Notice for Canadian Importers: Deadline Approaching for Forced and Child Labor Report
As the deadline approaches, Canadian importers and international companies engaged in business within Canada are required to submit their forced and child labor reports before May 31, 2024.
This requirement stems from the enactment of the Fighting Against Forced Labour and Child Labour in Supply Chains Act (the Act), which came into force on January 1, 2024.
The Act encourages businesses to diligently monitor their supply chains to ensure that no goods imported into Canada are produced using forced or child labor. It also underscores Canada's commitment to promoting ethical business practices and protecting human rights in supply chains both domestically and globally.
According to the International Labour Organization (ILO), there are an estimated 27.6 million victims of forced labor worldwide, out of which 17.3 million fall under the private economy.
Public Safety Canada states that because forced and child labor occur mainly through global supply chains, there is a risk that Canadian imports were produced with forced labor or child labor. Entities and government institutions in Canada have a responsibility to eradicate exploitative practices from their supply chains.
The requirement to submit a report is designed to enhance transparency and accountability in business practices and applies to all corporations, trusts, partnerships, and unincorporated organizations that are either listed on Canadian stock exchanges or operate in Canada.
To fall under this mandate, entities must meet at least two of the following criteria from one of their two most recent financial years:
The obligation to file these reports is linked to both the size of the business and its connection to Canada, which includes having business operations or assets in Canada.
Non-compliance with these reporting requirements can lead to severe consequences, including monetary penalties, detention of goods, and other corrective actions as mandated by law.
As a Canadian importer, you are required to conduct thorough due diligence to ensure compliance with these standards, safeguarding your operations against any legal infractions and contributing to the global fight against forced and child labor.
Public Safety Canada provides guidance and resources to help Canadian importers and businesses fulfill their reporting duties and ensure their supply chains are free of forced labor.
All reports are due before May 31, 2024. If you require assistance, we’d be more than happy to help you prepare and submit your annual child and forced labor report. Contact one of our trade professionals today to get started.