The Regulation on Deforestation-free products (EUDR) is a European law that aims to combat deforestation. The EUDR stipulates that companies in Europe may only import, export or produce goods and products that do not cause deforestation or degrade forests. In addition, a product or raw material must have been produced legally. On this page you can read more about importing products that fall under the EUDR into the EU. What should companies in the Netherlands do? How do we check whether they comply with these rules?
Objective of the EUDR
By promoting the consumption of 'deforestation-free' products and reducing the EU's impact on global deforestation and forest degradation, the new Regulation (EU) 2023/1115 on deforestation-free products is expected to bring down greenhouse gas emissions and biodiversity loss.
Who must comply with the EUDR?
The EUDR applies to all companies in the European Union that want to import, export or produce certain raw materials and products. It applies to both large and small companies, and also to sole proprietorships. These companies are not allowed to import products that come from areas that have been deforested after 30 December 2020. They are not allowed to market these products in the EU.
Suppliers in the country of origin play an important role in this. They can help prove the production of their products caused no deforestation. Without this proof, European companies are no longer allowed to market these products. In the Netherlands, the Food and Consumer Product Safety Authority (NVWA) checks whether companies comply with the rules. If they do not? Then we can impose a fine or destruct goods.
When does the EUDR come into effect?
Most companies will have to comply with the EUDR from 30 December 2024. For a number of smaller companies, this will apply from 30 June 2025.
Commodities and products covered by the EUDR
The EUDR applies to the following 7 commodities:
- Cattle
- Oil Palm
- Soy
- Cocoa
- Coffee
- Rubber
- Wood
It also applies to derivative products such as leather, chocolate and furniture. The full list of raw materials and derivative products can be found in Annex 1 of the European Regulation (EU) 2023/1115.
What should companies do when importing?
Companies that place relevant products on the EU market are responsible for ensuring that these products are EUDR-compliant. They must demonstrate that the origin of their products or raw materials is legal. And that production or growth has not contributed to deforestation. In addition, they must ensure that the origin is traceable.
They must declare themselves that there is no or a negligible risk of deforestation. Is there such a risk? Then the companies are not allowed to import the goods or raw materials and cannot place them on the market in the EU.
In practice, they must:
- set up a Due Diligence System
- collect information and perform risk analysis
- create a Due Diligence statement for each shipment in the European TRACES system
Help from suppliers
Much of the information that companies in the EU need comes from the country of origin. Producers and suppliers who supply companies in the EU can help their customers. For example, by providing evidence that no deforestation has occurred, and that all requested information is correct and reliable.
Due Diligence System
Companies must implement a Due Diligence System (DDS). This allows them to prove to the Dutch government that their products do not pose a risk of deforestation. With a DDS, they do at least 4 things.
- They collect data on the (legal) origin of the products.
- They collect data on the geolocation where the product was grown, produced, processed, or born or fed.
- They perform risk analyses, which allow them to estimate whether products contribute to deforestation or forest degradation.
- They take measures so that the risk that they trade products that do not comply with the EUDR is negligible.
Inspection by the NVWA
The NVWA checks whether Dutch companies comply with the rules. For example, whether these companies comply with their Due Diligence System. We look at the following points, among others.
- Have they done sufficient research and collected information?
- Have they assessed the possible risks?
- Have they taken sufficient measures if necessary?
What do we do if it is not in order?
If companies do not do this properly, or if there is deforestation for the products, we can issue fines and destroy goods.