The EU Deforestation Regulation: What is it about?
Purpose of The EU Deforestation Regulation
The EU Deforestation Regulation (EUDR) was published in 2023 and was originally set to apply from 30 December 2024. However, you may have recently seen updates that this application date may now be delayed by the European Commission and we are now anticipating application to be staggered in 2025 and 2026.
When the law takes effect it will prohibit the introduction into the market, marketing, or exporting of relevant commodities and products – unless they meet three conditions:
They do not contribute to deforestation or forest degradation (they are ‘deforestation free’).
They have been produced in accordance with the relevant legislation of the country of production
They are covered by a due diligence statement.
Scope
EUDR will impact EU importers and exporters who trade in the specific products listed in Annex 1 of the Regulation, relating to seven overarching commodities:
Cattle
Cocoa
Coffee
Soya
Oil Palm
Rubber
Wood
Scope is determined via reference to the product's tariff classification under the Combined Nomenclature. For example (under oil palm):
2915 70 Palmitic acid, stearic acid, their salts and esters
2915 90 Saturated acyclic monocarboxylic acids, their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives (excluding formic acid, acetic acid, mono-, di- or trichloroacetic acids, propionic acid, butanoic acids, pentanoic acids, palmitic acid, stearic acid, their salts and esters, and acetic anhydride)
3823 11 Stearic acid, industrial
3823 12 Oleic acid, industrial
3823 19 Industrial monocarboxylic fatty acids; acid oils from refining (excluding stearic acid, oleic acid and tall oil fatty acids)
3823 70 Industrial fatty alcohols
Impact
It is important to note that the tariff classifications listed do not refer to many finished product types at all and cosmetics are not listed. It is understood that finished cosmetics are out of scope of the regulation but the import of the raw materials listed as ‘products’ is impacted. In practice, this will mean imported finished cosmetics are out of scope but for anyone importing raw materials in order to manufacture a finished cosmetic within the EU, the material will fall within scope.
We can expect to see interest from consumers and retailers/distributors on whether products are compliant with Regulation (EU) 2023/1115. Distributors are already requesting information from brands to confirm their compliance to this new law.
Getting help
If you are being asked to declare the status of your products in regard to the EUDR, we can assist in helping you to establish your status and prepare an appropriate response to provide to your distributors and customers.