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Eudr

The new EU Deforestation Regulation (EUDR) requires EU importers, exporters, forest owners, and wood processors to implement a Due Diligence System (DDS) to ensure compliance with deforestation and forest degradation laws. The regulation will be fully implemented by December 30, 2027, with a potential one-year delay under consideration. It applies to various commodities including wood, cocoa, and soya, and imposes significant obligations on both small and large enterprises in the supply chain.

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48 views18 pages

Eudr

The new EU Deforestation Regulation (EUDR) requires EU importers, exporters, forest owners, and wood processors to implement a Due Diligence System (DDS) to ensure compliance with deforestation and forest degradation laws. The regulation will be fully implemented by December 30, 2027, with a potential one-year delay under consideration. It applies to various commodities including wood, cocoa, and soya, and imposes significant obligations on both small and large enterprises in the supply chain.

Uploaded by

ericmailth2015
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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The new EU Deforestation

Regulation (EUDR)
Basics & Requirements
About us

• Subsidiary of GD Holz (German Timber Trade Federation)


• Consultants for EU Timber Regulation (EUTR)
• More than 10 years of experience with EUTR
• Own due diligence system (DDS) for EUTR,
currently developing digital solution for EUDR

Contact: [email protected]

2
Timelines

07.11.2024 3
Timeline for the implementation of EUDR

29.06.2023 30.12.2024 30.12.2027


EUDR entered EUDR must be Only EUDR
into force applied applies

EUTR and EUDR apply in parallel,


EUTR applies EUDR applies
based on time of timber harvest

18 months* 3 years
EUTR continues to apply for:
• Wood harvest before 29.06.2023
*24 months for small • Placing on the market between
enterprises – but only for 30.12.2024 and 30.12.2027
products not affected by EUDR applies for wood harvested from
EUTR
07.11.2024
29.6.2023 4
What about goods in stock?

Goods in stock (already placed on the EU market before 30.12.2024):


• EUDR doesn’t have to be applied after 30.12.2024
• Proof is required (invoices etc.)
• Also applies if old stocks are processed after 30.12.2024
• Source: Commission FAQ "Dieses Foto" von Unbekannter Autor ist lizenziert gemäß CC BY

07.11.2024 5
Delay in implementation

• EU Commission proposal of 02.10.2024: Postpone EUDR by one year


→ EUDR would thus apply from 30.12.2025
• Votes:
• Council already agreed on 16.10.2024
• Parliament will vote next week
• No other changes planned (but demanded by some countries)
• Planned publication of country benchmarking: 30.06.2025

07.11.2024 6
Affected products and
companies

07.11.2024 7
Scope

• EUDR applies to relevant products made from relevant commodities


• Relevant commodities: cattle, cocoa, coffee, oil palm, rubber, soya
and wood
• Relevant products: listed in Annex I of the EUDR based on HS Codes
→Includes entire HS-chapter 44 (Wood and articles of wood)
→Doesn’t include packaging (if used as such), recycled products,
bamboo, WPC etc.

07.11.2024 8
Who needs to fulfil EUDR?

• EU importers
• EU exporters
Operators – obligations depend on company
• EU forest owners size and position in the supply chain
• EU wood processors
• EU non-SME-traders
• EU SME-traders Traders
→Non-EU companies are not covered by EUDR, but need to provide EU
importers with the necessary data
→Also relevant if customers sell to EU importers!

07.11.2024 9
Obligations

07.11.2024 10
Importers and EU forest owners (all sizes)

• Exercise a Due Diligence System (DDS) prior to placing on the market


or exporting relevant products
• Aspects to be considered in DDS:
• Deforestation
• Forest degradation
• Production (= logging) according to local laws
• Need coordinates of all plots where wood could have been harvested!
• Prepare due diligence statement (DD statement)
• Communicate information along the supply chain (reference number
of DD statement, evidence that DDS has been applied).
07.11.2024 11
SME traders and processors

Definition: Small and medium enterprises trading/processing wood


that someone else has already placed on the market
• Collect information about suppliers and customers (including
reference numbers of DD statements)
• Store information for five years
• Forward information (including reference numbers) to customers

07.11.2024 12
Non-SME traders and processors

Definition: Large enterprises trading/processing wood that someone


else has already placed on the market
• Collect information about suppliers and customers (including
reference numbers of DD statements)
• Ascertain that EUDR has been fulfilled by suppliers
• Do suppliers have a sufficient DDS?
• Are they applying their DDS properly, including risk mitigation measures?
• Yearly audit should be sufficient
• Coordinates not mandatory!

07.11.2024 13
Non-SME traders and processors

• Prepare DD statement, based on reference numbers received from


suppliers
• Store information for five years
• Forward information (including reference numbers) to customers
• Non-SMEs who are referring to a supplier’s DD statement assume
responsibility for compliance with EUDR!

07.11.2024 14
Exporters

• SMEs: No DDS or DD statement needed, can use reference number of


their suppliers
• Non-SMEs: Must apply a DDS and submit a DD statement

07.11.2024 15
Conclusion

07.11.2024 16
Conclusion

• If required information isn‘t available, EUDR-compliant trade is not


possible!
• Heavy bureaucratic burden
→ We are fighting for simplifications and clear information
• Implementation depends on Competent Authorities
→ Level playing field?
• A lot of false or incomplete information circulating - be careful!
→ Communicate with your suppliers and customers

07.11.2024 17
Thank you for your
attention!
Contact: [email protected]

07.11.2024 18

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