Background and purpose

The purpose of the EUDR is to counteract the rapidly progressing worldwide deforestation and to reduce the EU’s contribution to greenhouse gas emissions and global diversity loss –the two most important environmental challenges of our time.

It introduces strict rules for the respective commodities and products, which means that they can’t be placed or made available on the EU market or exported unless:

• they’re deforestation-free
• they’ve been produced in accordance with the relevant legislation of the country of production
• they’re covered by a due diligence statement.

Who does it affect?

Operators and traders, i.e. every natural or legal person who, in the course of a commercial activity, places relevant products on the market, exports them or makes them available, must comply with the due diligence obligations set out in the EUDR.

A due diligence statement includes:
• Collection of information, data and documents
• Risk assessment measures
• Risk mitigation measures

Commodities and products

Risk of non-compliance?

Penalties for non-compliance include:

• Fines (varying for commodities and products) amountingto 4% of the company’s turnover in the EU
• Confiscation of the relevant products and/or of revenues earned with the relevant products concerned
• Temporary prohibition from placing or making relevant commodities and relevant products available on the market or exporting them

Infringements will be published on the Commission’s website (including the name, date of final judgment, summary of infringement activities, nature and amount of penalties).

Required information

The following information must be collected to prove that the relevant commodities and products are deforestation-free, produced in accordance with the legislation of the country of production and included in the due diligence statement:

• Operator’s name, address and EORI
• HS code, including description, trade name / full scientific name, quantity
• Country of production
• Geolocation of all plots of land
• Name, postal address and email of all suppliers and customers
• Adequately conclusive and verifiable information that the relevant products are deforestation-free and have been produced in accordance with respective legislation
• Respective reference number (in case of existing due diligence statement)

Records must be kept for five years and be presented to the competent authority if requested. What’s
more, a risk assessment must be conducted and risk mitigation measures must be taken. These must be documented and reviewed at least once a year.

Operators must carry out due diligence before placing relevant products on the market or exporting them. Traders must perform due diligence before trading relevant products on the market.

The due diligence statement must be submitted via the information system before importing to and exporting from the EU. In addition, it must include the following text and signature:

‘By submitting this due diligence statement the operator confirms that due diligence in accordance with Regulation (EU)2023/1115 was carried out and that no or only a negligible risk was found that the relevant products do not comply with Article 3, point (a) or (b), of that Regulation.’

‘Signed for and on behalf of:

Date:

Name and function: Signature:’

What do you need to do?

How can we support you?

Contacts

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