The maximum punishment for timber merchants caught with illegally-felled wood will go up to two years in jail or a fine of €79,000 from March, the economic affairs ministry said on Thursday.
In addition, traders risk having their businesses closed down, the ministry said in a statement.
The change in regulations stems from European law aimed at combating illegal forestry. From March 3, traders will have to prove they bought their timber legally. Joinery firms will also have to provide proper certification for their wood on request.
Some 5,000 firms fall under the new Dutch rules.