EU Deforestation Regulation EUDR

author: Luju Leader Wood

2025-09-08

EUDR, the world's first regulation focused on supply chain sustainability, was enacted by the European Union in 2023. Its goal is to prohibit goods linked to deforestation or forest degradation from entering the EU market by strictly tracing the origins of raw materials. This law deeply integrates environmental responsibility with corporate operations, marking the beginning of a "zero deforestation" era for global supply chain management.

List of products covered by EUDR

1. Cattle - Live cattle, beef, and hides.

2. Cocoa - Cocoa beans, cocoa paste, cocoa powder, and chocolate products.
3. Coffee - Roasted, unroasted, and decaffeinated coffee, and substitutes containing any proportion of coffee.
Palm Oil - Nuts, kernels, palm oil, glycerol, and fatty acids derived from palm oil.
4. Rubber - Natural rubber, gum, and all vulcanized rubber products, whether hard or not, including tires and clothing.
5. Soybeans - Soybeans, soybean oil, and residues, including soybean cake.
6. Wood - Logs, processed wood, wooden furniture, paper, and packaging materials.

core content

1. Due Diligence Obligations: Relevant operators or traders must establish due diligence systems and procedures to ensure that their products comply with EUDR regulations. Due Diligence reports must be made publicly available annually, detailing the measures taken to fulfill these obligations.

2. Traceability Requirements: These require providing country or region production information, product characteristics, supply chain information, and compliance documentation, particularly geolocation coordinates of the raw material origin, demonstrating that the product originates from land free of deforestation after December 31, 2020.

3. Tiered Management Inspections: Countries or regions will be categorized into three risk levels: low, medium, and high. Member state regulatory authorities will conduct inspections at varying rates or conduct spot checks based on risk level and the performance of operators or traders.

4. Information System Development: The European Commission will establish a central database for management. Operators or traders will submit due diligence declarations as an attachment to customs clearance. Regulatory, customs, and other authorities will have access rights based on their authority to identify risks and fulfill import and export management obligations.

Key requirements of EUDR regulations for enterprises

1. Due Diligence Obligation:

Companies must establish and implement a rigorous due diligence system to trace the source of raw materials and ensure that deforestation is not involved in their supply chains. This requires companies to gain a thorough understanding of their suppliers' production activities, collect relevant land use information, and assess potential risks.

2. Information Disclosure:
Companies are required to disclose detailed information about their products to EU market regulators and consumers, including the source of raw materials, production locations, and whether the land used meets sustainability standards. This information must be accurate, transparent, and easily accessible to protect consumers' right to know and ensure fair competition in the market.

3. Penalties for Non-Compliance:
Companies found in violation of EUDR regulations face severe penalties, including substantial fines, product recalls, and market bans. These penalties are intended to encourage companies to strictly adhere to regulations and actively promote the development of sustainable supply chains.

4. How should companies respond to the EUDR Zero Deforestation Act
Facing the strict requirements of the EUDR, companies should proactively implement measures. First, thoroughly review their supply chains to identify links and suppliers that may pose deforestation risks. Second, strengthen communication and collaboration with suppliers to jointly set sustainability goals and promote the green transformation of the supply chain. Third, establish a comprehensive due diligence mechanism to ensure effective tracking and management of raw material sources. Furthermore, companies should continuously monitor regulatory implementation and updates to relevant standards to promptly adjust their response strategies.

An Overview of Plywood Grades

How plywood is made