Pursuant to the EUDR, starting from 30 December 2024, relevant products (derivatives of palm oil, soya, wood, cocoa, coffee, cattle, and rubber listed in Annex I to EUDR) may be placed or made available on the EU market or exported from the EU only if they meet the following requirements:
1) deforestation-free requirement, i.e. relevant products must be traceable to the plot of land where the relevant commodities were produced/harvested, and such plot of land must not have been subject to deforestation (or to forest degradation with respect to wood) after 31 December 2020;
2) legality requirement, i.e. production/harvesting of the relevant commodities on the respective plot of land must have complied with the relevant legislation of the country of production; and
3) due diligence statement (DDS) requirement, i.e. each batch of relevant products must be covered by a DDS which must be submitted into the Information System by a Union operator or trader upon conducting due diligence or ascertaining that due diligence was carried out in accordance with the EUDR in a prior step of the supply chain.
While the EUDR imposes prohibitions and obligations on EU operators and traders, producers of relevant commodities and products — including those outside the EU — would also be impacted as, (a) their products would have to meet the requirements of the EUDR to be sold in or exported from the EU, and (b) they would need to generate extensive information, including geolocation of the land plots, and pass it down their sales channels to enable EU operators and traders to exercise due diligence required by EUDR.
The EUDR requires operators and traders not only to implement the due diligence processes on a batch level but also to establish a due diligence system (to be reviewed at least once a year) and to publicly report on these systems and the steps taken to ensure compliance with their due diligence requirements under the Regulation.
How Mayer Brown Can Help
Mayer Brown is closely monitoring developments related to EUDR implementation and has a wealth of experience advising on various compliance matters.
Our lawyers assist EU operators and traders with the establishment of the due diligence system required under EUDR and preparing for EUDR’s implementation. We help EU operators and traders, as well as their suppliers, navigate complex EUDR prohibitions, obligations and requirements, including by interacting with the European Commission and national competent authorities. Our team advises on proper information gathering, risk assessment and risk mitigation procedures, as well on contractual clauses addressing EUDR requirements.
