The European Union Deforestation Regulation (EUDR) is a significant development in environmental legislation. It aims to reduce the carbon emissions linked to consumer goods and to protect forests globally from mass deforestation, degradation and illegal logging. It’s a far-reaching and significant piece of regulation and will have serious implications for businesses, particularly those involved in the importing of goods to Europe.
If you haven’t already considered the regulations and how they could impact your business, then now is the time to check what action you need to take, if any, to ensure you have the right processes in place to adhere to EUDR before it comes into effect on 30th December 2025 or 30th June 2026 for SMEs.
In the article below, we take a look at what you need to know and how Grace Overseas can support you through the changes.
What EUDR sets out to achieve
In short, the EUDR aims to have a positive impact on the environment and to contribute significantly to reducing carbon emissions. It aims to protect forests globally by curbing deforestation and forest degradation and preventing illegal logging.
What you need to know
The regulations apply to a wide range of commodities which are commonly found in everyday products, so many businesses will be impacted.
Commodities covered include:
> Palm oil
> Cattle
> Soy
> Coffee
> Cocoa
> Timber
> Rubber
This regulation also applies to derived products, so could include (but is not limited to) the following:
> Beef and other meat products
> Chocolate
> Leather
> Furniture
> Paper (including printed books)
There are no quantity thresholds, so even small shipments will need to comply with the stringent standards.
Requirements at each stage
Farming/agriculture & sourcing of commodities
All commodities must be produced legally and classified as deforestation-free.
In order to comply, businesses will need to obtain geolocation data for the production area of any goods. Any goods produced on land which was deforested after 31 December 2020, or without proper traceability, will not be deemed compliant and consequently cannot enter the EU market.
Trading, shipping and importing
When it comes to shipping and transportation, strict protocols must be followed to ensure compliant goods are kept separate from non-compliant goods, as well as from any unknown-origin goods.
Mixing compliant and non-compliant goods will invalidate the entire shipment, making it ineligible for the EU market, so it is crucial that this is adhered to.
At Grace Overseas we have been monitoring the regulations closely and staying informed of any developments. We can help to ensure that your goods are shipped, stored and managed in line with the regulations.
Under the rules, importers must perform due diligence before placing products on the EU market. This takes the form of a Due Diligence Statement which must be submitted, with a reference number and security token reported in the customs declaration.
In short, only products meeting EUDR standards can be released for import and customs authorities will authorise the release of compliant goods for entry into the EU market.
Consequences of non-compliance
Failure to comply with the regulations could lead to serious financial penalties. Of course there is also the risk of reputational damage to consider. A list of businesses who have breached the regulations will be published by the European Commission. This will include the names, dates, and a summary of infringements, along with information regarding the penalties imposed on the company.
With environmental issues consistently in the limelight, many consumers are taking CSR seriously and buying more intentionally. This, along with the threat of fines, will act as a strong incentive for businesses to adhere to the regulations.
Support is on hand
At Grace Overseas we believe that sustainability is a shared responsibility. By aligning with the EUDR and supporting our clients through every stage of the supply chain, we are making a positive contribution to global efforts to protect forests, reduce carbon emissions and build a more sustainable future for all. Ultimately driving meaningful change.
We are here to support our clients with these regulations and have been proactively monitoring for updates. Our team takes part in continuous training which means we stay up-to-date and informed in order to provide expert guidance and tailored solutions for our clients.
As always, our role is to collaborate with and support our clients. We understand the challenges these new regulations pose and are committed to working closely with you to navigate the complexities of EUDR compliance.
If you have any questions or require more information on EUDR then do get in touch and we will be happy to help.
