Deforestation Regulation

Simplify EUDR Compliance

Navigate the European Union Deforestation Regulation with confidence using our comprehensive compliance software solution.

Understanding EUDR

The European Union Deforestation Regulation (EUDR) aims to minimize the EU's contribution to global deforestation and forest degradation by ensuring products placed on the EU market are deforestation-free.

Key Requirements

Starting December 30, 2025, companies must ensure that products placed on the EU market are:

  • Deforestation-free (produced on land that was not subject to deforestation after December 31, 2020)
  • Legally produced according to the laws of the country of production
  • Covered by a due diligence statement

Affected Products

The regulation applies to cattle, cocoa, coffee, palm oil, rubber, soy beans, and lumber, as well as products derived from these commodities, such as:

  • Leather, beef, and other cattle-derived products.
  • Chocolate and other cocoa preparations.
  • Furniture, paper, and wood products.
  • Food and cosmetics containing palm oil.
  • Coffee beans and coffee products.
  • CPG made with natural rubber such as tires, wire insulation, toys and sporting equipment. 
  • Soy derived products, foods, drinks, plastics and oil.   

EUDR Implementation Timeline

June 29, 2023

EUDR entered into force

December 30, 2025

EUDR becomes applicable for large and medium-sized enterprises

June 30, 2026

EUDR becomes applicable for micro and small enterprises

EUDR In-Depth

Understanding the detailed requirements and implications of the regulation

Due Diligence Requirements

Companies must implement a three-step due diligence process:

  • Information Collection: Gather data on products, including country of production, geolocation coordinates, and supplier information
  • Risk Assessment: Evaluate the risk of non-compliance with EUDR requirements
  • Risk Mitigation: Implement measures to reduce identified risks to a negligible level

Companies must submit a due diligence statement through the EU Information System confirming compliance before placing products on the market.

Country Benchmarking System

The EU will classify countries or regions as:
  • Low Risk: Simplified due diligence procedures apply
  • Standard Risk: Standard due diligence procedures apply
  • High Risk: Enhanced scrutiny and controls required
The benchmarking assessment considers deforestation rates, production trends, national laws, governance structures, and international agreements.

Penalties for Non-Compliance

Member States will establish penalties that are:

  • Effective, proportionate, and dissuasive
  • May include fines of up to at least 4% of annual EU turnover
  • Temporary exclusion from public procurement processes
  • Seizure of non-compliant products
  • Seizure of revenues gained from non-compliant transactions

Competent authorities in each Member State will conduct inspections based on a risk-based approach.

Operator vs. Trader Obligations

Operators (those placing products on the EU market for the first time) must:

  • Conduct full due diligence
  • Collect precise geolocation coordinates
  • Submit due diligence statements
  • Maintain records for 5 years

Traders (those making products available that are already on the market) must:

  • Keep records of suppliers and customers
  • Share information throughout the supply chain
  • Large traders (non-SMEs) have the same obligations as operators

Geolocation Requirements

One of the most challenging aspects of EUDR compliance is the requirement to provide precise geolocation coordinates for all plots of land where regulated commodities are produced.

Required Information

  • Latitude and longitude coordinates of all production plots
  • Date or time range of production
  • Production quantities
  • Evidence of deforestation-free status since December 31, 2020

Challenges

  • Complex supply chains with multiple tiers of suppliers
  • Limited visibility into origin locations
  • Data collection from smallholder farmers
  • Verification of historical land use

EUDR Technical Details

Comprehensive information about the technical aspects of the regulation

Detailed Product Scope

Commodity

Products Covered

CN Codes (Examples)

Cattle

Cocoa

Coffee

Oil palm

Rubber

Soya

Wood

Live cattle, beef, leather products

Cocoa beans, paste, butter, powder, chocolate

Coffee beans, roasted coffee, extracts

Palm oil, palm kernel oil, derivatives

Natural rubber, tires, rubber articles

Soybeans, oil, meal, tofu, soy sauce

Timber, furniture, pulp, paper, printed materials

0102, 0201, 0202, 4104, 4107

1801, 1802, 1803, 1804, 1805, 1806

0901, 2101

1511, 1513, 2306

4001, 4005, 4011, 4015

1201, 1208, 2304, 1507

4401-4421, 4701-4706, 48, 49, 94

Note: This is not an exhaustive list. The regulation covers approximately 112 CN codes in total.

