Annexes to COM(2022)453 - Prohibiting products made with forced labour on the Union market - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2022)453 - Prohibiting products made with forced labour on the Union market. |
|---|---|
| document | COM(2022)453  |
| date | September 14, 2022 |
3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected
·Existing budget lines
In order of multiannual financial framework headings and budget lines.
| Heading of multiannual financial framework | Budget line | Type of expenditure | Contribution | |||
| Number | Diff./Non-diff. 44 | from EFTA countries 45 | from candidate countries 46 | from third countries | within the meaning of Article 21(2)(b) of the Financial Regulation | |
| 1 | 03.010101 - Support expenditure for the Single Market Programme | Non-diff. | YES | YES 47 | YES6 | NO |
| 1 | 03.020101 - Operation and development of the internal market of goods and services | Diff. | YES | TBD6 | TBD6 | NO |
| 1 | 03.020107 – Market Surveillance | Diff. | YES | TBD6 | TBD6 | NO |
| 6 | 14.200402 - External trade relations and Aid for Trade | Diff. | NO | NO | NO | NO |
3.2.Estimated financial impact of the proposal on appropriations
3.2.1.Summary of estimated impact on operational appropriations
– The proposal/initiative does not require the use of operational appropriations
– The proposal/initiative requires the use of operational appropriations, as explained below:
| Heading of multiannual financial framework | 1 | Single Market, Innovation and Digital |
EUR million (to three decimal places)
| DG: GROW | Year 2024 | Year 2025 | Year 2026 | Year 2027 | Following years | TOTAL | ||
| □ Operational appropriations | ||||||||
| Budget line 03.020101 - Operation and development of the internal market of goods and services | Commitments | (1a) | 0.602 | 0.612 | 0.425 | 0.375 | 0.000 | 2.014 |
| Payments | (2a) | 0.301 | 0.607 | 0.519 | 0.400 | 0.187 | 2.014 | |
| Budget line 03.020107 – Market Surveillance | Commitments | (1b) | 0.182 | 0.182 | 0.075 | 0.075 | 0.000 | 0.514 |
| Payments | (2b) | 0.050 | 0.134 | 0.155 | 0.100 | 0.075 | 0.514 | |
| Appropriations of an administrative nature financed from the envelope of specific programmes 48 | ||||||||
| Budget line 03.010101 - Support expenditure for the Single Market Programme | (3) | 0 | 0 | 0.062 | 0.062 | 0.000 | 0.124 | |
| TOTAL appropriations for DG GROW 49 | Commitments | =1a+1b +3 | 0.784 | 0.794 | 0.562 | 0.512 | 0.000 | 2.652 |
| Payments | =2a+2b +3 | 0.351 | 0.741 | 0.736 | 0.562 | 0.150 | 2.652 |
TOTAL operational appropriations | Commitments | (4) | 0.784 | 0.794 | 0.500 | 0.450 | 0.000 | 2.528 |
| Payments | (5) | 0.351 | 0.741 | 0.674 | 0.500 | 0.262 | 2.528 | |
| TOTAL appropriations of an administrative nature financed from the envelope for specific programmes | (6) | 0.000 | 0.000 | 0.062 | 0.062 | 0.000 | 0.124 | |
| TOTAL appropriations under HEADING 1 of the multiannual financial framework | Commitments | =4+ 6 | 0.784 | 0.794 | 0.562 | 0.512 | 0.000 | 2.652 |
| Payments | =5+ 6 | 0.351 | 0.741 | 0.736 | 0.562 | 0.262 | 2.652 |
| Heading of multiannual financial framework | 6 | Neighborhood and the World |
| DG: TRADE | Year 2024 | Year 2025 | Year 2026 | Year 2027 | Following years | TOTAL | ||
| □ Operational appropriations | ||||||||
| Budget line - 14.200402 - External trade relations and Aid for Trade 50 | Commitments | (1a) | 0,750 | 0,300 | 0,300 | 0,300 | 0.000 | 1.650 |
| Payments | (2a) | 0.200 | 0.600 | 0.300 | 0.300 | 0.250 | 1.650 | |
