Update on EU Deforestation Regulation (EUDR): Towards simplified implementation

Summary

The European Union has published a suite of materials aimed at clarifying and simplifying the implementation of the EUDR, ahead of its first compliance milestone for large and medium enterprises on 30 December 2025.

Micro and small enterprises will follow from 30 June 2026.

The materials include:

1. Implementing Regulation (EU) 2025/1093, which introduces country risk classifications to guide due diligence and enforcement.
2. A Proposed Delegated Regulation, refining the scope of products subject to the EUDR.
3. Updated guidance and FAQs, clarifying key terms and obligations under the EUDR.

Country Risk Ratings

The Implementing Regulation assigns risk classifications based on the potential for certain commodities produced in a particular country (which fall within the scope of the EUDR) to have deforestation impacts within the country of origin. It designates 140 countries as “low risk”, including all EU Member States. Four countries—Belarus, Myanmar, North Korea and Russia—are classified as “high risk”. All other countries are considered “standard risk”.

Operators and traders sourcing from low-risk countries will benefit from simplified due diligence requirements. They must still collect information for due diligence purposes (e.g. geolocation data), but they are not required to work through the more extensive risk assessment and mitigation processes set out in Articles 10 and 11 of the EUDR. That is, unless they identify credible information that points to a risk that the products they are sourcing are not EUDR-compliant. In that case, the Operator should elect to go through the full due diligence process, and depending on its findings, report its concerns to the relevant Competent Authority.

‘Standard’ and ‘high risk’ classifications require an Operator or Trader to go through the full due diligence process; however, products sourced from ‘high risk’ countries will be subject to closer scrutiny.

Monitoring and enforcement efforts by Competent Authorities must be calibrated to reflect country risk levels.

Proposed Delegated Regulation

This draft regulation introduces technical solutions to clarify that products will only be in scope of the EUDR if made with certain commodities.

‘Relevant Commodities’ are currently: cocoa, coffee, cattle, palm oil, rubber, soy and wood (but this list may expand).

‘Relevant Products’ are defined by reference to the EU Harmonised System (HS) codes and means products produced using Relevant Commodities (including animal feed). The HS codes are set out in Annex 1 of the EUDR. 

Several HS codes listed under ‘Palm Oil’ and ‘Rubber’ in Annex 1 encompass products which can be made with commodities that are not Relevant Commodities (i.e. synthetic materials). The Proposed Delegated Regulation seeks to clarify that products will only be within the scope of the EUDR in so far as they are produced using the naturally occurring, rather than synthetic form. Synthetic materials are identified by the addition of ‘ex’ in front of the relevant HS code.

The draft regulation also excludes wood products made solely from bamboo, rattan or similar materials from being a Relevant Product.

It also excludes waste, second-hand goods and test samples, so as not to undermine circular economy efforts.

Guidance and FAQs

The Commission’s guidance provides clarification on the following (among other things):

1. Definitions such as “Operator”, “placing on the market” and “negligible risk”.
   1. ‘Operator’:
      1. In respect of Relevant Products produced inside the EU:
         1. The Operator is usually the person that distributes or uses them in the course of a commercial activity. This may be the producer or manufacturer.
         2. A person that transforms a Relevant Product into another Relevant Product (becoming a new HS code) and places it on or exports from the market, is an Operator further down the supply chain.
         3. In relation to the export of Relevant Products, the Operator will be the legal person acting as exporter (as per the customs declaration).
      2. In respect of Relevant Products produced outside the EU:
         1. The Operator is the person acting as the importer.
         2. Where the importer is not established, the first natural or legal person to make the Relevant Products on the market is also deemed to be an Operator.
         3. The definition of Operator is independent of the change of product ownership and of other contractual arrangements.
      3. Service providers who offer logistics or technical support services (e.g. freight forwarders, shipping agents or customs representatives) who do not possess ownership or similar rights over the products they handle, are neither Operators nor Traders for the purpose of the EUDR.
   2. ‘Placing on the market’:
      1. Refers to when something is made available on the market for the first time.
      2. A product or commodity will not acquire the status of ‘Union goods’ before they have been brought into the customs territory of the Union and released for free circulation by customs (e.g. transit, customs warehousing etc. do not count).
      3. Placing on the market must occur in a business-related context. This includes supply to non-commercial consumers and activities where there is no payment made in return (e.g. for donation or pro bono activities), however private use and consumption are not within scope.
   3. ‘Negligible risk’:
      1. On the basis of the information gathered pursuant to Article 10, and any risk mitigation measures under Article 11, the commodities or products show no cause for concern that they are not deforestation free or have not been produced legally in accordance with the applicable legislation in the country of production.
2. The impact of SME status and supply chain position on due diligence obligations.
   1. Downstream Operators (i.e. where a Relevant Product has already been received from an upstream supplier) do not need to satisfy the full gambit of due diligence obligations set out in the EUDR.However, they do need to ascertain that due diligence has been exercised upstream in the supply chain (if they cannot establish this has occurred, the downstream Operator must undertake the due diligence).
   2. Non-SME downstream Operators can submit a Due Diligence Statement (DDS) which quotes the reference numbers of the DDS reports submitted by the upstream supplier in relation to those Relevant Products.
   3. The downstream Operator does however retain legal responsibility in the event of a breach of the EUDR. A robust audit trail will therefore be required.
3. The treatment of packaging, which is only in scope if placed on the market or exported as a standalone product.
4. The interaction between the EUDR and the Corporate Sustainability Due Diligence Directive (CSDDD) for due diligence and corporate reporting purposes, with the EUDR prevailing in the event of conflict.

Next steps

It is expected that the European Commission will adopt the Proposed Delegated Regulation in the coming months, ahead of the EUDR coming into effect for large and medium companies on 30 December 2025.

The authors thank Sufia Saqib and Lauren Reddiex for their contribution to the article.