With the EU Deforestation Regulation (EUDR) taking effect in December 2024, the EUDR requires manufacturers, brand owners, and private label entities to ensure that their commodities comply with legal sourcing standards to prevent deforestation and biodiversity loss. These new regulations present significant challenges in logistics, reporting, and financial management for global companies.
The EUDR specifically targets commodities like soy, beef, palm oil, wood, coffee, cocoa, and rubber, imposing strict due diligence requirements. Companies must verify their supply chains, including providing geo-coordinates of sourcing locations, to ensure compliance.
Freyr, a global regulatory specialist, offers expert guidance in navigating EUDR requirements. We assist manufacturers, brand owners, distributors, and private label entities in understanding and complying with these regulations.
EUDR Key Commodities
- Cattle and derived products (e.g., beef, leather)
- Cocoa and derived products (e.g., chocolate)
- Coffee and derived products
- Oil Palm & derived products (e.g., palm oil, palm kernel oil)
- Soy and derived products (e.g., soybeans, soy oil, soy protein)
- Rubber and derived products
- Wood & derived products (e.g., timber, paper, wood pulp, cardboard, wooden crates)
Our services include:
EUDR Due Diligence Implementation
- Develop and implement due diligence systems to identify, assess, and mitigate deforestation risks.
- Assess suppliers to ensure EUDR compliance.
- Trace the origin of raw materials to confirm they are not from deforested areas.
Risk Assessment and Mitigation
- Conduct risk analysis to identify high-risk areas and suppliers.
- Develop and implement plans to mitigate identified risks.
- Collaborate with suppliers to improve practices.
Compliance Reporting
- Maintain documentation and records to demonstrate EUDR compliance.
- Prepare and submit required reports to authorities, ensuring regulatory standards are met.
Training and Support
- Provide training on EUDR requirements and due diligence procedures.
- Educate suppliers on EUDR compliance and sustainable sourcing best practices.
Important Timelines
- 29-Jun-2023
- 30-Dec-2025
- 30-Jun-2026
- 2026-2028
The EUDR was officially adopted.
The EUDR comes into force. From this date, businesses must comply with the new due diligence and reporting requirements outlined by the regulation.
The date of application for micro and small enterprises.
Review period where the European Commission (EC) will assess the implementation of the EUDR and its impact, making adjustments as necessary.
Industries We Serve
The EUDR aims to control deforestation by regulating the trade of commodities associated with deforestation and forest degradation. The regulation mandates that businesses exercise due diligence to ensure their supply chains are free from deforestation-linked products.
With the EU Deforestation Regulation (EUDR) coming into effect in December 2024, now is the perfect time to ensure your company is ready to comply with these new standards.
The EUDR seeks to combat deforestation by regulating the trade of commodities linked to deforestation and forest degradation. The regulation requires businesses to exercise due diligence to ensure their supply chains are free from products associated with deforestation.
With the EU Deforestation Regulation (EUDR) coming into effect in December 2024, now is the perfect time to ensure your company is ready to comply with these new standards.
The EU Deforestation Regulation (EUDR) is aimed at reducing global deforestation by targeting specific commodities in supply chains. It requires strict due diligence to ensure these products are not linked to deforestation.
The European Union Deforestation Regulation (EUDR) will significantly impact the pharmaceutical industry by imposing strict requirements on raw material sourcing. Plant-based ingredients, such as ashwagandha and ginseng, natural oils like palm oil, and wood-derived materials like cellulose, will face strict EUDR scrutiny, requiring proof of sustainable sourcing to avoid links to deforestation.
With Freyr's regulatory expertise, manufacturers can navigate these challenges by implementing robust supply chain due diligence, including traceability of raw materials, partnerships with certified suppliers, and comprehensive risk assessments. While the EUDR presents challenges, it also provides an opportunity to enhance environmental responsibility and meet the growing demand for sustainable products.
The European Union Deforestation Regulation (EUDR) will have a significant impact on the medical device manufacturing industry by imposing strict requirements on sourcing raw materials linked to deforestation. Manufacturers must ensure their products adhere to these environmental standards to maintain compliance.
Raw materials such as natural rubber, used in products like gloves and tubing, will face stringent regulations under the EUDR due to their connection to deforestation. Additionally, wood-based materials like cellulose, commonly found in medical packaging, will require thorough supply chain verification to ensure they do not contribute to forest degradation.
