This article has been updated to reflect targeted simplifications proposed by the European Commission on 21 October 2025.
In brief
- The EUDR repeals and replaces the EU Illegal Timber Regulation, significantly extending the range of regulated commodities beyond wood to include cattle, cocoa, coffee, oil palm, rubber, soya and derived products.
- As originally passed into law, the EUDR imposes strict due diligence requirements on companies that, in the course of commercial activities, place in-scope commodities or derived products on the EU market for the first time, export them from the EU, or make them available in the EU.
- However, under proposals announced by the European Commission on 21 October 2025, only primary 'operators' – those placing regulated commodities or derived products on the EU market for the first time – would be obliged to submit due diligence statements.
- Under those same proposals, the EUDR will take effect from 30 December 2025 for large companies, and from 30 December 2026 for smaller and micro enterprises.
What is the intent of the EUDR?
Entering into force on 29 June 2023, the EUDR aims to reduce global deforestation, and associated contributions to greenhouse gas emissions and biodiversity loss. It imposes mandatory due diligence obligations on companies that wish to place or make available on the EU market (or export from the EU) products that consist of, are fed by or are made using relevant forest risk commodities.
Per Article 3, such products are prohibited from the EU market unless they are:
- Deforestation-free, i.e., produced on land that has not been subject to deforestation or induced forest degradation since 21 December 2020.
- Produced in accordance with relevant legislation in the country of production.
- Covered by a due diligence statement, confirming that due diligence has been carried out in accordance with the requirements set out in the EUDR, and that this has identified "no or negligible risk" of non-compliance with points 1 and 2.
| Commodities |
Examples of derived products |
| Cattle |
Fresh, frozen or preserved meat; raw hides; leather |
| Cocoa |
Cocoa beans; cocoa powder; cocoa fat, butter and oil; chocolate |
| Coffee |
Coffee husks and skins; coffee substitutes containing coffee in any proportion |
| Oil palm |
Palm nuts and kernels; palm oil; glycerol |
| Rubber |
Conveyor or transition belts; pneumatic tyres; inner tubes |
| Soya |
Soya beans; soya bean flour and meal; soya bean oil |
| Wood |
Fuel wood and charcoal; particle board and plywood; furniture; paper and books |
(For a full list of in-scope commodities and derived products, see Annex 1 of the regulation.)
To whom does the EUDR apply and when does it take effect?
In-scope companies, as originally passed into law
As originally passed into law, the EUDR would apply directly to both 'operators' and 'traders' established in the EU:
- 'Operators' are those who, in the course of a commercial activity, place relevant commodities or products on the EU market for the first time or export them from the EU. As well as importers and exporters, this includes operations that convert one in-scope commodity or product into another and make that product available in the EU for the first time (e.g., a company that uses cocoa butter sourced from an EU importer to produce chocolate would still be considered an operator).
- 'Traders' are those who, in the course of a commercial activity, make relevant commodities or products available for distribution, consumption or use on the EU market. In essence, this includes anyone involved in a transfer of ownership en route between the operator and the eventual end-user, such as dealers, distributors and retailers (whether traditional or online).
In-scope companies under proposed revisions
If adopted by the European Parliament and the Council, proposals announced by the European Commission on 21 October 2025 would mean that due diligence and reporting obligations would only apply to operators placing regulated commodities or derived products on the EU market for the first time. Downstream operators and traders would no longer be obliged to submit due diligence statements. As the Commission states, “With this streamlining, only one submission in the EUDR IT system at the entry point in the market will be required for the entire supply chain.”
For example, cocoa beans would need only one due diligence statement to be submitted by the importer placing them on the EU market. Downstream manufacturers of chocolate products would not be required to submit a new due diligence statement.
The Commission also proposes changes with respect to how the EUDR would apply to some SMEs. In short, micro and small primary operators would only have to submit a simple, one-off declaration in the EUDR IT system.
Application dates
Originally intended to take effect from 30 December 2024, application of the EUDR has already been delayed once. In September 2025, it was mooted that application would be delayed by a further year, however the European Commission appears to have opted for alternative transition arrangements.
If adopted by the European Parliament and the Council, the Commission's proposed amendments would mean that:
- For large companies (those that exceed at least two of 250 employees, €50 million net turnover and €25 million balance sheet total), the application date would remain 30 December 2025. But to sweeten the pill, those companies would benefit from a six-month grace period before they face checks and enforcement.
- For smaller and micro enterprises that don't exceed these thresholds, EUDR obligations would apply from 30 December 2026.
Seven key things to know
- Supply chain due diligence requirements: before making relevant commodities and products available on the EU market, in-scope companies must carry out due diligence in accordance with the detailed requirements of Article 8. These include:
- Collecting information about the commodity or product, the supplier and the country of production to demonstrate compliance with Article 3.
- Verifying and analysing that information to evaluate the risk of relevant commodities or products being non-compliant (Article 10).
- Taking and documenting adequate mitigation measures to ensure that any identified risks become negligible (Article 11).
- Due diligence statements: in-scope companies must submit due diligence statements to competent authorities in the relevant member state. As well as confirming that due diligence has been carried out in line with EUDR requirements, and that no or negligible risk has been found, these statements should also include details regarding:
- Quantities of relevant commodities or products.
- The country of production and geolocation of land where the relevant commodities or products were grown, harvested, raised on or obtained from.
- Special provisions: simplified requirements apply if all relevant commodities or products have been produced in countries assessed by the European Commission as low risk. Other simplified requirements apply to small and micro operators. Under the Commission's proposed amendments, they would only need to submit a simple, one-off declaration, rather than a detailed due diligence statement.
- No minimum thresholds: unlike the proposed Forest Risk Commodities Regulation in the UK, which is only expected to apply to large undertakings using more 500 tonnes of relevant commodities and products, no such minimum thresholds affect the scope of the EUDR.
- Enforcement and penalties: undertakings found by competent authorities to be breaching their EUDR obligations could face several penalties, from seizure and confiscation of the relevant commodities and products to maximum fines of no less than 4% of EU turnover in the preceding financial year.
- "Making available on the market" and "in the course of a commercial activity": it should be noted that these definitions are not limited to supplying relevant commodities or products for distribution, consumption or use in return for payment. They also include their use "in the business of the operator itself." For example, in the hospitality and leisure industry, this might include the coffee and meat served in restaurants, or wooden furnishings in hotel rooms.
- Relevance to non-EU based undertakings: the EUDR could have both direct and indirect impacts on businesses registered outside the EU. For example:
- The definition of "established in the Union" includes not only businesses that are registered or headquartered in the EU, but also those that have a permanent establishment there. Thus, non-EU registered undertakings with an EU branch or subsidiary may find themselves needing to comply with EUDR requirements.
- While non-EU undertakings exporting in-scope commodities or products to the EU are outside the direct scope of the EUDR, they may still find themselves impacted indirectly. Although due diligence responsibilities pass to the first EU-based recipient of the commodity or product, in reality, those importers are likely to prefer suppliers who can furnish them with the information necessary to fulfil their compliance obligations.
How can we help?
The Mishcon Purpose team can help you to:
- Determine if the EUDR or other sustainability-related regulations are likely to apply your business.
- Prepare for and fulfil associated compliance obligations.
- Improve your ability to address multiple regulatory requirements by implementing the policies, practices and processes necessary to fully embed sustainability matters into strategy, governance, and risk management.
To discuss your needs, get in touch to arrange a free 30-minute consultation .