Germany and European Union Legislation regarding Supply Chain Due Diligence

Overview

The extent of utilization:

• Starting from 2023, a workforce of 3000 individuals in Germany
• Either a central administrative body or a legally established headquarters located in Germany

Responsibilities:

• Annual and spontaneous fulfillment of the required investigation and assessment
• Annual and spontaneous creation of internal records and public reports

Distinctive Range:

• In-house operational domain
• Primary suppliers directly engaged (Tier-1)
• Subsequent suppliers (Tier-n) are indirectly involved based on substantiated awareness.

Regulatory enforcement

• Bundesamt für Wirtschaft und Ausfuhrkontrolle (BAFA) within the Federal Ministry for Economic Affairs
• Controls, directives, authorization privileges, and the duty to furnish information based on risk assessment.

Sanctions and monetary penalties

• Regulations regarding administrative fines, which can reach up to 2% of the yearly revenue.
• German non-governmental organizations (NGOs) and labor unions possess the ability to enforce the rights of individuals affected.

Current Status

• The legislation will be in effect starting from January 1st, 2023.

German Legislation on Supply Chain Due Diligence

 

Ahmed Sakr

Product Compliance Consultant 

ComplyMarket UG (haftungsbeschraenkt)