On 12 December 2024, the European Union (“EU”) published Regulation 2024/3015 (“Regulation”) in the EU Official Journal, which prohibits the sale of products made with forced labour in the EU market. Certain provisions of the Regulation have already entered into force, and the Regulation will be fully applicable starting from 14 December 2027. The Regulation introduces significant legal provisions to prevent products made with forced labour from entering the EU market and ensures that such products are excluded from any stage of the supply chain.

Scope

The Regulation strictly prohibits the sale, distribution, and export of products made with forced labour in the EU market. This prohibition applies to all products and their components, regardless of geographic origin, including both EU-produced and imported goods.

However, products that have already reached end users within the EU market are excluded from the scope of this Regulation. Furthermore, the Regulation does not introduce additional due diligence obligations beyond those already established under EU or national laws.

Key Provisions

The concept of “forced labour” in the Regulation is defined in accordance with the International Labour Organization’s Convention No. 29. It includes any work or service performed under coercion or the threat of penalty, against a person’s free will. Child labour, when involving coercion or threats, is also considered a form of forced labour.

The term “supply chain,” as defined in the Regulation, encompasses all activities involved in the extraction, processing, production, and distribution of a product. Consequently, products that contain components produced through forced labour at any stage of the supply chain fall under the scope of this prohibition. For instance, if a single component of a product is made with forced labour, the entire product is deemed non-compliant. Additionally, products sold via online platforms or through distance sales methods are also subject to this Regulation.

Implementation

Competent authorities responsible for enforcing the Regulation will be designated by each Member State. These authorities will monitor prohibited products, identify violations, and implement necessary sanctions. To ensure their transparency, impartiality, and effectiveness, Member States must guarantee that the competent authorities have sufficient funding and expertise. Furthermore, competent authorities are expected to collaborate with other relevant national bodies and their counterparts across the EU.

The European Commission will provide guidelines to facilitate the implementation of the Regulation. Additionally, an EU-wide “Union Network Against Forced Labour Products” will be established, comprising representatives from Member States and the European Commission. This network, which may involve customs authorities as necessary, will oversee the implementation of the Regulation and coordinate efforts among Member States.

The Regulation also aims to raise consumer awareness. If products are identified as being made with forced labour, consumers will be informed and encouraged to choose alternative products.

Sanctions

Competent authorities shall endeavor to adopt the decision referred to this Regulation or close the investigation within 9 months from the date it initiated the investigation. Chapter V of the Regulation outlines how violations will be investigated and sanctions applied:

- Each Member State will establish rules on penalties for non-compliance and ensure these penalties are implemented in line with national law.

- Penalties must be effective, proportionate, and dissuasive.

- If products made with forced labour need to be withdrawn or disposed of, competent authorities must coordinate with relevant bodies.

- Products made with forced labour must be recycled or, if recycling is not possible, rendered inoperable.

Effective Dates and Deadlines

- 13 December 2024: The Regulation entered into force one day after its publication in the EU Official Journal. Articles 5(3), 7, 8, 9(2), 11, 33, 35, and 37(3) became applicable on this date.

- By 14 December 2025: Member States must designate their competent authorities and notify the European Commission.

- By 14 June 2026: The European Commission will publish guidelines for the implementation of the Regulation. These guidelines will provide recommendations on addressing risks in supply chains, due diligence processes, and best practices for eradicating forced labour.

-14 December 2027: The Regulation will become fully applicable, and enforcement measures will commence. This is the final deadline for companies to achieve compliance.

Conclusion

Regulation (EU) 2024/3015 is a pivotal step by the EU towards safeguarding human rights in global supply chains and eliminating forced labour. This Regulation not only enhances transparency in commercial activities but also calls on economic operators to fulfill their social responsibilities. Companies must closely examine their supply chains and take necessary measures to ensure compliance by the end of 2027.

You can access the full Regulation through this link.