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Canada Tightens Rules on Imported Goods Over Forced Labor Concerns

An Act to amend the Customs Act and the Customs Tariff (forced labour and child labour)

Summary

  • Establishes a rebuttable presumption that goods from designated countries/areas or listed entities were produced with forced or child labour, making their importation prohibited unless the importer proves otherwise.
  • Requires customs officers to detain such goods until satisfied they are not prohibited, shifting the burden onto importers to provide certifications, supply-chain tracing, and proof of due diligence within set time limits.
  • Empowers the Governor in Council to designate countries/areas of concern and to list entities linked to forced or child labour, with authority for the Minister to update names and remove entities; mandates a five-year review of listings.
  • Grants regulation-making powers to define tracing, certification, due diligence standards, information requirements, and timelines that importers must meet to rebut the presumption.

Builder Assessment

Vote No

Builders support eliminating forced and child labour from supply chains, but the bill’s broad presumption, mandatory detentions, and heavy documentation requirements risk significant red tape and border delays. Without explicit risk-based processes, service standards, and streamlined compliance pathways, the economic and administrative downsides outweigh the unclear competitiveness gains.

  • Adopt a risk-based, intelligence-led targeting model with digital pre-clearance and a single-window portal to minimize detentions for low-risk importers.
  • Create safe harbours for trusted traders and recognize credible third-party certifications and mutual recognition with U.S./EU regimes to avoid duplicate compliance.
  • Set binding CBSA service standards, clear evidentiary thresholds, transparent designation criteria, and an independent, timely appeal process for listings/designations.
  • Provide SME-friendly compliance options (templates, phased timelines, reduced documentation) and publish clear guidance and model due-diligence checklists.
  • Resource CBSA appropriately without new fees on trade, and mandate public reporting on turnaround times, false positives, and enforcement outcomes.
  • Include sunset/review clauses for country/entity designations and require periodic regulatory impact assessments to adjust rules that hinder trade without improving enforcement.

Question Period Cards

What is the government's estimate of the added compliance and border delay costs this bill will impose on importers and consumers, and will it commit to binding CBSA service standards and risk-based targeting to prevent supply disruptions?

What transparent evidentiary thresholds and appeal mechanisms will be in place to challenge a country designation or entity listing under sections 136.2 and 136.3, so businesses are not unfairly penalized by politicized or inaccurate listings?

How will the regulations recognize trusted-trader programs and third-party certifications, and be harmonized with U.S. and EU forced-labour regimes, so small and medium importers are not forced into duplicative, costly compliance?

Principles Analysis

Canada should aim to be the world's most prosperous country.

Ethical supply chains may enhance reputation, but new detention and compliance burdens could raise costs and slow trade, with unclear net impact on prosperity.

Promote economic freedom, ambition, and breaking from bureaucratic inertia (reduce red tape).

Creates a broad rebuttable presumption, mandatory detentions, and extensive certification/due-diligence requirements that increase red tape for importers.

Drive national productivity and global competitiveness.

Alignment with global norms can protect market access, but border delays and paperwork may reduce productivity unless implemented with risk-based, digital processes.

Grow exports of Canadian products and resources.

Targets imports; any export benefit from reputational gains is indirect and uncertain.

Encourage investment, innovation, and resource development.

May spur investment in traceability tech, but compliance costs and uncertainty could deter broader investment without clear, streamlined rules.

Deliver better public services at lower cost (government efficiency).

Places new operational burdens on CBSA for detentions and verification without built-in service standards, risking slower service and higher costs.

Reform taxes to incentivize work, risk-taking, and innovation.

No tax measures are included.

Focus on large-scale prosperity, not incrementalism.

Addresses an important ethical goal but does not directly target large-scale productivity or growth outcomes.

Did we get the builder vote wrong?

Email [email protected]

PartyBloc Québécois
StatusOutside the Order of Precedence
Last updatedOct 21, 2025
TopicsTrade and Commerce
Parliament45