Companies that break the European Union Deforestation Regulation (EUDR) may face more than fines: in most member states, intentional breaches can carry prison sentences for the individuals responsible, lawyers told FoodNavigator.
The regulation requires products containing the commodities it covers, including cocoa, coffee, palm oil, soy, rubber, wood and cattle, to be traceable to their source. The compliance deadline is currently 30 December this year.
Under the EU's Environmental Crime Directive, placing EUDR-relevant commodities on the market or exporting them in breach of the regulation is a criminal offence, said Katia Merten-Lentz, partner at Food Law Science and Partners. Thomas Delille of Squire Patton Boggs said the directive requires member states to set a maximum sentence of at least five years for such breaches. Bregt Raus of Altius said harmonising criminal penalties at EU level is unusual and puts EUDR breaches in the same category as illegal waste shipments or serious industrial pollution. Ireland and Denmark are not bound by the directive.
A draft German bill sets a maximum of five years in prison, or a fine, for intentionally placing non-compliant products on the market or exporting them. Gross negligence could bring up to three years, and intentional offences causing particularly serious environmental damage up to ten. Directors or managers could be liable depending on their involvement.
Ireland has drafted its own rules: trading non-compliant products, obstructing inspectors, or failing to carry out due diligence or submit the required declaration could carry up to three years, while failing to keep due diligence statements for five years brings only a fine. A company's officers could be personally liable where an offence was committed with their consent, connivance or approval, or through their wilful neglect. The Irish legislation has not yet been enacted.
Whether prison terms will actually be imposed is another matter. Marie Escorneboueu of Squire Patton Boggs said there is currently no trend among national courts to punish breaches of EU regulations such as the EUDR with imprisonment, although the directive may lead to stricter enforcement.
Photo: Aidenvironment / Wikimedia Commons (CC BY-SA 2.0)
Source: FoodNavigator
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