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• Deforestation vs forest degradation
• Due diligence requirements
• Different requirements for different EU actors
• Categories of undertakings
• Tracing your products and supply chains

Deforestation vs forest degradation 

The Regulation sets clear boundaries for relevant products entering or leaving the EU market. In short, they must be deforestation-free and produced in compliance with the legislation of the country of production.

"Deforestation-free" means no room for products containing, being fed with, or made using commodities from land deforested after 31 December 2020. ‘Deforestation’ is described as the conversion of forest to agricultural use, whether human-induced or not.

For products derived from or containing wood, there is an additional requirement: the wood must have been harvested from the forest without causing forest-degradation after 31 December 2020.

Relying on FAO definitions, the EUDR’s definition of ‘forest degradation’ refers to structural changes to forest cover, taking the form of the conversion of primary forests or naturally regenerating forests into plantation forests or into other wooded land, or the conversion of primary forests into planted forests.

The requirement for compliance of production with relevant legislation of the country of production is defined in terms of 8 categories of legislation, listed below:

• land use rights
• environmental protection 
• forest-related regulations including forest management and biodiversity conservation, where directly related to wood harvesting,
• third parties’ rights, 
• labour rights, 
• human rights protected under international law, 
• the principle of free, prior and informed consent, including as set out in the United Nations Declaration on the Rights of Indigenous Peoples, 
• tax, anti-corruption, trade and customs regulations

Due diligence requirements

If you are placing relevant commodities or products onto the EU market, or exporting them from the EU, you are considered an Operator. You must implement a due diligence system, the details of which are prescribed in the regulation. This means implementing procedures and measures to ensure that your products come from sources that are deforestation-free or comply with the country's laws.

Operators need to gather supply chain information, assess risks of non-compliant supply chains, and take necessary actions to mitigate any identified risks of sourcing non-compliant commodities or products.

Risks must be mitigated, and products deemed to be negligible risk in relation to their deforestation-free or legal compliance before placing them on the EU market or exporting them from the EU. Operators must also publicly report their due diligence efforts each year.

Country Benchmarks and simplified due diligence requirements

The European Commission will establish a centralised database of country risk assessments ('country benchmarks' as per the regulation) to streamline due diligence and enforcement. Countries will be categorised as low, standard, or high risk based on their association with deforestation.

Operators sourcing from 'low-risk' countries will be able to enjoy a more simplified due diligence process, but they still need to carefully assess their supply chains for potential risks of mixing with products which are not in conformance with the regulation.

Enforcement efforts will be tailored to match the risk levels also, with increased monitoring by Competent Authorities for high-risk countries and a lighter approach for low-risk ones.

Using certification schemes to meet due diligence requirements

The EUDR recognises that certification or other third party verified schemes represent best practice in the forestry and agricultural sectors. It considers that they have a place - and can be used - in risk assessment or mitigation processes.

However, the regulation is also clear that they should not substitute the operator’s responsibility regarding due diligence. Certification schemes need to be evaluated to assess their coverage, credibility and ability to provide assurance of mitigated risks.

Different requirements for different EU actors

Depending on the size of your business and the nature of your operations, your responsibilities may differ from Operators which are importers or exporters as described above:

Categories of undertakings: must not exceed the limits of at least two of the three following criteria (large undertakings must exceed the limits of at least two):

Unsure if the EUDR applies to your company? Use our self-assessment tool, now available in English and German (more languages coming soon!), to help you determine your obligations under the regulation. As part of our commitment to continuous improvement, we have refined and built upon the initial version to bring you version 2.0 of our self-assessment tool.

>> Access our EUDR scoping tool V2.0

Tracing your products and supply chains

Operators and Non-SME Traders need to gather detailed information and data to be able to demonstrate that their products are deforestation-free and produced in accordance with the legislation of the country of production.

That means knowing exactly where your commodities or products come from – including the geolocation coordinates of all plots of land where they were produced, or harvested in the case of wood and raised in the case of cattle.

For smaller plots, a single latitudinal and longitudinal point will be sufficient. But for plots over 4ha in size, you will need sufficient latitudinal and longitudinal points to describe each plot's perimeter.

A comprehensive central Information System is being developed by the European Commission to efficiently manage Operators' due diligence statements and customs clearance applications, ensuring transparency and ease of compliance.

Disclaimer

The information and guidance presented in this webpage are provided for informational purposes only and do not constitute legal, financial, or professional advice. Preferred by Nature makes no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of the information contained herein. Preferred by Nature is not liable for the use of guidance contained in this website, nor for any reliance placed on this website or any financial or other loss caused because of reliance on information contained herein.

Any interpretation of the content of this website, or resulting action taken, is at the sole discretion of the reader, in relation to the European Deforestation Regulation or any other legal statute. The entity subject to legal obligations retains full discretion and accountability for compliance with requirements under the law.