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EU Deforestation Regulation (EUDR)

EU Deforestation Regulation (EUDR): Inside the EU’s New Anti-Deforestation Rules

Onye Dike
Onye Dike
Updated on October 21st, 2025
4 min read
Published Oct 20, 25

Summary

The EUDR requires operators and non-SME traders to file a due-diligence statement in the Commission’s Information System covering CN code, quantities, country of production, and geolocation of all plots before placing or exporting in-scope products (cattle, cocoa, coffee, oil palm, rubber, soy, wood). Penalties include fines up to 4% of EU turnover. Application: 30 Dec 2025 (large/medium); 30 Jun 2026 (SMEs).
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Details

Jurisdictions
  • European Union
Mandatory for

EUDR reporting applies to your company if:

  • Business Role: You act as an operator (first to place relevant products on the EU market or to export them from the EU) or a trader (you make relevant products available on the EU market).
  • Product Scope: Your products are relevant products that contain, have been fed with, or are made using cattle, cocoa, coffee, oil palm, rubber, soy or wood, as listed by CN/HS codes in Annex I of the official EUDR documentation.

Deep dive


Introduction

The EU Deforestation Regulation (Regulation (EU) 2023/1115: EUDR) was adopted in 2023 to curb the EU’s contribution to global deforestation and forest degradation linked to commodities such as cattle, cocoa, coffee, oil palm, rubber, soy and wood (and many derived products). The EUDR repeals and replaces the EU Timber Regulation while building on the Forest Law Enforcement, Governance and Trade (FLEGT) licensing framework. Enforcement is shared between Member-State competent authorities and customs, coordinated via an EU information system and the European Union Single Window Environment for Customs operated by the European Commission. The law sits within the European Green Deal architecture alongside the 8th Environment Action Programme, the EU Biodiversity Strategy and the European Climate Law, and interfaces with customs rules (Union Customs Code). In short, EUDR makes market access conditional on ex ante due diligence proving products are deforestation-free, legal in country of production, and backed by a due-diligence statement submitted before placing on the EU market or export.

EUDR Reporting Obligations

Before placing or exporting any relevant product (see Annex I of the EUDR Regulation), operators (and non-SME traders) must submit a due-diligence statement (DDS) via the Commission’s EUDR Information System (connected to the EU Single Window for Customs). As provided in Annex II of the EUDR Regulation, Each DDS, the content of which is must capture, at minimum: the CN/HS code and description, quantities, country of production, and the geolocation of all plots of land (or all cattle establishments) linked to the commodities in the consignment, together with a declaration that due diligence found no or only negligible risk of non-compliance; records must be retained for 5 years. These DDS/reporting obligations apply from 30 December 2025 for most operators and traders, and from 30 June 2026 for micro- and small-undertakings. Customs will require/reference the DDS number once the interface is fully operational.

EUDR Compliance Software

While the Commission provides the core Information System, there is a wide range of software options for affected entities to assemble plot-level evidence, trace supply chains, and generate DDS data. Examples include Sourcemap (end-to-end traceability and EUDR workflows), Satelligence (geospatial monitoring and risk assessment tied to plot uploads), and Global Traceability (EUDR timeline/support and product mapping). These are not official EU tools but are widely marketed to support EUDR preparations.

Penalties for Non-Compliance

The regulation requires Member States to set effective, proportionate and dissuasive penalties. Article 25 of the regulation requires, at a minimum: (i) fines proportionate to damage and value, with the maximum at least 4% of the company’s total EU-wide annual turnover in the preceding financial year (and higher if needed to remove economic benefit); (ii) confiscation of products and of revenues; (iii) temporary exclusion (≤12 months) from public procurement and public funding; (iv) temporary prohibitions on placing/making available/exporting relevant products in cases of serious or repeated infringements; and (v) loss of access to simplified due diligence. Authorities can also order corrective actions (withdrawal/recall, preventing placement, disposal/donation) and take interim measures (seizure; suspension), with customs able to refuse release where DDS checks fail.

Current Status

The EUDR is in force. Following a 2024 amendment, application of the main due-diligence/ reporting duties starts 30 December 2025 for large/medium operators and traders, and 30 June 2026 for micro/small firms. In September 2025, the Commission signaled a further one-year postponement (to end-2026 for larger firms), citing IT-system readiness. The delay requires Parliament and Council agreement and, as of 21 Oct 2025, remains proposed, not adopted. Compliance teams should therefore keep working to the 2025/2026 dates unless and until a legal act changes them.

Resources


Onye Dike
Written by:
Onye Dike
Sustainability Research Analyst
Onye Dike is a Sustainability Research Analyst at Net Zero Compare, where he contributes to research and analysis on environmental regulations, carbon accounting, and emerging sustainability trends.