German court rules cross-border shops must charge deposit on cans

A German administrative court has ruled that border shops near the Danish-German frontier must charge a deposit on cans, ending a practice that allowed them to sell deposit-free beverages. The Verwaltungsgericht Schleswig ruled on Wednesday that the exemption used by these shops is illegal, according to DR, citing Flensborg Avis.

Until now, border shops had avoided the German deposit requirement by having customers sign a declaration that the drinks would be consumed outside Germany. The court rejected this practice. The German environmental organisation Deutsche Umwelthilfe (DUH) brought the case against the Schleswig-Flensburg district and has won the ruling.

One of the border shops, Fleggaard, expects the decision to be appealed. “We await the further course of the case, which in the German legal system can take years. Customers in cross-border trade can therefore continue – completely unchanged – to shop without deposit if they identify themselves and sign an export declaration,” wrote Fleggaard CEO Lars Mose Iversen in a written statement.

Local retailers welcomed the ruling. Niki Sørensen, store manager at a cooperative shop in Løjt Kirkeby near Aabenraa, said he is very pleased. “It will clearly mean more turnover than we have today, especially on beer and water,” he said. He expects a 10-20 percent increase in sales of soft drinks and beer. Sørensen noted that he often sees cars in his parking lot filled with cans from Germany.

The Danish Chamber of Commerce (Dansk Erhverv) also praised the decision. “We think it is absolutely fantastic. It establishes that these border shops cannot simply construct papers that people sign to avoid being part of the rules that all other companies are subject to,” said Betina Schiønning, head of product regulation and enforcement at the organisation. She added that the deposit system protects the environment by giving customers an incentive to return cans. Based on previous studies, the chamber expects up to half of those who currently buy deposit-free cans at border shops will instead buy their beverages in Denmark.

The ruling is not final. The Schleswig-Flensburg district and the border shops have four weeks to appeal. A separate EU regulation already requires that all cans and bottles carry a deposit from 2029, including in the border area.