On June 12, 2026, Bill C-35, titled the Ban on Importing Goods Made with Forced Labour Act (the “Act”), was introduced and received First Reading in the House of Commons. This proposed legislation establishes a standalone legislative framework, replacing the current import prohibition under the Customs Tariff. The Act is designed to reinforce Canada’s ability to identify, intercept, and prohibit goods produced wholly or in part by forced labour at the border.
Defining “Forced Labour” under Bill C-35
Under section 2 of Bill C-35, “forced labour” is defined by reference to “forced or compulsory labour” as set out in Article 2 of the International Labour Organization’s (“ILO”) Forced Labour Convention, 1930 (No. 29). This statutory definition is more closely aligned with the labour chapter of the Canada–United States–Mexico Agreement (CUSMA) and anchors Canada’s new framework in a globally recognized international standard, replacing the prior reliance on the domestic definitions of forced and child labour used under the Fighting Against Forced Labour and Child Labour in Supply Chains Act.
This approach is implemented through sections 18 and 19, which amend the Customs Tariff by removing the express reference to “child labour” from tariff item No. 9897.00.00 and deleting the cross-references to domestic definitions. While these amendments remove the express statutory reference to “child labour,” the practical scope of the prohibition is largely preserved. The ILO definition is broad and age-agnostic, referring to work exacted from “any person” under the menace of penalty. Consequently, forms of child labour involving coercion, compulsion, or non-voluntary service will continue to fall within the scope of the import ban.
Summary of the Proposed Act
The proposed legislation introduces several mechanisms to enhance border enforcement:
- General Prohibition: Goods produced wholly or in part by forced labour are prohibited from importation. “Produced” encompasses goods that are grown, assembled, manufactured, or mined.
- Detention Powers: Customs officers may detain suspected goods for up to 90 days (or a longer prescribed period) to determine if they were produced by forced labour.
- Judicial Oversight: Determinations under the Act are not subject to the standard appeal or re-determination processes of the Customs Act. Instead, they are subject to judicial review under the Federal Courts Act.
- The Presumptive List: The Minister of Foreign Affairs (supported by other federal ministers and the Canada Border Services Agency) is authorized to establish a list of goods (identifying the producer, country, or region) where there are reasonable grounds to suspect they were produced by forced labour.
- Mandatory Information Requirements: Importers of goods appearing on the Presumptive List must, at the request of a customs officer, provide prescribed supply chain tracing information to the Canada Border Services Agency.
- Deeming Provision: If an importer fails to provide the required information for goods on the Presumptive List, those goods are deemed prohibited from importation.
- Cost Recovery Model: Importers and owners of prohibited goods are jointly and severally liable for all costs incurred by the government related to the detention, storage, transportation, or disposal of those goods.
The Act grants regulatory authority to the Governor in Council to further define the scope of mandatory “prescribed information” for supply chain tracing and to establish the detailed procedural frameworks for detention and cost recovery.
Strategic Alignment: The U.S. Model vs. the EU Regulation
The proposed Act reflects a shift towards an importation-focused, rebuttable presumption model, similar to the U.S. Uyghur Forced Labor Prevention Act. This evolution follows a June 2026 determination by the U.S. Trade Representative that Canada’s previous enforcement efforts were insufficient.
In contrast, the European Union (“EU”) Forced Labour Regulation, which comes into full application on December 14, 2027, adopts a broader market-wide prohibition and withdrawal model. While Bill C-35 is restricted to the prohibition of importation at the border, the EU Regulation prohibits the placing and making available of products on the EU market, as well as their export. Crucially, the EU regime applies to all products, whether imported or produced within the EU for domestic consumption or export.
Implications for Businesses
For Canadian importers, this legislation signals a move toward active enforcement and a higher standard of supply chain due diligence. Businesses may wish to:
- Strengthen traceability: Ensure robust documentation is available to trace the complete supply chain of imported goods.
- Enhanced verification: Consider risk-based verification measures, including independent verification, for higher-risk supply chains.
- Monitor the presumptive List: Identify and assess exposure to sectors, regions, or suppliers that may be subject to heightened scrutiny.
- Assess liability exposure: Evaluate the financial implications of the cost recovery model, including potential liability for detention, storage, and disposal of goods.
- Track legislative process: Monitor the progress of Bill C‑35 through Parliament and any associated regulations that may further define compliance obligations.
Next Steps
Bill C‑35 will now proceed to Second Reading in the House of Commons and will then be referred to a parliamentary committee for detailed study. This stage may include stakeholder consultations and opportunities for amendment. Following Third Reading in the House, the Bill will proceed through a similar process in the Senate.
Fasken’s International Trade and Investment Law and Labour, Employment & Human Rights groups are closely tracking these issues and are available to support clients as enforcement continues to evolve.
