EUDR FAQ
The EU Deforestation Regulation (EUDR) is a legal framework designed to reduce the import and consumption of products in the EU that contribute to deforestation and forest degradation. Below, we address the most common questions about the regulation and its implementation.
1. WHICH PRODUCTS FALL UNDER THE EUDR?
The EUDR covers a range of commodities including soy, coffee, cocoa, wood, rubber, beef, palm oil, and their derivatives. Annex I of the EUDR lists the exact products. If a product is not in Annex I, it is exempt from complying with the EUDR’s requirements, even if it contains commodities covered by the regulation. For instance, products like soap are not required to comply, even if it contains palm oil which is covered by the EUDR. Click here to learn more.
2. ARE THERE ANY EXEMPTIONS FOR CERTAIN PRODUCTS OR COMPANIES?
No general exemptions exist; however, the regulation allows for some flexibility in enforcement and support mechanisms for smallholders.
3. I USE PACKAGING, WHICH IS INCLUDED IN THE EUDR (UNDER HS CODE 4415), TO TRANSPORT MY PRODUCTS. DO I NEED TO COMPLY WITH THE EUDR?
If packaging is used to ‘support, protect or carry’ another product, it is not covered by the regulation.
4. WHAT ARE THE KEY DATES FOR THE EUDR?
- Adoption: June 29th, 2023
- Applicability date: June 29th, 2023 – The EUDR will apply to all products harvested from this date onwards.
- Implementation deadline for large companies: December 30th, 2024 (subject to change – 1 year delay proposal)
- Implementation deadline for small companies: June 30th, 2025 (subject to change – 1 year delay proposal)
- Deforestation cut-off date: Dec. 31st, 2020 – This means that the land from which the product originated must not have been subject to deforestation after this date.
5. WHAT IS REQUIRED UNDER THE EUDR?
To ensure EUDR compliance, companies will have to carry out a multi-step due diligence process: data collection, risk assessment, and risk mitigation.
- At the data collection phase, businesses must acquire real-time information about their products. This includes everything from basic product descriptions and quantities to more in-depth details, like the geolocation of the farm or forest from which the product originates. Companies must also acquire conclusive evidence verifying that the product’s production is free from deforestation practices and adheres to the laws of the country of origin.
- Once companies have completed the data collection, they must undertake a risk assessment. Risk levels are determined by various factors, such as the presence of forests and deforestation, conflicts over land rights with indigenous communities, mixing and circumvention, supply chain complexity, and even socio-political aspects, including corruption and lack of transparency. This analysis must be updated at least annually.
- If the risk assessment concludes there is zero risk, no further action is required. However, if risks are identified, companies must explore risk mitigation measures. This could involve collecting additional data, carrying out independent surveys, or undergoing audits.