EU Information System (Registry)

  • Companies must implement a three-step due diligence process:
  • Information Collection: Gather data on products, including country of production, geolocation coordinates, and supplier information
  • Risk Assessment: Evaluate the risk of non-compliance with EUDR requirements
  • Risk Mitigation: Implement measures to reduce identified risks to a negligible level
  • Companies must submit a due diligence statement through the EU Information System confirming compliance before placing products on the market.

Competent Authorities

Each EU Member State will designate one or more competent authorities responsible for:

  • Carrying out checks on operators and traders
  • Verifying due diligence statements
  • Implementing risk-based control plans
  • Imposing penalties for non-compliance
  • Cooperating with authorities in other Member States

Authorities must check at least 5% of operators and traders annually and 5% of the quantity of relevant commodities or products.

Verification & Control Process

The EUDR Establishes a comprehensive verification
framework:

  • Documentary Checks: Review of due diligence statements and supporting documents
  • Physical Checks: Examination of commodities
    and products
  • Remote Sensing: Use of satellite monitoring and geospatial data
  • Laboratory Analysis: Testing to verify product
    composition
  • Substantiated Concerns: Authorities must
    investigate concerns raised by third parties

SME Provisions

The EUDR includes special provisions for Small and Medium-sized Enterprises (SMEs):

  • Extended timeline: SMEs have until June 30, 2026 to comply
  • Technical assistance: Member States must provide technical support
  • Simplified reporting: Less frequent reporting requirements
  • Digital tools: Access to simplified digital tools for due diligence

Microenterprises (fewer than 10 employees and annual turnover under €2 million) acting as traders are exempt from certain obligations.

International Cooperation & Partnerships

The EUDR emphasizes international cooperation through:

Partnership Agreements

  • Bilateral agreements with producing countries
  • Technical and financial support for producers
  • Capacity building for smallholders
  • Recognition of certification schemes that meet EUDR requirements

Alignment with Other Initiatives

  • FLEGT (Forest Law Enforcement, Governance and Trade)
  • REDD+ (Reducing Emissions from Deforestation and Forest Degradation)
  • Glasgow Leaders’ Declaration on Forests and Land Use
  • New York Declaration on Forests

International Cooperation & Partnerships

The EUDR is part of a broader EU regulatory framework addressing sustainability and environmental protection:

Corporate Sustainability Reporting Directive (CSRD)

The EUDR is part of a broader EU regulatory framework addressing sustainability and environmental protection:

EU Taxonomy Regulation

Activities contributing to EUDR compliance may be considered environmentally sustainable under the EU Taxonomy.

Corporate Sustainability Due Diligence Directive (CSDDD)

EUDR compliance aligns with broader due diligence requirements under the proposed CSDDD.

Morpheus.Network EUDR Compliance Solution

Our comprehensive software platform streamlines EUDR compliance, reducing complexity and ensuring your supply chain meets all regulatory requirements.

Key Features

EUDR.Supply offers everything you need to ensure EUDR compliance across your entire supply chain.

Supply Chain Mapping

Visualize and track your entire supply chain from source to destination with precise geolocation data.

Due Diligence Automation

Generate and manage due diligence statements automatically, ensuring compliance with all EUDR requirements.

Risk Assessment

Identify and mitigate compliance risks with our advanced risk assessment tools and early warning system.

Deforestation Monitoring

Access satellite imagery and deforestation alerts to verify that your supply chain is deforestation-free.

Supplier Management

Manage supplier documentation, certifications, and compliance status in one centralized platform.

Reporting & Analytics

Generate comprehensive reports for internal audits and regulatory submissions with just a few clicks.

In Partnership

A secure data backbone for high-stakes information, Confidios lets you assemble, share, and control data with self-sovereign identity and smart contract–powered protocols.

Trusted by Industry Leaders

See how companies across various sectors are achieving EUDR compliance with our solution.

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