Key Insights into the EU Deforestation Regulation (EUDR)
- Freya Jane
- Director of Customer's Success
The European Union (EU) is making great progress in creating a more environmentally friendly world; the biggest EU environmental problem is deforestation.
To combat deforestation and save the environment, the EU introduced a law named the EU Deforestation Regulation (EUDR) in June 2023. It guarantees that products sold or imported into the EU are not associated with deforestation. Businesses that deal with commodities including palm oil, soy, lumber, coffee, cocoa, and rubber are impacted by this.
This blog is intended to explain EUDR and how you can ensure compliance with this law.
What is the EU Deforestation Regulation (EUDR)?
The EU Deforestation Regulation (EUDR) is a rule that prohibits goods associated with deforestation from entering or departing the EU market. It covers the deforestation that took place after December 31, 2020. Companies need to make sure their goods fulfil three essential criteria:
- Deforestation-free: Not connected to forest destruction.
- Legally sourced: Made in accordance with national regulations.
- Accurate documentation: Provide evidence of compliance obtained through due diligence.
Failure to comply with the law can result in penalties.
Timelines for Compliance Under the EUDR
Depending on the size of the company, the EU Deforestation Regulation (EUDR) establishes distinct compliance deadlines. Large and medium-sized businesses must adhere to the EUDR standards starting on December 30, 2025, while small and micro businesses have an extended deadline, with regulations taking effect on June 30, 2026. This phased approach guarantees that all firms gradually conform to the EUDR’s deforestation-free requirements while giving smaller enterprises more time to adjust to the new legal framework.
What are the key requirements of the EUDR?
The businesses and companies that deal with the selected goods are subject to the EU Deforestation Regulation (EUDR). It requires them to make sure that their products are:
- Deforestation-free
- Comply with the laws of the country of origin
- Have a due diligence statement before importing, exporting, or supplying them to the EU market
The requirements vary depending on the size of the company and whether the company is importing, exporting, or supplying goods.
Operators (large companies or importers placing products on the EU market or exporting them) are required to:
- Implement a robust due diligence system.
- Submit a due diligence statement before importing or exporting regulated goods.
Traders (supply chain participants who distribute goods inside the EU but do not function as operators) are required to:
- Gather and hold onto important data from operators for a minimum of five years.
These responsibilities are meant to guarantee accountability, traceability, and transparency across the supply chain.
How can you ensure EUDR compliance with the HS code lookup tool?
Businesses must use an HS code lookup tool in order to comply with the EU Deforestation Regulation (EUDR). This tool determines whether the products are covered by the EUDR by classifying them under the relevant Harmonised System (HS) codes.
For example, identifying regulated goods like soy, timber, or palm oil by their unique HS codes guarantees that companies take the required due diligence steps, like confirming that their sourcing is deforestation-free and keeping compliance records.
Furthermore, an HS code lookup tool facilitates supply chain efficiency by highlighting EUDR-relevant codes and lowering the possibility of misclassification, which could result in fines.
Businesses can effectively comply with EUDR regulations and promote sustainable trade practices by incorporating this technology into their operations.
Wrapping up
The EU Deforestation Regulation (EUDR), which mandates transparency and traceability across supply chains, is revolutionary for businesses that deal in regulated commodities. Using the appropriate tools can make all the difference, even when compliance may seem overwhelming. Businesses can easily categorise their items, find EUDR-regulated goods, and guarantee proper documentation to satisfy due diligence obligations with iCustoms’ HS Code Lookup Tool.
Your company may operate with confidence in the EU market thanks to iCustoms, which streamlines compliance procedures, lowers the possibility of misclassification, and keeps you informed of legislative changes.
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