| Appropriations of an administrative nature financed from the envelope of specific programmes 51 | ||||||||
| Budget line | (3) | |||||||
| TOTAL appropriations for DG TRADE | Commitments | =1a+1b +3 | 0,750 | 0,300 | 0,300 | 0,300 | 0.000 | 1.650 |
| Payments | =2a+2b +3 | 0.200 | 0.600 | 0.300 | 0.300 | 0.250 | 1.650 |
□ TOTAL operational appropriations | Commitments | (4) | 0,750 | 0,300 | 0,300 | 0,300 | 0.000 | 1.650 |
| Payments | (5) | 0.200 | 0.600 | 0.300 | 0.300 | 0.250 | 1.650 | |
| □ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes | (6) | |||||||
| TOTAL appropriations under HEADING 6 of the multiannual financial framework | Commitments | =4+ 6 | 0,750 | 0,300 | 0,300 | 0,300 | 0.000 | 1.650 |
| Payments | =5+ 6 | 0.200 | 0.600 | 0.300 | 0.300 | 0.250 | 1.650 |
If more than one operational heading is affected by the proposal / initiative, repeat the section above:
| TOTAL operational appropriations (all operational headings) | Commitments | (4) | 1.534 | 1.094 | 0.800 | 0.750 | 0.000 | 4.178 |
| Payments | (5) | 0.551 | 1.341 | 0.974 | 0.800 | 0.512 | 4.178 | |
| TOTAL appropriations of an administrative nature financed from the envelope for specific programmes (all operational headings) | (6) | 0.000 | 0.000 | 0.062 | 0.062 | 0.000 | 0.124 | |
| TOTAL appropriations under HEADINGS 1 to 6 of the multiannual financial framework (Reference amount) | Commitments | =4+ 6 | 1.534 | 1.094 | 0.862 | 0.812 | 0.000 | 4.302 |
| Payments | =5+ 6 | 0.551 | 1.341 | 1.036 | 0.862 | 0.512 | 4.302 |
Heading of multiannual financial framework | 7 | ‘Administrative expenditure’ |
This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative Financial Statement (Annex V to the internal rules), which is uploaded to DECIDE for interservice consultation purposes.
EUR million (to three decimal places)
| Year 2024 | Year 2025 | Year 2026 | Year 2027 | TOTAL | |||
| DG: GROW | |||||||
| □ Human resources | 0.883 | 0.484 | 0.327 | 0.327 | 2.021 | ||
| □ Other administrative expenditure | |||||||
| TOTAL DG GROW | Appropriations | 0.883 | 0.484 | 0.327 | 0.327 | 2.021 |
| Year 2024 | Year 2025 | Year 2026 | Year 2027 | TOTAL | |||
| DG: TAXUD | |||||||
| Human resources | 0.242 | 0.242 | 0.242 | 0.242 | 0.968 | ||
| Other administrative expenditure | |||||||
| TOTAL DG TAXUD | Appropriations | 0.242 | 0.242 | 0.242 | 0.242 | 0.968 |
| Year 2024 | Year 2025 | Year 2026 | Year 2027 | TOTAL | |||
| DG: TRADE | |||||||
| □ Human resources | 0.484 | 0.399 | 0.399 | 0.399 | 1.681 | ||
| □ Other administrative expenditure | |||||||
| TOTAL DG TRADE | Appropriations | 0.484 | 0.399 | 0.399 | 0.399 | 1.681 |
| TOTAL appropriations under HEADING 7 of the multiannual financial framework | (Total commitments = Total payments) | 1.609 | 1.125 | 0.968 | 0.968 | 4.670 |
EUR million (to three decimal places)
| Year 2024 | Year 2025 | Year 2026 | Year 2027 | Following years | TOTAL | |||
| TOTAL appropriations under HEADINGS 1 to 7 of the multiannual financial framework | Commitments | 3.143 | 2.219 | 1.830 | 1.780 | 0.000 | 8.972 | |
| Payments | 2.160 | 2.466 | 2.004 | 1.830 | 0.512 | 8.972 |
3.2.2.Estimated output funded with operational appropriations
Commitment appropriations in EUR million (to three decimal places)
| Indicate objectives and outputs | Year N | Year N+1 | Year N+2 | Year N+3 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | TOTAL | ||||||||||||
| OUTPUTS | ||||||||||||||||||
| Type 52 | Average cost | No | Cost | No | Cost | No | Cost | No | Cost | No | Cost | No | Cost | No | Cost | Total No | Total cost | |
