Countdown to European Union Deforestation Regulation (EUDR) Compliance

By Angela Ipara

On 30 December, 2024[1], the European Union Deforestation Regulation (EUDR) will come into force, requiring companies placing or exporting commodities such as cattle, wood, cocoa, soy, palm oil, coffee, rubber, and their derived products (e.g., leather, chocolate, furniture) on the EU markets to submit compliance reports.

What is the EUDR?

The EUDR is a regulatory measure aimed at reducing global deforestation, greenhouse gas emissions, and biodiversity loss by ensuring that products entering the EU market are deforestation free. The products captured by the EUDR are termed “Deforestation Timeline Products”.

Compliance Requirements

To comply, companies must demonstrate that their products are deforestation-free and not linked to forest degradation or illegal activities. Importers of certain products must ensure that the following information is collected regarding their supply chain and products:

• product details including names and types, with scientific names for wood products;

• details of all commodities used in the products;

• product information including product quantity, country of production, geolocation of production plots, and production date or time range;

• legal and sustainability compliance requirement - proof that commodities were legally produced and deforestation-free, along with supply chain details; and

• geolocation data - products must include geolocation information using at least six decimal digits for latitude and longitude.

Deforestation Timeline Products must not be linked to land deforested or degraded after December 31, 2020.

Penalties for Non-Compliance

Failure to comply with the EUDR can result in significant penalties, including hefty fines, restrictions on market access, and potential legal actions.

Companies found in violation may face bans on exporting their products to the EU, which can severely impact their operations and reputation.

How Can the Pacific Legal Network (PLN) Team Assist?

The PLN team is here to help businesses sourcing commodities from the Pacific region navigate EUDR compliance. Our services include:

• evaluating supply chain and regulatory frameworks across a host of Pacific jurisdictioons to ensure your business complies with the EUDR; and

• assisting your business prepare for and fulfill the necessary compliance obligations.

The EUDR represents a significant step forward in global efforts to protect forests, reduce environmental harm, and promote sustainable practices. For further information or assistance with compliance, feel free to reach out to our team.

[1] If approved by the European Parliament and the Council, the law would become applicable on 30 December, 2025, for large companies and 30 June, 2026, for micro- and small enterprises. This additional 12-month period will serve as a phasing-in time to ensure proper and effective implementation, given that all necessary implementation tools are technically ready.