EUDR 101: A practical guide to understanding the new regulation
The EU Deforestation Regulation (EUDR) an upcoming EU-wide sustainability regulation. If you're importing or trading products on the EU market, you need to know how it affects your processes. Whether you’re directly or indirectly affected, or just want to know more - you’re in the right place.
This guide covers what the EUDR is, who it applies to, when it comes into force, and what steps you’ll need to take to comply. Let’s dive in.
What’s the EUDR all about?
In simple terms, the EUDR aims to stop products linked to deforestation or forest degradation from being sold in the EU. It does this by requiring companies to prove where products come from and show that they’re not tied to deforestation.
It’s all about traceability. Whether you're producing, trading, or selling, you’ll need to know where your products originate—and be able to show it.
Why was the EUDR created?
Deforestation has a massive environmental impact, and the EU is stepping up its efforts to tackle it. The EUDR is designed to make sure goods sold in the EU are sourced responsibly.
This builds on previous laws like the EU Timber Regulation (EUTR), but expands the scope to cover more commodities and applies stricter traceability requirements.
How does the EUDR compare to other regulations?
Unlike broader regulations like the CSRD (focused on sustainability reporting) or the CSDDD (corporate due diligence), the EUDR is product-specific.
It doesn’t just ask, “Is this company responsible?” It asks, “Can you prove that this specific product didn’t cause deforestation?” The focus is on concrete, traceable evidence tied to products—not just policies.
When does the EUDR take effect?
The original start date was December 30th, 2024. But the EU has delayed enforcement by a year. The new deadline is December 30th, 2025.
From that point, any affected products sold in the EU must meet the EUDR’s due diligence and traceability requirements.
What products fall under the EUDR?
The regulation applies to seven key commodities and several products made from them:
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Cocoa
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Coffee
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Soy
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Palm oil
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Cattle (including beef and leather)
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Wood (and wood products)
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Rubber
This also covers goods like chocolate, paper, furniture, and leather goods.
You can check the full product list here.
Who’s responsible for compliance?
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Operators—the companies placing products on the EU market for the first time—have the most responsibility. They must complete and submit a Due Diligence Statement (DDS) for every batch of EUDR-compliant goods brought into the EU.
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Traders also have obligations:
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If you’re a non-SME trader, you have to do due diligence but you can refer to a previous DDS done previously in the supply chain.
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SME traders can rely on the DDS provided by operators.
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*Note: Non-SME traders and operators who are downstream can submit their own DDS by referencing all previous DDS received from their direct suppliers.
Does the EUDR apply to non-EU producers?
Yes. If you produce goods that are exported to the EU—even if you’re based elsewhere—you’re affected. The law applies to where products are sold, not where they’re made.
What happens if you don’t comply?
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The penalties are serious:
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Fines up to 4% of annual turnover
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Confiscation of goods
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Potential bans from selling in the EU
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There’s also the reputational risk. Getting caught out could seriously damage your brand’s credibility with customers and buyers.
How to get compliant?
Yes. If you produce goods that are exported to the EU—even if you’re based elsewhere—you’re affected. The law applies to where products are sold, not where they’re made.
The 3 core requirements
1. Submit a Due Diligence Statement (DDS)
Every shipment of a covered product must be backed by a DDS submitted via the EU’s TRACES portal.
The DDS must include:
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A description of the product
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Quantity
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GPS coordinates of the land where it was produced
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A declaration that the product is deforestation-free and complies with local laws
2. Perform a risk assessment
Companies are required to evaluate the risk that their supply chain might be linked to deforestation. This is mainly based on:
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Supplier practices
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Supply chain complexity
Risk assessments must be updated annually—or sooner if things change.
3. Apply risk mitigation measures
If you identify risks, you can’t ignore them. You’ll need to act before you sell the product in the EU. Actions might include:
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Requesting more documentation
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Getting third-party certifications
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Conducting audits
Key questions to ask yourself
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Are you an operator or a trader?
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Is your product covered by the regulation?
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What’s the risk level of the country you’re sourcing from?
Country risk levels
The EU has split countries into three risk levels, which determine how often shipments are inspected below: (Besides, check the full list of classifications here)
What if you spot risks?
If your risk assessment raises concerns:
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Ask for more detailed information or certificates
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Audit the supplier
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Consider switching suppliers if necessary
How can you stay ahead?
Some practical steps:
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Build sourcing policies with clear environmental criteria
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Automate your data collection where possible—this saves time and ensures accuracy
Tools to help you navigate EUDR
The DDS must be submitted via the EU’s TRACES portal.
Beyond that, there are plenty of supply chain tools that help with:
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Mapping supply chains
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Automating risk assessments
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Gathering GPS and compliance documents
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Monitoring supplier performance
Digital tools are becoming pretty essential for managing this level of data.
Ready for the EUDR?
The EUDR marks a major shift toward transparent, responsible supply chains. It’s a big change—but one that’s achievable with the right approach.
Our advice? Start now, get to know where your risks lie, and how to get the right data in place.