Prohibition on Import of Goods Produced Using Forced Labour under FTP 2023: New Para 2.20B Introduced

The Government of India has strengthened its import policy framework by amending the Foreign Trade Policy (FTP) 2023 to prohibit the import of goods produced or manufactured using forced labour. Through a new notification issued under the Foreign Trade (Development & Regulation) Act, 1992, the Government has inserted Paragraph 2.20B and introduced Paragraph 11.64 defining “Forced Labour.”

The amendment empowers the Central Government to prohibit the import of specific goods found to be produced wholly or partly through forced labour. The provisions will come into force 30 days after the publication of the notification in the Official Gazette.

This move aligns India’s foreign trade policy with internationally accepted labour standards and provides a legal framework to restrict imports associated with forced labour.

What Has Changed in FTP 2023?

The notification introduces two important amendments:

  • Insertion of Paragraph 2.20B under the Foreign Trade Policy, 2023.
  • Insertion of Paragraph 11.64 under Chapter 11 defining “Forced Labour.”

These provisions create a dedicated legal framework for restricting imports linked to forced labour.

New Paragraph 2.20B – Prohibition on Import of Goods Produced Using Forced Labour

The newly inserted Paragraph 2.20B provides that:

The import of goods produced or manufactured, wholly or partly, through the use of forced labour is prohibited.

The Central Government has also been empowered to notify specific goods whose imports will be prohibited based on:

  • Findings of an enquiry;
  • Other material considered appropriate by the Government.

This enables targeted restrictions where credible evidence indicates the use of forced labour in manufacturing or production.

DGFT to Conduct Enquiries

The notification authorizes the Director General of Foreign Trade (DGFT) to conduct enquiries into allegations relating to the use of forced labour.

The detailed procedure for such enquiries will be prescribed in the Handbook of Procedures (HBP) 2023.

This provides a structured mechanism before restrictions are imposed on identified goods.

Definition of "Forced Labour" Added in FTP

A new Paragraph 11.64 has been inserted in Chapter 11 of FTP 2023.

According to the amendment:

“Forced Labour” means all work or service exacted from any person under the menace of any penalty and for which the person has not offered himself voluntarily.

The definition has been adopted from the:

  • ILO Forced Labour Convention, 1930 (Convention No. 29)

This ensures consistency with internationally recognized labour standards.

Powers of the Central Government

Following this amendment, the Central Government may:

  • Notify goods whose import is prohibited due to forced labour concerns.
  • Rely on enquiry findings or other relevant material.
  • Restrict imports either wholly or partially connected with forced labour.
  • Update the list of prohibited goods through future notifications.

The amendment itself does not prohibit all imports. Instead, it establishes the legal authority to prohibit notified goods linked to forced labour.

Effective Date

The provisions inserted through this notification will become effective:

30 days after the date of publication in the Official Gazette.

Importers should monitor future notifications issued under Paragraph 2.20B to determine whether any products are subsequently notified for import prohibition.

Key Highlights

Particular       Details
Policy Amended                      Foreign Trade Policy (FTP) 2023
New ProvisionParagraph 2.20B
Definition AddedParagraph 11.64
ObjectiveProhibit import of goods produced using forced labour
Enquiry AuthorityDirector General of Foreign Trade (DGFT)
Definition Based OnILO Forced Labour Convention, 1930 (No. 29)
Effective DateAfter expiry of 30 days from publication in Official Gazette
Note:
This notification does not immediately ban any specific product. It establishes the legal framework enabling the Central Government to prohibit imports of goods identified as being produced or manufactured wholly or partly through forced labour. Import restrictions will apply only to goods notified by the Government under Paragraph 2.20B.

Conclusion

The insertion of Paragraph 2.20B and Paragraph 11.64 into the Foreign Trade Policy 2023 marks an important policy development in India’s import regulation framework. By prohibiting the import of goods produced through forced labour and adopting the internationally accepted definition under the ILO Forced Labour Convention, 1930, the Government has introduced a mechanism to address labour-related concerns in global supply chains.

While the notification primarily creates the enabling legal framework, importers, manufacturers, traders, and supply chain participants should closely monitor future notifications issued by the Central Government identifying products that may become subject to import prohibition. Businesses engaged in international trade should also strengthen supply chain due diligence to ensure compliance with the evolving FTP requirements.

Notification Reference: DGFT
Notification No. 23. /2026-27
13/07/2026

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