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In a bold move to combat deforestation and promote sustainability, the European Parliament and the Council have enforced Regulation (EU) 2023/1115. This blog dissects the intricacies of this regulation and its profound impact on the marketing and export of commodities linked to deforestation, particularly affecting the formulation and trade of food supplements.
A Green Revolution in Regulation
The commitment of the European Union (EU) to curbing deforestation and reducing environmental impact has led to the enactment of Regulation (EU) 2023/1115. This legislation is aimed at minimizing the EU’s contribution to global deforestation as well as decreasing greenhouse gas emissions and biodiversity loss. It is interesting to note that this legislation extends to the realm of food supplements, a subject we shall further explore in this blog.
Understanding the Twin Objectives Guiding Regulation (EU) 2023/1115
The regulation is aimed at achieving a dual purpose, as mentioned earlier: first, to mitigate the EU’s role in worldwide deforestation and forest degradation, and second, to reduce its contribution to greenhouse gas emissions and global biodiversity loss. Focused on specific commodities such as cattle, cocoa, coffee, oil palm, rubber, soy, wood, and products that contain, have been fed with, or have been made using such commodities, the regulation imposes strict rules on their introduction, marketing, and export, completely prohibiting non-compliant products.
Decoding the Applicability of the Regulation to Food Supplements
Certain raw materials integral to the production of food supplements fall under the purview of this regulation. Some of the commonly used ingredients that face scrutiny are cocoa beans, cocoa paste, butter, cocoa powder, coffee, palm oil, soya bean oil, and industrial oleic acid. Manufacturers must meet stringent conditions to market food products using these ingredients seamlessly – they must not have caused biodiversity loss or deforestation, they should comply with the relevant legislation(s) of the origin country, and they must be covered by a due diligence declaration.
Due Diligence
Before marketing or exporting products with the specified raw materials, operators must conduct due diligence. This involves collecting, organizing, and maintaining information for five (05) years on relevant products, including their description, quantity, country of production, geolocation, and details of suppliers. Operators must also conduct risk assessments and take mitigation measures to ensure compliance, assessing specific criteria outlined in Article 10 of the regulation. Each non-EU country will be classified into one (01) of the three (03) categories – Class I, II, or III – of risk based on the prevalence of deforestation, claims by indigenous people, reliability of information and concerns of corruption, and circumvention of the regulation.
Navigating the Repercussions of Non-compliance
Failure to comply with Regulation (EU) 2023/1115 can result in severe consequences for food supplement distributors. Authorities may demand corrective actions to rectify non-compliance, including product withdrawal, disposal, or transfer to authorities. Sanctions may range from fines proportional to environmental damage to product confiscation, income confiscation, exclusion from public procurement, or even a temporary ban on marketing products.
Embracing a Sustainable Food System
To sum up, Regulation (EU) 2023/1115 signals a transformative shift in the marketing, import, and export of raw materials and products related to deforestation, significantly impacting the food supplement industry. As these restrictions are set to be enforced on December 30, 2024, the industry needs to adapt proactively, embracing a new era of sustainable food system and responsible trade. For achieving compliance, you can engage with Regulatory experts at Freyr, ensuring that your products meet the criteria of being deforestation-free, are produced under the relevant legislation, and are supported by a due diligence declaration. Contact Freyr today!
