Germany's forest owners and wood industry are challenging parts of the country's proposed legislation for implementing the EU Deforestation Regulation (EUDR), warning that companies could face substantial fines and restrictions on selling their products over administrative violations.<\/p>\n
The criticism comes as Berlin moves to simplify compliance requirements for forest owners and smaller businesses. Industry associations have welcomed the government's efforts to reduce paperwork but argue that the proposed enforcement rules remain too severe, particularly for companies dealing with extensive documentation and traceability requirements.<\/p>\n
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The German cabinet approved a draft administrative regulation on October 8 intended to simplify and standardise the implementation of the EUDR across the country's federal states. The measures, presented by Agriculture Minister Alois Rainer, are scheduled to take effect on December 30, 2026.<\/p>\n
The proposal would allow eligible forest owners to use property addresses instead of detailed geolocation data when submitting simplified declarations. Recognised forestry associations would also be permitted to submit declarations on behalf of members whose timber they market.<\/p>\n
Certain medium-sized and larger businesses could qualify for simplified procedures if their EUDR-related activities meet the applicable eligibility criteria. These are linked to thresholds of \u20ac10 million in turnover, \u20ac5 million in total assets and 50 employees.<\/p>\n
The measures are intended to reduce the administrative burden on forest owners, particularly those managing smaller properties or selling timber through forestry associations.<\/p>\n
However, the Hauptverband der Deutschen Holzindustrie (HDH), Germany's main wood industry association, argues that the proposed national enforcement legislation could still expose companies to disproportionate penalties.<\/p>\n
Industry challenges fines and marketing restrictions<\/strong><\/p>\n One of the main concerns is the treatment of administrative errors.<\/p>\n Under the draft legislation, negligent breaches of certain recordkeeping, registration and documentation obligations could lead to substantial fines. For companies with annual turnover exceeding \u20ac500,000, the relevant provisions could allow penalties of up to 4% of annual turnover.<\/p>\n The HDH wants fines for these administrative offences to be limited to intentional violations. It also argues that companies making mistakes for the first time should be given an opportunity to correct them before financial penalties are imposed.<\/p>\n The association is particularly concerned about the consequences of relatively small fines.<\/p>\n A final fine of \u20ac5,000 could trigger an entry in Germany's Competition Register, potentially affecting a company's eligibility for public contracts.<\/p>\n Under the proposed national rules, a single final fine of \u20ac10,000 or more could also result in a temporary prohibition on marketing relevant products.<\/p>\n The HDH argues that such restrictions should be reserved for serious or repeated violations rather than isolated documentation failures.<\/p>\n The draft also contains criminal provisions allowing prison sentences of up to three years for certain offences involving gross negligence. Germany's Bundesrat has proposed reducing the maximum sentence to one year.<\/p>\n For wood processors and manufacturers, the dispute concerns not only the size of potential fines but also the commercial consequences of enforcement measures. A temporary marketing prohibition could affect deliveries even where the underlying violation relates to administrative compliance.<\/p>\n The HDH has also called for safeguards to ensure that technical failures of the EU's electronic information system do not result in penalties for companies.<\/p>\n Forest owners want legal guarantees<\/strong><\/p>\n Forest owners have raised a separate concern about the legal status of the proposed simplifications.<\/p>\n AGDW \u2013 Die Waldeigent\u00fcmer, the association representing German forest owners, welcomed the cabinet's administrative proposal but wants the main exemptions written directly into the national implementing law.<\/p>\n AGDW President Andreas Bitter has called on the Bundestag to clarify that recognised forestry associations can submit simplified declarations covering timber marketed on behalf of their members.<\/p>\n The association also wants the use of property addresses instead of geolocation data explicitly permitted in legislation.<\/p>\n Another demand concerns duplicate reporting. AGDW argues that information already available to authorities or businesses should not have to be submitted repeatedly under the EUDR.<\/p>\n The distinction between an administrative regulation and statutory provisions matters to the associations because the former governs implementation by public authorities, while the latter provides a more direct legal basis for businesses and forest owners.<\/p>\n Germany's federal structure adds another consideration. Although the EUDR is an EU regulation, national authorities are responsible for enforcement, and the government wants the administrative rules to produce a consistent approach across the federal states.<\/p>\n Simplification and enforcement remain separate issues<\/strong><\/p>\n Agriculture Minister Rainer has argued that Germany's existing forest management practices justify a less burdensome approach to compliance. He has described the country as effectively presenting negligible deforestation risk and has called for unnecessary administrative requirements to be reduced.<\/p>\n The government's latest proposal addresses some of the reporting concerns raised by forest owners, particularly the use of geolocation data and the role of forestry associations.<\/p>\n It does not, however, resolve the industry's objections to the proposed national sanctions.<\/p>\n For the HDH, the central issue is whether administrative mistakes should carry penalties comparable in severity to those intended for more serious violations.<\/p>\n The association wants the Bundestag to revise the enforcement provisions, limit certain fines to intentional breaches and introduce corrective measures for first-time offences.<\/p>\n AGDW, meanwhile, is seeking stronger legal guarantees for the simplified procedures announced by the government.<\/p>\n The next stage will be the parliamentary consideration of Germany's EUDR implementing legislation. Until the final provisions are adopted, the scope of the administrative exemptions and the sanctions available to enforcement authorities remain subject to change.<\/p>","protected":false},"excerpt":{"rendered":" Germany’s forest owners and wood industry are challenging parts of the country’s proposed legislation for implementing the EU Deforestation Regulation (EUDR), warning that companies could face substantial fines and restrictions on selling their products over administrative violations. The criticism comes … Continue reading