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EU Deforestation Regulation

In this post, we summarise the key points of a post regarding EUDR from the Irish Department of Agriculture, Food, and the Marine.* website.

*This post is a general guide to the Regulations as we understand them. To gain a full understanding of the Regulation, please visit this page.

What is the EU Deforestation Regulation(EUDR)?

The EUDR is an EU Regulation which aims to minimise the EU’s contribution to global deforestation and forest degradation and to reduce the EU’s contribution to greenhouse gas emissions and global biodiversity loss. This regulation relates to certain products, known as “Relevant commodities”.

The new regulation replaces the EU Timber Regulations (No. 995/2010)

Key points of the EUDR

Products may only be placed on the EU market, made available in, or exported from the EU if:

– they are deforestation-free,

– they have been produced in accordance with the relevant legislation of the country of production; and

– they are covered by a due diligence statement.)

Below are explanations of some of the above points.

Definition of Deforestation-Free

– Commodities must not be produced on deforested land after December 31, 2020.

– Timber products must not be harvested from degraded forests after this date.

Relevant Commodities

– Includes cattle, cocoa, coffee, palm oil, rubber, soy, wood, and derived products like leather and chocolate.

– Applies to both domestic and imported/exported products.

Due Diligence Process

The due diligence process includes three stages:

Stage 1: Guaranteeing Access to Information

– Importers must provide detailed information about commodities, including geographic coordinates of land plots.

– Ensure compliance with the production country’s legislation, especially regarding human rights and indigenous peoples’ rights.

– Geolocation and satellite monitoring are key tools.

Stage 2: Risk Analysis and Assessment

– Use collected data to assess risks of non-compliance, considering factors such as country risk classification, deforestation extent, and human rights issues.

– Risk analysis must be repeated annually.

Stage 3: Risk Reduction Measures

– If non-negligible risk is detected, mitigation measures such as audits or additional information requests are required.

– These measures must be reviewed annually.

Due Diligence Statement

– Operators and non-SME traders must submit due diligence statements (DDS) through the European Commission’s Information System.

– The system generates a reference number for customs procedures related to import and export.

Definitions of Key Roles

Operator: A person or entity placing relevant products on the market.

Trader: Any entity in the supply chain distributing products.

Non-SME Trader: Large traders are subject to the same due diligence obligations as operators.

Reporting Obligations

– Non-SME operators must publicly report their due diligence systems annually.

Transition from EU Timber Regulation

– The EU Timber Regulation will be repealed by December 30, 2024, but transitional rules apply until December 2027 for timber products placed on the market before June 29, 2023.

Penalties for Non-Compliance

– Fines, product confiscation, disqualification from procurement, and exclusion from public funding may be imposed.

Inspection and Risk Assessment

– Countries will be classified as low, standard, or high-risk, with corresponding minimum inspection rates (1%, 3%, and 9%).

– All countries are temporarily considered standard-risk until the classification list is published by December 30, 2024.

Timber with FLEGT Licenses

– Timber products with valid FLEGT licenses are considered legal but must also meet deforestation-free criteria and submit a due diligence statement.

You can read more here.

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