Activities of Kosma ZŁOTOWSKI related to 2022/0269(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on prohibiting products made with forced labour on the Union market
Amendments (62)
Amendment 102 #
Draft legislative resolution
Paragraph 1
Paragraph 1
1. Adopts its position at first reading hereinafter setThe European Parliament calls on the Commission to conduct an impact assessment which should assess, at least the coherence of this proposal with other requirements and the direct and indirect consequences of such regulation for consumers and companies, in particular its impact on SMEs. The negotiations in the European Parliament should be postponed until the impact assessment has been carried out;.
Amendment 103 #
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
Amendment 127 #
Proposal for a regulation
Recital 10
Recital 10
(10) Articles [XX] of Directive 2013/34/EU of the European Parliament and of the Council require Member States to ensure that certain economic operators annually publish non-financial statements in which they report on the impact of their activity on environmental, social and employee matters, respect for human rights, including regarding forced labour, anti-corruption and bribery matters.26 [Furthermore, Directive 20XX/XX/EU on Corporate Sustainability Reporting puts forward detailed reporting requirements for covered companies regarding the respect of human rights, including in global supply chains. The information that undertakings disclose about human rights should include, where relevant, information about forced labour in their valuesupply chains.27 ] _________________ 26 Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups, OJ 27 Directive 20XX/XX/EU of the European Parliament and of the Council amending Directive 2013/34/EU, Directive 2004/109/EC, Directive 2006/43/EC and Regulation (EU) No 537/2014, as regards corporate sustainability reporting, OJ XX, XX.XX.20XX, p. XX.
Amendment 159 #
Proposal for a regulation
Recital 21
Recital 21
(21) When identifying potential violations of the prohibition, the competent authorities should follow a risk-based approach and assess all information available to them. Competent authorities should initiate an investigation where, based on their assessment of all available information, they establish that there is a substantiated concern of a violation of the prohibition. Before initiating an investigation, competent authorities should be able to request additional information from economic operators under assessment, but also from other relevant stakeholders, including persons or associations having submitted relevant information to competent authorities and any other stakeholder working on the products or regions related to the assessment, as well as from diplomatic representations of the Union in relevant third countries. Substantive information and/or claims submitted should be made available to any economic operators under assessment, while safeguarding the identities of the stakeholders involvement.
Amendment 167 #
(22) Before initiating an investigation, competent authorities should ensure that substantive information and/or claims submitted should be made available to any economic operators under assessment, while safeguarding the identities of the stakeholders involved. Competent authorities should request from the economic operators under assessment information on actions taken to mitigate, prevent or bring to an end risks of forced labour in their operations and valuesupply chains with respect to the products under assessment. Carrying out such due diligence in relation to forced labour should help the economic operator to be at a lower risk of having forced labour in its operations and valuesupply chains. Appropriate due diligence means that forced labour issues in the valuesupply chain have been identified and addressed in accordance with relevant Union legislation and international standards. That implies that where the competent authority considers that there is no substantiated concern of a violation of the prohibition, or that the reasons that motivated the existence of a substantiated concern have been eliminated, for instance due to, but not limited to the applicable legislation, guidelines, recommendations or any other due diligence in relation to forced labour being applied in a way that mitigates, prevents and brings to an end the risk of forced labour, no investigation should be initiated.
Amendment 183 #
Proposal for a regulation
Recital 24
Recital 24
(24) During the preliminary phase of investigation, competent authorities should focus on the economic operators involved in the steps of the valuesupply chain where there is a higher risk of forced labour with respect to the products under investigation, also taking into account their size and economic resources, the quantity of products concerned and the scale of the suspected forced labour.
Amendment 190 #
Proposal for a regulation
Recital 25
Recital 25
(25) Competent authorities, when requesting information during the investigation, should prioritise to the extent possible and consistent with the effective conduct of the investigation the economic operators under investigation that are involved in the steps of the valuesupply chain as close as possible to where the likely risk of forced labour occurs and take into account the size and economic resources of the economic operators, the quantity of products concerned, as well as the scale of suspected forced labour.
