TABLE OF CONTENTS
- I. Why does the EUDR exist?
- II. EUDR timetable
- III. Which raw materials or resulting products are affected?
- IV. Exceptions to the scope of application
- V. What is the EUDR aimed at?
I. Why does the EUDR exist?
The EU regulation on deforestation-free products (EUDR) aims to minimize the Union's contribution to global deforestation and forest degradation, thereby contributing to the reduction of greenhouse gas emissions and global biodiversity loss. To this end, the EUDR lays down rules for the placing and making available on the Union market and for the export from the Union of products containing, fed with or produced using raw materials that are particularly relevant for deforestation.
These far-reaching obligations apply to operators (who make a relevant product available on the Union market for the first time or export it from the Union market) and traders (who make a relevant product available on the Union market repeatedly and unchanged), who must ensure that products made from certain relevant raw materials are deforestation-free and have been produced in accordance with the national rules of the respective country of production.
II. EUDR timetable
The EUDR already came into force on June 30, 2023. Nevertheless, a transitional period of 18 months remains after the date of entry into force before the requirements of the EUDR must be implemented in terms of content.
From December 30, 2024, the provisions of the EUDR will apply to large and medium-sized enterprises (non-SMEs). Subsequently, the EUDR provides for a gradual expansion of the scope of application depending on the size of the company, so that from June 30, 2025, the provisions of the EUDR will also apply to small and micro enterprises (SMEs).
III. Which raw materials or resulting products are affected?
The EUDR is product-related in that it is based on so-called "relevant raw materials" and "relevant products". According to the EUDR, "relevant raw materials" are the following seven raw materials: cattle, cocoa, coffee, oil palm, rubber, soy and wood.
The "relevant products" are in turn those products that result from the relevant raw materials, i.e., if they contain relevant raw materials, have been fed with them (animals) or are manufactured using them. The classification of whether a product is a "relevant product" or not is based on the specific customs tariff number of the respective product, as listed in Annex I of the EUDR. The following HS codes are affected:
- Cattle (0102 21, 0102 29, ex 0201, ex 0202, ex 0206 10, ex 0206 22, ex 0206 29, ex 1602 50, ex 4101, ex 4104, ex 4107)
- Cocoa (1801 - 1806)
- Coffee (0901)
- Oil palm (1207 10, 1511, 1513 21, 1513 29, 2306 60, ex 2905 45, 2915 70, 2915 90, 3823 11, 3823 12, 3823 19, 3823 70)
- Rubber (4001, ex 4005 - ex 4008, ex 4010 - ex 4013, ex 4015 - ex 4017)
- Soy (1201, 1208 10, 1507, 2304)
- Wood (4401 - 4421, 47, 48, ex 49, ex 9401, 9403 30, 9403 40, 9403 50, 9403 60, 9403 91, 9406 10)
IV. Exceptions to the scope of application
- Relevant products from Annex 1 of the EUDR that were produced before the entry into force of the EUDR on 29.06.2023 (Does not apply to wood and wood products according to Article 37 of the EUDR)
- Relevant products produced exclusively from waste (completed life cycle)
- Packaging material (used exclusively for support, protection or carrying)
V. What is the EUDR aimed at?
The EUDR primarily provides for a ban (see Art. 3 EUDR). Accordingly, companies may only place relevant raw materials and relevant products on the market, make them available on the market or export them if the following conditions are met:
- The relevant product shall be deforestation-free.
- have been produced in accordance with the relevant legislation of the country of production.
- a due diligence declaration must be available for the relevant product.
Important definitions
Deforestation-free means that
- the relevant products contain, were fed with (animals) or were produced using relevant raw materials that were produced on land that was not deforested after December 31, 2020,
- and in the case of relevant products containing or produced using wood - that the wood has been harvested from the forest without deforestation occurring after December 31, 2020.
Compliance with the relevant legislation of the country of production includes
- Land use rights.
- Environmental protection.
- Forest-related regulations.
- Rights of third parties.
- Rights of employees.
- Human rights protected by international law.
- Rights of indigenous peoples.
- Tax, anti-corruption, trade and customs regulations.