German and European Union laws on supply chain due diligence

overview

Scope of use:

• From 2023, the number of employees in Germany has reached 3,000.
• Either a central administrative agency or a legally established headquarters in Germany

responsibility:

• Perform the necessary surveys and evaluations annually and voluntarily
• voluntarily prepare internal records and public reports annually

Characteristic range:

• Internal operation domain
• Directly involved primary suppliers (Tier-1)
• Subsequent suppliers (Tier-ns) are indirectly involved based on demonstrated perceptions.

Enforcement of regulations

• Bundesamt für Wirtschaft und Ausfuhrkontrolle (BAFA) within the Federal Ministry of Economy
• A duty to provide information based on controls, directives, authorization privileges, and risk assessments.

Sanctions and financial penalties

• Regulations on administrative fines that reach up to 2% of annual income.
• German non-governmental organizations (NGOs) and trade unions have the ability to enforce the rights of affected individuals.

Current Status

• This law will come into effect from January 1, 2023.

German law regarding supply chain due diligence

 

Ahmed Sakr

Product Compliance Consultant

ComplyMarket UG (Haftungsbeschraenkt)