| SPECIFIC OBJECTIVE No 1 53 … | ||||||||||||||||||
| - Output | ||||||||||||||||||
| - Output | ||||||||||||||||||
| - Output | ||||||||||||||||||
| Subtotal for specific objective No 1 | ||||||||||||||||||
| SPECIFIC OBJECTIVE No 2 ... | ||||||||||||||||||
| - Output | ||||||||||||||||||
| Subtotal for specific objective No 2 | ||||||||||||||||||
| TOTALS |
3.2.3.Summary of estimated impact on administrative appropriations
– The proposal/initiative does not require the use of appropriations of an administrative nature
– The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:
EUR million (to three decimal places)
| Year 2024 | Year 2025 | Year 2026 | Year 2027 | TOTAL |
| HEADING 7 of the multiannual financial framework | |||||
| Human resources | 1.609 | 1.125 | 0.968 | 0.968 | 4.670 |
| Other administrative expenditure | |||||
| Subtotal HEADING 7 of the multiannual financial framework | 1.609 | 1.125 | 0.968 | 0.968 | 4.670 |
| Outside HEADING 7 54 of the multiannual financial framework | |||||
| Human resources | |||||
| Other expenditure of an administrative nature | 0.000 | 0.000 | 0.062 | 0.062 | 0.124 |
| Subtotal outside HEADING 7 of the multiannual financial framework | 0.000 | 0.000 | 0.062 | 0.062 | 0.124 |
| TOTAL | 1.609 | 1.125 | 1.030 | 1.030 | 4.794 |
The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.
3.2.3.1.Estimated requirements of human resources
– The proposal/initiative does not require the use of human resources.
– The proposal/initiative requires the use of human resources, as explained below:
Estimate to be expressed in full time equivalent units
| Year 2024 | Year 2025 | Year 2026 | Year 2027 | ||
| 20 01 02 01 (Headquarters and Commission’s Representation Offices) | 7 | 5 | 4 | 4 | |
| 20 01 02 03 (Delegations) | |||||
| 01 01 01 01 (Indirect research) | |||||
| 01 01 01 11 (Direct research) | |||||
| Other budget lines (specify) | |||||
| 20 02 01 (AC, END, INT from the ‘global envelope’) | 6 | 4 | 4 | 4 | |
| 20 02 03 (AC, AL, END, INT and JPD in the delegations) | |||||
| XX 01 xx yy zz 55 | - at Headquarters | ||||
| - in Delegations | |||||
| 01 01 01 02 (AC, END, INT - Indirect research) | |||||
| 01 01 01 12 (AC, END, INT - Direct research) | |||||
| Other budget lines (specify) | |||||
| TOTAL | 13 | 9 | 8 | 8 |
XX is the policy area or budget title concerned.
The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.
Description of tasks to be carried out:
| Officials and temporary staff | Officials and temporary staff will draft guidelines for the economic operators and competent authorities, set up meetings and coordinate with among the Commission services for the enforcement of the proposed regulation. They will also prepare the network meetings and ensure facilitation and cooperation between competent authorities, manage the ICSMS and website and make sure that queries of all stakeholders are answered when appropriate. |
| External staff | The External staff will provide additional assistance to Officials and temporary staff in the completion of their duties. In addition they will complete tasks that are not covered by the competencies of Officials and temporary staff, and other exceptional tasks that might arise, including specialised work. |
3.2.4.Compatibility with the current multiannual financial framework
The proposal/initiative:
– can be fully financed through redeployment within the relevant heading of the Multiannual Financial Framework (MFF).