Amendment 192 #
Proposal for a regulation
Recital 25 a (new)
Recital 25 a (new)
(25a) Where there is clear and reliable evidence that specific products produced in specific geographic areas present a high risk of having been subject to forced labour applied by state authorities, experts should be able to identify those products as “high risk products”. Criteria for ‘high risk’ designation must be publicly available. Any geographic areas considered for ‘high risk’ designation should allow for consultation and right of response from the relevant third countries before products are formally designated. The Commission should publish transparent and comprehensive guidelines including measurable criteria for economic operators and third countries to meet, to demonstrate that products are no longer ‘high risk’.
Amendment 195 #
Proposal for a regulation
Recital 25 b (new)
Recital 25 b (new)
(25b) Competent authorities cannot, in any case, request undertakings to provide, disclose or publish the business secret and intellectual property such as patents. The protection of confidential information should be respected.
Amendment 199 #
Proposal for a regulation
Recital 26
Recital 26
(26) Competent authorities should bear the burden of establishing that forced labour has been used at any stage of production, manufacture, harvest or extraction of a product, including working or processing related to the product on the basis of all information and evidence gathered during the investigation, including its preliminary phase. To ensure their right to due process, economic operators should have access to information collected and allegations submitted, and have the opportunity to provide information in their defence to the competent authorities throughout the investigation.
Amendment 221 #
Proposal for a regulation
Recital 30
Recital 30
(30) If the economic operators fail to comply with the decision of the competent authorities by the end of the established timeframe, the competent authorities should ensure that the relevant products are prohibited from being placed or made available on the Union market, exported or withdrawn from the Union market and that any such products remaining with the relevant economic operators are destroyed, rendered inoperable, or otherwise disposed of in accordance with national law consistent with Union law, including Union legislation on waste management at the expense of the economic operators. Such decision should be proportionate at least to the scale of forced labour, availability of alternative products, resilience of the EU, complexity of the suply chain and other relevant factors.
Amendment 227 #
Proposal for a regulation
Recital 31
Recital 31
(31) Economic operators should have the possibility to request a review of the decisions by the competent authorities, after having provided new information showing that it cannot be concluded that the relevant products have been made with forced labour. Competent authorities should withdraw their decision where they establish on the basis of that new information, that it cannot be established that the products have been made with forced labour. Economic operators should have a right to compensation, including the compensation in case of the prohibition, withdrawal or destruction of products arising from a wrongful decision by a competent authority.
Amendment 230 #
Proposal for a regulation
Recital 32
Recital 32
(32) Any person, whether it is a natural or legal person, or any association not having legal personality, should be allowed to submit information to the competent authorities when it considers that products made with forced labour are placed and made available on the Union market and to be informed of the outcome of the assessment of their submission. Submissions should be addressed to one or more competent authorities. Adequate protection measures should be put in place to ensure the safety of any person associated with the submission or the information contained within it, including from retaliation and reprisals. To ensure ease of use for the submission of information and the standardisation of the information provided, the Commission should set up a user-friendly mechanism for the submission of information, available in all official languages of the institutions of the Union, and free of charge. Substantive and detailed information about claims submitted should be made immediately available to any economic operators concerned, while safeguarding the identities of the natural or legal persons involved in the submission.
Amendment 258 #
Proposal for a regulation
Recital 37
Recital 37
(37) Where the competent authorities conclude that a product corresponds to a decision establishing a violation of the prohibition, they should immediately inform customs authorities which should refuse its release for free circulation or export. The product shouldmay be destroyed, rendered inoperable, or otherwise disposed of in accordance with national law consistent with Union law, including legislation on waste management, which excludes re-export in case of non-Union goods. Such decision should be proportionate, taking into account all relevant factors of the product, economic operator, consumers and the internal market.
