EUDR Penalties: Maximum Fines of at Least 4 % of EU Turnover, Confiscation, Exclusion and Criminal Liability

EUDR penalties are national fines, confiscations, exclusions and bans that every Member State lays down for operators, downstream operators and traders, with a maximum fine for legal persons of at least 4 % of total annual Union-wide turnover (Article 25 of Regulation (EU) 2023/1115, as amended by Regulation (EU) 2025/2650). Which penalties must national law contain, and when do they bite?

Penalties follow from the EU Deforestation Regulation, in force since 29 June 2023, but the amounts come from national law, and a criminal layer comes from Directive (EU) 2024/1203. The four key figures are listed below.

• Penalty points: 6 (Article 25(2)(a) to (f)).
• Maximum fine for legal persons: at least 4 % of Union-wide turnover.
• Exclusion from procurement and public funding: up to 12 months.
• Prison under the Directive: a maximum of at least 5 years.

What Penalties Does Article 25 of the EUDR Require?

Article 25 requires every Member State to lay down penalty rules for EUDR infringements, notify them to the Commission and include six penalties, points (a) to (f) of Article 25(2). The six points are compared below.

The 4 % level has stayed unchanged since 2023. Article 25 sits in Chapter 3 of Regulation (EU) 2023/1115.

Who Can Be Penalised: Operators, Downstream Operators and Traders

Operators, downstream operators and traders can be penalised, each for its own duties (Article 25(1); Regulation (EU) 2025/2650 added downstream operators from 26 December 2025). Operators file the due diligence statement or, as micro or small primary operators (Article 2(15a)), the simplified declaration. A downstream operator or trader files no DDS since 26 December 2025 but keeps supplier and customer information for at least 5 years (Article 5).

How Do EUDR Fines Work? The 4 % Maximum Explained

EUDR fines are point (a) of the six penalties: national law must provide fines, and for a legal person their maximum must be at least 4 % of its total annual Union-wide turnover (Article 25(2)(a)).

A Floor for the Maximum, Not a Fixed Fine or a Cap

The 4 % is the lowest maximum a national law may set for legal persons, not a fixed fine and not a ceiling (Article 25(2)(a)). A Member State may write a higher maximum into its law, and the fine in a given case is set under national law within that maximum. Four common readings of the rule are compared below.

How Is Union-Wide Turnover Calculated?

Union-wide turnover is the total annual turnover in the financial year before the fining decision, calculated as aggregate turnover under Article 5(1) of Council Regulation (EC) No 139/2004 (Article 25(2)(a)). The Commission considers, in non-binding guidance, that the base is Union-wide, not worldwide (FAQ Version 5 (April 2026), 10.2).

Fines That Exceed the Economic Benefit and Rise for Repeats

EUDR fines must remove the gain: the legal-person maximum is increased, where necessary, to exceed the potential economic benefit (Article 25(2)(a)). Fines are proportionate to the environmental damage and the value of the products, deprive those responsible of the economic benefit and rise gradually for repeated infringements.

Confiscation, Exclusion and Bans: The Other Five EUDR Penalties

The other five EUDR penalties are confiscation of products, confiscation of revenues, exclusion, a temporary market ban and loss of simplified due diligence (Article 25(2)(b) to (f)). Only the market ban and the loss of simplified due diligence require a serious infringement or repeated infringements.

Confiscation of Products and Revenues

Confiscation covers the relevant products concerned, point (b), and the revenues gained from a transaction with them, point (c), from the operator, downstream operator or trader. Regulation (EU) 2025/2650 reworded both points to reach downstream operators. Neither point requires a serious or repeated infringement.

Exclusion From Public Procurement and Public Funding for up to 12 Months

Exclusion lasts a maximum of 12 months: point (d) requires temporary exclusion from public procurement processes and from access to public funding, including tendering procedures, grants and concessions. The 12 months is the EU limit, and the Regulation sets no longer exclusion. Point (d) keeps its 2023 wording.

Temporary Market Ban for Serious or Repeated Infringements

A temporary market ban prohibits placing or making available relevant commodities and products on the market, or exporting them, after a serious infringement or repeated infringements (Article 25(2)(e)). The Regulation fixes no length for the ban; the period comes from national law.

