Webinar recording: EU Deforestation Regulation (EUDR): Requirements and efficient implementation with Taylor Wessing

What is the EUDR?

‍

The EU Deforestation Regulation aims to combat global deforestation and forest degradation by excluding products linked to the destruction of forests from the European market. The regulation comes into full force on December 30, 2024 and requires companies to carry out strict due diligence to ensure that their supply chains are "deforestation-free".

Objective of the EUDR: To protect forests and reduce CO₂ emissions by reducing deforestation. All relevant products associated with deforestation must be demonstrably sustainably produced.

‍

‍

Which products are affected?

‍

The relevant products include:

• Wood
• Soy
• Palm oil
• Beef
• Rubber
• Cocoa
• Coffee

‍

The products concerned must be checked against their customs tariff numbers (CN codes) to ensure that they do not fall under the EUDR. This applies both to products manufactured within the EU and to imports and exports from third countries.

‍

‍

The duty of care (due diligence)

‍

Companies must provide detailed information about their supply chains to ensure that no products that have contributed to deforestation are placed on the market. The most important obligations include:

1. Transparency of the supply chain: collecting geodata on the land on which the raw materials were produced.
2. Risk analysis: Companies must ensure that there is only a negligible risk that the products have contributed to deforestation.
3. Risk reduction: If a higher risk is identified, additional measures must be taken to reduce the risk.

Companies must submit a due diligence declaration for each product, which can also be checked by the authorities. Without this declaration, products may not be placed on the EU market.

‍

‍

Differences between market participants and traders

‍

The EUDR distinguishes between:

• Market participants: They place products on the market for the first time (e.g. importers or manufacturers) and must fulfill the full due diligence obligation.
• Retailers: They resell products that have already been imported and only have to check the due diligence declaration.

‍

‍

How can companies implement the EUDR?

‍

Implementing the EUDR is a complex task, especially for industrial SMEs. Companies need to collect, analyze and document both internal and external data. Digital solutions, such as those from Tacto, offer support in complying with EUDR requirements.

‍

Tacto provides a platform on which companies:

• be able to record and manage data on products and suppliers.
• Be able to carry out automatic queries to obtain information from suppliers.
• be able to prepare and document due diligence declarations.
• risk management and compliance in a centralized system.

‍

‍

Conclusion

‍

The EUDR poses major challenges for companies as they have to provide extensive information about their supply chains. Market participants placing products on the market for the first time are particularly affected. Digital solutions are crucial to manage the complexity of the new requirements and ensure that all relevant products comply with the new EU regulations.

Companies should start analyzing their supply chains at an early stage in order to meet the requirements of the EUDR and avoid penalties. Tacto offers tailor-made solutions for this and supports companies in establishing future-proof, transparent and sustainable supply chains.

‍