What is the EUDR about?
The main goal of the EU Deforestation-free Regulation is to ensure that the production of certain goods and commodities will not contribute to further degradation of forest ecosystems. This is also expected to reduce emissions of greenhouse gases and conserve biodiversity.
Operators and traders will only be allowed to sell products in the EU if the supplier of the product has issued a so-called “due diligence statement”. Having stringent due diligence in place is needed to confirm that the product does not come from deforested land nor has led to forest degradation, including of irreplaceable primary forests.
Companies will also have to make sure and verify that these products comply with relevant legislation of the country of production including human rights and that the rights of affected indigenous people have been respected.
Who is impacted?
- All operators and non-SME traders placing on or exporting from the EU market the following commodities: Soy, beef, palm oil, wood, cocoa, coffee, rubber, as well as some of their derived products, such as leather, chocolate, tires, or furniture will be impacted by this act.
- The Regulation thus impacts the textile industry in the context of the use of leather and rubber.
Note: A review will be carried out in two years (2025) to see if other products need to be covered by the obligations. The list of commodities will also be reviewed on an ongoing basis.
What are the critical dates to remember?
- On June 29th 2023, the Regulation entered into force.
- Operators and traders have 18 months to abide by the new obligations, which leaves them until December 30th 2024. The Commission will then present its risk classification of countries based on an objective and transparent assessment.
- Around June 29th 2024, the European Commission will publish an impact assessment on the potential extension of the scope of the Regulation to other products.
- On 30th June 2025, SMEs will also be subject to the obligations
Requirements
Under the Regulation, operators and traders who place on or export from the EU market one of the commodities in scope, must be able to prove that this commodity does not originate from a deforested land.
For Operators and Traders
Relevant commodities and products may be placed or made available on the EU market, or exported from the EU market only if all the following conditions are fulfilled:
- The commodities are deforestation-free. Meaning that they were “produced on a land that was not subject to deforestation after December 31st 2020”
- The commodities have been produced in accordance with the relevant legislation of the country of production.
- The commodities are covered by a due diligence statement, which is submitted to the competent authorities.
This also implies that operators and traders will be required to trace the products that they are selling back to the plot of land where it was produced.