The European Union (EU) has announced a 12-month postponement for the implementation of the European Union Deforestation Regulation (EUDR), giving businesses until December 30, 2025, to comply. This additional time allows companies to adjust to the new requirements aimed at combating global deforestation and forest degradation. For small and micro-enterprises, the compliance deadline is extended further to June 30, 2026.
What Is the EUDR?
The EUDR is a groundbreaking EU law designed to reduce the EU’s environmental impact on deforestation. It mandates that products entering, leaving, or being produced within the EU must be “deforestation-free” and legally sourced. These efforts align with the EU’s goals of reducing greenhouse gas emissions and promoting sustainability.
What Products Are Affected?
The regulation covers several commodities and their derivatives, including:
- Palm oil
- Beef and beef products (e.g., leather, hides)
- Wood
- Cacao
- Coffee
- Soy
- Rubber
- Products made from these commodities, like chocolate, paper, furniture, and tires, are also included.
To comply, businesses must ensure these products were not produced on land deforested after December 30, 2020.
Due Diligence Requirements
Companies involved in the manufacturing, import, or export of affected products will need to establish a due diligence system. This system ensures products are traceable, risk-assessed, and sourced from legal and sustainable supply chains. Key actions include:
- Conducting research on product origins.
- Identifying and mitigating deforestation risks.
- Keeping detailed documentation to demonstrate compliance.
Impact on Global Trade
The EUDR has significant implications for international trade, especially for countries in Asia, North America, and South America, where many of the regulated commodities originate. Companies in these regions exporting to the EU will also need to comply with the regulation.
Why Was the EUDR Postponed?
The 12-month delay comes after discussions between EU authorities and business communities. The extra time is meant to help companies and governments prepare for the regulation, with 2025 serving as a test year. Organizations like NVWA, LVVN, and Customs will provide support and guidance to ease the transition.
Looking Ahead
The EU’s commitment to sustainability is unwavering, and the EUDR is a significant step in aligning global trade with environmental goals. Businesses are encouraged to act now, using the postponement period to build compliance strategies and avoid penalties when the regulation takes full effect.
For additional guidance, businesses can consult tools like the EUDR Rule Guide to better understand their responsibilities under the regulation.
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