EU Forced Labour Regulation
ENFORCEMENT TIMELINE
Adopted by the European Parliament in April 2024 (full application expected around 2027, three years after publication)
Overview
This comprehensive regulation prohibits placing on the EU market, exporting from the EU, or selling online any product manufactured using forced labour at any stage of its supply chain, including raw material extraction, manufacturing, or processing, and provides for the seizure, destruction, or border confiscation of non-compliant products.
Enforcement Timeline
April 2024: The regulation is adopted by a plenary vote of the European Parliament.
Late 2024: The regulation is published in the Official Journal of the EU.
2027 (36 months after publication): The regulation becomes fully applicable across the EU.
Business Impact
Global companies dealing in solar panels (polysilicon), textiles and apparel (cotton), electronic components, and battery minerals need to conduct due diligence and retain supporting documentation not only for their direct suppliers but all the way back to the most upstream raw material sources.