Jurisdiction
For products sold in Mexico
Law Summary
This proposed EU regulation aims to ban products made with forced labour from the Union market, including both imports and domestic goods. Authorities would investigate suspected cases, potentially leading to product withdrawal and disposal, regardless of where the forced labour occurred. Final adoption is pending (as of early 2025).
Law Obligation
- Companies sourcing products or parts directly or indirectly from an area known to engage in forced labour practices should undertake due diligence reviews to assess the risk and look for any indication of forced labour in their global supply chains, processes and systems and keep documentation that substantiates their position that forced labour has not penetrated the supply chain
- Such processes will help businesses to ensure and demonstrate (if necessary) that products are free from forced labour and minimise the possibility that products could be detained or denied entry upon import and/or that penalties would be imposed
- The STPS can start the process to label certain goods as produced through forced labour either on its own initiative or in response to a request from a Mexican citizen or legal entity
- Within 20 working days of receiving a request, the STPS may ask the specified business for additional information. If an investigation is warranted, the findings may lead to a ban on goods made with forced labour. If this process doesn’t occur, the importer will be notified, with 20 working days to respond
- A final resolution will be issued within 180 working days, determining if goods are produced with forced labour. Resolutions will be posted to the Ministry’s website.
