Canada's Forced Labour Supply Chain Reports Due May 31

Canadian businesses have until May 31, 2026, to file their annual forced labour supply chain report with Public Safety Canada.

The obligation falls under the Fighting Against Forced Labour and Child Labour in Supply Chains Act, which requires certain entities and government institutions to report annually on the steps taken to prevent and reduce the risk of forced labour or child labour in their activities and supply chains.

Non-compliance is a punishable offence on summary conviction, with a fine of up to $250,000.

Does this apply to your business?

The forced labour supply chain reporting obligation applies to corporations, trusts, partnerships, and other organizations that are either listed on a Canadian stock exchange, or that do business or hold assets in Canada and meet at least two of these thresholds in one of their two most recent financial years:

• At least $20 million in assets
• At least $40 million in revenue
• An average of at least 250 employees

Qualifying entities must report only if they produce goods in Canada or abroad, import goods produced outside Canada, or control another entity that does.

What the report must include

Reports must describe the steps taken during the entity’s previous financial year to prevent and reduce the risk that forced labour or child labour is used at any step in the production of goods in Canada or elsewhere, or in goods imported into Canada by the entity.

The report must also include the following information about the entity:

• Structure, activities, and supply chains
• Policies and due diligence processes related to forced labour and child labour
• Parts of its business and supply chains that carry risk, and the steps taken to assess and manage that risk
• Measures taken to remediate forced labour or child labour
• Measures taken to remediate loss of income to vulnerable families resulting from actions taken to eliminate forced labour or child labour
• Training provided to employees
• Methods for assessing the effectiveness of its actions

How we can help

At Cole International, we offer trade consulting services to help Canadian businesses prepare their forced labour supply chain reports.

Reach out to one of our trade professionals to review your import records and discuss how we can support your reporting process.