Court Closes Bottle Deposit Loophole on German-Danish Border
The arbitration court in Schleswig, Germany, ruled on May 20, 2026, that consumers buying drinks in the German-Danish border region must pay bottle and can deposits.
The decision applies to all buyers, effectively closing a loophole that had allowed Danish consumers to avoid paying deposits. Previously, shoppers could bypass the fee by signing a declaration of intent to export the drinks immediately. The court found these declarations unverifiable and ruled that buyers are, in practice, end-consumers who should pay deposits.
The Loophole and Its Impact
The loophole was originally designed for commercial exporters. However, many Danish consumers exploited it to buy drinks in bulk in Germany without paying the deposit, then bring the containers to Denmark—where no such deposit is required.
An estimated 650 million bottles and cans cross the border into Denmark annually through this practice, creating significant financial and environmental consequences.
Environmental NGOs and other groups began challenging the practice in courts starting in 2015. The issue was raised at the European Commission, the European Parliament, and even the European Court of Justice, but remained unresolved until now.
Legal Grounds
The court ruled that requiring deposits violates neither Germany's Basic Law nor European law.
The decision is subject to appeal in higher courts, leaving the final resolution of the matter still pending.