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EU Forced Labor Regulation: 4 Things You Need To Know

1. Scope
All companies with physical supply chains, EU-based and international, of any size, are subject to the EU Forced Labor Regulation: they must perform due diligence to ensure that no products of forced labor are imported into the EU or placed on the market.

2. Enforcement
The EU will conduct investigations both independently and based on whistleblower reports. If an investigation uncovers forced labor at any stage of the supply chain, the EU may block the import or sale of affected products and/or fine the companies responsible for their placement on the EU market.

3. Reputational Risk
The EU can release documents to the public if an investigation into a company or a product results in a finding of forced labor. This presents a huge reputational risk that can tarnish a company’s name for decades.

4. How to Prepare
Similar to US Forced Labor regulations, companies are required to provide supply chain mapping and chain-of-custody traceability data to investigators proving that the end-to-end supply chain is free of forced labor - all within 30 days.

The EUFLR is the best reason to map your supply chain if you haven’t yet.
Find out how Sourcemap’s automated workflows build audit-ready documentation with the least upfront work of any solution.

Get in touch to learn more: https://hubs.ly/Q04clz0r0

Didn't have time to read the latest EU Forced Labor Regulation leaked document? For a limited time you can access Sourcemap's customer cheat sheet to understand the EUFLR in detail, answering such questions as:

What companies / industries are impacted by the EU Forced Labor Regulation?
Does the EU Forced Labor Regulation only apply to EU-based companies?
Are there scope exclusions for companies under a certain size or below a certain revenue threshold?
Does the EU Forced Labor Regulation explicitly require supply chain mapping?
How is the EU Forced Labor Regulation different from the US Forced Labor Ban?
Are there financial penalties for non-compliance with the EU Forced Labor Regulation?

And more. Find out here:
https://hubs.ly/Q04bbgv_0

EU Forced Labor Regulation Cheat Sheet As we prepare for the finalized EUFLR guidelines to be published this June, our policy analysts have prepared a cheat sheet based on the draft guidance currently circulating in Brussels.