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EU Deforestation Regulation (EUDR) Briefing

The New EU Deforestation Regulation: Businesses exporting to the EU must ensure their products are deforestation-free. Are you ready?


What Questions We Will Answer in this Blog

  • What is the new EU Deforestation Regulation, and why is it important?

  • How does this regulation impact companies exporting goods to the EU?

  • What steps do businesses need to take to comply with the new rules?


Introduction

The European Union has set a robust new regulation to tackle global deforestation—a game-changer for businesses exporting to the EU. The EU Deforestation Regulation (EUDR), which comes into force on December 30, 2024, is not just another bureaucratic hurdle. It represents a bold commitment by the EU to ensure products sold in its market are not contributing to the destruction of our planet's forests.


"The EUDR is more than just a regulation. It's an opportunity for businesses to demonstrate their commitment to sustainability, transparency, and responsible trade."—Arne Mielken, Managing Director, Customs Manager Ltd.

This new regulation will profoundly affect your supply chains, requiring close collaboration between your business, suppliers, and stakeholders to meet stringent standards. But don’t worry. I’ll walk you through what it takes to comply and how my team and I can help.


Abbreviations We Use in this Blog

We’ll keep things simple, but some abbreviations will be necessary to fully grasp the EUDR. Here’s a quick guide:

  • EUDR – EU Deforestation Regulation

  • EU – European Union

  • EUTR – European Union Timber Regulation


Why Is the EUDR Important for Exporters?

The EUDR is a step-change regulation replacing the EU Timber Regulation (No. 995/2010), and it will affect not just timber traders but a range of industries from palm oil to beef. So why should businesses exporting to the EU care?


The answer lies in the broad scope of the new rules. To comply, your goods must be entirely deforestation-free, meaning they must not come from land that was deforested after December 31, 2020. Moreover, products must meet the manufacturing regulations of the country of origin and be accompanied by a due diligence declaration. This means that the EU is not just concerned with the end product but the entire process—right down to where the raw materials are sourced.


This presents both a thrilling opportunity and a menacing challenge for companies operating in industries like wood, coffee, cocoa, and rubber. Ensuring that your products comply with these standards is no small task, but it's absolutely essential if you want to continue doing business with the EU.


What Is "Deforestation-Free"?


So, what does deforestation-free really mean? In simple terms, the EU will not tolerate products linked to deforestation after December 31, 2020. This includes products like timber, where deforestation also covers forest degradation—the reduction of forest quality due to exploitation.


This is notorious for being tricky to manage, especially in sectors that heavily rely on raw materials from tropical regions. But the message is clear: if you're selling goods into the EU, you need to know exactly where your materials come from and, more importantly, ensure they don’t contribute to environmental damage.


What Goods Are Covered by the EUDR?

The EUDR targets several commodities known to be linked to deforestation. Let’s list the key ones:

  • Palm oil

  • Soy

  • Wood

  • Cocoa

  • Coffee

  • Beef

  • Rubber


Each of these commodities is closely tied to global deforestation risks. Annex 1 of the regulation provides an exhaustive list of relevant EU Customs codes and product descriptions that businesses must scrutinize. Every importer, exporter, and customs professional should now begin the process of analysing their supply chains to ensure compliance with these product standards.


The EU has also made it clear that this is not just about goods themselves but their derivatives too. So, if you’re in the import/export business, it's time to dig deep and make sure that none of your products have invisible links to deforestation or degradation.


What Is Due Diligence, and Why Does It Matter?

Due diligence under the EUDR is not just a tick-box exercise. It's a thorough investigation into your product's origins, ensuring that every part of your supply chain is compliant. Companies must carry out the following steps:


  • Traceability: Knowing exactly where your goods come from.

  • Risk Assessment: Evaluating whether your products are linked to deforestation or forest degradation.

  • Mitigation: Taking steps to reduce any risks found.

  • Geolocation Information: Gathering data on the land where your products originated, using tools like satellite imagery or on-site inspections.


Failure to comply is not just a minor mistake—it could lead to your products being blocked from entering the EU. This means companies need to take this seriously. Due diligence isn’t just good business—it’s the key to survival in the competitive world of EU trade. And it's not only about avoiding penalties but also about building trust with consumers, partners, and regulators.


