Customs Tariff

Forced Labor

Labor Rights

Modern Slavery

Summary Table

Obligations

Reporting
Due diligence

Normative scope

Human rights
Environment
Broad-ranging

Company scope

Large companies
SMEs
Other

Value chain scope

Own Operations
Subsidiaries
Direct Suppliers
Indirect Suppliers

Administrative enforcement

Monitoring
Administrative Sanctions

Judicial enforcement

Civil Liability
Facilitating Access to Justice
Other

Obligations

Reporting
- Canada’s Customs Tariff prohibits the importation of goods made with forced labour or prison labour. This prohibition leads to a reporting obligation under some circumstances, as the Customs Act requires anyone who “believes on reasonable grounds” that the importation of goods in their possession may be prohibited to “forthwith” report these goods to an officer. They must also amend customs documents accordingly.
Due diligence

Normative scope

Human rights
- Applies to forced labour and prison labour only.
- Does not apply to other human rights abuse.
Environment
Broad-ranging
- Only applies to forced labour and prison labour

Company scope

Large companies
SMEs
Other
- Any company is prohibited from importing into Canada goods made wholly or in part with forced labour or prison labour.

Value chain scope

Own Operations
Subsidiaries
Direct Suppliers
Indirect Suppliers

Administrative enforcement

Monitoring
- The Canada Border Services Agency can receive reports of suspected importation of goods made with forced or prison labour. Such information may be given to border services officers, who can use it to monitor at the border for shipments of potentially prohibited goods.
Administrative Sanctions
- If in the judgement of a border services officer a shipment contains goods made with forced or prison labour, it will be withheld from the importer. An importer whose shipment is detained could forfeit it, export it to another country, or challenge its classification as a product of forced labour. If the importer can prove that no forced labour was used to produce the goods, they will be released.
- In cases where the Canada Border Services Agency determines that prohibited goods have already been imported, it may impose penalties such as seizure of goods and ascertained forfeiture. Administrative monetary penalties are also possible where offences related to customs declarations have occurred.

Judicial enforcement

Civil Liability
Facilitating Access to Justice
Other
- Importers may appeal to the Canadian International Trade Tribunal to review decisions by the Canada Border Services Agency to classify goods as prohibited.
- Criminal prosecution is a possibility where certain criminal offences related to prohibited items (e.g., smuggling) have occurred.

More information

Canada’s Customs Tariff legislation has long prohibited the importation of goods “manufactured or produced wholly or in part by prison labour.” Upon signing the Canada-United-States-Mexico Agreement in 2018, Canada committed to also banning the importation of goods made with forced labour. The prohibition was added to the Customs Tariff under item no. 9897.00.00 and came into effect in July 2020. It applies to all “goods mined, manufactured or produced wholly or in part by forced labour.”

Unlike the U.S., Canada has not adopted specific regulations to govern enforcement of its forced/prison labour import ban. The Canada Border Services Agency, which is responsible for enforcing the prohibition, must do so following general rules regarding tariff classification and prohibited goods set out in customs legislation and regulations. It does not routinely report on its enforcement actions, and upon request will disclose only general information about the type goods seized, not including the product name or manufacturer.

Documentation

Law