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The European Commission plans to delay the implementation of the EU Deforestation Regulation (EUDR), which aims to prevent the sale of products like coffee and palm oil linked to deforested areas in the EU, by one year. This decision comes after widespread criticism from businesses and political groups, who are asking for more time to meet the strict reporting requirements. While industries such as construction welcome the delay, environmental organizations and some EU lawmakers view it as a setback for climate protection, warning of negative consequences for deforestation and EU climate policy.
The EU Deforestation Regulation (EUDR) builds on the EU Timber Regulation (EUTR), which has been regulating since 2013 that European companies must not introduce illegally logged wood into the European market. It aims to curb global deforestation by regulating the import and export of commodities linked to forest degradation.
The new EU Deforestation Regulation came into force on June 29, 2023. From December 30, 2024, companies must apply the regulation. There are many overlaps with the supply chain law.
In principle, companies that meet at least two of the following criteria are considered affected:
If at least two criteria are not met, the company is considered a Small or Medium-sized Enterprise (SME). A distinction is also made between whether you are a trader or a market participant.
Market participants: a product is brought to the EU market for the first time or is exported from the EU market.
Traders: all other actors in the supply chain
Note: The EUDR applies to all market participants, including SMEs
For non-SME market participants, non-SME traders, and SME traders, the application starts on December 31, 2024.
For SME market participants, the application starts on June 30, 2025.
The sanctions provided for in the regulation are intended to be effective, proportionate, and dissuasive. In summary, this could mean:
Violations can thus have significant financial consequences for affected companies and their business partners, in addition to the risk to reputation.
Which products are affected? The current version of the EUDR lists the following product groups:
The individual product groups are further specified according to relevant products.
You can read about them in the regulation in Annex I, Relevant Raw Materials and Relevant Products, according to Article 1. Classifying by tariff numbers/commodity codes may be helpful for some.
In total, more than 800 products are listed in the regulation, including car tires, books, and furniture.
Documentation In addition to risk analysis, companies must provide a due diligence statement in the EU Information System before placing the product on the market.
Customs authorities or the Federal Office for Agriculture and Food (BLE) in Germany check compliance based on these documents. You can find the exact contents of the due diligence declaration in the regulation in Annex II, Due Diligence Declaration.
The due diligence declaration must be kept for at least 5 years.
Use the time! There are significant overlaps between the German and thus also the European supply chain law and the Deforestation Regulation. With good preparation for the German Supply Chain Act (LkSG), you can also approach the European Supply Chain Act (CSDDD) and the EU Deforestation Regulation with relative ease.
The basis for meeting the requirements is transparency along your supply chains, especially the knowledge and documentation of supply chains, often referred to as Supply Chain Mapping.
Check your data basis and the availability of this data. Close data gaps and work on data quality.
As a user of relatico.next, you have optimal conditions.
Documentation: current, complete, automated.
Audit: be audit-ready at any time, whether unannounced or planned.
Reliability: reliably check and approve suppliers and materials.
Our approach is to provide practical benefits for your company:
Digitalization: Purchasing, Quality, Regulatory.
Compliance: Efficiently depict the Supply Chain Act as well as other sustainability topics.
With relatico.next, you have a solution for professional and cross-departmental data management instead of another siloed sustainability software.
In addition, we offer you support through our experts:
Risk-based supplier evaluation as the basis for the Supply Chain Act & Co. Checking and developing your documentation packages, such as supplier and material questionnaires. Support in your documentation or regulatory process. Checking and procuring data/master data for your supplier and supply chain evaluation as well as for your strategic supplier management.
Bernd possesses extensive experience in strategic procurement, shaped by his tenure at Eckes-Granini, Symrise and DuPont de Nemours. Currently, he is focused on sustainable sourcing and supply chains, collaborating with the relatico team to develop practical software solutions. Additionally, Bernd runs his own agricultural business and is involved in supply chain projects globally.