Amendment 285 #
Proposal for a regulation
Recital 45
Recital 45
(45) Since forced labour is a global problem and given the interlinkages of the global valuesupply chains, it is necessary to promote international cooperation against forced labour, which would also improve the efficiency of applying and enforcing the prohibition. The Commission should as appropriately cooperate with and exchange information with authorities of third countries and international organisations to enhance the effective implementation of the prohibition. International cooperation with authorities of non-EU countries should take place in a structured way as part of the existing dialogue structures, for example Human Rights Dialogues with third countries, or, if necessary, specific ones that will be created on an ad hoc basis.
Amendment 288 #
Proposal for a regulation
Recital 48 a (new)
Recital 48 a (new)
(48a) In light of the absence of an impact assessment accompanying the Commission's proposal on this Regulation, the Commission should evaluate and publish report on the impact of this Regulation on internal market, competitiveness, consumers and the EU and national budgets. This evaluation should employ specific indicators to assess its effectiveness, efficiency, and overall impact.
Amendment 299 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
2. This Regulation shall not cover the withdrawal of products which have reached the end-users in the Union market. or have been transformed or integrated into another product.
Amendment 302 #
Proposal for a regulation
Article 1 – paragraph 2 a (new)
Article 1 – paragraph 2 a (new)
2a. This Regulation shall apply only to economic operators defined in Article 2 of the Directive (EU) [XXX/XXX] on Corporate Sustainability Due Diligence.
Amendment 335 #
Proposal for a regulation
Article 2 – paragraph 1 – point h
Article 2 – paragraph 1 – point h
(h) ‘economic operator’ means any natural or legal person or association of persons who is company defined in Article 2 of the Directive (EU) [XXX/XXX] on Corporate Sustainability Due Diligence placing or making available products on the Union market or exporting products;
Amendment 372 #
Proposal for a regulation
Article 4 – paragraph 1 – introductory part
Article 4 – paragraph 1 – introductory part
1. Competent authorities shall follow a risk-based approach in assessing the likelihood that economic operators established in their territory violated Article 3. That assessment shall be based on all relevant information available to them, including the following information:
Amendment 376 #
Proposal for a regulation
Article 4 – paragraph 1 – point e
Article 4 – paragraph 1 – point e
(e) information requested by the competent authority from other relevant authorities or competent authority of Member States , where necessary, on whether the economic operators under assessment are subject to and carry out due diligence in relation to forced labour in accordance with applicable Union legislation or Member States legislation setting out due diligence and transparency requirements with respect to forced labour.
Amendment 377 #
Proposal for a regulation
Article 4 – paragraph 1 – point e a (new)
Article 4 – paragraph 1 – point e a (new)
(ea) direct engagement with the economic operators concerned.
Amendment 380 #
Proposal for a regulation
Article 4 – paragraph 2
Article 4 – paragraph 2
2. In their assessment of the likelihood that economic operators violated Article 3, competent authorities shall focus on the economic operators involved in the steps of the valuesupply chain as close as possible to where the risk of forced labour is likely to occur and take into account the size and economic resources of the economic operators, the due diligence plan of the economic operator under the Directive (EU) [XXX/XXX] on Corporate Sustainability Due Diligence with respect to prevent forced labour and the adequacy of the actions undertaken, the quantity of products concerned, as well as the scale of suspected forced labour.
Amendment 387 #
Proposal for a regulation
Article 4 – paragraph 3 – introductory part
Article 4 – paragraph 3 – introductory part
3. Before initiating an investigation in accordance with Article 5(1), the competent authority shall (i) inform and coordinate its actions with any other competent authority designated by the Member State under the Directive (EU) [XXX/XXX] on Corporate Sustainability Due Diligence and the Directive (EU) 2019/1937 of the European Parliament and of the Council on the protection of persons who report breaches of Union law. If a request of information or an investigation has already been launched in relation to similar facts or products, a lead competent authority shall be designated through the coordination mechanism in accordance with Article 12, to avoid duplicating requests of information or investigations. In this case, the competent authorities shall cooperate and share information with each other. (ii) request from the economic operators under assessment information on actions taken to identify, prevent, mitigate or bring to an end risks of forced labour in their operations and valuesupply chains with respect to the products under assessment, including on the basis of any of the following:
Amendment 398 #
Proposal for a regulation
Article 4 – paragraph 4
Article 4 – paragraph 4
4. Economic operators shall respond to the request of the competent authority referred to in paragraph 3 within 1530 working days from the day they received such request. Economic operators may provide to competent authorities any other information they may deem useful for the purposes of this Article. In duly justified case, competent authorities may extend the response time by 15 working days.
