The Council of the European Union has modified the enforcement date of the new Deforestation Regulation (EUDR), allowing sufficient time for businesses to prepare.
If approved by the European Parliament, the obligations arising from the regulation will be mandatory as of the following dates:
– From December 30, 2025, for large market players and traders.
– From June 30, 2026, for micro- and small enterprises.
The aim of the EUDR
The regulation aims to prevent the marketing of products linked to deforestation in the EU market, imposing obligations across various industries. This doesn’t just affect companies involved in forestry, but also many other sectors that utilize these materials.
Which products does the regulation cover?
The EUDR applies to the following raw materials and products derived from them: cattle, coffee, cocoa, palm oil, rubber, soy, and wood. These products can only be placed on the EU market, imported, or exported if they meet stringent requirements. This regulation extends beyond just raw materials to any products made from them. For instance, furniture, electronics, cosmetics, pharmaceuticals, and even automotive products could fall under the scope of the new rules.
Why is this important for businesses?
The new regulation affects not only large corporations but also smaller companies working with these materials. Every business must ensure that the raw materials they use comply with the regulation’s requirements. Failure to do so could result in substantial fines and even a ban on the distribution of the affected products.
What actions should businesses take?
Businesses should begin preparing for the regulation’s implementation as soon as possible. The following steps are recommended:
- Review the supply chain: It’s crucial to assess how raw materials and products relate to the regulation. If necessary, consider finding suppliers who can guarantee compliance.
- Risk analysis: Implement systems that allow for the assessment and mitigation of risks.
- Develop compliance processes: Ensure that all necessary information about the production conditions of products is available and that these conditions comply with the regulation’s requirements.
How will compliance be monitored?
Compliance will be monitored by the relevant authorities through regular inspections to ensure businesses adhere to the regulation. These inspections may result in temporary measures, such as seizing goods or suspending their distribution. In more severe cases, products may be recalled, or their distribution may be prohibited entirely.
Why act now?
The new regulation introduces significant changes that all businesses must prepare for in a timely manner. The compliance requirements are complex but essential to avoid severe penalties and ensure smooth operations in the EU market. Don’t wait until the last minute—start your preparations now!
If you need assistance in developing your compliance processes, feel free to contact our experts!
