Enforcement by customs is scheduled to begin on December 30, 2025. Despite this postponement, companies should continue preparing for EUDR compliance. Below we outline what this implies for importers.
What is the EUDR?
An area the size of the EU was deforested between 1990 and 2020. To address this issue, the EU Regulation on Deforestation Free Products (EUDR) has been in effect since 2023, with enforcement beginning in 2025. The EUDR replaces the European Timber Regulation (EUTR), which has regulated timber imports since 2013. Under the EUDR, products originating from deforestation after December 30, 2020, cannot be produced, imported or exported on the European market.
Which products does the regulation cover?
The EUDR applies to the following products:
- Cattle
- Cocoa
- Coffee
- Palm oil
- Soy
- Timber
- Rubber
The regulation also applies to partially processed products such as leather, chocolate, furniture, paper, beef, and charcoal. Not all products are banned under the EUDR. The Dutch Food and Consumer Product Safety Authority (NVWA) maintains and periodically publishes the full list of prohibited raw materials and products derived from them, classified by commodity code (so-called 'HS codes').
Obligations for large importers and SME’s in the chain
Do you import products covered by the EUDR? Then you must declare that these products do not originate from land deforested after December 30th, 2020 (the 'cut-off date'). Products are prohibited and therefore cannot be imported if they originate from farmland that has been deforested after December 30th, 2020.
For this purpose, so-called due diligence requirements should be met. This implies that you should demonstrate where the raw materials came from. Upon import, you should provide precise geographical information about the relevant agricultural land, with satellite images and GPS coordinates. Based hereon, Customs will compare the situation upon import with the situation as per December 30th, 2020, to determine whether the products were obtained from deforestation after December 30th, 2020.
This obligation does not only apply to you as an importer. Every subsequent link in the supply chain should also assess whether they meet the due diligence requirements based on information received from its supplier. The regulation draws a distinction between large importers and small- and medium (‘SME’) importers. Large importers (more than 250 FTE, or a turnover > 50 million euros and a balance sheet total > 25 million euros) are subject to a full due diligence and information obligation for products to be imported or traded.
SME importers are generally exempt from due diligence but must still provide relevant information. This group should also demonstrate (for example, by including references) from whom they obtained the products and that the imported products were not produced as a result of deforestation.
Sanctions for non-compliance with the EUDR
EU-countries will carry out on-site checks for compliance with the EUDR. For the import of goods, they will conduct a risk analysis of the countries and sectors where the risk of deforestation is considered the highest. Possible sanctions for non-compliance are:
- Fines, of four percent oof annual sales, with the possibility of higher penalties to eliminate the potential economic benefits from non-compliance.
- Confiscation of the revenue of these products.
- Refusal of "forbidden" products at the border and seizing hereof by authorities.
- Temporary exclusion from public tenders (with a maximum of 12 months) in case of serious or repeated violations.
- Temporary prohibition from marketing, offering or exporting the goods in question.
The European Commission will publish the offender and the sanction imposed on its website.
When does the EUDR take effect?
The EUDR took effect on May 31st, 2023, with a transition period of 18 to 24 months, for which the European commission has requested a delay for one additional year. FFor large companies, EUDR obligations take effect on December 30th, 2025. For SME’s, these obligations in principal will apply from June 30th, 2026.
The regulation will be evaluated after two years. Possibly, wetlands and savannas will then also be regarded as protected "forest", and corn and biodiesel may be added to the list of prohibited products.
For wood and EUTR-covered products harvested before 30 June 2023 and placed on the EU market after December 30, 2025, the EUTR remains effective until December 301, 2028.
Start now!
Even though a possible delay may be granted, the obligations under the EUDR will become relevant faster than may be expected. In other words: there is work to be done. It is vital to map out the supply chain to be able to demonstrate where and from whom the product in question originates. Engage with suppliers, so that they are prepared to meet the requirements and provide the relevant data. Make an overview of the risks and challenges resulting from the EUDR for your company.
Need help with that or want to learn more about the EUDR and its impact on your business? Feel free to call or email us, we are happy to show you the way.
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