S-211

BILL S-211, AN ACT TO ENACT THE FIGHTING AGAINST FORCED LABOUR AND CHILD LABOUR IN SUPPLY CHAINS ACT AND TO AMEND THE CUSTOMS TARIFF





JCorp



JCorp Inc.: November 1, 2022 and ending October 31, 2023

137699 CANADA Inc.: December 1, 2023 to November 30, 2023




1-INTRODUCTION

The Fighting Against Forced Labour and Child Labour in Supply Chains Act (the "Act") requires that businesses state the actions they have taken during the fiscal year to prevent and reduce the risk of forced labour or child labour within their operations and supply chain.

This is a joint report for J Corp Inc. and 137699 CANADA Inc. (collectively, "JCorp" or the "Companies"). This report refers to the 2023 fiscal year end, being the period November 1, 2022 and ending October 31, 2023 for JCorp Inc. and December 1, 2022 to November 30, 2023 for 137699 Canada Inc., and describes the steps taken by the Companies in 2023. 137699 Canada Inc., as a holding company, substantially relies upon the efforts of JCorp inc., as the operating business, for the purposes of managing and monitoring its supply chain operations and compliance programs.


This Report constitutes the first report prepared by the Corporation pursuant to Canada's new Fighting Against Forced Labour and Child Labour in Supply Chains Act.


JCorp is committed to upholding the rights and well-being of children and ensuring compliance with all applicable laws and regulations regarding child labor. This report outlines our commitment to prohibiting child labor in our operations and supply chain.


  • STRUCTURE, ACTIVITIES AND SUPPLY CHAIN


    • STRUCTURE

    JCorp Inc. is a corporation organized under the laws of Quebec and 137699 Canada Inc. is incorporated under the law of Canada. The head office address of both entities is located at 95 Gince Street, St-Laurent Oc, H4N 1J7.


    ACTIVITIES

    JCorp is a Canadian-based company that is a valued supplier of apparel, accessories and other merchandise, providing customers with fashionable, yet quality items. Its emphasis is on branding, licensing and production of apparel

    and merchandise for children, men and women, as well as private labelling, which includes celebrity endorsed products.

    From design and manufacturing to sales, JCorp handles virtually every aspect across the supply chain, with a direct focus on pleasing its customers from start to finish. The company meets with its customers frequently to ensure ultimate satisfaction. It effectively spots and reacts to changing market trends. With advanced technology and design expertise, JCorp is able to provide the mass market and chain stores with current products in a timely fashion.

    The on-time deliveries, consistent product quality, fast reaction to fashion trends and inventory demands have afforded JCorp its strong retailer relationships, an impressive portfolio of customers and a reputation of being a leading North American supplier in its class.



    SUPPLY CHAIN OVERVIEW AND PARTS THAT CARRY A RISK OF FORCED LABOUR AND CHILD LABOUR

    The group has multiple subcontractors mainly in China, Bangladesh, India, and Vietnam. We understand that certain of our suppliers operate in regions that have inherent risks of child labour and forced labour practices and that the supply chain of our suppliers may extend into regions potentially facing greater risk of forced labour and child labour.


    Most of these materials and components are provided by suppliers with which JCorp has long-term relationships for the delivery of materials and components. Within its supply chain, JCorp strives to have relationships with large, reputable, and ethical suppliers.




  • COMPANY POLICIES AND PROCESSES IN RELATION TO FORCED AND CHILD LABOUR


    1. Third party inspections

    JCorp deals with major and well-established retailers than have high standards regarding ethics and human rights as well as sound sustainability management programs. Our major vendors have a list of preapproved suppliers that comply to



    their standards.

    1. Ethical declaration

    An ethical declaration is signed by our major suppliers. It is a condition of doing business with the Company that the ethical sourcing standards are followed without exception. Factory is aware the Companies have adopted a zero tolerance towards the ethical standards not being followed in their entirety. Should the Supplier be found to be in violation of this contract, The Companies shall have the right to immediately terminate the contract and all outstanding orders shall be deemed to be cancelled.

    All labor must be voluntary. Slave, child, underage, farced, bonded, or indentured labor will not be tolerated Suppliers shall not engage in or support trafficking in human beings. Suppliers shall certify that they have implemented procedures to manage the materials, including all labor related processes, incorporated into their products to ensure they comply with laws on slavery and human trafficking. Workers must be allowed to maintain control over their identity documents.


    Suppliers are prohibited from employing any workers under the age of 14 regardless of national and/or local laws or regulations.

    Underage workers: Suppliers are prohibited from employing workers below the minimum working age as defined by legal regulations. Ali workers must be at or above the legal minimum age at time of employment. If there is a conflict in permissible age between laws, the supplier must conform to the one with a higher minimum age.

    Suppliers must have effective age-verification procedures. The personnel (personal) file of each worker must contain copies of identification documents (such as birth certificates and national ID cards) as proof of age.

    With regards to forced Labor:

    • All forms of forced and slave labor are prohibited.
    • Suppliers shall not engage in or support trafficking in human beings.
    • Suppliers must verify that their product supply chains address risks of slavery and human trafficking.




    1. On site-quality control

    JCorp has local employees and/or representatives that visit our supplier's factories. During our past visits, we have not identified any occurrences of child labour or forced labour. If we were to identify any suppliers not in compliance with our policies, we would end our business relationship and replace them with ethical vendors.

  • REMEDIATION


    • Throughout our various interactions, we have not encountered issues suggesting the existence of child or forced labour. As a result, there have not been any occurrences requiring taking measures to remediate forced labour or child labour.

    As such, we have not been required to undertake measures to remediate the loss of income for vulnerable families that results from any measure taken to eliminate the use of forced labour or child labour in supply chain related activities.


  • TRAINING PROVIDED TO EMPLOYEES ON FORCED LABOUR AND CHILD LABOUR

    •

    During the reporting period, we did not provide formal employee training with regards to forced labour and child labour issues. We recognize that potential risk of forced labour and child labour resides may reside in our supply chain and we are committed to ensuring that we engage with supplier that have high ethical standards and that do not engage in such practices. As a result, we will provide such training to employees on this key topic in the near future.


  • EFFECTIVENESS ASSESSMENTS TO ENSURE FORCED AND CHILD LABOUR ARE NOT BEING USED IN OUR OPERATIONS AND SUPPLY CHAIN



    • JCorp is committed to conducting its business operations ethically, responsibly, and in compliance with all relevant laws and regulations. We recognize the importance of protecting the rights and well-being of children and will take proactive measures to prevent and address child labor in our operations and supply chain.

    Due to insufficient and/or our lack of formal practices and timeliness, we acknowledge that we have not been fully effective during the reference period in ensuring that forced labour and child labour are not being used in our supply chains as per the    1

    guidelines. We are, however, committed to formalize our practices and will implement initiatives in the near future.


  • APPROVAL AND ATTESTATION

    •

    In accordance with the requirements of the Act, and in particular section 11 thereof, I attest that I have reviewed the information contained in the report for the entity listed above. Based on my knowledge, and having exercised reasonable diligence, I attest that the information in the report is true, accurate and complete in all material respects for the purposes of the Act, for the reporting year listed above.


    --·

    Marvin Gurman

    President

    I have the authority to bind JCorp Inc. and 137699 CANADA Inc. May 31, 2024

    English