Amendment 410 #
Proposal for a regulation
Article 4 – paragraph 5
Article 4 – paragraph 5
5. Within 30 working days from the date of receipt of the information submitted by economic operators pursuant to paragraph 4, the competent authorities shall conclude the preliminary phase of their investigation as to whether there is an ongoing and a substantiated concern of violation of Article 3 on the basis of the assessment referred to in paragraph 1 and the information submitted by economic operators pursuant to paragraph 4.
Amendment 417 #
Proposal for a regulation
Article 4 – paragraph 6
Article 4 – paragraph 6
6. The competent authority shall provide an opportunity for and duly take into account where the economic operator demonstrates that it carries out due diligence on the basis of identified forced labour impact in its supply chain, adopts and carries out measures suitable and effective for bringing to an end forced labour in a short period of time. The competent authority shall also take into account difficulties met in collecting reliable information on forced labour, especially in geographical areas other than the ones listed in the database referred to in Article 11.
Amendment 436 #
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
1. Competent authorities that, pursuant to Article 4(5), and where appropriate with reference to the database referred to in Article 11, determine that there is a substantiated concern of a violation of Article 3, shall decide to initiate an investigation on the products and economic operators concerned.
Amendment 444 #
Proposal for a regulation
Article 5 – paragraph 2 – point c
Article 5 – paragraph 2 – point c
(c) the reasons for the initiation of the investigation, unless it would jeopardise the outcome of the investigation;
Amendment 449 #
Proposal for a regulation
Article 5 – paragraph 2 – point d a (new)
Article 5 – paragraph 2 – point d a (new)
(da) the substantive information of any submission made by any natural or legal person that contributed to initiating an investigation, while withholding their identifying details.
Amendment 454 #
Proposal for a regulation
Article 5 – paragraph 3 – introductory part
Article 5 – paragraph 3 – introductory part
3. Where requested to do so by competent authorities, eEconomic operators under investigation shall have a right to submit to those competent authorities any information that is relevant and necessary for the investigation, including information identifying the products under investigation, the manufacturer or producer of those products and the product suppliers. In requesting such information, competent authorities shall to the extent possible:
Amendment 459 #
Proposal for a regulation
Article 5 – paragraph 3 – point a
Article 5 – paragraph 3 – point a
(a) prioritise the economic operators under investigation involved in the steps of the valuesupply chain as close as possible to where the likely risk of forced labour occurs and
Amendment 465 #
Proposal for a regulation
Article 5 – paragraph 4
Article 5 – paragraph 4
4. Economic operators shall submit the information within 1530 working days from the request referred to in paragraph 3 or make a justified request for an extension of that time limit. In duly justified case, competent authorities may extend the response time by 15 working days.
Amendment 474 #
Proposal for a regulation
Article 5 – paragraph 5
Article 5 – paragraph 5
5. When deciding on the time limits referred to in this Article, competent authorities shall consider all relevant aspects, including complexity of the product and its supply chain and the size and economic resources of the economic operators concerned.
Amendment 481 #
Proposal for a regulation
Article 5 – paragraph 6 a (new)
Article 5 – paragraph 6 a (new)
6a. The identity of the economic operator shall not be made publicly available during the investigation.
Amendment 482 #
Proposal for a regulation
Article 5 – paragraph 6 b (new)
Article 5 – paragraph 6 b (new)
6b. No later than 6 months after the entry into force of this Regulation, the Commission shall issue the guidance on investigation process including best practices and update them on an annual basis.
Amendment 484 #
Proposal for a regulation
Article 6 – paragraph 1
Article 6 – paragraph 1
1. Competent authorities shall assess all information and evidence gathered pursuant to Articles 4 and 5 and, on that basis, establish whether Article 3 has been violated, within a reasonable period of time60 working days from the date they initiated the investigation pursuant to Article 5(1). This period can in duly justified cases be prolonged by another 60 working days.
