India Bans Imports of Goods Made with Forced Labour

The Directorate General of Foreign Trade (DGFT) has amended the Foreign Trade Policy (FTP), 2023, to prohibit the import of goods produced or manufactured using forced labour, strengthening India's trade framework in line with internationally accepted labour standards.

According to a notification issued by the Ministry of Commerce and Industry, the government has inserted a new Paragraph 2.20B in the Foreign Trade Policy, 2023, which will come into effect after the expiry of 30 days from the date of its publication in the Official Gazette.

The notification stated, "The import of goods produced or manufactured, wholly or in part, through the use of forced labour is prohibited."

The move from the government comes in the wake of the US proposing up to 12.5 per cent additional tariff on trading partners, including India, who import goods made with forced labour.

The US trade representative, Jamieson Greer had said that having goods imported that are made with forced labour creates an unfair advantage for those nations and disturbs the level playing field for US.

How will India’s Forced Labour Import Ban be implemented under FTP 2023?

It further said that the Central Government may, from time to time, specify by notification the goods whose import shall be prohibited under this provision after considering the findings of an enquiry conducted by the Director General of Foreign Trade or any other material considered appropriate.

The procedure for conducting such enquiries will be prescribed in the Handbook of Procedures, 2023.

Along with the new provision, the government has also inserted Paragraph 11.64 under Chapter 11 (Definition) of the Foreign Trade Policy, 2023, providing a formal definition of "Forced Labour."

According to the notification, "'Forced Labour' means all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily, as defined under the ILO Forced Labour Convention, 1930 (No. 29)."

The notification said the amendment strengthens the Foreign Trade Policy framework for restricting imports of goods produced through forced labour by empowering the Central Government to prohibit such imports through official notification.

Explaining the impact of the decision, the notification said, "This notification inserts Paragraph 2.20B in the FTP, 2023, to empower the Central Government to prohibit, by notification, the import of goods produced or manufactured, wholly or in part, through the use of forced labour."

It further noted that the amendment also inserts the definition of "Forced Labour" in accordance with the ILO Forced Labour Convention, 1930 (No. 29), thereby strengthening the policy framework for restricting imports linked to forced labour.

(With inputs from ANI)