EUDR: EU Deforestation Regulation

🔓The EU Deforestation Regulation creates due diligence and traceability requirements for certain commodities and products placed on or exported from the EU market.

What does EUDR mean?

EUDR stands for the EU Deforestation Regulation, formally Regulation (EU) 2023/1115.

It is an EU regulation designed to prevent products linked to deforestation and forest degradation from being placed on the EU market or being exported from the EU.

The Regulation covers seven commodities:

• Cattle

• Cocoa

• Coffee

• Oil palm

• Rubber

• Soya

• Wood

  
  

It also covers certain products derived from these commodities where they fall within the scope of Annex I.

For products within scope, businesses must meet specific due diligence requirements and be able to demonstrate that the relevant commodities are:

• Deforestation-free

• Produced in accordance with the relevant legislation of the country of production

• Covered by the required due diligence process

• 
  

The EUDR therefore creates a direct link between product scope, supply chain information, due diligence, and market access.

Don't confuse it with

EU Timber Regulation

The EU Timber Regulation, EUTR, addressed illegal logging and the placing of timber and timber products on the EU market.

The EUDR replaces the EUTR and extends the regulatory approach beyond timber to six additional commodities and relevant derived products. It also introduces broader requirements relating to deforestation and supply chain traceability.

Corporate Sustainability Due Diligence Directive

The CSDDD addresses broader corporate responsibilities relating to environmental and human rights impacts across certain companies and their value chains.

The EUDR is different. It is a product-specific regulation covering defined commodities and products and establishing specific due diligence requirements.

CBAM

The Carbon Border Adjustment Mechanism, CBAM, addresses the embedded carbon emissions of certain imported goods through a carbon pricing mechanism.

EUDR is not a tariff or carbon charge. Its focus is on whether relevant products meet the Regulation's deforestation, legality, and due diligence requirements.

Why does EUDR matter?

EUDR brings supply chain due diligence into the practical management of certain imports and exports.

For customs and trade professionals, the first challenge is identifying whether products are actually within scope.

That requires more than looking at the product description. Businesses need to consider the products covered by Annex I, their classification and the relevant supply chain.

For products within scope, businesses may need information including the country of production, geolocation data ,and other evidence required to support the due diligence process.

The EUDR also introduces a formal Due Diligence Statement, DDS, process through the EU's EUDR Information System.

This means EUDR compliance can involve customs, procurement, sourcing, legal, sustainability and supply chain teams. The responsibility cannot necessarily sit with one department.

In practice

An EU company imports a product containing a commodity covered by the EUDR.

The company first needs to establish whether the specific product falls within Annex I.

If it does, the business needs to determine its obligations under the Regulation and obtain the information required to carry out its due diligence.

This may include information about the production location and the supply chain supporting the relevant commodity.

The business must then follow the applicable due diligence process and maintain the evidence needed to demonstrate compliance.

The practical challenge is therefore not simply:

"Do we have an EUDR statement?"

It is:

"Can we demonstrate how we determined that this product complies with the EUDR?"

What should you check?

Scope

Are your products covered by Annex I?

Classification

Have you correctly identified the relevant commodity code and product?

Supply chain

Can you obtain the information required from suppliers and other parties in the supply chain?

Geolocation

Where applicable, do you have the required geolocation information for the relevant production areas?

Due diligence

Have you established a documented process for assessing and, where necessary, mitigating risk?

Evidence

Can you demonstrate how your EUDR compliance decision was reached?

Responsibilities

Is it clear who owns EUDR compliance across customs, procurement, sourcing, sustainability and other relevant functions?

Customs Manager takeaway

EUDR is not simply another environmental regulation. For businesses trading affected products, it creates practical supply chain, due diligence and market access obligations.

The first step is to identify what is affected.

The next is to understand what the requirements mean for your business.

Then comes implementation.

Go Deeper

• The Customs Watch EU helps customs professionals identify new EU customs and trade developments, including important EUDR developments.

• The Knowledge Hub provides the deeper analysis and context needed to understand what those developments mean.

• Implementation Playbooks turn requirements into practical steps, checks and actions.

• Masterclasses help teams build and share expertise across the organisation.

Try one of our flatrate PRO plans for 30 days for free on www.customsmanager.info.

Customs Manager also runs monthly EUDR training sessions for professionals who need to understand the latest developments and their practical implications.

Identify. Understand. Act. Build Expertise.