Basic Guide to the EUDR

André Lippert

CMS: Co-Head of ESG (Germany)

Let's save the forests. Join André Lippert from CMS and discover how the EUDR will reshape global supply chains and learn what your organisation must do now to stay compliant.

Regulation and Initiatives

Let's save the forests. Join André Lippert from CMS and discover how the EUDR will reshape global supply chains and learn what your organisation must do now to stay compliant.

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Basic Guide to the EUDR

11 mins 56 secs

Key learning objectives:

Outline the aims of the EUDR
Identify which products are covered by the EUDR
Understand who the EUDR applies to
Outline the due diligence requirements

Overview:

The European Deforestation Regulation (EUDR) aims to ensure that products imported, sold, or exported from the EU are not linked to deforestation or forest degradation. The EUDR applies to a defined list of commodities strongly associated with deforestation which includes cattle, cocoa, coffee, oil palm, soya, wood and rubber. The EUDR applies to anyone involved in placing these products on the EU market, selling them within the EU, or exporting them from the EU.

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Summary

What are the aims of the EUDR?

The European Deforestation Regulation (EUDR) aims to ensure that products imported, sold, or exported from the EU are not linked to deforestation or forest degradation. It seeks to curb the EU’s contribution to global forest loss, which has helped drive climate change, biodiversity loss, and negative impacts on communities. The Regulation also intends to promote sustainable, transparent supply chains worldwide.

Which commodities and products are covered by the EUDR?

The EUDR applies to a defined list of commodities strongly associated with deforestation, as well as many products derived from them. These include cattle, cocoa, coffee, oil palm, soya, wood and rubber. All are listed in Annex I of the Regulation. Packaging is treated carefully, and only fall within scope if they are placed on the EU market or exported as stand-alone items, such as decorative wooden boxes or paperboard cartons sold on their own.

Who does the EUDR apply to?

The EUDR applies to anyone involved in placing these products on the EU market, selling them within the EU, or exporting them from the EU. It distinguishes between operators (those who place products on the EU market for the first time or export them) and traders (those who make already-placed products available within the EU). Applicability does not depend on company size or product volume.

What due diligence requirements must companies meet?

Products must be deforestation-free, produced legally in the country of origin, and supported by a due diligence statement submitted through the EU’s TRACES system. Companies must complete due diligence before placing products on the market or exporting them. The due diligence process involves three key steps:

Collecting information
Conducting risk assessments
Implementing risk mitigation measures

Are there any simplifications for smaller businesses?

Yes. Micro, small, and medium-sized enterprises (SMEs) can benefit from certain simplifications. When processing relevant commodities into other relevant products, SME operators do not need to repeat due diligence if it has already been completed upstream - they only need to provide the reference number of the due diligence statement.

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André Lippert

André Lippert is a partner at the law firm CMS Germany and the Co-Head of the German ESG-Group at CMS. He advises companies from a wide range of industries on all aspects of public law compliance and ESG matters in national and European law. This includes compliance with the increasing regulatory requirements related to sustainability, especially the necessary adjustments within the corporate organisation.

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