The EU Deforestation Regulation (EUDR) was officially published in the Official Journal of the European Union on June 9, 2023, and entered into force on June 29, 2023. However, the requirements for compliance under the EUDR don't become fully applicable immediately. The regulation provides two key transition periods, allowing businesses time to prepare:

• Large and medium enterprises must comply by December 30, 2024 (an 18-month transition period).

• Small and micro enterprises have until June 30, 2025 (a 24-month transition period) to meet the requirements.

What About the Period Between These Dates?

Between the regulation’s entry into force in June 2023 and its full application dates in December 2024 and June 2025, companies are not yet required to comply with the EUDR. This means products placed on the market during this transitional period do not need to meet the regulation’s requirements. Only products placed on the EU market after the full application date need to comply with the EUDR’s due diligence obligations.

For large and medium enterprises, the deadline for compliance is December 30, 2024, and for small and micro businesses, the deadline is June 30, 2025. Any products placed on the EU market before these dates are exempt from the regulation.

How Can Companies Prove Products Were Placed on the Market Before the Regulation?

If your business places products on the market before the EUDR fully applies, you will need to provide proof that those products were introduced before the compliance deadline. According to Article 1(2) of the EUDR, operators bear the burden of proof and must keep adequate records. While a due diligence statement is not required for these products, companies must retain documentation that proves the product’s compliance exemption. This could include invoices, shipping records, or production dates.

Obligations During the Transitional Period (June 2023 - December 2024)

During the transition period between June 29, 2023, and December 30, 2024, large and medium-sized businesses have specific responsibilities. The following examples explain how companies should navigate compliance during this time:

Example 1: Rubber Products

A company places natural rubber (CN code 4001) on the market before December 30, 2024, which is then used to produce a derived product, such as new tires (CN code 4011). If the rubber was placed on the market during the transitional period, when the company introduces the derived product after December 30, 2024, it only needs to provide verifiable evidence that the rubber used was placed on the market before the EUDR's full application. However, if any part of the product was made using rubber placed on the market after the compliance deadline, the company must follow all the EUDR’s due diligence requirements for that part of the product.

Example 2: Cocoa Products

If a company places cocoa butter (CN code 1804) on the market before December 30, 2024, and then uses it to produce chocolate (CN code 1806), which is placed on the market after that date, the business must prove that the cocoa butter used was placed on the market before the full application of the EUDR. However, if other cocoa products used in the chocolate were placed on the market after December 30, 2024, those components must comply with the full due diligence requirements.

Example 3: Products Sold by Traders After the Transitional Period

If a non-SME trader sells products that were initially placed on the market during the transitional period, they are only required to provide evidence that those products entered the market before the EUDR’s full application. This applies to any commodity or product that is "made available" on the market after December 30, 2024.

Proving Compliance After the Transition

Once the EUDR enters full application, the burden shifts to businesses to ensure that every product they place on the market complies with the regulation’s strict due diligence requirements. This includes gathering information about the product’s origin, supply chain, and environmental impact, and submitting a due diligence statement to national authorities through the European Commission's dedicated system.

Failure to comply with the regulation after the transitional period could result in penalties, including fines or the suspension of trade rights.

Key Takeaways for Businesses

• Large and medium enterprises must comply with the EUDR by December 30, 2024.

• Small and micro enterprises have until June 30, 2025.

• Products placed on the market before these dates are exempt from the EUDR, but operators must keep records to prove the timing of placement.

• After the transitional period, companies must comply with all due diligence requirements when placing relevant commodities and products on the EU market.

By staying informed about these deadlines and ensuring you can provide proper documentation, your business can avoid any potential issues related to the EUDR compliance process.

For more detailed information and tools to help you navigate the EUDR, stay connected to our platform.