The European Union Deforestation Regulation (EUDR)

Regulation (EU) 2023/1115 of the European Parliament and of the Council on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation (the Deforestation Regulation), adopted on 31 May 2023, imposes new requirements on companies placing and/or supplying on the EU market or exporting outside the EU relevant commodities such as wood, rubber, cattle, cocoa, coffee, soya and palm oil, or relevant products that have been produced using them, such as tyres, furniture, chocolate, leather, clothing products and accessories made of natural rubber, paper packaging, and pallets (in case it is a separate product, not packaging material used exclusively to support, protect or transport another marketed product) etc. The complete list of relevant products is contained in Annex I of the Regulation.

Which companies are affected by EUDR?

The EUDR will affect any natural or legal person who, in the course of business, places (imports) the relevant commodities or products listed above on the EU market or supplies the relevant commodities or products to or from the EU market (for distribution, consumption or use). It will therefore concern a large number of entities.

According to the EUDR, before placing (importing), supplying or exporting selected products and commodities on the EU market, companies must ensure and demonstrate that their products do not cause deforestation, they are produced in accordance with the legislation of the country of origin and that they have a due diligence statement. The obligations that companies will have to comply with vary depending on whether they place the relevant commodities and products on the EU market (import), export them from the EU or supply them to the EU market. The size of the company will also be a decisive factor in determining the scope of the obligations.

1. Operators (large companies and companies importing, placing on the EU market or exporting selected products) must implement a due diligence system and submit a due diligence statement before placing the product on the market (importing) or exporting it.
2. Traders (companies in the supply chain that supply these products for distribution, consumption or use on the EU market but are not operators) must obtain and keep information from operators for at least 5 years.