EU: Updates to the EUDR Regulation

 

On 29 June 2023, Regulation (EU) 2023/1115 of the European Parliament and of the Council, dated 31 May 2023, entered into force. This Regulation concerns the placement on the EU market and export from the EU of certain goods and products linked to deforestation and forest degradation. It also repeals Regulation (EU) No 995/2010. Commonly referred to as the EUDR Regulation, it was adopted as part of a broader European Union strategy aimed at protecting forests and addressing global deforestation. The Regulation sets out new obligations for companies that place relevant products on the EU market or export them from the Union, if such products may contribute to deforestation or forest degradation. The primary goal is to ensure that products entering the EU market do not drive deforestation, thereby contributing to global forest conservation efforts.

The EUDR introduces binding requirements for both “operators” and “traders” involved in placing or exporting commodities such as timber, rubber, cattle, coffee, cocoa, palm oil, and soy—as well as related products listed in Annex I of the Regulation—on or from the EU market. These commodities and products must be “deforestation-free,” which means they must not originate from land that was deforested after 31 December 2020, and they must comply with local laws concerning human rights and the rights of indigenous peoples. In order to meet these standards, companies are required to carry out risk assessments and apply mitigation measures as necessary. The European Commission anticipates that these new requirements will significantly influence global supply chains, fostering more sustainable production practices.

Commission-Introduced Simplifications

In light of questions raised—particularly regarding the scope of the Regulation—on 15 April 2025, the European Commission introduced a number of simplifications to facilitate compliance with the EUDR Regulation.

Notably, the Commission released updated interpretative guidelines and a revised edition of the Frequently Asked Questions (FAQ). Furthermore, a draft delegated act to amend Annex I of the Regulation was opened to public consultation, which will run until 13 May 2025. The Commission has also enhanced its support for global partners under the Team Europe initiative by allocating EUR 86 million to this effort.

Key simplifications include:

• Reuse of Due Diligence Declarations: Under the updated EUDR application guidelines, large companies may reuse existing due diligence declarations when goods that have already been placed on the EU market are reintroduced. This provision reduces the amount of required information to be entered into the IT system.
• Authorised Representative Rules: An authorised representative may now submit due diligence declarations on behalf of affiliated companies within a group.
• Annual Declarations: Companies are permitted to submit due diligence declarations on an annual basis rather than for each individual consignment or batch introduced to the EU market.
• Simplified Rules for Downstream Companies: Large companies operating downstream in the supply chain are eligible for simplified obligations. Specifically, they can compile due diligence declarations by referencing declarations made by suppliers.
• Recurring Deliveries: The number of required declarations for recurring product deliveries has been reduced.
• Geolocation and Scientific Names: Companies are now permitted to reference the geolocation data and scientific names of products that were previously submitted in earlier declarations.
• Scope of Covered Products: The draft Delegated Regulation further defines the product scope under the EUDR, stating that the Regulation does not apply to:
  • (a) product samples and goods used for testing to assess composition, quality, or technical features, provided these are fully consumed or destroyed during the testing process; waste, or used and discarded products;
  • (b) supplementary materials such as manuals, brochures, catalogues, and promotional materials that are attached to a different product placed on the EU market;
  • (c) bamboo, rattan, and other similar materials, as well as products made from them.
• Packaging and Returnable Materials: The draft also clarifies when obligations apply to packaging materials. Specifically, wooden packaging such as pallets, crates, and boxes are subject to the Regulation if they are placed on the market or exported as stand-alone products. However, packaging that is clearly reusable and used solely to support, protect, or carry another product—when presented together with that product—is excluded from the Regulation’s scope once used for that purpose. These updates are intended to lessen the administrative load on companies and promote consistent application of the Regulation across the EU.

Sanctions

The enforcement provisions concerning penalties for non-compliance with the EUDR Regulation remain unchanged and are determined at the national level. These penalties are applied independently from those outlined in the Polish Penal Code for environmentally harmful activities. According to Article 25 of the EUDR, penalties may include a fine of up to 4% of a company’s total annual turnover, confiscation of non-compliant goods, bans on placing such products on the market, temporary exclusion from public procurement (up to 12 months), and loss of eligibility to apply simplified risk assessment procedures. Additionally, details of infringements will be publicly disclosed on the European Commission’s website, including the name of the offending company, a description of the violation, its nature, and the penalty imposed.

Implementation Timeline

The EUDR Regulation will become applicable on the following dates:

• 30 December 2025 – for large and medium-sized enterprises;
• 30 June 2026 – for all other companies, with the exception that for timber products covered by the Annex to Regulation (EU) No 995/2010, the obligations will apply from 30 December 2025.