As of December 30, 2024, the European Union Deforestation Regulation (EUDR) will significantly impact importers of specific commodities into the EU market. This regulation, which focuses on reducing deforestation linked to agricultural expansion, places strict due diligence requirements on companies that import certain commodities and their derived products. For importers, understanding the scope of the regulation is essential to ensure compliance and maintain access to the EU market.

Commodities Covered Under the EUDR

The EUDR targets seven key commodities identified as major contributors to deforestation due to agricultural expansion. These commodities are:

• Palm oil

• Cattle

• Soy

• Coffee

• Cocoa

• Timber

• Rubber

These commodities were selected through a rigorous impact assessment, which considered their role in driving global deforestation and forest degradation. The assessment also analyzed how European production and consumption contribute to these issues. After a detailed cost-benefit analysis, the seven commodities were chosen as the focus of EU policy intervention, ensuring objective selection regardless of whether the commodities are produced inside or outside the EU.

Derived Products Also Included in the Scope

In addition to the raw commodities, many derived products fall under the scope of the EUDR. This includes everyday goods like beef, furniture, chocolate, and rubber-based items. The table below provides an overview of some key products covered under the regulation:

• Cattle products: Includes live cattle, fresh or frozen meat, hides, skins, and leather products.

• Cocoa products: Ranges from raw cocoa beans to cocoa butter, chocolate, and other cocoa-containing food items.

• Coffee: Covers all coffee products, whether roasted, decaffeinated, or in husk/skin form.

• Palm oil and derivatives: Includes crude palm oil, palm kernels, and oilcake from palm nuts or kernels.

• Soy products: Includes soybeans, soybean oil, and oilcake.

• Rubber products: Includes natural rubber, vulcanized rubber, and a variety of rubber-based goods like tires, belts, and clothing.

• Timber products: Includes everything from raw fuel wood to processed plywood, particle board, and wooden furniture.

Importers of these products must be aware of the full list of covered items, which can be found in chapters 40 to 48 of the Combined Nomenclature. The regulation also covers specific wooden furniture and prefabricated wooden buildings.

Due Diligence Requirements for Importers

From December 2024, any company placing these products on the EU market or exporting them from the EU will need to submit a due diligence statement to their national authority through an information system provided by the European Commission. This statement confirms the company’s compliance with the EUDR and takes responsibility for ensuring that the product in question does not contribute to deforestation.

Non-EU companies must also prepare for the EUDR, as their EU-based customers will require necessary compliance information. The obligation applies to all companies in the supply chain, meaning global suppliers may also be indirectly impacted.

Review and Potential Expansion of the Regulation

The EUDR will be reviewed over the next two years, and the list of commodities and products may expand to include additional items that contribute to deforestation. Importers should stay informed about potential changes and updates to ensure continued compliance.

Conclusion

For importers of palm oil, cattle, soy, coffee, cocoa, timber, rubber, and their derived products, the EUDR marks a major regulatory shift. Compliance with due diligence obligations will be critical for maintaining market access and avoiding penalties. By preparing now and understanding the scope of the regulation, companies can navigate these changes and contribute to the global effort to reduce deforestation.

Stay tuned to our platform for the latest tools and information to help you comply with the EUDR.