Regulation on Deforestation-free products
The implementation of the new EU regulation on Regulation on Deforestation-free products (EUDR) poses new challenges for initial distributors. After the Supply Chain Due Diligence Act (LkSG), this is the next major task that regulates the supply chain from an environmental and social perspective. You can view the current status in this area.
Deforestation-free products are products that are produced on areas that were not deforested after the 31st of December 2020 or for which no forest damage took place after the 31st of December 2020.
Recent developments and decisions at EU level concerning the EUDR
On December 4, 2025, the EU Commission, Council, and Parliament reached a compromise in the trilogue negotiations:
- Start of application: One-year extension of the application deadline – medium and large companies: December 30, 2026; micro and small companies: June 30, 2027.
- Shift of obligations: The obligation to submit the Due Diligence Statement (DDS) will be limited exclusively to the operator who first places the product on the EU market (usually the importer). The obligation to record and retain DDS will only apply to the first downstream operator.
- Micro and small enterprises: Relief for small primary producers: a simplified one-time declaration procedure with an identifier should be sufficient to demonstrate ongoing due diligence.
- Scope: Certain printed materials (e.g., books, newspapers) will be excluded from the scope, including advertising leaflets.
- Simplifications: By April 30, 2026, the EU Commission must present a report on impacts and administrative burden and, if necessary, propose further simplifications.
EU Parliament is expected to vote on the agreement in its plenary session on December 17, and the Council will likely approve it via written procedure. Publication in the Official Journal will follow, but in any case before take place before December 30, 2025.
The European Parliament approved the postponement and simplification in its plenary session on December 17. The EU Council will likely do so via written procedure. The new regulation can then enter into force and replace the current EUDR. Publication in the Official Journal will follow, but in any case before December 30, 2025.
This means the EUDR will be postponed by another year. The significance of the simplifications for traders and downstream market participants must now be analyzed and interpreted by the EU Commission in the coming weeks.
Further sources:
Which raw materials or downstream products are affected?
Relevant raw materials
The Regulation currently covers the raw materials listed below, which, according to thorough analyses, are considered to be the main cause of deforestation due to the expansion of agriculture. This list is reviewed regularly and revised as necessary to take account of changing patterns.
Oil palm, soy, wood, beef, cocoa, coffee, rubber
Relevant downstream products
Products containing these raw materials or animals fed with these raw materials are also affected. Here are a few examples:
- Beef: live animals, meat, offal, leather prepared after tanning or drying
- Cocoa: raw or roasted cocoa beans, cocoa mass, cocoa butter, chocolate
- Oil palm: palm oil, palm kernel oil
- Rubber: tyres made of rubber, clothing and clothing accessories for all purposes made of soft rubber (e.g. gloves)
- Wood: charcoal, furniture, paper
Requirements resulting from the Regulation
Relevant raw materials and products may only be placed on the market, made available on the market and exported if the following three requirements are met:
- They are deforestation-free.
- They have been produced in accordance with the relevant legal provisions of the country of production (human rights, labour law, anti-corruption laws, nature conservation laws, etc.).
- A declaration of due diligence is available.
Before relevant products are exported, placed on the market or made available on the market
1. information, data and documents must be collected to prove that the above three points have been fulfilled:
This includes, for example, the following information:
Precise description, quantities of products, list of all relevant raw materials/products included or used for production; addresses of companies from which products were sourced and addresses of all companies to which products were supplied; geolocalisation of all land used for production; conclusive and verifiable information that products are deforestation-free and that the country's legislation has been complied with.
2. risk assessments of the information and documents must be carried out by the companies for conformity.
Relevant products may only be placed on the market or exported if the risk assessment shows no or only a negligible risk that the products are non-compliant.
For example, the following criteria must be taken into account:
- Individual risk (as categorised by the EU Commission) of the producer country
- Presence and cooperation of indigenous peoples
- Source, reliability and validity of the information collected
- Concerns about the producer country (corruption, lack of criminal prosecution, respect for human rights, etc.)
- Complexity of the supply chain and processing stage of the relevant products (allocation of properties)
- Prevalence of deforestation or forest degradation
- Risk of circumvention of the EUDR or risk of mixing with products that have been created with the help of deforestation
- Conclusions of the Commission's expert group
The affected companies must document the risk assessment and review it at least once a year and make it available upon request. The risk assessment must also be comprehensible.
3. risk minimisation measures must be initiated.
If the risk assessment shows that there is a non-negligible risk, the market participant must initiate measures to minimise risks (audits, request for additional documentation).
Due diligence declarations in accordance with Annex II of the Regulation must be submitted to the competent authorities prior to placing on the market or export.
By submitting the due diligence declaration, the market participant assumes responsibility for ensuring that the products comply with the Regulation. A fulfilled due diligence obligation upstream in the supply chain does not release subsequent market participants from the obligation to fulfil the due diligence obligation on their part.
In order to comply with due diligence, a framework of procedures and measures must be put in place and kept up to date by market participants = "due diligence system".
The due diligence system must be reviewed at least once a year to ensure that it is up to date, and records of this must be kept for at least five years.
Non-SME market participants must report annually in as much detail as possible, in a publicly accessible manner, on their due diligence system.