains. In the federal budget, the government also committed to strengthen the import prohibition on goods produced using 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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