The Federal Ministry of Labor and Social Affairs (BMAS) published its draft bill of July 28, 2025, to amend the Supply Chain Due Diligence Act (LkSG). The draft bill provides significant relief for companies. Key points include the abolition of the reporting obligation and a restriction of the offenses punishable by fines. The Federal Office for Economic Affairs and Export Control (BAFA) will retain its auditing powers.

On July 22, 2025, the European Commission published a Call for Evidence in advance of a potentially forthcoming environmental omnibus package. The aim is to simplify and harmonize regulatory requirements in the environmental sector concerning waste, products, and industrial emissions, and to reduce the bureaucratic burden on businesses, without compromising the objectives pursued by the legislation. We provide an overview of the omnibus project and your opportunities to participate.

On 16 July 2025, the European Commission presented a comprehensive proposal for the recasting of Directive 2011/64/EU (Tobacco Tax Directive). The recasting of the Tobacco Tax Directive aims to fundamentally modernize the taxation of tobacco and related products.

With the 18th sanctions package, the European Union is tightening its financial measures against Russia and Belarus. The previous SWIFT exclusion is being replaced by a comprehensive transaction ban that prohibits not only technical communication channels but also any economic interaction with listed financial institutions.

On July 18, 2025, the European Union (EU) adopted its 18th sanctions package against Russia, which entered into force on July 20, 2025. We present the key changes.

The European Union, with Regulation (EU) 2025/1227 of 17 June 2025, has made far-reaching changes to import duties on fertilizers and agricultural goods from Russia and Belarus. Russian and Belarusian products can no longer be imported under tariff quotas; duties on these goods are drastically increased. Duties on fertilizers are being gradually introduced.

As part of the Omnibus IV package, the European Commission proposed a regulation on May 21, 2025, to postpone the application of the due diligence obligations under Regulation (EU) 2023/1542 (Battery Regulation) to August 27, 2027, while simultaneously giving the European Commission more time to publish the guidelines on the specifics of the due diligence obligations. The proposal also includes relief measures for small and mid-cap companies. The Council already agreed to the new date on June 19, 2025. We will keep you updated.

Anyone who thought the Omnibus Directive would stop short of the regulation on fluorinated greenhouse gases – Regulation (EU) 2024/573 (hereinafter referred to as the “F-Gas Regulation”) – was disappointed. The European Commission also published a proposal for the Omnibus IV package on May 21, 2025, which followed the proposals for Omnibus Packages I and II of February 26, 2025, and Omnibus Package III of May 14, 2025.

The European Court of Justice (ECJ) has ruled that formal errors in the re-importation of goods – such as failure to present or declare them – do not preclude VAT exemption, provided there is no intent to deceive (Case C-125/24). The case focused on the return of competition horses without proper customs formalities. The ECJ emphasizes the primacy of substantive requirements and protects bona fide economic operators from tax disadvantages in cases of mere negligence. The ruling strengthens legal certainty in EU customs law beyond the specific case at hand.