How Do You Submit Compliance Documentation?

Submitting a due diligence declaration is an essential part of EUDR compliance. This formal statement confirms that you've taken all the necessary steps to ensure that your products are deforestation-free. Submitting this document to the relevant EU authorities is your guarantee that you're following the rules and that your products meet the EU’s rigorous standards.


While this might sound daunting, it is also your chance to showcase your commitment to integrity, accountability, and professionalism. By providing clear, detailed documentation, you're building credibility—not just with regulators but with your customers too.


What Can You Do To Prepare?

The key to staying ahead of the curve is preparation. The sooner you start working on your due diligence process, the better prepared you'll be for the EUDR's December 30, 2024 deadline.


Here’s what you can do now:

  • Map your supply chains: Identify where your products come from and assess the risk of deforestation in those areas.

  • Invest in technology: Tools like satellite imagery can help provide the geolocation information you’ll need.

  • Collaborate with suppliers: Ensure that your entire supply chain understands the importance of the EUDR and is working to comply with the new rules.


Download our EUDR Summary Briefing





Arne’s Takeaway

The EU Deforestation Regulation is a bold new frontier for customs professionals, exporters, and businesses. It challenges us to look deeply into our supply chains, embrace transparency, and champion sustainability. But with this challenge comes opportunity. Those who prepare well will not only comply with the EUDR but will stand out as leaders in sustainable trade. My team and I are here to support you every step of the way.


Expert Recommendations

  • Start now: Don’t wait until the last minute to begin mapping your supply chains.

  • Embrace technology: Use tools like satellite imagery to trace the origin of your goods.

  • Stay informed: Keep up to date with regulatory changes and guidance on the EUDR.


How My Team and I Can Help

Along with a great team of enthusiastic specialists, we offer comprehensive support for EUDR compliance. My team and I support all your import-export operations, including bespoke consultancy and practical assistance. We provide public, in-house, and on-demand training tailored for customs professionals, importers, exporters, and their partners. Our membership services include weekly customs trade intelligence and updates. We also offer UK import and export customs clearance services. For more details on services, visit www.customsmanager.org.


Sources That We Base Our Information in This Blog On

  • The EU Deforestation Regulation (EUDR)

  • EUTR Guidance Documentation

  • Industry Best Practices for Supply Chain Management


Where To Find More Information On EUDR Compliance

I Am New To Your Website, What Do I Do?

Welcome! Thanks for reading our content. If you found it valuable, I invite you to get STANDARD Membership to our Trade Intelligence service. Only in this way will you be able to receive updates directly in your inbox. We inform our members about customs, export control, and sanctions changes - BASED ON YOUR PREFERENCES (you will be asked to complete a survey when you start). This ensures the information you receive is always relevant and helpful. STANDARD membership is free of charge. To get started, leave your e-mail address at www.customsmanager.info.


Learn With Me

I and my team offer extensive training on EUDR compliance. Please visit www.customsmanager.org/events to explore the course plan and book one of the following public courses.


About the Author

I, Arne Mielken, am a customs, export control, and sanctions expert with over 20 years of experience. I have worked in top consultancy roles and trade associations and am proud to be a Freeman of the City of London and a Liveryman of the Worshipful Company of World Traders. My expertise spans numerous customs, export control, and sanctions associations.


Connect With Me & My Team

Learn more about me here and connect with me on LinkedIn. I also run a channel offering free tips on customs, export controls, and sanctions.


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Visit our Central London office at the German Business Hub, 42 Essex Street. When you’re in London, join us for a coffee or tea, or participate in our live training and networking events. Just e-mail us with your visit details.


Useful EUDR Downloads


EUDR Training

Join “Mastering EUDR for Import and Export” to understand the EU’s regulation on deforestation-free products in depth. Learn to identify EUR-regulated products, handle compliance, and issue Due Diligence Statements.


Disclaimer

The information provided in this blog post is for educational purposes only and should not be construed as legal advice. Consulting with legal professionals and specialists for specific compliance requirements is recommended. Book a free call with our expert at Customs Manager Ltd.

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