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

Summary

The European Commission has clarified its position on the timing for implementation of the EUDR¹, following discussions around a potential further one-year delay.

The Commission is now proposing that the application date should remain 30 December 2025 for medium and large in scope companies, with a six-month grace period to 30 June 2026 during which time Member State’s Competent Authorities will not be required to enforce the new regulation.

The implementation date for micro and small operators from low risk countries will however be pushed back by six months to 30 December 2026 under the proposal, to allow them more time to prepare for the changes.

These latest developments come in the context of broader efforts to simplify implementation. In April 2025, the European Union published the following suite of materials aimed at clarifying the obligations under the EUDR:

(a) Implementing Regulation (EU) 2025/1093, which introduces country risk classifications to guide due diligence and enforcement.

(b) A Proposed Delegated Regulation, refining the scope of products subject to the EUDR.

(c) Updated guidance and FAQs, clarifying key terms and obligations under the EUDR.

Entertaining further delay

The proposed postponement of implementation was to enable the development of an IT system capable of sustaining the expected data load.

The Commission has since confirmed its position that implementation should not be delayed for in scope companies, other than for small and medium enterprises from low-risk countries. However, it has proposed that enforcement efforts from Member States’ competent authorities should be paused during a six-moth transition period.

The Commission has also proposed that downstream operators and traders should no longer be obliged to submit due diligence statements to the EUDR IT system, stating that the reporting obligations should be focussed on the operators first placing the products on the market.

The proposal will now need to be agreed by the European Council and Parliament before it can come into effect.

Against this backdrop of uncertainty, the materials published in April 2025 offer practical guidance to help businesses prepare for compliance.

Country risk ratings

The Implementing Regulation assigns risk classifications based upon the potential for certain commodities produced in a particular country (which falls 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.

Next steps

The European Commission’s proposed changes to the EUDR will now need to be approved by the European Parliament and the European Council. If this does not occur ahead of the current implementation deadline, the EUDR will come into effect for large and medium companies on 30 December 2025; however, a delay is anticipated.

This article was co-authored with Sufia Saqib and Lauren Reddiex.