EU Deforestation Regulation

From beef to book, in order to be distributed on the European market, a wide range of products need to comply with the European Deforestation Regulation (EUDR).? The EUDR became effective on 29 June 2023, but Member States have until 31 December 2024 to implement it.?

Seven commodities are listed, as well as many derived products:??

• Cattle (meat products, leather)?
• Cocoa (chocolate)?
• Coffee (coffee beans)?
• Oil palm (palm nuts, palm oil derivatives, glycerol)?
• Rubber (natural rubber products)?
• Soya (soybeans, soy-bean flour, oil)?
• Wood (fuel wood, wood products, pulp, paper, printed book)?

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Essentially, a company will only be allowed to sell these products on the European market or export them, if they are:?

1. deforestation-free,?

1. produced in accordance with relevant local environmental and social legislation, and?

1. covered by a due diligence statement confirming the above.?

As of 29 December 2024, every company will have to exercise a due diligence process to place relevant products on the EU market. This process must cover:?

• collecting detailed and exhaustive information that demonstrates the products comply with the EUDR,?
• carrying out a risk assessment concerning each product to ascertain the risk of non-compliance with the EUDR,?

• mitigating risks by carrying out independent audits to reach “no or only a negligible risk”,??

The cornerstone of the EUDR is its focus on transparency and traceability. Companies will need to provide detailed information about the origins of any products they import. In particular, the mandatory part is to provide visual, georeferenced evidence that the products were not produced on any deforested land, utilizing aerial and space-based technologies.??

In case of non-compliance, national law will impose penalties. This may include fines with a maximum of 4% of your EU turnover in the preceding year, confiscation of products or of revenues gained from them, temporary exclusion from public funding, or prohibition from trading in the EU in case of serious or repeated infringements.?

If you are affected by these European deforestation-free obligations,?

If you need a comprehensible environmental health check of your company,?

If you need assistance conducting a due diligence that complies with the EUDR, or drawing up a procedure?

Then you’re in good hands!? Our expert team of seasoned corporate sustainability lawyers is happy to assist you. Please don’t hesitate to contact us at: [email protected]??

Have a look at his profile here ? https://www.liberius.legal/lawyers/diederik-van-lede/