Germany's timber and forestry sectors have stepped up their criticism of the national legislation that will govern enforcement of the EU Deforestation Regulation (EUDR), warning that companies could face severe penalties while still having to rely on an information system that industry groups say is not ready for practical use.<\/p>\n
The German cabinet has approved the draft EUDR Implementation Act, which establishes the responsibilities and enforcement powers of German authorities as well as national fines and criminal sanctions. The legislation does not alter the EUDR itself but determines how breaches will be handled in Germany.<\/p>\n
The German Timber Industry Association (HDH), forest owners' association AGDW and the Family Farms and Forests Association have all challenged important elements of the proposed framework ahead of the rules becoming applicable to German forestry businesses on December 30, 2026.<\/p>\n
Their objections centre on two issues: the scale of the sanctions and whether planned simplifications for domestic forest owners will have sufficient legal protection.<\/p>\n
Fines, trading restrictions and criminal penalties<\/strong><\/p>\n HDH considers the sanctions proposed under the German implementation legislation disproportionate to the compliance risks facing ordinary timber businesses.<\/p>\n The draft provides for substantial financial penalties depending on the type of infringement. Failure to retain required documentation for five years could result in fines of up to \u20ac20,000, while a missing, late, incomplete or incorrect due diligence statement could carry a penalty of up to \u20ac50,000. Breaches of certain reporting obligations could result in fines reaching \u20ac100,000.<\/p>\n For companies, the potential exposure can be considerably larger. The broader sanctions framework provides for fines linked to annual turnover, potentially reaching 4%, while companies could also be excluded from commercial trading in commodities and products covered by the regulation for up to one year.<\/p>\n Criminal liability is another major source of concern for forest owners. Negligent conduct could, depending on the circumstances, carry prison sentences of up to three years, while substantially longer terms are envisaged for serious cases connected with the EU Environmental Criminal Law Directive.<\/p>\n German forestry organisations argue that this creates an excessive compliance risk in a market where many infringements could result from incorrect declarations, missing information or administrative mistakes rather than timber being connected with deforestation.<\/p>\n The proposed enforcement powers are also extensive. Authorities would be able to examine company records, reproduce data and seize relevant goods. Under certain circumstances, access to private premises would also be possible, an issue that forest owner organisations say raises questions concerning property rights and informational self-determination.<\/p>\n Small forest owners could avoid individual geolocation<\/strong><\/p>\n At the same time, the Federal Ministry of Food, Agriculture and Consumer Protection has developed a series of measures intended to make EUDR compliance easier for German forestry.<\/p>\n One of the most significant concerns geolocation requirements. Under the proposed administrative rules, micro and small primary producers operating within Germany could identify their operations through a postal address combined with a national identification number rather than individually providing geolocation data for the relevant forest properties.<\/p>\n This could substantially reduce the reporting burden for Germany's numerous small private forest owners. Forestry associations would also be able to act as EUDR operators when marketing or exporting timber belonging to their members. In practice, this would allow an association to prepare a joint due diligence statement covering timber marketed collectively rather than requiring every individual forest owner to make a separate submission.<\/p>\n The simplification could also extend beyond small businesses. Larger organisations, including municipalities owning forests, could potentially qualify where the part of their activities connected with EUDR commodities remains below the relevant thresholds used for small enterprises.<\/p>\n Forest owner organisations support the direction of these measures but object to the way Germany intends to introduce them. The simplifications currently sit in a General Administrative Regulation rather than directly in the EUDR Implementation Act. AGDW and Family Farms argue that this leaves forest owners without a sufficiently durable legal basis because administrative provisions can be changed without passing another law through parliament.<\/p>\n They are therefore demanding that key provisions, particularly the ability of forestry associations to handle declarations for their members, be incorporated directly into the legislation.<\/p>\n EUDR information system still causes problems<\/strong><\/p>\n The dispute over penalties has become more acute following another industry test of the EU's EUDR information system.<\/p>\n AGDW examined the platform after it reopened at the end of June following modifications by the European Commission. Tests conducted in late July continued to identify problems during both access and data entry.<\/p>\n According to the association, previously entered information could disappear, some addresses were rejected and users were occasionally unable to complete or submit the required declaration. Terminology also remained inconsistent, with parts of the system available only in English.<\/p>\n The timber sector has additionally questioned the use of kilograms as a standard quantity in parts of the system when roundwood is normally traded in cubic metres.<\/p>\n These problems are particularly sensitive because the information entered into the platform forms part of the compliance process against which companies and operators may subsequently be assessed.<\/p>\n German forestry organisations argue that businesses should not face severe sanctions for reporting errors while the underlying European reporting infrastructure remains unreliable.<\/p>\n With the December 30 application date approaching, attention will now move to the Bundestag, where the national legislation can still be amended.<\/p>\n AGDW and Family Farms want the proposed simplifications transferred into the law itself, the criminal provisions reconsidered and the remaining technical problems with the EU information system resolved before German forest owners and timber businesses become subject to the new regime.<\/p>","protected":false},"excerpt":{"rendered":" Germany’s timber and forestry sectors have stepped up their criticism of the national legislation that will govern enforcement of the EU Deforestation Regulation (EUDR), warning that companies could face severe penalties while still having to rely on an information system … Continue reading