Amendment 493 #
Proposal for a regulation
Article 6 – paragraph 2
Article 6 – paragraph 2
Amendment 497 #
Proposal for a regulation
Article 6 – paragraph 3
Article 6 – paragraph 3
3. Where competent authorities cannot establish that Article 3 has been violatedwithin 60 working days from the date the economic operator submitted the information pursuant to Article 5(4) competent authorities cannot establish that Article 3 has been violated, or where concerns have been addressed and remedied during the course of the investigation, they shall take a decision to close the investigation and inform the economic operator thereof.
Amendment 502 #
Proposal for a regulation
Article 6 – paragraph 4 – introductory part
Article 6 – paragraph 4 – introductory part
4. Where competent authorities establish that Article 3 has been violated, they shall without delay adopt a decision containing one or more of the following measures:
Amendment 523 #
Proposal for a regulation
Article 6 – paragraph 4 – point c a (new)
Article 6 – paragraph 4 – point c a (new)
(ca) other appropriate remedial measure.
Amendment 525 #
Proposal for a regulation
Article 6 – paragraph 4 a (new)
Article 6 – paragraph 4 a (new)
4a. When deciding on a measure in accordance with Article 4(4), the competent authority shall consider factors such as the mitigating measures put in place by the economic operator, absence of other safety concerns related to the product, the impact on the EU resilience, the complexity of the supply chain, the existence of alternative products, the costs, environmental and socio-economic impact of the measure.
Amendment 528 #
Proposal for a regulation
Article 6 – paragraph 5 – introductory part
Article 6 – paragraph 5 – introductory part
5. Where an economic operator has failed to comply with the decision referred to in paragraph 4, the competent authorities shall ensure allone of the following:
Amendment 547 #
Proposal for a regulation
Article 6 – paragraph 6
Article 6 – paragraph 6
6. Where economic operators provide evidence to the competent authorities that they have complied with the decision referred to in paragraph 4, and that they have actively pursued measures to eliminated forced labour from their operations or supply chain with respect to the products concerned, the competent authorities shall withdraw their decision for the future and inform the economic operators.
Amendment 552 #
Proposal for a regulation
Article 6 – paragraph 6 a (new)
Article 6 – paragraph 6 a (new)
6a. Competent authorities shall ensure that a reasonable period is granted to economic operators to comply with their obligations under this Article.
Amendment 559 #
(b) a reasonable time limit for the economic operators to comply with the order, which shall not be less than 360 working days and no longer than necessary to withdraw the respective products. When setting such a time limit, the competent authority shall take into account the economic operator’s size and economic resources;
Amendment 567 #
Proposal for a regulation
Article 7 – paragraph 1 – point d a (new)
Article 7 – paragraph 1 – point d a (new)
(da) all information allowing the economic operators to request a review of the decision in accordance with Article 8(5).
Amendment 574 #
Proposal for a regulation
Article 8 – paragraph 2
Article 8 – paragraph 2
2. A request for a review of a decision adopted pursuant Article 6(4) shallmay contain new information that was not brought to the attention of the competent authority during the investigation. The request for a review shall delay the enforcement of the decision adopted pursuant to Article 6(4) until the competent authority decides on the request for the review.
Amendment 576 #
Proposal for a regulation
Article 8 – paragraph 3
Article 8 – paragraph 3
3. A competent authority shall take a decision on the request for review within 150 working days from the date of receipt of the request. In case of perishable goods, animals and plants that time limit shall be 5 working days.
Amendment 600 #
Proposal for a regulation
Article 9 – paragraph 2 a (new)
Article 9 – paragraph 2 a (new)
2a. The Commission shall without delay inform any affected economic operators and third country authorities, of actions taken or not taken under this paragraph.
Amendment 603 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. Submissions of information by any natural or legal person or any association not having legal personality, to competent authorities on alleged violations of Article 3 shall contain information on the economic operators or products concerned and provide the reasons substantiatingobjective reasons along with a minimum level of evidence to support the allegation.