Redeployment will be considered first within the Single Market Programme.
requires use of the unallocated margin under the relevant heading of the MFF and/or use of the special instruments as defined in the MFF Regulation.
Explain what is required, specifying the headings and budget lines concerned, the corresponding amounts, and the instruments proposed to be used.
– requires a revision of the MFF.
Explain what is required, specifying the headings and budget lines concerned and the corresponding amounts.
3.2.5.Third-party contributions
The proposal/initiative:
– does not provide for co-financing by third parties
– provides for the co-financing by third parties estimated below:
Appropriations in EUR million (to three decimal places)
| Year N 56 | Year N+1 | Year N+2 | Year N+3 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | Total | |||
| Specify the co-financing body | ||||||||
| TOTAL appropriations co-financed |
Estimated impact on revenue
– The proposal/initiative has no financial impact on revenue.
– The proposal/initiative has the following financial impact:
– on own resources
– on other revenue
–please indicate, if the revenue is assigned to expenditure lines
EUR million (to three decimal places)
| Budget revenue line: | Appropriations available for the current financial year | Impact of the proposal/initiative 57 | ||||||
| Year N | Year N+1 | Year N+2 | Year N+3 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | ||||
| Article …………. |
For assigned revenue, specify the budget expenditure line(s) affected.
Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information).
(1) .
(2) The 2021 Global Estimates of Modern Slavery, https://www.ilo.org/wcmsp5/groups/public/---ed_norm/---ipec/documents/publication/wcms_854733.pdf .
(3) State of the Union 2021 | European Commission (europa.eu) .
(4) Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee on decent work worldwide for a global just transition and a sustainable recovery , COM(2022) 66 final, 23.2.2022.
(5) Proposal for a directive of the European Parliament and of the Council on Corporate Sustainability Due Diligence and amending Directive (EU) 2019/1937, COM(2022) 71 final, 23.2.2022.
(6) Charter of Fundamental Rights of the European Union, OJ C 326, 26.10.2012, p. 391.
(7) Guidance on due diligence for EU businesses to address the risk of forced labour in their operations and supply chains .
(8) Directive 2011/36/EU of the European Parliament and of the Council of 5 April 2011 on preventing and combating trafficking in human beings and protecting its victims, and replacing Council Framework Decision 2002/629/JHA, OJ L 101, 15.4.2011, p.1.
(9) Directive 2009/52/EC of the European Parliament and of the Council of 18 June 2009 providing for minimum standards on sanctions and measures against employers of illegally staying third-country nationals, OJ L 168, 30.6.2009, p. 24.
(10) https://www.eeas.europa.eu/sites/default/files/eu_action_plan_on_human_rights_and_democracy_2020-2024.pdf
(11) For the list of sectoral guidance documents, see http://mneguidelines.oecd.org/sectors/.
(12) Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee and the Committee of the Regions ”EU strategy on the rights of the child”, COM(2021) 142 final, 24.3.2021.
(13) Effectively banning products produced, extracted or harvested with forced labour (europa.eu)
(14) https://www.ilo.org/global/topics/forced-labour/publications/WCMS_203832/lang--en/index.htm
(15) OJ C , , p. .
(16) https://www.ilo.org/global/standards/introduction-to-international-labour-standards/conventions-and-recommendations/lang--en/index.htm .
(17) The ILO definition of forced labour according to the ILO Forced Labour Convention, 1920 (No. 29), What is forced labour, modern slavery and human trafficking (Forced labour, modern slavery and human trafficking) (ilo.org) .
(18) The 2021 Global Estimates of Modern Slavery, https://www.ilo.org/wcmsp5/groups/public/---ed_norm/---ipec/documents/publication/wcms_854733.pdf .
(19) For instance paras. 89 and 102 in Siliadin v. France or para. 105 in Chowdury and Others v. Greece.