With Freyr's regulatory expertise, medical device manufacturers can effectively navigate EUDR compliance by implementing rigorous supply chain due diligence. This includes ensuring all raw materials are traceable and sustainably sourced. Although these regulations present challenges, they also promote more sustainable industry practices, ultimately benefiting the environment.
Prepare your business for the upcoming EU Deforestation Regulations EUDR and avoid potential disruptions in the EU markets.
Get in touch with us today to discover how we can help you meet your compliance obligations.
Frequently Asked Questions (FAQs) on EUDR
We are here to provide you with the information you need quickly and efficiently.
01. What is the EUDR?
The EUDR is a new law that came into force in the European Union (EU) on June 29, 2023. It aims to prevent companies from placing commodities linked to deforestation and forest degradation onto the EU market or exporting them from the EU. The regulation strives to reduce the EU's impact on global forest loss, lower greenhouse gas emissions, and protect biodiversity by promoting deforestation-free products.
02. When does the EUDR start?
Most companies must be in compliance with the EUDR as of December 30, 2024 (date of application). However, small and micro-undertakings established before December 30, 2020, are eligible for an extended compliance deadline of June 30, 2025.
03. Which products are in the scope of the EUDR?
The EUDR covers the following commodities and derived products: cattle, cocoa, coffee, oil palm, rubber, soya, and wood. This includes products containing or made from these commodities.
4. Who is in the scope of the EUDR?
The EUDR applies to Operators (companies placing relevant products on the EU market or exporting them) and Traders (any person in the supply chain other than the Operator who makes relevant products available on the market). It covers both natural and legal persons engaged in commercial activity.
5. Will the EUDR be delayed?
As of now, there are no official plans to delay the implementation of the EUDR. The regulation came into force on June 29, 2023, and the main compliance date is set for December 30, 2024.
6. How does the EUDR apply to SMEs?
Small and micro-undertakings established before December 30, 2020, are eligible for an extended compliance deadline of June 30, 2025, under the EUDR. SME traders may rely on due diligence statements obtained from their suppliers rather than conducting their own due diligence.
7. How does the EUDR apply to the UK?
The EUDR is an EU regulation and does not directly apply to the UK as a non-EU country. However, UK companies exporting relevant commodities or products to the EU will need to comply with the EUDR requirements to access the EU market.
8. How does the EUDR differ from the EUTR?
The EUDR replaces the existing EU Timber Regulation (EUTR) once it comes into force on December 30, 2024. However, the EUTR will still apply for three (03) more years for wood products harvested before June 29, 2023, and placed on the EU market on or after December 30, 2024. The EUDR has a broader scope covering additional commodities beyond timber.
9. What does the EUDR require from businesses?
Businesses must issue a due diligence statement establishing negligible deforestation risk in their supply chain since December 2020. They must also prove that the products were grown legally according to local land rights and other regulations.
10. How will the EUDR change business operations?
Complying with EUDR requires significant changes in business operations, including extensive data collection and supply chain transparency. For example, businesses need to provide geolocation data for every farm plot that contributes to shipments.
11. What are the potential impacts on coffee and cocoa pricing?
Since a high proportion of coffee and cocoa crosses EU borders, non-compliant shipments will need to find other markets, potentially trading at a significant discount. This could negatively impact the prices of these commodities.
12. What are the penalties for non-compliance with the EUDR?
If a business is found non-compliant, it will lose the entire affected parcel of goods and could be fined up to 4% of its annual turnover in Europe.
13. Is the UK implementing a similar regulation?
The UK is expected to implement its version, known as the Forest Risk Commodities regulations. While not identical, complying with EUDR will help operators adhere to the UK law.
14. What are the key deadlines for EUDR compliance?
The EUDR comes into force on December 30, 2024. Businesses need to collect all necessary data and have their due diligence and traceability systems in place by then.
15. Will enforcement authorities be ready by the deadline?
Businesses should start collecting relevant data, conducting risk assessments, and implementing traceability systems immediately to ensure compliance with the EUDR.
16. What should businesses do to prepare for EUDR compliance?
Businesses should start collecting relevant data, conducting risk assessments, and implementing traceability systems immediately to ensure compliance with the EUDR.