What is EUDR?

EUDR (Regulation (EU) 2023/1115) establishes rules governing the placing on the market and the making available on the EU market, as well as the export from the EU of certain commodities.

Such commodities may not be placed on the market, made available on the EU market, or exported from the EU unless all of the following conditions are met:

1. they are deforestation-free,
2. they have been produced in accordance with the relevant legislation of the country of production, and
3. a due diligence statement has been submitted in respect of them.

Commodities covered by the EUDR

The commodities (so-called relevant commodities) covered by the EUDR are:

cattle, cocoa, coffee, oil palm, rubber, soy and wood.

The Regulation also covers relevant products – i.e., products:

• containing the above commodities,
• manufactured from the above commodities,
• or derived from animals fed with those commodities.

All relevant commodities and products are listed in Annex I to the EUDR.

Accordingly, for a product to fall within the scope of the EUDR, it must simultaneously:

• be listed in Annex I, and
• contain or be produced from a relevant commodity (or relevant product) listed in that Annex.

The EUDR does not provide for any quantitative thresholds – any commodity listed in Annex I is subject to the EUDR requirements, regardless of quantity.

Entities subject to the EUDR

The EUDR introduces two main categories of entities:

1. Operators – entities that:
   • place relevant products on the EU market for the first time (make them available on the EU market in the course of a commercial activity), or
   • export them outside the EU.
2. Traders – all other participants in the supply chain who, in the course of a commercial activity, make relevant products available on the market (for distribution, consumption, or use within the EU).

Obligations under the EUDR

The scope of obligations depends on the entity’s role in the supply chain.

The primary obligation is to exercise due diligence (DDS), which includes:

1. Collecting information, data, and documentation relating to the product.
2. Carrying out a risk assessment – verifying the collected information to determine whether there is a risk of non-compliance with the EUDR.
3. Implementing risk mitigation measures – where the risk assessment indicates that the risk is more than negligible.

Before placing relevant products on the market (or exporting them), it will be necessary to submit a due diligence statement, covering part of the collected information.

Traders must ensure that due diligence has been carried out at earlier stages of the supply chain and submit their own statement referring to prior declarations (subject to simplifications provided for micro and small enterprises).

Application dates

• From 30 December 2025 – the EUDR will apply to all undertakings.
• From 30 June 2026 – the Regulation will also apply to micro and small enterprises.
• The obligations do not apply to products manufactured before 29 June 2023.

Sanctions

Failure to comply with the EUDR obligations may result in, inter alia:

• confiscation of relevant products,
• confiscation of revenues derived from transactions,
• other administrative and financial penalties.

Start today by verifying whether your company may fall within the scope of the EUDR!

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