Losing Simplified Due Diligence Under Article 13

Point (f) lets national law prohibit an operator from exercising simplified due diligence after a serious infringement or repeated infringements (Article 25(2)(f)). Simplified due diligence under Article 13 drops the Article 10 and 11 duties for products wholly from low-risk countries; the due diligence statement remains. It is not the Article 4a simplified declaration.

Can an EUDR Breach Be a Crime? Directive (EU) 2024/1203

Yes: an EUDR breach is a crime where national law implements Directive (EU) 2024/1203 on the protection of the environment through criminal law, in force since 20 May 2024 (OJ L, 2024/1203, 30.4.2024). It replaces Directives 2008/99/EC and 2009/123/EC for the Member States it binds (Articles 26 and 27). The two layers are compared below.

The EUDR Offence in Article 3(2)(p)

The EUDR offence is placing or making available relevant commodities or products on the Union market, or exporting them, in breach of the prohibition in Article 3 of the EUDR, except where the conduct concerns a negligible quantity (Article 3(2)(p) of Directive (EU) 2024/1203). The conduct must be unlawful and intentional or seriously negligent (Article 3(4)), and an attempt is punishable (Article 4(2)). Article 3 of the EUDR bars products that are not deforestation-free, not legal in the country of production or not covered by a due diligence statement or simplified declaration.

Prison Terms: A Maximum of at Least Five Years

Member States must provide a maximum prison term of at least five years for the EUDR offence (Article 5(2)(d) of Directive (EU) 2024/1203). The 10-year floor of Article 5(2)(a) does not cover point (p). Qualified offences under Article 3(3) carry a maximum of at least eight years (Article 5(2)(b)).

Criminal Fines for Legal Persons: 5 % of Worldwide Turnover or EUR 40 Million

Legal persons face fines whose maximum is not less than 5 % of total worldwide turnover (business year before the offence or the fining decision) or EUR 40 000 000 (Article 7(3)(a) of Directive (EU) 2024/1203). The base is worldwide here, Union-wide in Article 25.

Which Member States Are Bound, and by When?

Member States bound by Directive (EU) 2024/1203 had to transpose it by 21 May 2026 (Article 28(1)). Ireland (recital 69) and Denmark (recital 70) are not bound. Transposition concerns the Directive only: the EUDR, as a regulation, applies directly, and national laws lay down its penalties.

Are EUDR Penalty Judgments Published? Article 25(3)

Yes: Member States notify the Commission of final judgments against legal persons, and the penalties imposed, within 30 days of the judgments becoming final, and the Commission publishes a list of them (Article 25(3)).

The Commission considers that "judgments" means final court rulings, not administrative decisions (FAQ 10.4). The duty covers legal persons only.

EUDR Penalties by Member State as of 24 October 2026

EUDR penalty amounts come from national law, and as of 24 October 2026 the texts read at source range from an order in force to drafts. Member States lay down and notify the rules (Article 25(1)); the EUDR is never transposed. The texts are compared below.

Authorities are covered under EUDR in France, EUDR in Belgium and EUDR in Austria.

Germany: What Does the Draft Federal Law Provide?

Germany has no EUDR implementing law in force; the draft is government bill BT-Drs. 21/8278 of 30 September 2026, read first on 8 October 2026 and planned to apply from 30 December 2026 if adopted. Its § 14 fines reach EUR 100 000 (due diligence), 50 000 (DDS, information, simplified declaration) or 20 000 (retention, registration); above EUR 2.5 million, 1.25 million or 0.5 million turnover, a legal person faces up to 4 % of Union-wide turnover. § 12 sets up to 5 years in prison, 1 to 10 years in qualified cases. § 16 allows exclusion for up to 1 year after a final fine of at least EUR 5 000. The bill also implements Directive (EU) 2024/1203. Authorities are covered under EUDR in Germany.

Which Member States Already Have National EUDR Penalty Rules?

Among the texts read at source, Denmark and the Netherlands have adopted national EUDR penalty rules. Denmark's order, in force since 1 January 2026, makes SGAV competent and punishes breaches with a fine, or up to 1 year in prison where intentional or grossly negligent and causing harm or gain (§ 9(2)), plus confiscation and exclusion for up to 12 months (§ 9(5)).

