The EUDR extends scope beyond timber to cover agricultural and forest products
The EU Deforestation Regulation (EUDR) is set to replace the existing EU Timber Regulation (EUTR) on 30 Dec 2024, extending its scope to cover agricultural as well as forest products, including cocoa, coffee, beef, timber, furniture, paper, and more.
Ensuring deforestation-free supply chains
Through this new Regulation, the EU aims to ensure that only products entering the market are sourced in a manner that does not contribute to deforestation anywhere in the world.
Under the EUDR, the 'first placer' on the market, typically the importer, must provide geodata from the product's origin(s) upon entry into a new EU electronic database. Additionally, importers are required to assess the risk associated with these geolocations in terms of deforestation, forest degradation, or illegality. EU Borders will prohibit entry for shipments lacking this information and confirmation of a low-risk status, with customs unable to clear such goods. Importers face legal consequences, including potential jail sentences, if discrepancies arise in the geodata or if risks related to deforestation, forest degradation, or illegality are identified.
Token system and supply chain documentation
Once entered into the EU's system, a token is generated and must accompany the goods within the EU market. At the point of export, these tokens are re-entered into the EU system, with exporters confirming the absence of associated risks concerning deforestation, forest degradation, or illegality.
To facilitate this process, the entire supply chain - from forest source/ agricultural site to EU border - must pass on the geolocations of the origin plots of land. Additionally, credible evidence for the supply chain must be provided through documents such as transport/way bills, packing lists, shipping documents, or invoices, confirming the flow of goods from one entity to another.
Key requirements for importers
In summary, importers must obtain the following information for goods to be cleared at EU borders:
1. Traceability of the supply chain from forest/ agricultural site(s) to EU Border, supported by documented evidence.
2. Evidence of legal harvest.
3. Provision of geodata (shapefiles) for the forest/ agricultural sources relevant to the supplied product.
4. Any other information indicating a low-risk status of the raw materials, such as FSC certification.