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Bill C-423

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First Session, Forty-second Parliament,
64-65-66-67 Elizabeth II, 2015-2016-2017-2018
HOUSE OF COMMONS OF CANADA
BILL C-423
An Act respecting the fight against certain forms of modern slavery through the imposition of certain measures and amending the Customs Tariff
FIRST READING, December 13, 2018
Mr. McKay
421537


SUMMARY
This enactment enacts the Modern Slavery Act, which imposes an obligation on certain entities to report on the measures taken to prevent and reduce the risk that forced labour or child labour is used at any step in the manufacture, production, growing, extraction or processing of goods in Canada or elsewhere by the entity or in the manufacture, production, growing, extraction or processing of goods imported into Canada by the entity. The Act provides for an inspection regime and gives the Minister the power to require an entity to provide certain information.
This enactment also amends the Customs Tariff to allow for a prohibition on importation of goods manufactured or produced wholly or in part by forced labour or child labour.
Available on the House of Commons website at the following address:
www.ourcommons.ca


1st Session, 42nd Parliament,
64-65-66-67 Elizabeth II, 2015-2016-2017-2018
HOUSE OF COMMONS OF CANADA
BILL C-423
An Act respecting the fight against certain forms of modern slavery through the imposition of certain measures and amending the Customs Tariff
Preamble
Whereas forced labour and child labour are forms of modern slavery;
Whereas Canada, as a member of the International Labour Organization, is committed to contributing to the fight against modern slavery;
And whereas Parliament considers that it is essential to contribute to the fight against modern slavery through the imposition of reporting obligations on entities involved in the manufacture, production, growing, extraction or processing of goods in Canada or elsewhere or in the importation of goods manufactured, produced, grown, extracted or processed outside Canada;
Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Short Title

Short title
1This Act may be cited as the Modern Slavery Act.

Interpretation and General Provisions

Definitions
2(1)The following definitions apply in this Act.
child labour means labour or service provided, or offered to be provided, in Canada by children under circumstances that are contrary to the laws applicable in Canada or provided or offered outside Canada under circumstances that, if provided or offered in Canada, would be contrary to the laws applicable in Canada. (travail des enfants)
entity means a corporation or a trust, partnership or other unincorporated organization that
(a)is listed on a stock exchange in Canada;
(b)has a place of business in Canada, does business in Canada or has assets in Canada and that, based on its consolidated financial statements, meets at least two of the following conditions for at least one of its two most recent financial years:
(i)it has at least $20 million in assets,
(ii)it has generated at least $40 million in revenue,
(iii)it employs an average of at least 250 employees; or
(c)is prescribed by regulations. (entité)
forced labour means labour or service provided, or offered to be provided, by a person under circumstances that could reasonably be expected to cause the person to believe that their safety or the safety of a person known to them would be threatened if they failed to provide, or offer to provide, the labour or service. (travail forcé)
Minister means the Minister designated under subsection (2), or, if none is designated, the Minister of Public Safety and Emergency Preparedness. (ministre)
Designation of Minister
(2)The Governor in Council may, by order, designate any federal minister to be the Minister referred to in this Act.
Control
3(1)Subject to the regulations, an entity is controlled by another entity if it is controlled by the other entity, dir­ectly or indirectly, in any manner.
Deemed control
(2)An entity that controls another entity is deemed to control any entity that is controlled, or deemed to be controlled, by the other entity.

Purpose of Act

Purpose
4The purpose of this Act is to implement Canada’s international commitment to contribute to the fight against modern slavery through the imposition of reporting obligations on entities involved in the manufacture, production, growing, extraction or processing of goods in Canada or elsewhere or in the importation of goods manu­factured, produced, grown, extracted or processed outside Canada.

Her Majesty

Binding on Her Majesty
5This Act is binding on Her Majesty in right of Canada or a province.

Application

Entities
6This Act applies to any entity
(a)that manufactures, produces, grows, extracts, processes or sells goods in Canada or elsewhere;
(b)that imports into Canada goods manufactured, produced, grown, extracted or processed outside Canada; or
(c)that controls an entity described in paragraph (a) or (b).

Reporting Obligation

Annual report
7(1)Every entity must, on or before May 31 of every year, provide the Minister with a report that sets out the steps the entity has taken during the previous year to prevent and reduce the risk that forced labour or child labour is used at any step of the manufacture, production, growing, extraction or processing of goods in Canada or elsewhere by the entity or of goods imported into Canada by the entity.
Supplementary information
(2)In the report, the entity must also include information respecting
(a)the entity’s structure and the goods that it manufactures, produces, grows, extracts or processes in Canada or elsewhere or that it imports into Canada;
(b)the entity’s policies in relation to forced labour and child labour;
(c)the entity’s activities that carry a risk of forced labour or child labour being used and the steps it has taken to assess and manage that risk;
(d)any measures taken to remediate any forced labour or child labour; and
(e)the training provided to employees on forced labour and child labour.
Attestation
(3)The report is to include an attestation made by a dir­ector or officer of the entity that the information in the report is true, accurate and complete.
Form and manner
(4)The Minister may specify, in writing, the form and manner in which a report is to be provided. The Minister is to make those requirements available to the public in the manner that he or she considers appropriate.
Accessibility of report
8An entity must, on providing the Minister with a report in accordance with section 7, make the report available to the public, including by posting it in a prominent place on its website.

