The European Union Deforestation Regulation (EUDR)

Regulation (EU) 2023/1115 of the European Parliament and of the Council on the placing on the Union market and export from the Union of certain commodities and products associated with deforestation and forest degradation (known as the Deforestation Regulation), adopted on 31 May 2023, imposes new requirements on companies placing and/or supplying to the EU market or exporting outside the EU relevant commodities, which are wood, rubber, cattle, cocoa, coffee, soy, and palm oil, or relevant products produced using them, such as tires, furniture, chocolate, leather, pipes, belts, seals made from natural rubber. Printed products (e.g., books, newspapers, leaflets) were excluded from the scope of the regulation based on the adopted changes, if they are standalone products. The complete list of relevant products is contained in Annex I of the regulation.

Which companies are affected by EUDR?

The EUDR will impact every natural or legal person who, in the course of business, places (imports) the aforementioned relevant commodities or products on the EU market, supplies relevant commodities or products to the EU market (for distribution, consumption, or use), or exports them from it. 

According to the EUDR, economic operators must ensure and demonstrate before placing (importing), supplying selected products and commodities to the EU market, or exporting them from the EU that their products do not cause deforestation, are produced in accordance with the legal regulations of the country of production and have the necessary declaration of due diligence. The scope of obligations varies according to the role of the economic operator in the supply chain and the size of the company.

1. Primary economic operators, who first place relevant products on the EU market or export them from the EU, are required to implement a due diligence system and submit a due diligence declaration. Micro and small primary economic operators will be able to use a one-time simplified declaration.
2. Economic operators and traders who do not place relevant products on the EU market first (companies in the supply chain, which supply these products for distribution, consumption, or use on the EU market), are not required to submit their own due diligence declaration, but must ensure continuity with existing declarations and keep prescribed information for at least five years.