Forced Labour Bans explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Forced labour bans operate at the border. Under Section 307 of the US Tariff Act, 1930, Customs and Border Protection bars imports of goods mined, produced or manufactured wholly or in part by forced labour, including child labour — on a complaint from any person with reason to believe it, followed by investigation.
Why this sits in an export handbook
Because it is the compliance failure that stops a consignment at the port of destination with no remedy. The handbook's own risk chapter records leather garment consignments from India "rejected by the EU markets as the products were deemed to be manufactured in factories employing Child Labour." Insurance does not answer it, a letter of credit does not answer it, and a certificate of origin does not answer it. Only the underlying facts do.
SDG-8 "aims to promote inclusive and sustainable economic growth, full and productive employment and decent work for all." As it relates to children, Target 8.7 aims "to eliminate the worst form of child labor, including the recruitment and use of child soldiers, as well as to end all forms of child labor by 2025."
UNICEF is the co-custodian with the ILO for global monitoring of indicator 8.7.1 — the proportion and number of children aged 5 to 17 engaged in child labour, by sex and age.
The scale behind forced labour bans
The handbook cites two data points:
- The ILO estimated that in 2021, on a given day, 27.60 million people were forced into labour against their will. "Products of that forced labor enter global supply chains, competing against products made with properly employed un-forced labor."
- A 2024 ILO and UNICEF report submits that 138 million children are still found in child labour worldwide, 54 million engaged in hazardous work. Although engagement has declined, "the pace of progress is far too slow." The highest number is engaged in agriculture, followed by household domestic work, construction, manufacturing and mining.
The handbook says of the 27.60 million figure that "almost 90% of them are Children and Women." The ILO's forced labour estimate expressly counts adult men as a substantial share of the total, and a 90% women-and-children share of that same total is not supportable on the figure as printed. The sentence is reproduced without correction and no replacement percentage is asserted; take the composition from the ILO's own Global Estimates publication.
Forced labour bans under Section 307 of the US Tariff Act, 1930
"Under Section 307 of the Tariff Act of 1930, the US Customs and Border Protection (CBP) bans imports of goods wherein 'Forced Labour' has been used."
The handbook records the legislative attention it has received: "In recent decades, the Congress, through various legislations and oversight has increased its efforts to keep these products out of the US market. Since 2015, many of those efforts have been directed at amending and overseeing the enforcement of Section 307 of the Tariff Act, 1930, 19 USC § 1307."
The prohibition's reach is the critical part for an Indian exporter: the section "prohibits products that are mined, produced or manufactured, wholly or in part, by forced labor, including child labor."
Forced labour bans under Section 307 do not require that the exporter used forced labour. They require only that forced labour went into the goods in part — which reaches every tier of the supply chain behind the exporter.
An exporter with impeccable factory practices whose input supplier, or that supplier's supplier, used forced labour has produced goods caught by the section. That is why the handbook's advice is directed at supply chain assessment, not at the exporter's own payroll, and why the BRSR value-chain indicator below matters commercially and not just for disclosure.
The definition
"Section 307 is modeled on ILO Forced Labor Convention 1930 (No. 29): 'All work or service which is exacted from any person under the menace of any penalty for its nonperformance and for which the worker does not offer himself voluntarily.'"
Two limbs: menace of a penalty, and absence of voluntary offer. Debt bondage, retention of identity documents and unpayable recruitment fees all satisfy both without anyone being physically confined.
How a case starts
"Any person who has reason to believe that any class of merchandise that is being, or is likely to be imported into USA has been produced by forced labor may communicate to the Commissioner of Customs and Border Protection (CBP). On receipt of such communication, the Commissioner initiates an investigation."
Note the standing: any person, on reason to believe, about goods likely to be imported. A competitor, an NGO or a former employee can trigger an investigation into goods that have not shipped yet.
The sectors under scrutiny
"In the 118th Congress some members held various hearings and proposed legislation focused on concerns over forced labor being used in China in certain specific sectors and supply chains, such as Sea Food, Critical Minerals, and Automotive Parts."
Assurance
"There are qualified Certified Social Compliance Auditors to conduct the Audit of these compliances under International Due Diligence Standards." This is the practical answer to a Section 307 exposure — documented, independent assessment of the chain, before a buyer or a border authority asks.
