On April 15, 2025, the EU Commission published a new Guidance Document, new frequently asked questions (FAQs), and a proposal for a new Delegated Act designed to simplify the compliance with the EU Deforestation Regulation (EUDR).
The EUDR is designed to ensure that the EU market does not further contribute to deforestation and forest degradation in the EU and globally. It applies to cattle, wood, cocoa, soy, palm oil, coffee, rubber, and some of their derived products. Under the EUDR, covered products may only be imported into, traded in, or exported from, the EU if it can be shown that these products do not originate from recently deforested land or have contributed to forest degradation.
The new guidance published by the EU Commission replaces an earlier version of the Guidance Document and earlier versions of the FAQs. The Commission's proposal for a new Delegated Act is supposed to provide further clarifications and simplification of the scope of the EUDR. Further, it is intended to avoid unnecessary administrative costs.
The Guidance Document and the FAQs now allow:
- Large companies to reuse existing due diligence statements when goods that were already in the EU market are reimported;
- An authorized representative to submit due diligence statements on behalf of group companies;
- The submission of due diligence statements annually instead of for every shipment or batch; and
- The referral to due diligence statements submitted by suppliers under less onerous ascertaining requirements.
The proposal for a new Delegated Act includes changes to Annex I of the EUDR that lists the commodities and relevant products covered by it. One of the proposed changes exempts "packing material and packing containers clearly suitable for repetitive use exclusively to support, protect or carry another product placed on the market and presented with that product from the moment they are used for such purpose and onwards" from the scope of the EUDR.
This is an issue of particular relevance for the automotive industry and everyone who uses wooden pallets. Under the current rules, a wooden box or pallet used to ship components from Asia to Europe is exempt because it is used to carry another product. If, however, the empty wooden box or pallet is sent back to Asia for future use, the current exemption would not apply with the consequence that a due diligence statement would have to be filed. The proposed change will therefore be welcomed by many if not all industries.
In addition, the Commission informed the public that it is currently finalizing the country benchmarking provided for by the EUDR by means of an Implementing Act to be adopted no later than June 30, 2025.
The Commission claims that all the above-described measures will lead to an estimated 30 percent reduction in administrative costs and burden for companies.
It remains to be seen whether there will be even more substantial changes to the EUDR in the future. There is consensus within Germany and other EU Member States that the EUDR should be amended to include a "no-risk" category for those countries and areas where strict protections of forests are in place.
Commission takes action to simplify the implementation of the EU Deforestation Regulation
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