Sanctions for EUDR Violations

Sanctions for EUDR violations are legal consequences for companies that violate the EU regulation.

Sanctions for EUDR violations form a key component of the EU regulation on deforestation-free products (EUDR), which will come into effect on December 30, 2025. Companies are required to market certain raw materials and products in the EU only if they can be proven not to be linked to deforestation or forest degradation. The prescribed sanctions aim to ensure that companies take their due diligence obligations seriously and comply with them.

The EUDR provides for a wide range of sanctions that must be designed by the Member States to be both effective and deterrent. Beyond high fines that can amount to up to four percent of annual revenue, the regulation allows for the confiscation of compliant products as well as the disgorgement of profits from such transactions. Companies that repeatedly or seriously violate the regulations may be excluded from public procurement procedures and funding for a period of up to twelve months. Additionally, temporary bans on the marketing or export of relevant products may be imposed.

In Germany, the Federal Office for Agriculture and Food (BLE) is responsible for monitoring compliance with the EUDR, which reviews adherence to the regulations and may order corrective measures as necessary. The legal framework is enshrined in Article 25 of the EUDR, which prescribes a national sanction framework. The aim of the sanctions is to support the objectives of the regulation, focusing on concepts of forest protection, reduction of greenhouse gas emissions, and the preservation of biodiversity.