What is the EU Deforestation Regulation (EUDR)?
The EU Deforestation Regulation (EUDR) is Regulation (EU) 2023/1115, which establishes rules intended to prevent products linked to deforestation and forest degradation from being placed on the European Union market, made available within the EU or exported from it. The regulation applies to specified commodities and certain derived products, including cattle, cocoa, coffee, oil palm, rubber, soya and wood.
The EUDR requires operators placing relevant products on the EU market for the first time or exporting them to verify that covered products are deforestation-free, produced in accordance with the applicable legislation of the country of production and covered by a due diligence statement where required. Traders and downstream operators are subject to traceability and record-keeping obligations. The regulation is particularly important for importers, exporters, manufacturers, distributors, retailers and groups that process or trade relevant commodities.
For EUDR purposes, a product is generally considered deforestation-free where it has not been produced on land subject to deforestation after 31 December 2020. This cut-off date follows directly from Regulation (EU) 2023/1115. In the case of wood and wood-derived products, businesses must also consider whether forest degradation occurred after that date.
What does the EU Deforestation Regulation cover?
The EUDR covers both raw commodities and products listed in Annex I to the regulation. Depending on the applicable customs classification, this may include, for example, beef, leather, chocolate, coffee products, palm oil products, rubber products, soy-based products, furniture, paper, plywood and other timber-derived goods. The scope should be assessed against the precise Combined Nomenclature code and product description.
Operators required to submit due diligence statements must conduct due diligence before placing relevant products on the EU market or exporting them. This process includes collecting information about the product, identifying the country of production, obtaining geolocation data for production plots, assessing the risk of non-compliance and, where necessary, applying risk mitigation measures.
The information collected must allow the relevant product to be traced through the supply chain. Geolocation data is a central EUDR requirement because it enables authorities and businesses to assess whether the production area may be associated with deforestation or forest degradation. Documents from suppliers alone may not be sufficient if they do not provide reliable, verifiable and complete information.
When does a business need EUDR compliance support?
Legal support may be needed when a company imports or exports covered commodities, purchases them from suppliers outside the European Union, processes them into finished goods or distributes them in the EU. The regulation may also affect companies that do not directly import goods but act as traders, brand owners, manufacturers or group entities responsible for procurement and product compliance.
Particular attention is required where supply chains involve several intermediaries, small-scale producers, production in high-risk locations or suppliers unable to provide plot-level data. Businesses should also review existing supply, distribution, manufacturing and logistics agreements to determine whether contractual obligations sufficiently address EUDR documentation, audit rights, data quality, indemnities and consequences of non-compliance.
Under Regulation (EU) 2025/2650, the main application date for the EUDR was postponed to 30 December 2026. Micro and small undertakings benefit from a later application date of 30 June 2027, subject to the specific conditions set out in the legislation. Companies should nevertheless prepare in advance, as building traceability systems and obtaining data from suppliers can require substantial time.
A timely consultation with an EUDR lawyer can help identify gaps in supply-chain documentation, avoid placing non-compliant products on the market and reduce the risk of administrative penalties, disrupted deliveries, contractual disputes and financial losses. Member States are required to establish penalties that are effective, proportionate and dissuasive. The regulation provides that maximum fines must be at least 4% of the operator’s or trader’s total annual EU-wide turnover in the preceding financial year.
Law firm support in EUDR compliance may include:
- assessing whether products, transactions and entities fall within the scope of the EUDR;
- reviewing supply chains, product classifications and traceability documentation;
- preparing or reviewing EUDR due diligence procedures and internal compliance policies;
- supporting risk assessments and risk mitigation measures;
- drafting and negotiating EUDR clauses in supply, distribution and manufacturing agreements;
- advising on supplier declarations, audit rights and contractual liability;
- supporting communication with competent authorities and responding to inspections;
- coordinating EUDR obligations with ESG, customs, product compliance and corporate governance requirements.
Need assistance with EU Deforestation Regulation compliance? Contact us.