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The EU Commission has issued a draft legislation that would allow Member State authorities to detain, seize or withdraw products made using forced labour.
The regulation applies to all products made available on or exported from the EU market and affects companies of all sizes. Authorities would undertake investigations of companies where there is substantiated concern regarding the use of forced labour in the value chain.
The regulation places an increased urgency for companies to undertake due diligence in regard to forced labour. If an effective system is in place, then the risk of product withdrawal will be substantially reduced.
The consultation closes on 16 November 2022