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European Union Deforestation Regulation (EUDR) and S Group Suppliers
The aim of the European Union Deforestation Regulation (EUDR) is to combat deforestation and forest degradation globally. The regulation came into force on 29 June 2023, and its goal is to ensure that products placed on the EU market are deforestation-free and legally produced. The regulation will be applied to medium & large operators and traders starting from 30 December 2026. Micro and small enterprises have an extended transition period until 30 June 2027.What does the Deforestation Regulation mean?
According to the regulation, it is prohibited to place on the EU market or export from the EU any products or raw materials that do not meet the three main principles of the regulation:- Origin: Commodities and products must not originate from areas where forests have been cleared or degraded after 31 December 2020.
- Legality: The production of products must comply with the laws of the country of production.
- Due Diligence: Operators must ensure proper due diligence, collect supply chain information, and submit a Due Diligence Statement (DDS) or a Simplified Declaration (SD), depending on their size.
Supplier Responsibilities
The regulation requires data collection, risk assessment, and risk mitigation related to raw materials and products. Defined “operators” and traders are responsible for ensuring that the products they sell comply with the regulation. This may include, for example, precise geographical coordinates of the production site (geolocation data), certificates proving that raw materials were produced in accordance with the laws of the country of production (legality documents) and without causing deforestation, risk assessments for deforestation and legality, and actions to ensure compliance (risk mitigation). Exact requirements depend on the size of the company and its role in the supply chain.Where to Start? – Preparing for Implementation
The transition period for compliance with the regulation ends on 30 December 2026 except for micro and small companies. Their transition period ends on 30 June 2027. During this time, suppliers must ensure that their products meet the regulation’s requirements, and that all necessary information is available. As a supplier, you can begin preparing for implementation with the following steps:- Determine, based on the customs code (CN code), whether your product range includes products and/or raw materials covered by the regulation Annex 1.
- If the regulation applies to your company, identify your role under the regulation and your corresponding obligations. More information is available on the EU deforestation website. Note that your role also depends on the size of your company.
- It is important to start taking action immediately to ensure compliance and smooth cooperation with your supply chain when the regulation takes effect at the end of 2026.