Regulation on Deforestation-Free Products (EUDR)
The European Union Deforestation Regulation (EUDR), effective June 29, 2023, mandates that operators and traders importing or exporting specific commodities into the EU market must prove that their products are not linked to deforestation or forest degradation. These products must also comply with local production laws and the Regulation's rigorous traceability standards.​​
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Under the Regulation, any operator or trader who places certain forest/agricultural commodities on the EU market, or exports from it, must be able to prove that the products do not originate from recently deforested land or have contributed to forest degradation.
Commodities that come under EUDR:
The EUDR focuses on seven key commodities, identified by the EU for their significant consumption volumes and high deforestation risk:
Cocoa
Coffee
Rubber
Soy
Wood
Palm Oil
Cattle
Who is obligated to comply with the EUDR?
The EUDR applies to both Operators and Traders dealing with the specified commodities or products derived from them.
Operators
An operator is any legal entity within the EU that places the relevant products on the EU market for the first time or exports them from the EU.
Traders
A trader is any legal entity that supplies these products, already on the EU market, for distribution, further processing, or consumption.
Both operators and traders must ensure that their products do not originate from recently deforested areas and do not contribute to forest degradation.
Compliance Deadline
365d
24h
60m
60s
UNTIL EUDR COMPLIANCE IS IMPLEMENTED.
​Most companies must meet the EUDR requirements by December 30, 2024.
An extension until June 30, 2025, is available for Operators classified as small or micro-undertakings (as defined by the regulation) established before December 30, 2020.
Consequences of Non-Compliance
Fines
Up to 4% of the annual EU turnover.
Confiscation of Goods
Non-compliant products may be seized.
Exclusion
Companies might be excluded from public procurement.
Marketing Bans
Non-compliant products could be prohibited from entering the EU market.