Regulation (EU) 2023/1115 (“EUDR”) sets strict rules for placing in or exporting from the EU market certain commodities and derived products to curb global deforestation and forest degradation.
Which products and businesses are covered?
The Regulation covers seven commodities—cattle, cocoa, coffee, oil palm, rubber, soya and wood—and a broad range of related products (e.g., beef, leather, chocolate, furniture).
It applies to all businesses importing, producing or exporting these goods, distinguishing operators (placing or exporting products) from traders (supply-chain intermediaries).
What are the new product requirements introduced?
Products may only be sold in or exported from the EU market if they are:
- Deforestation-free (no production on land deforested – for wood, no forest-degradation link -after 31 December 2020);
- Legally produced in the country of production; and
- Covered by due-diligence statement submitted by an operator confirming compliance and assuring no or only a negligible risk.
What penalties apply for non-compliance?
Non-compliance can result in substantial penalties for businesses, including fines, confiscation of non-compliant products or related revenues, exclusion from public procurement, and temporary trading restrictions.
When do EUDR’s requirements apply?
Although in force since June 2023, the rules apply from 30 December 2025 for large companies and 30 June 2026 for SMEs.
Importantly, discussions are still ongoing at EU level on possible simplifications and timing adjustments.
On November 19, the EU Council approved targeted changes to the EUDR, adopting a more realistic approach to implementation.
In the coming weeks, the European Parliament and the Council will begin negotiations to reach an agreement on the final text.
Stay tuned for timely insights and expert updates from KG Law Firm on every development in this matter.