EUDR webinar: current developments on the EU deforestation regulation (EUDR)

In the webinar, the current state of the EUDR and its implementation after a phase of limited developments was comprehensively outlined, and participants' questions were answered. The focus was on the latest regulatory clarifications, changes to the scope of application, as well as the specific requirements for the various participants in their roles along the supply chain.
In addition, transitional provisions, simplifications, and practical impacts for businesses were explained.

The latest changes and clarifications regarding the EU Deforestation Regulation (EUDR) were explained. Particular attention was given to the delegated act amending Annex 1, the new FAQs, guidelines, and the simplification report. The consultation phase for the delegated act has been completed, with final adoption still pending.

The EUDR applies from the end of 2026 for large and medium-sized enterprises, and from mid-2027 for small and micro-enterprises, provided they were established by the end of 2024. The scope is product-related and is defined by Annex 1. There is no quantity threshold for minimal amounts.

Changes concern, among other things, bamboo, letter mail, samples/test products, packaging, waste, and used goods. 
Leather, printed materials, and retreaded rubber tyres are exempted. 
Palm oil products, beef tongues, instant coffee, and coffee extracts are newly added.
These changes are still in the draft stage and may be subject to revisions following the conclusion of the consultation process.

The EUDR distinguishes between four roles: (first) operator (importer / first placer on the market), micro and small primary operator (e.g. farmers or foresters in the EU), downstream operator (further processors with relevant modification of the goods (change of tariff classification)), and traders. E-commerce platforms may also, under certain circumstances, be considered ((first) operator.

Duties vary depending on the role; (first) operator have the most extensive due diligence obligations (information collection and assessment, risk analysis, risk mitigation), while downstream operators and traders mainly need to receive reference numbers and archive them for 5 years.

(first) operators must, as part of their due diligence obligations, collect geolocation data and proof of legality, conduct risk assessment and risk mitigation, and prepare DDS (due diligence systems). Simplified obligations apply to low-risk countries. Within corporate structures, each entity must implement its own due diligence obligations, but several companies within a group may appoint a single authorised representative.

The first downstream operators must receive the DDS reference number and archive it for 5 years, provided it is received from their supplier. There is no active duty to inquire unless there are justified concerns. All non-SME (small and medium-sized enterprise) downstream operators and traders must register in TRACES.

Products that were placed on the market before the start of application can be further processed and exported, with proof provided through a universal reference number and documentation (e.g. import certificates).

Downstream operators and traders must take action in the case of substantiated concerns (e.g., with "objective and verifiable" indications of violations, such as reports from NGOs or in the press). In such cases, a prohibition applies to bringing the respective products to market until the matter is resolved (de facto sales ban).

"Downstream" SMEs are not required to register in TRACES. However, importing SMEs do not benefit from any simplifications. Even in the case of justified concerns, "downstream" SMEs are not obligated to conduct a full examination.

To conclude, individual questions from the participants were addressed and discussed as far as possible.

Further webinars are planned for the autumn to provide clarity regarding the final implementation.