Administration and Enforcement

Designation
9The Minister may designate persons or classes of persons for the purposes of the administration and enforcement of this Act.

Designated Person’s Powers

Entry into a place
10(1)A designated person may, for a purpose related to verifying compliance with this Act, enter any place in which the person has reasonable grounds to believe there is anything to which this Act applies or any document relating to the administration of this Act.
Powers on entry
(2)The designated person may, for the purpose referred to in subsection (1),
(a)examine anything in the place, including any document;
(b)use any means of communication in the place or cause it to be used;
(c)use any computer system in the place, or cause it to be used, to exam­ine data contained in or available to it, or reproduce the data, or cause it to be reproduced, in the form of a printout or other intelligible output and remove any printout or output for examination or copying;
(d)prepare a document, or cause one to be prepared, based on the data;
(e)use any copying equipment in the place, or cause it to be used;
(f)take photographs or make recordings or sketches of anything in the place;
(g)direct any person to put any equipment in the place into operation or to cease operating it;
(h)prohibit or limit access to all or part of the place or to anything in the place; and
(i)remove anything from the place for the purpose of examination.
Persons accompanying designated person
(3)The designated person may be accompanied by any person that they believe is necessary to help them exercise their powers or perform their duties or functions under this section.
Assistance
(4)The owner or person in charge of the place and every person in the place must give all assistance that is reasonably required to enable the designated person to exercise their powers or perform their duties or functions under this section and is to provide any documents or information, and access to any data, that is reasonably required for that purpose.
Warrant to enter dwelling-house
11(1)If the place referred to in subsection 10(1) is a dwelling-house, the designated person may enter it without the occupant’s consent only under the authority of a warrant issued under subsection (2).
Authority to issue warrant
(2)On ex parte application, a justice of the peace may issue a warrant authorizing the designated person to enter a dwelling-house, subject to any conditions specified in the warrant, if the justice is satisfied by information on oath that
(a)the dwelling-house is a place referred to in subsection 10(1);
(b)entry to the dwelling-house is necessary for a purpose related to verifying compliance with this Act; and
(c)entry was refused by the occupant or there are reasonable grounds to believe that entry will be refused by, or that consent to entry cannot be obtained from, the occupant.
Obstruction
12A person must not obstruct or hinder a person who is exercising powers or performing duties or functions under this Act.

Order — Corrective Measures

Minister’s power
13If, on the basis of information obtained under section 11, the Minister is of the opinion that an entity is not in compliance with section 7 or 8, the Minister may, by order, require the entity to take measures that he or she considers to be necessary to ensure compliance with those provisions.

Regulations

Regulations
14The Governor in Council may make regulations for carrying out the purposes and provisions of this Act, including regulations
(a)prescribing other entities for the purpose of the definition entity;
(b)respecting the circumstances in which this Act does not apply to entities;
(c)respecting the circumstances in which an entity is controlled by another entity; and
(d)prescribing anything that may, by this Act, be prescribed.

Offences and Punishment

Offence
15(1)Every person or entity that fails to comply with section 7 or 8, subsection 10(4) or an order made under section 13, or that contravenes section 12, is guilty of an offence punishable on summary conviction and liable to a fine of not more than $250,000.
False or misleading statement or information
(2)Every person or entity that knowingly makes any false or misleading statement or knowingly provides false or misleading information to the Minister or a person designated under section 9 is guilty of an offence punishable on summary conviction and liable to a fine of not more than $250,000.
Liability of officers, directors, etc.
16If a person or an entity commits an offence under this Act, any officer, director or agent or mandatary of the person or entity who directed, authorized, assented to, acquiesced in or participated in its commission is a party to and guilty of the offence and liable on conviction to the punishment provided for the offence, whether or not the person or entity has been prosecuted or convicted.
Offence by employee or agent or mandatary
17In a prosecution for an offence under subsection 15(1), it is sufficient proof of the offence to establish that it was committed by an employee or agent or mandatary of the accused, whether or not the employee or agent or mandatary is identified or has been prosecuted for the offence, unless the accused establishes that they exercised due diligence to prevent its commission.

Report to Parliament

Annual report
18(1)The Minister must cause to be tabled in each House of Parliament, on or before September 30 of each year or, if a House is not then sitting, on any of the next thirty days on which that House is sitting, a report containing a general summary of entities’ activities for the previous year that carry a risk of forced labour or child labour being used and the steps that entities have taken to assess and manage that risk and, if applicable, measures taken by entities to remediate any forced labour or child labour.
Publication
(2)The Minister must publish the report in a prominent place on the Department of Public Safety and Emergency Preparedness’ website within 30 days after it is tabled in both Houses of Parliament.
1997, c. 36

Customs Tariff

19Paragraph 132(1)‍(m) of the Customs Tariff is amended by adding the following after subparagraph (i):
(i.‍1)amending that tariff item to exclude goods manufactured or produced wholly or in part by forced labour or child labour from that tariff item, or prescribing the conditions under which such goods may be excluded from that tariff item,

Coming into Force

January 1, 2020
20This Act comes into force on January 1, 2020.
Published under authority of the Speaker of the House of Commons

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