Making a major change in the foreign trade policy, the Central Government has banned the import of goods made with forced labour. According to the notification issued by DGFT, this rule will come into effect in 30 days and is aimed at following international standards.
New Delhi [भारत]July 14 (ANI): The Directorate General of Foreign Trade (DGFT) has amended the Foreign Trade Policy (FTP), 2023, to prohibit import of goods produced or manufactured using forced labour. This step strengthens India’s trade framework in line with internationally accepted labor standards.
New rule in foreign trade policy
According to a notification issued by the Ministry of Commerce and Industry, the government has added a new paragraph 2.20B in the Foreign Trade Policy, 2023, which will come into force after the expiry of 30 days from the date of its publication in the Official Gazette. “Import of goods produced or manufactured through the use of forced labor wholly or partly is prohibited,” the notification said.
Steps taken after pressure from America
The government’s move comes after the US proposed to impose additional tariffs of up to 12.5 percent on trading partners, including India, who import goods made with forced labour. The US Trade Representative, Jameson Greer, said that importing goods made with forced labor gives those countries an unfair advantage and hinders a level playing field for the US.
Government will identify banned goods
It further stated that the Central Government may, after considering the findings of the investigation conducted by the Director General of Foreign Trade or any other appropriate material, from time to time, by notification, specify the items whose import will be restricted under this provision. The procedure for conducting such investigation will be prescribed in the Handbook of Procedures, 2023.
Includes definition of ‘forced labour’
Along with the new provision, the government has also inserted paragraph 11.64 under Chapter 11 (Definitions) of the Foreign Trade Policy, 2023, which provides a formal definition of “forced labour”. According to the notification, “‘Forced labour’ means every work or service exacted from any person under threat of any penalty for which that person has not voluntarily offered himself, as defined under the ILO Forced Labor Convention, 1930 (No. 29).”
Policy framework will be strengthened
The notification said that this amendment strengthens the foreign trade policy framework to restrict imports of goods produced through forced labor by empowering the Central Government to prohibit such imports through official notification.
Explaining the effect of the decision, the notification said, “This notification inserts paragraph 2.20B in the FTP, 2023, so as to empower the Central Government to, by notification, prohibit, wholly or partly, the import of goods produced or manufactured through the use of forced labour.” It further said that this amendment also incorporates the definition of “forced labour” in accordance with the ILO Forced Labor Convention, 1930 (No. 29), thereby strengthening the policy framework to prohibit imports involving forced labour. (ANI)
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