Regulation (EU) 2023/1115 on deforestation-free products (EUDR) aims at lowering greenhouse gas emissions and biodiversity loss. With this new Regulation, companies will have to prove their products are from deforestation-free supply chains. This is shown in their due diligence statements, which will be submitted electronically in the EU digital database (Information System).
Scope and deadlines of the EU Deforestation Regulation
What does the EUDR cover?
The commodities covered are cattle, wood, cocoa, soy, palm oil, coffee, rubber, and some of their derived products, such as leather, chocolate, tyres, or furniture.
When does the EUDR apply?
After two postponements, the EU Deforestation Regulation has new application dates. The new dates of application are:
- 30 December 2026 for large and medium operators.
- 30 June 2027 for micro and small operators.
- 30 December 2026 for micro and small operators already covered by the EU Timber Regulation (EUTR).
What are small and medium enterprises (SMEs)?
SMEs are businesses that fulfil two out of the following three criteria:
- Average number of employees up to 250.
- Net turnover of less than EUR 50.000.000.
- Balance sheet of less than total EUR 25.000.000.
Does the EUDR apply regardless of the quantity or value of products?
Yes. There is no threshold volume or value of a relevant commodity or relevant product.
Does the Regulation apply to both EU and non-EU businesses?
Yes. Commodities produced inside the EU are subject to the same requirements as commodities
produced outside the EU.
Does the EUDR apply to second-hand products?
The EUDR does not apply to second-hand products which have completed their lifecycle and would be otherwise disposed of.
What does “deforestation-free” mean?
According to the EUDR, “deforestation-free” means: “(a) that the relevant products contain, have been fed with or have been made using, relevant commodities that were produced on land that has not been subject to deforestation after 31 December, 2020; and (b) in the case of relevant products that contain or have been made using wood, that the wood has been harvested from the forest without inducing forest degradation after 31 December, 2020.”
Impact on business
Will border checks for EUDR compliance disrupt trade and cause delays?
No delays will occur and no compliant product will be blocked. However, this applies only in cases where companies have met their obligations before placing a product on the EU market or exporting it.
What do authorities check at customs?
Customs authorities can check that the custom declaration includes a valid Due Diligence Statement (DDS) reference number.
Will the prices of coffee and cacao increase?
Prices of such commodities are mainly affected by climate change as well as by rising labour and energy costs. For instance, increased droughts and the spreading of disease are reducing yields, which lead to increased prices.
What are some obligations from which SMEs are exempted?
Some exemptions for SMEs include:
- No annual reporting obligations.
- Lighter requirements in terms of risk mitigation.
- No need to carry out due diligence or file statements for products that have already been subject to due diligence further up the supply chain (for downstream SMEs).
Definitions of roles and key obligations under the EUDR
What is the definition of operator?
An operator is a natural or legal person who places relevant products on the EU market (including by importing them) or exports them from the EU in the course of a commercial activity.
What is the definition of trader?
A trader is any person in the supply chain (other than the operator or downstream operator) who, in the course of a commercial activity, makes relevant products available on the market.
What is the main obligation of the operator?
Operators (and traders which are not SMEs) will have to set up and maintain a Due Diligence System.
How does the EUDR apply in case of company groups?
Each entity in the group must create an individual account for its economic operator in the Information System. The balance sheet to take into account is the one of the individual legal entity, not of the company group as a whole.
Do you have any questions we did not reply to? Ask us here or write us at prodlaw@obelis.net.
References:
European Commission (2025). FAQ-Deforestation Regulation. Retrieved on 14/04/2026.
EUR-Lex (2025). Regulation (EU) 2023/1115 of the European Parliament and of the Council of 31 May 2023 on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010. Retrieved on 14/04/2026.
European Commission (2026). EUDR – Myths vs. Reality Debunking myths around the EU Deforestation Regulation. Retrieved on 14/04/2026.
Leave a Reply