German and EU legislation on supply chain due diligence

Overview

Range of use:

• From 2023, Germany will have 3,000 employees
• Central administrative agency or legally established headquarters in Germany

Responsibilities:

• Complete the required surveys and assessments spontaneously every year
• Create internal records and public reports spontaneously every year

Unique range:

• Internal operations area
• Major suppliers directly involved (level one)
• Follow-up suppliers (level n) engage in indirectly based on proven awareness.

Regulatory enforcement

• Bundesamt für Wirtschaft und Ausfuhrkontrolle (BAFA) under the Federal Ministry of Economic Affairs
• control, directive, authorization privileges and obligations to provide information based on risk assessment.

Sanctions and fines

• The provisions on administrative fines can reach up to 2% of annual income.
• German non-governmental organizations (NGOs) and trade unions are capable of safeguarding the rights of affected individuals.

Current status

• The legislation will come into effect on January 1, 2023.

German supply chain due diligence legislation

 

Ahmed Sakr

Product Compliance Consultant

ComplyMarket UG (haftungsbeschraenkt)