EU Deforestation Regulation Implementation Guidelines
The European Union releases implementation guidelines for EU Deforestation Regulation (EUDR), aimed at providing an explanatory framework and guide for member states when implementing the regulation.
The EU Deforestation Regulation officially came into effect on June 29, 2023, aimed at preventing goods and products related to deforestation and forest degradation from being placed on the EU market or exported from the EU. According to the revision in 2025, the obligations of large and medium-sized enterprises will apply from December 30, 2026, and the obligations of small and medium-sized enterprises will apply from June 30, 2027.
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Introduction to EU Deforestation Regulation
The EU Deforestation Regulation covers seven types of products including beef, cocoa, coffee, oil palm, rubber, soybeans, and wood, requiring their production to meet three conditions:
- Zero deforestation: Production does not lead to deforestation. The definition of deforestation is the conversion of forests to agricultural use after December 31, 2020.
- Legal production: In compliance with relevant regulations of the producing country, the EU plans to establish a database of producing country regulations by December 2026.
- Due diligence: The product includes a due diligence statement, which can be simplified if it meets some requirements.
The regulation classifies market participants into the following categories:
- Operator: Responsible for conducting full due diligence when launching products on the market or exporting them in commercial activities.
- Micro or Small Primary Operator: A micro or small enterprise established in low-risk countries that undertakes simplified due diligence obligations.
- Downstream Operator: A company that manufactures new products using other products that have already included due diligence statements. For example, chocolate manufacturers purchase raw materials within the European Union to process them into chocolate before putting them on the market.
- Trader: Enterprises in the supply chain other than those classified above. They do not have due diligence obligations but are required to collect and preserve the identity information of suppliers and customers.
All operators are required to fulfill due diligence obligations before the product is put on the market or exported, and the due diligence system should cover:
- Information collection: Collect product information, documents, and data provided by suppliers, such as geographical location of origin, production date, etc.
- Risk assessment: Verify the collected information and identify product non-compliance risks. Operators need to consider production country risks, forest coverage, supply chain complexity, etc.
- Risk mitigation: After risk assessment, if the operator discovers that the product has risks, appropriate risk mitigation measures need to be taken.
The EUDR requires operators to establish and continuously update procedures and frameworks for due diligence systems, conduct an annual review of the system, record all contents, and keep it for five years. If the operator’s supplier comes from a low-risk country, risk assessment and risk mitigation may not be carried out if there is no compliance risk. Operators can use third-party authentication as an information supplement, but third-party authentication cannot replace due diligence obligations. The EUDR is related to the Corporate Sustainability Due Diligence Directive (CSDDD), and in the event of a conflict, the Regulation shall prevail.
Reference:
Commission Publishes Simplification Review of EU Deforestation Regulation
