EUDR: What does the Deforestation-free products regulation mean for you?
From 30 December 2024, you may not market products that contribute to deforestation or damage to forests. You must be able to show where your raw materials come from. This also applies to products such as chocolate, leather, and furniture, that contain certain raw materials. Read what the new European deforestation-free products (EUDR) law means for you.
What is EUDR?
EUDR is a new European law to combat climate change. The disappearance of and damage to forests caused by European consumption and production is a cause of climate change. From 30 December 2024, you must be able to prove that your product has not caused damage to forests. Does your product come from an area that has been deforested after 30 December 2020? Then you may not import it, bring it to the European market, or export it.
The EUDR follows on from the EUTR, which set out the rules for the import of timber and timber products.
Which products and goods are covered by the EUDR?
The EUDR applies to 7 commodities:
- cocoa
- coffee
- wood
- soya
- palm oil
- rubber
- cattle
The EUDR also applies to products made with these raw materials. Most of these products come from Asia, North America, and South America, but some also come from Africa. Some European products may also be covered by the law.
Who does the EUDR apply to?
The EUDR applies to all importers and traders who want to import, export, or produce products or raw materials within the EU for commercial purposes. The law applies to large and smaller companies, as well as self-employed professionals.
For SMEs, there is a difference in the rules you must comply with:
- Are you a producer or importer marketing the product for the first time? And do these products not yet have a due diligence statement? Then you must comply with all the requirements.
- Are you not bringing the product onto the market? But are you trading in the product without making any changes to it? Then you do not need to make a due diligence statement. However, you must record and store important information. Find out more below.
What does the EUDR mean for you?
Do you have to comply with the EUDR? Then you must make a due diligence statement (in Dutch) for each shipment and upload it in TRACES. This is a European customs system. Without this statement, you are not allowed to put products on the European market.
System of due diligence
In the due diligence statement, you put details about your company and the origin of the products and raw materials. This is called a due diligence system. You must be able to indicate the origin very precisely with a geolocation. You must conduct research, assess risks, and take measures to mitigate them. In addition, you must self-declare that there is little or no risk of deforestation.
Setting up a due diligence system
Setting up a due diligence system can be a lot of work. You can hire a company to help you with this. You can also set up a due diligence system yourself. You must then arrange at least 3 things:
- You collect data on the origin of your product.
- You carry out risk analyses.
- You take measures to mitigate risks.
Read here what you need to do to be ready for the EUDR soon (in Dutch). Many businesses and organisations also provide EUDR tools to help understand the rules and to submit due diligence statements.
Keep your due diligence system up to date
Your due diligence system is not something you simply set up and then leave as it is. If your circumstances change, you need to adapt it. Read how to make EUDR an integral part of your business operations (in Dutch).
Take measures if necessary
If your research shows that there are risks in your production, you should take extra measures. For instance, buy products that are certified. Or do extra checks on site and keep records of these checks. You can also hire someone to do this for you.
Not required to maintain a due diligence system
Do you not need to keep a due diligence system? For example, because you are an SME trader. Or because you only use raw materials that are already on the market? If so, you must:
- keep a record of the supplier from whom you buy your products or raw materials
- keep a record of who you sell to
- provide the reference numbers of your suppliers' due diligence statements to customs
- keep this documentation for 5 years
Inspection by NVWA
You may be inspected by the Dutch Food and Consumer Product Safety Authority, NVWA (in Dutch). During these inspections, NVWA assesses whether you meet all the requirements of the EUDR. The Customs Administration of the Netherlands checks the goods and the due diligence statements.