The New European Deforestation Regulation (EUDR) and Its Implications

31 July 2024 | France

On June 9, 2023, the European Union introduced a significant regulation aimed at combating deforestation and forest degradation: the European Deforestation Regulation (EUDR).

The New European Deforestation Regulation (EUDR) and Its Implications

The the European Deforestation Regulation (EUDR) will come into force on December 30, 2024, for large companies and on June 30, 2025, for small and medium-sized enterprises (SMEs). The EUDR imposes stricter requirements on the import and export of specific products, such as palm oil, soy, wood, cocoa, coffee, and beef, ensuring these products do not contribute to deforestation.

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Overview of the Regulation

The primary objective of the EUDR is to protect the EU market from products that contribute to global deforestation. According to this regulation, market participants and traders must ensure that the relevant products meet the following conditions before they can be marketed, offered, or exported:

  • Deforestation-Free: The products must not originate from deforested or degraded forests.
  • Legally Produced: The products must comply with the relevant legislation of the country of production.
  • Due Diligence Statement: The products must be accompanied by a due diligence statement.

The new rules aim to:

  • Avoid that the listed products Europeans buy, use and consume contribute to deforestation and forest degradation in the EU and globally
  • Reduce carbon emissions caused by EU consumption and production of the relevant commodities by at least 32 million metric tonnes a year
  • Address all deforestation driven by agricultural expansion to produce the commodities in the scope of the regulation, as well as forest degradation
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Due Diligence Requirements

To comply with the EUDR, companies need to undertake extensive due diligence and submit a due diligence statement. This statement should include the following information:

  • Description of the Products: Detailed information about the nature and characteristics of the products.
  • Quantity: The amount of the products.
  • Country of Production: The country where the products were produced.
  • Geolocation: The specific geographic location of the plots where the products were produced.
  • Supplier and Buyer Information: Names and addresses of suppliers and buyers.
  • Proof of Deforestation-Free: Evidence that the products are deforestation-free.
  • Proof of Legal Production: Evidence that the raw materials comply with the production country's legislation.

Impact on Logistics Service Providers

Although logistics service providers are not directly defined as market participants or traders under the regulation, as your customs representative, we are required to submit the reference number of the due diligence statement in the customs declaration. Therefore, we strongly urge you to provide this reference number when assigning us customs formalities to ensure accurate declarations. For more detailed information on the EUDR, please visit the European Commission's official website: Deforestation Regulation implementation.

A clear image of the affected commodities and products:

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Conclusion

The implementation of the EUDR represents a significant step towards global environmental protection. At SEKO BANSARD, we are committed to working with our clients to ensure that all products and supply chains comply with this new regulation. We believe that through collaborative efforts, we can achieve more sustainable development goals.

REF:

European Commission, Deforestation Regulation Implementation Details, 2023

https://environment.ec.europa.eu/topics/forests/deforestation/regulation-deforestation-free-products_en

https://green-business.ec.europa.eu/deforestation-regulation-implementation_en

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