EU Deforesting Regulations come into force next year

The enforcement of the EU’s Deforestation Regulations (EUDR) for small businesses has been pushed back by six months to the 30^th of June next year. The regulations aim to reduce the EU’s impact on deforestation and biodiversity loss by setting import and export requirements for products linked to these issues.

The EUDR targets products like:

1. Cattle
2. Wood
3. Cocoa
4. Soy
5. palm oil
6. coffee
7. rubber, and their derivatives.

So, if a small business imports, supply, or exports these products within the EU, it must comply with the regulations. The SFA recommends traders should start preparing now due to the extensive due diligence requirements (listed below).

1. Deforestation-free: products must not come from land deforested or degraded since 31 December 2020.
2. Legal compliance: products must comply with the relevant laws of the production country and international human rights laws.
3. Due diligence statement: products must be covered by a due diligence statement.

The Due Diligence Process Explained

To declare "negligible risk”, Operators* and Non-SME Traders must follow a structured process:

1. Information Collection: Gather detailed data for each product batch including geolocation coordinates and proof of legal compliance. Downstream companies can reference the suppliers DDS but need to verify the data as they remain liable.
2. Risk Assessment: Analyse the collected information to assess the risk of the product not meeting EUDR standards.
3. Risk Mitigation: If the assessment shows a non-negligible risk, the Operator must take steps to reduce that risk to negligible before selling or exporting. If the risk can't be reduced, the product cannot enter the EU market or be exported.
4. Submit Due Diligence Statement (DDS): Once negligible risk is achieved, submit the DDS via the IS. This is in effect a declaration of compliance; detailed records of the due diligence measures must be kept for five years.

Note: *SMEs are subject to simplified due diligence procedures in certain circumstances.

An operator is defined as any person or entity that places relevant products on the EU market or exports them from the EU. If based outside the EU, the first person making these products available in the EU is deemed the operator. Traders are defined those in the supply chain, other than operators, who make relevant products available on the EU market. Unlike operators, traders do not place products on the market but make them available for distribution, consumption or use. This means the products have already been imported into the EU or produced within the EU.

Further details and advice on the EUDR can be found on the Ibec website here.

Useful Resources

• DAFM’s dedicated EUDR webpage features updates, a series of explanations including webinar recordings and a Frequently Asked Questions (FAQ) document.
• The European Commission’s EUDR landing page for business, includes detailed guidance on the requirements and technical details of the Information System.

Quick Links

• DAFM Contact – EUDR General Queries
• EC Guidance Document
• EC 4^th Edition FAQ Document
• EUDR Information System & Training Environment
• EUDR Regulation Full Text