Indian law behind forced labour bans and child labour
"In India, the Child Labour is prohibited by law. The Child and Adolescent Labour (Prohibition and Regulation) Act 1986 prohibits:
- Employment of children below the age of 14 in all occupations; and
- Employment of adolescents aged 14 to 18 in hazardous industries."
"The Act was amended in 2016 to make offences cognizable and provide stricter penalties for employers." Cognizability is the operative change: it allows arrest and investigation without a magistrate's order, which materially raises the exposure of a management that treats the prohibition as a paper requirement.
The constitutional provisions
| Article | Provision |
|---|---|
| 21A | Right to education — the State shall provide free and compulsory education to all children of 6 to 14 years |
| 24 | Prohibition of employment of children in factories — no child below 14 shall be employed in any factory or mine, or engaged in any hazardous employment |
| 39 | The State shall direct policy towards securing that the health and strength of workers, and the tender age of children, are not abused, that citizens are not forced by economic necessity into avocations unsuited to their age or strength, and that children are given opportunities to develop in freedom and dignity, protected against exploitation and moral and material abandonment |
| 45 | Early childhood care and education for children below the age of 6 |
The handbook labels the two Article 39 propositions as clauses (a) and (b). The text quoted is that of Article 39(e) (health and strength of workers, tender age of children) and Article 39(f) (children given opportunities to develop in conditions of freedom and dignity). Clause (a) of Article 39 is the right to an adequate means of livelihood. The lettering is left as printed.
Where forced labour bans surface in BRSR
"Reporting on Child Labour form part of the BRSR":
- Point 6 — number of complaints;
- Point 9 — assessment for the year: percentage of plants and offices assessed, by the entity, by statutory authorities or by third parties;
- Leadership Indicators — details of assessment of value chain partners: percentage of value chain partners, by value of business done with such partners, that were assessed.
The third is the one that connects the disclosure to the forced labour bans above. A listed company disclosing what percentage of its value chain by value it has assessed is disclosing, in effect, how much of its Section 307 and EU due-diligence exposure it has actually looked at.
The caution list
The handbook closes with a direct instruction to members: "Our members should be cautious to check if any child labour exists particularly in the following industries:"
Mining · Garments · Carpets · Wool · Cashew · Jute · Artefacts · Potteries · Sericulture · Leather skinning · Leather garments and footwear manufacturing · Diamond cutting · Brass wares · Mechanised fishing · Food processing · Beverages · Packaging
Read that list against India's actual export basket and the overlap is substantial — carpets, garments, leather, gems and jewellery, cashew and processed food are all significant export lines. This is not a peripheral compliance topic for Indian exporters; it is a list of the sectors most exposed to forced labour bans at a buyer's border.
Common mistakes
- Auditing only the exporter's own premises when the prohibition reaches goods produced "wholly or in part" by forced labour.
- Assuming a complaint requires a buyer or a government — any person with reason to believe can trigger a CBP investigation.
- Treating the 2016 amendment as cosmetic; cognizable offences change the exposure.
- Employing adolescents aged 14-18 in hazardous processes on the view that only under-14s are protected.
- Reporting a BRSR value-chain assessment percentage that has never actually been performed.
- Operating in a listed high-risk sector with no social compliance audit on file.
Key Facts About Forced Labour Bans
- Applies in: All states across India, under the relevant central law.
- Mode: Mostly online via the official government portal.
- Typical timeline: Ranges from a few days to a few weeks depending on the case.
- Non-compliance: May attract penalties, interest or late fees.
- Expert help: TaxClue completes the entire process end to end for you.
What does Section 307 prohibit?
Under Section 307 of the Tariff Act, 1930 (19 USC 1307), US Customs and Border Protection bans imports of goods where forced labour has been used. The section prohibits products that are mined, produced or manufactured, wholly or in part, by forced labour, including child labour.
How is forced labour defined?
Section 307 is modelled on the ILO Forced Labour Convention, 1930 (No. 29): "All work or service which is exacted from any person under the menace of any penalty for its nonperformance and for which the worker does not offer himself voluntarily."
Over 90% of compliance penalties in India arise from missed due dates — timely handling can save businesses thousands of rupees each year.
Forced Labour Bans: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.