Legislation of Germany and the European Union on due diligence in the supply chain

General description

The degree of use:

• From 2023, a template of 3,000 people in Germany
• Either a central administrative body or a legally established headquarters located in Germany

Responsibilities:

• Annual and spontaneous compliance with the required research and evaluation
• Annual and spontaneous creation of internal records and public reports.

Distinctive range:

• Internal operational domain
• Primary suppliers directly hired (Tier-1)
• Subsequent suppliers (level-N) participate indirectly on the basis of founded knowledge.

Regulatory compliance

• Bundesamt Für Wirtschaft und Ausfuhrkntrolle (BAFA) within the Federal Ministry of Economic Affairs
• Controls, directives, authorization privileges and the duty to provide information based on risk assessment.

PECUNIARY SANCTIONS AND SANCTIONS

• Regulations on administrative fines, which can reach up to 2% of annual income.
• Non -governmental organizations (NGOs) and German unions have the ability to enforce the rights of affected people.

Current state

• The legislation will enter into force as of January 1, 2023.

German legislation on due diligence in the supply chain

 

Ahmed Sakr

Product Compliance Consultant

Complymarket UG (haftungsbeschraenkt)