Status: Adopted

Law - Canada - Customs Tariff

Customs Tariff

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.

Law

Customs Tariff item no. 9897.00.00 (import prohibition)

Canada
July 1, 2020
Area Customs and trade law
Reporting
Due diligence
Due diligence and remedy