Legal development

Simplification of the Regulation on Deforestation-Free Products under the spotlight 

By Claus Zimmermann and Giovanna Ventura

29 April 2025

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    What you need to know

    • The scope of the EUDR is currently under evaluation through a public consultation on the European Commission's delegated regulation that will amend Annex I of the EUDR with the aim of providing some clarification
    • The new guidance documents released by the European Commission introduce some elements of simplification in the implementation of the EUDR, especially regarding certain aspects of the due diligence system

    What you need to do

    • Contribute to the public consultation on the delegated regulation amending Annex I of the EUDR with regard to the scope of application
    • Familiarise yourself with the new guidelines
    • Map your supply chain
    • Establish the due diligence system required under EUDR and prepare for its implementation
    • Assess your current due diligence system against EUDR requirements

    On 15 April 2025, a few months after the entry into force of the regulation that postponed the application timeline of the EU Deforestation-free products Regulation - Regulation (EU) 2023/1115- (EUDR) by a year, the European Commission has now taken further steps to ensure its smooth implementation. The EUDR is expected to enter into application at the end of the year for large companies, and on 30 June 2026 for micro and small enterprises.

    Key Commodities and Products Covered

    The EUDR targets seven commodities: cattle, cocoa, coffee, oil palm, rubber, soya and wood. Certain derived products listed in Annex I of the regulation are also covered, regardless of whether they are produced in the EU or imported from outside the Union.

    On 15 April, the European Commission published a delegated regulation amending Annex I of the EUDR to provide some clarifications on its scope. The main proposed changes consist of adding "ex" in front of some of the HS codes in the annex, to indicate that the product described in the annex is an "extract" from all the products that can be classified under the code, and that the scope of product coverage classified under that code is limited. By way of example, the customs code 9401 might include seats made of raw materials other than wood, but only wooden seats are subject to the requirements of the Regulation.

    The delegated regulation also clarifies the range of products not covered by the EUDR. These include waste, as defined in the Waste Directive 2008/98/EC, as well as used and second-hand products that have completed their lifecycle. Samples of products and products used for examination, analysis, and testing, within the meaning of Council Regulation (EC) 1186/2009; samples of products of negligible value and quantity and samples that can be consumed or used only to solicit orders, are also excluded.

    The European Commission also specified that only packing materials and packing containers that are placed on the market or exported as products on their own, fall within the scope of the EUDR. If they are further used to support, protect or carry another product, they are not covered.

    The delegated regulation is subject to a public consultation, and all interested parties can submit their feedback on the text until 13 May via this link. The delegated regulation will be adopted only after the European Commission has consulted Member States' experts and if no objection has been expressed either by the European Parliament or the Council within a period of two months from the notification of that act to the two co-legislators.

    Once adopted, the delegated regulation will enter into force on the day following that of its publication in the EU Official Journal.

    The EUDR Due Diligence System

    According to the EUDR, products are banned from being traded on the Union market or exported, unless they are produced in line with the laws of the country of production, and verified by a due diligence statement.

    Along with the delegated regulation amending Annex I, the European Commission has released updated guidelines and a new frequently asked questions document, covering key elements such as "placing on the market", "making available on the market", "export", "complexity of the supply chain", "traceability", "Information System". Of particular relevance is the new interpretation provided for certain aspects of the due diligence system.

    One of the key obligations under the EUDR for operators and traders is to exercise due diligence. This involves gathering detailed information, assessing potential risks, implementing risk mitigation measures, and filing a due diligence statement (DDS) with the competent authority through a dedicated information system before placing products on the EU market, making them available, or exporting them from the Union.

    According to the new guidance documents, companies are allowed to submit a DDS that covers multiple physical batches or shipments of multiple different relevant products over a period of one year from the time of submission of the statement, instead of submitting a statement for every batch or shipment, provided that due diligence was carried out for all relevant products and no or negligible risk was found.

    Large companies are also allowed to reuse existing DDSs when the goods, previously exported from the EU market, are reimported. According to the European Commission, non-SME operators and traders further down the supply chain (so-called downstream operators/traders) can refer to due diligence statements (DDSs) already submitted by upstream actors—provided they have ascertained that due diligence was properly carried out upstream. This includes collecting and verifying the reference and verification numbers of the upstream DDS to ensure they are valid before relying on them for their own compliance. Based on the risks and peculiarities of their supply chains, they can even choose to take additional steps, but they do not have an obligation to systematically check every single DDS submitted by upstream suppliers, nor to collect the required information, which is a task of the upstream operators.

    To reduce administrative burdens further, the European Commission specifies that it is possible for an authorised representative to be appointed by multiple operators and traders, and therefore company groups can mandate one of their members as an authorised representative to submit DDSs on behalf of all the other members of the group. The authorised representative can also use a single account to manage the DDSs on behalf of all the entities it represents.

    With these changes, the European Commission expects to achieve a drastic reduction in the number of DDSs that companies must file, therefore reduce costs by 30% according to its estimation. However, it is important to underline that the guidance documents are not legally binding, their sole purpose is to provide information on certain aspects of the EUDR and to facilitate its harmonised implementation.

    What's next?

    The European Commission is currently finalising its country benchmarking system and aims to adopt the corresponding implementing act by the end of June 2025. This act will establish a list of countries—or specific regions within them—classified as low or high risk, based on an assessment of their exposure to deforestation and forest degradation.Since its entry into force, the EUDR has assigned all countries with a standard level of risk. It is to be noted in this context that products from low-risk countries will benefit from a simplified due diligence, while enhanced scrutiny will be applied to those from high-risk countries.

    The European Commission is committed to maintaining and strengthening dialogue in particular with businesses, Member States and third countries, to assist them with implementation and provide further guidance, if necessary. Additional simplification in the application of the rules at this stage cannot be ruled out.

    Ashurst is closely monitoring developments related to EUDR implementation and we stand ready to assist our clients with any questions on related matters.

    Want to know more?

    The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
    Readers should take legal advice before applying it to specific issues or transactions.

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