THE HAGUE – A new Dutch sanctions measure prohibiting trade in products originating from Israeli settlements in occupied territories will take effect on September 21, but legal advisers and enforcement agencies have warned that implementation could prove difficult.
Under the new rules, the import, purchase, and sale of goods produced wholly or partly in Israeli settlements deemed illegal under international law will be prohibited in the Netherlands. The ban also criminalizes intermediary trade services and deliberate attempts to circumvent the restrictions.
Authorities will determine the origin of products using a European database of settlement locations and postal codes.
The Dutch government clarified that goods merely transiting through the Netherlands will not be affected. Since such products are not intended for the Dutch market, officials said a transit ban would be difficult to enforce.
Violations of the sanctions law can carry severe penalties. Intentional breaches may be prosecuted as economic crimes, punishable by up to six years in prison, community service, or substantial fines. Non-intentional violations can result in up to one year of detention. Authorities may also seize goods and temporarily shut down businesses found to be in violation.
The Council of State, the Netherlands' highest advisory body on legislation, acknowledged the government's decision to act independently after similar measures failed to gain sufficient support within the European Union. However, it also questioned how effectively the ban can be enforced.
Dutch Customs, the Fiscal Information and Investigation Service (FIOD), and the Public Prosecution Service have all warned that verifying the precise origin of products may be challenging. They also noted that goods could enter the Dutch market through another EU member state without undergoing additional border inspections.
The sanctions regime will apply in the European Netherlands and the Caribbean Netherlands municipalities of Bonaire, St. Eustatius, and Saba, where Customs Caribbean Netherlands will oversee enforcement. It does not automatically apply to Curaçao, Aruba, or St. Maarten because the Dutch Sanctions Act is not a Kingdom Act and therefore has no direct legal effect in the autonomous Caribbean countries. Each country would have to adopt its own legislation if it chooses to implement similar restrictions.