(20) https://www.ilo.org/wcmsp5/groups/public/---europe/---ro-geneva/---ilo-brussels/documents/publication/wcms_195135.pdf .
(21) Directive 2011/36/EU of the European Parliament and of the Council of 5 April 2011 on preventing and combating trafficking in human beings and protecting its victims, and replacing Council Framework Decision 2002/629/JHA, OJ L 101, 15.4.2011, p.1.
(22) Directive 20XX/XX/EU of the European Parliament and of the Council on Corporate Sustainability Due Diligence and amending Directive (EU) 2019/1937, OJ XX, XX.XX.20XX, p. XX.
(23) Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas, OJ L 130, 19.5.2017, p. 1.
(24) REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL concerning batteries and waste batteries, repealing Directive 2006/66/EC and amending Regulation (EU) No 20XX/XX, OJ XX, XX.XX.20XX, p. XX.
(25) Regulation of the European Parliament and of the Council on the making available on the Union market as well as export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No XXX/20XX, OJ XX, XX.XX.20XX, p. XX.
(26) Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups, OJ
(27) Directive 20XX/XX/EU of the European Parliament and of the Council amending Directive 2013/34/EU, Directive 2004/109/EC, Directive 2006/43/EC and Regulation (EU) No 537/2014, as regards corporate sustainability reporting, OJ XX, XX.XX.20XX, p. XX.
(28) Guidance on due diligence for EU businesses to address the risk of forced labour in their operations and supply chains .
(29) Communication 23 March 2022 from the Commission to the European Parliament, the Council and the European Economic and Social Committee on decent work worldwide for a global just transition and a sustainable recovery (COM(2022) 66 final).
(30) See Resolutions: MOTION FOR A RESOLUTION on a new trade instrument to ban products made by forced labour (europa.eu) , Texts adopted - Forced labour and the situation of the Uyghurs in the Xinjiang Uyghur Autonomous Region - Thursday, 17 December 2020 (europa.eu) , Texts adopted - Forced labour in the Linglong factory and environmental protests in Serbia - Thursday, 16 December 2021 (europa.eu) .
(31) What is forced labour, modern slavery and human trafficking (Forced labour, modern slavery and human trafficking) (ilo.org) and the ILO Conventions No. 29 and No. 105 referred therein.
(32) Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (recast) (OJ L 269, 10.10.2013, p. 1).
(33) Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code, OJ L 343, 29.12.2015, p. 558.
(34) Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation), OJ L 119, 4.5.2016, p. 1.
(35) Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC, OJ L 295, 21.11.2018, p. 39.
(36) Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers, OJ L 55, 28.2.2011, p. 13.
(37)
Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code, OJ L 343, 29.12.2015, p. 1.
(38) Regulation (EU) XX/20XX of the European Parliament and of the Council of ....... ,OJ, .......
(39) Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law, OJ L 305, 26.11.2019, p. 17.
(40) Established by the Regulation on the EU Single Window Environment for Customs (EU SWE-C).
(41) Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making (OJ L 123, 12.5.2016, p. 1)
(42) As referred to in Article 58(2)(a) or (b) of the Financial Regulation.
(43) Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx
(44) Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.
(45) EFTA: European Free Trade Association.
(46) Candidate countries and, where applicable, potential candidates from the Western Balkans.
(47) Negotiations for participation of candidate and third countries in the Single Market Programme ongoing
(48) Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.
(49)
The operational appropriations from DG GROW covers also DG TAXUD costs of EUR 1.5 million for the period 2024-2027 for the integration with the EU Customs Single Window Certificate Exchange system (EU CSW-CERTEX), as well as the Common Risk Management System (CRMS 2).
(50) This budget line will cover the costs of the development of the risk indicators and the database.
(51) Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.
(52) Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.).
(53) As described in point 1.4.2. ‘Specific objective(s)…’
(54) Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.
(55) Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines).
(56) Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the expected first year of implementation (for instance: 2021). The same for the following years.
(57) As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e., gross amounts after deduction of 20 % for collection costs.