The Directorate General of Foreign Trade (DGFT) has issued a notification inserting a new provision into the FTP, 2023, empowering the Central Government to prohibit, through separate notifications, the import of goods found to have been produced wholly or partly using forced labour. The new rules will come into force 30 days after their publication in the Official Gazette.
The move comes as India is among several countries facing a proposed additional US tariff of up to 12.5% under a US investigation into whether trading partners have adequate measures to prevent imports made using forced labour. At present, most Indian exports to the US are subject to a 10% tariff, while Washington is also conducting separate investigations related to excess industrial capacity.
Under the newly inserted Paragraph 2.20B, imports of goods produced or manufactured, wholly or in part, through the use of forced labour are prohibited. The Central Government may notify specific goods for import restrictions based on the findings of an inquiry or other material it considers appropriate.
The notification provides that the DGFT will conduct inquiries into whether imported goods were made using forced labour. If evidence is found, it can recommend that the government prohibit imports of those products, with the inquiry process to follow the procedures prescribed in the Handbook of Procedures, 2023.
The notification also inserts a new definition of “forced labour” under Chapter 11 of the FTP, adopting the definition contained in the International Labour Organization’s (ILO) Forced Labour Convention, 1930 (No. 29).
According to the notification, forced labour means “all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily.”The DGFT said the amendments strengthen India’s trade policy framework by enabling the government to restrict imports linked to forced labour while bringing the FTP in line with the ILO convention. The notification was issued under the Foreign Trade (Development and Regulation) Act, 1992, with the approval of the Minister of Commerce and Industry.