Overview

The EU Deforestation Regulation, Regulation (EU) 2023/1115 on Deforestation-free Products, referred to as EUDR, is a core policy of the "European Green Deal" for addressing climate change and protecting biodiversity.

The EUDR aims to reduce the risk of products linked to deforestation or forest degradation entering or exporting the EU market. Simultaneously, it seeks to stimulate the demand for and trade in legal and "deforestation-free" commodities within the EU. This initiative is designed to curb global forest destruction and regulate supply chain sustainability, thereby lowering greenhouse gas emissions, stemming biodiversity loss, and fostering the green transition of global supply chains.

According to the regulation, any operator or trader placing regulated commodities and their derived products on the EU market or exporting them from the EU must demonstrate that their product's production has not caused deforestation or forest degradation and is legally compliant.

EUDR Regulated Products

The publication of the EUDR replaces the former EU Timber Regulation (EUTR). Building upon the EUTR's control over timber, the EUDR's scope has been expanded to cover seven major categories of commodities: cattle, coffee, cocoa, oil palm, soya, wood, and rubber, along with their related derived products (e.g., chocolate, tires, and stearic acid,).

Annex I of the regulation lists the names of controlled commodities (including derived products) and their corresponding HS codes, facilitating precise regulation.

It should be noted that products not listed in Annex I of the regulation are not subject to control, even if they contain regulated commodities. For example, soap, which contains palm oil (a regulated commodity), is not regulated by EUDR because soap itself is not listed in Annex I.

Regulated Entities

Enterprises in the EU that produce, import, export, or sell these regulated commodities and their derived products must comply with the EU law on deforestation-free products, involving three key roles:

• ‘Operator’ means any natural or legal person who, in the course of a commercial activity, places relevant products on the market (e.g., EU importers, EU producers) or exports them (e.g., EU exporters);

• ‘Trader’ means any person in the supply chain other than the operator who, in the course of a commercial activity, makes relevant products available on the market(e.g., EU distributors);

• ‘Authorised Representative’ means any natural or legal person established in the Union, has received a written mandate from an operator or from a trader to act on its behalf in relation to specified tasks with regard to the operator’s or the trader’s obligations under this Regulation. REACH24H’s Irish subsidiary is available to serve as an authorized representative.

Compliance Requirements of the EU Regulation on Deforestation-Free Products

According to Article 3, products must meet three conditions to enter or export the EU market.

• Deforestation-free: The land used for the product has not been subject to deforestation or forest degradation after December 31, 2020;

• Legally produced: They have been produced under the relevant legislation of the country of production, including land use rights, environmental protection, labor rights, and human rights (especially the free, prior, and informed consent rights of indigenous peoples);

• Complete due diligence statement: one must gather information, assess risks, and ensure products are 'deforestation-free' and 'legally produced.' Subsequently, an official 'Due Diligence Statement (DDS)' must be submitted online through the EU information system. This statement requires core data, including activity type, company information, product details, and Geolocation coordinates of origin.

Our Services

• EUDR Regulation Consulting

• EUDR Regulation Training

• EUDR Registration Application

• EUDR Product Traceability and Supply Chain Due Diligence

• EUDR Authorized Representative

• EUDR Risk Assessment

• FSC Forest Certification Consulting/Guidance

If you have any questions in this regard, please feel free to contact us at customer@reach24h.com.