By:Staff WriterColombo (LNW): Sri Lanka’s exporters to Germany will need to comply with the requirements requested by the importers in Germany to assure supply chain due diligence, through traceability, site-level audits and company reporting mechanisms.
This situation has arisen following the enforcement of German Act on Corporate Due Diligence in Supply Chains (GSCDDA) that came into force in Germany from 1 January 2023.
Considering that the EU is Sri Lanka’s second-largest export region, and Germany is the fourth-largest export destination for Sri Lankan exports, it is pivotal for Sri Lankan companies to be prepared to adhere to the conditions imposed by the German and the upcoming EU Supply Chain Act.
AHK Sri Lanka Chief Delegate Marie Antonia von Schönburg said: “The implications of the GSCDDA are to ensure free and fair trade.
This includes transparent value chains, sensible trade agreements that enable lasting good economic relations, and the observance of fundamental human rights and international conventions in commerce.
In short, it is to guarantee economic standards across value chains when doing business with Germany.”
United Nations Industrial Development Organization (UNIDO) and the Delegation of German Industry and Commerce (AHK Sri Lanka) together with the Sri Lanka Export Development Board (EDB) organised an awareness program for Sri Lankan exporters.
This was aimed to create awareness on preparation for the forthcoming German Act on Corporate Due Diligence in Supply Chains (GSCDDA) that came into force in Germany from 1 January.
The initiative also aims to outline the challenges and opportunities for Sri Lanka’s export industries.
Over 75 guests including exporters, Sri Lankan agencies, professional associations and relevant stakeholders attended this event which was organised on 25 April at the Mövenpick Hotel.
The German Supply Chain Act (titled Act on Corporate Due Diligence Obligations in Supply Chains) is an effort on the part of the German Federal Government to work with enterprises towards improving the human rights situation around the world.
The European Union (EU) is also preparing similar legislation that goes even further than the German Act.
For example, while indirect suppliers will not be affected by the German Supply Chain Due Diligence Act, the European Supply Chain Act will monitor the entire value chain.
German Ambassador to Sri Lanka and Maldives Hoger Seubert said: “The GSCDDA is yet another example to showcase Germany’s commitment towards social and environmental standards.
These guidelines have been implemented to make supply chains more transparent, boost human rights and protect the end consumer.