The EU Deforestation Regulation (EUDR): What Do You Need to Know?

Key points of the EUDR

• Objective: The EUDR prevents products that contribute to deforestation or forest degradation, produced after 31 December 2020, from entering the EU market.
• Commodities covered: The regulation focuses on products such as soya, palm oil, beef, timber, coffee, cocoa, rubber, and derived products such as leather, chocolate, furniture and paper.
• Obligations for Companies: Companies must demonstrate that their products originate from deforestation-free and illegal chains. They are required to implement due diligence processes to verify the origin of raw materials and minimise deforestation risks.
• Geographical Risks: Countries are classified based on the risk of deforestation (low, standard or high risk). Companies must tailor their approach to the risk level of the countries from which they import products.
• Fines and Sanctions: Companies that fail to comply with EUDR regulations risk heavy fines, depending on the severity of the breach.

Application for companies

The EUDR applies to companies of all sizes involved in the import or export of the relevant products within the EU. This applies in particular to companies in the agricultural, food, timber and furniture industries, which must take into account the impact of these regulations on their supply chain management.

With the EUDR, the EU is taking an important step towards more sustainable trade and a cleaner planet. Companies must prepare to comply with the new requirements and adapt their processes in good time.