Amendment 606 #
Proposal for a regulation
Article 10 – paragraph 1 a (new)
Article 10 – paragraph 1 a (new)
1a. Member States shall ensure that competent authorities are able to dismiss manifestly unfounded cases at the earliest possible stage of the investigation in accordance with national law and that the person submiting the information of manifestly unfounded cases could be held liable for damages including the reputational risks associated with dissemination of unfounded information.
Amendment 615 #
Proposal for a regulation
Article 10 – paragraph 2 a (new)
Article 10 – paragraph 2 a (new)
2a. The competent authority shall, as soon as possible, inform the economic operator about the the submission, and the substantive detail therein.
Amendment 621 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
1. The Commission shall call upon external expertise to provide an indicative, non-exhaustive,accurate verifiable and regulardaily updated database of forced labour risks in specific geographic areas or with respect to specific products including with regard to forced labour imposed by state authorities. The database shall be based on the guidelines referred to in Article 23, points (a), (b) and (c), and relevant external sources of information from, amongst others, international organisations and third country authorities. The assessment of the initial database shall include full and transparent engagement with third country authorities, trading partners and economic operators including request for formal submissions, publicly-available proposed criteria for determining risk levels, and the formation of a Labour Platform stakeholder forum to allow for ongoing feedback on the operation and updating of the database.
Amendment 629 #
Proposal for a regulation
Article 11 – paragraph 1 a (new)
Article 11 – paragraph 1 a (new)
1a. Based on verifiable or, where the evidence is impossible to obtain on reliable evidence, external experts may identify products made in geographic areas with forced labour applied by state authorities that are in high-risk of violating Article 3.Criteria for ‘high risk’ designation shall be published. Any geographic areas considered for ‘high risk’ designation shall allow for consultation and right of response from the relevant third countries before products are formally designated. The Commission shall issue guidelines on measurable criteria for economic operators and third countries to meet and to demonstrate that products are no longer ‘high risk’ no later than 6 months after the entry into force of this Regulation.
Amendment 640 #
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
2. The Commission shall ensure that the database is made publicly available by the external expertise at the latest 124 months after the entry into force of this Regulation.
Amendment 647 #
Proposal for a regulation
Article 11 – paragraph 3 a (new)
Article 11 – paragraph 3 a (new)
3a. The process for assessing the initial database shall include full and transparent engagement with third country authorities, trading partners and economic operators including request for formal submissions, publicly-available proposed criteria for determining risk levels, and the formation of a Labour Platform stakeholder forum to allow for ongoing feedback on the operation and updating of the database.
Amendment 733 #
Proposal for a regulation
Article 23 – paragraph 1 – introductory part
Article 23 – paragraph 1 – introductory part
The Commission shall issue guidelines no later than 186 months after the entry into force of this Regulation, which shall include the following:
Amendment 735 #
Proposal for a regulation
Article 23 – paragraph 1 – point a
Article 23 – paragraph 1 – point a
(a) guidance on due diligence in relation to forced labour, which shall take into account applicable Union legislation setting out due diligence requirements with respect to forced labour, guidelines and recommendations from international organisations, as well as the size and economic resources of economic operators, taking into account the specificity of all economic sectors, including the agricultural sector;
Amendment 743 #
Proposal for a regulation
Article 23 – paragraph 1 – point b
Article 23 – paragraph 1 – point b
(b) information on risk indicators of both the private sector and risk of state- imposed forced labour, which shall be based on independent and verifiable information, including reports from international organisations, in particular the International Labour Organization, civil society, business organisations, and experience from implementing Union legislation setting out due diligence requirements with respect to forced labour;
Amendment 756 #
Proposal for a regulation
Article 23 – paragraph 1 a (new)
Article 23 – paragraph 1 a (new)
The guidelines shall take into account other relevant legislation, such as EU Corporate Sustainability Due Diligence Directive, Regulations on responsible minerals, batteries and deforestation-free products.
Amendment 823 #
Proposal for a regulation
Article 30 a (new)
Article 30 a (new)