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The EU Deforestation-free Regulation (EUDR) is a new law designed to stop products linked to deforestation from entering or leaving the EU market. It is part of the EU Green Deal and aims to protect biodiversity around the world.
The regulation requires companies to prove that certain commodities and all products made from them are deforestation-free, legally produced, and fully traceable.
The regulation requires companies to prove that certain commodities and all products made from them are deforestation-free, legally produced, and fully traceable.
The EUDR is in force for large companies since December 30, 2025. SMEs must start complying from June 30, 2026.
- Deforestation-freeThe product must not come from an area that was deforested or degraded after 30 December 2020.
- Legally producedProduction must comply with all laws in the country of origin.
- Due diligenceImporters must collect supply-chain data, assess risks, and submit a due diligence statement to authorities.
The EUDR is not optional. If you import, export, or produce any of the listed commodities for the EU market, you now have a legal responsibility to show that your entire supply chain is deforestation-free. The rules are strict, the timelines are clear, and failing to comply can lead to penalties and blocked shipments.
Products that fall under the EUDR Regulation
You must carry out due diligence for any of the following commodities when placing them on the EU market or exporting them from the EU. If your product includes any of these - whether raw, processed, or incorporated in another item - it falls within the scope:
-
Cocoa and coffee -
Wood -
Rubber -
Palm oil and soya -
Cattle -
Products derived from these materials (chocolate, furniture, etc)
Who Must Comply With the EUDR?
EUDR applies to any company that imports, sells, or exports the above mentioned commodities in the EU. It applies to both EU and non-EU businesses and to all sales channels, including online. The regulation distinguishes between operators and traders:
- OperatorsOperators are the businesses that place a product on the EU market for the first time or export it from the EU. This includes importers, exporters, and companies that process a commodity into a new product and then sell it (for example, importing cocoa butter or producing chocolate for the first time). Operators must carry out full due diligence and submit a due diligence statement.
- TradersTraders are companies that only resell or distribute already-placed products without further processing—such as wholesalers or retailers buying chocolate made in the EU. Traders have lighter obligations: large traders must store and share information on request, while SME (small and medium-sized enterprises) traders only need to keep basic records.
Requirements depend on company size:
Large companies and operators
Must collect supply-chain information, assess risks, and submit a due diligence statement.
SME traders
Do not submit due diligence statements but must keep and share information when asked.
Companies can rely on an existing due diligence statement from earlier in the supply chain and only need to reference its number.
If a company acts as both operator and trader (e.g., imports raw coffee and also resells EU-roasted coffee), it must both submit due diligence for imports and store or share information for the trading activity.
EUDR Process For Companies
The EUDR requires companies to ensure that no products linked to deforestation or forest degradation after 31 December 2020 are placed on the EU market. To comply, companies must carry out due diligence and prove that the risk of deforestation is either nonexistent or negligible.
A complete due diligence system includes three key steps:
A complete due diligence system includes three key steps:
Information collection
Gathering detailed data about the supply chain, the exact geographic location and timeframe of the agricultural or forestry production.
Risk assessment
Evaluating this information to determine the likelihood that the products are connected to deforestation, forest degradation, or any legal or human-rights violations.
Risk mitigation
Taking corrective action if risks are not negligible, such as requesting additional documentation, conducting independent audits, commissioning laboratory tests, or performing field inspections.
The EC classifies countries as low-, standard-, or high-risk. Products from low-risk countries benefit from simplified due diligence, while goods from high-risk regions require stricter controls.
The EC classifies countries as low-, standard-, or high-risk. Products from low-risk countries benefit from simplified due diligence, while goods from high-risk regions require stricter controls.
Filing a Due Diligence Statement
After completing the full due-diligence process, companies must file a Due Diligence Statement. This step is mandatory and must be completed before any relevant product is placed on the EU market or exported from it.
Companies submit the DDS through the EU’s Trade Control and Expert System (TRACES) platform. Businesses may also connect their internal systems directly to TRACES using available APIs. Once the DDS is sent, TRACES issues two identifiers:
Reference Number — must be included in customs declaration
Verification Number — for secure use within the supply chain and not publicly vis
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