Unlike Quality Control Orders (QCOs), which focus on product standards, or anti-dumping duties (ADDs), which address unfair pricing, the new provision targets the conditions under which imported goods are produced. It creates a fresh legal basis for restricting imports on labour compliance grounds rather than on quality, safety, or pricing considerations.
For the textile and apparel industry, the amendment is significant because textiles are among the sectors receiving heightened scrutiny globally over labour practices, particularly across cotton, yarn, fabric, and garment supply chains. However, the notification does not identify any products, countries or regions that will be covered. Instead, the Central Government may prohibit imports of specific goods through subsequent notifications after considering the findings of an enquiry conducted by the DGFT or other relevant material. The detailed enquiry procedure will be prescribed separately under the Handbook of Procedures ****.
The move follows a broader international shift towards linking market access with labour standards. The United States enforces the Uyghur Forced Labor Prevention Act (UFLPA), under which imports suspected of being made with forced labour can be detained or denied entry. The European Union has also adopted its Forced Labour Regulation, while Canada and the UK have strengthened measures addressing forced labour risks in supply chains.