The Dutch law and decree provide no administrative fine yet: breaches are offences under article 1a, under 1°, of the Wet op de economische delicten, alongside exclusion from tenders and subsidies for up to 12 months and a temporary trading ban. Their entry into force is not established as of 24 October 2026.

Draft and Delegation Laws in Poland, Spain and Italy

Poland and Spain have drafts, and Italy a delegation law, among the texts read at source as of 24 October 2026. Poland's draft UC101 (Standing Committee, 23 October 2026) caps administrative fines at 4 % or 1 % of Union-wide turnover, or twice or once the product value without turnover. Spain's draft was cleared on 17 June 2025; no amounts are published. Italy's Law No. 91 of 13 June 2025 (Article 26) foresees administrative sanctions only, without euro amounts.

When Do EUDR Penalties Apply? The Timeline From 2023 to 2027

Article 25 has applied since 29 June 2023 (Article 38(1)), but the obligations it sanctions apply from 30 December 2026 (Article 38(2), as replaced by Regulation (EU) 2025/2650). Every date in force is on the EUDR timeline.

A penalty needs both an applicable obligation and a national penalty law. The dates are listed below.

Every rule on this page is checked against the consolidated text of Regulation (EU) 2023/1115 and Directive (EU) 2024/1203; see our methodology and fact-checking.

This guide explains the rules; it is not legal advice for an individual case.

How Do Penalties Connect to EUDR Enforcement, Due Diligence and Checks?

Penalties are the last step of EUDR enforcement: authorities check, and national law attaches penalties to what they find. The authorities are covered under EUDR enforcement.

The Commission list of competent authorities, "Updated on 12/10/2026", shows no authority for Greece, Malta and Poland.

Checks test the due diligence run before placing or export, set out under EUDR due diligence.

What Happens Before a Penalty: Checks, Interim Measures and Corrective Action?

Before a penalty come EUDR checks at minimum rates of 1 % (low risk), 3 % (standard) and 9 % plus 9 % of quantity (high risk) of operators, non-SME downstream operators and non-SME traders (Article 16(8) to (10)). Interim measures include seizure (Article 23), and corrective action follows (Article 24); see EUDR checks.

How Do Customs and Substantiated Concerns Lead to Penalties?

Customs and substantiated concerns lead to penalties by triggering checks. The DDS reference number or declaration identifier must reach customs before release or export, and release is no proof of compliance (Article 26(4) and (10)); see EUDR at customs. Anyone may submit substantiated concerns under the EUDR (Article 31(1)).

EUDR Penalties FAQ

Five further questions concern delay, certification, FLEGT, cost recovery and national reports. More answers are in the EUDR FAQ.

Is There a Grace Period or Delay Before EUDR Penalties Apply?

No: the six-month grace period proposed in COM(2025) 652 of 21 October 2025 was never adopted, and no further delay is proposed as of 24 October 2026. Past postponements are under EUDR delay.

Does Certification or Software Protect Against EUDR Penalties?

No: certification is complementary information under Article 10(2)(n), and no EUDR certificate exists. What schemes prove is set out under certification and the EUDR. The only mandatory IT is the free EUDR Information System (Implementing Regulation (EU) 2024/3084, Article 18(1)); EUDR software is optional.

Does a FLEGT Licence Protect Timber Importers From EUDR Penalties?

Only for legality: a FLEGT licence covers the legality condition under Article 10(3), so the deforestation-free test and the due diligence statement still apply. What FLEGT licences prove is set out separately.

Can Authorities Recover the Costs of Non-Compliance?

Yes, where national law allows it: Article 20 lets Member States authorise competent authorities to reclaim the totality of costs for non-compliance, including testing, storage and handling. Cost recovery is a separate article from the six penalties of Article 25.

Do National Reports Show the Penalties Imposed?

Yes: by 30 April each year every Member State reports on the previous calendar year, including corrective action and penalties, and the Commission provides a Union-wide overview by 30 October each year (Article 22). The reports also give the number and results of checks.