The EU Deforestation Regulation (EUDR) significantly changes how companies manage their supply chains to ensure products are deforestation-free.
To provide clearer compliance guidance, the European Commission released an updated FAQ in 2024.
This update is critical for organizations involved in the production or trade of key commodities such as coffee, cocoa, soy, and palm oil, which are now subject to tighter scrutiny under the EUDR.
With the 2024 FAQ update, the European Union aims to simplify the compliance process for businesses, while reinforcing the importance of traceability, due diligence, and geolocation requirements.
Understanding these updates is crucial for all operators and traders dealing with relevant products within the EU market. This article breaks down the key changes and outlines the steps companies must follow to ensure compliance, avoiding costly penalties and disruptions.
In this guide, we will cover:
- An overview of the EUDR and the latest updates in the October 2024 FAQs.
- A summary of the major changes introduced in the updated FAQ.
- A step-by-step approach to EUDR compliance and how LiveEO’s TradeAware solution can streamline this process.
Whether you're a business owner, compliance officer, or supply chain manager, this FAQ update is essential reading to navigate the complex regulatory environment of the EUDR and ensure your products remain on the EU market.
Key Changes in the 2024 EUDR FAQ Update
EUDR Overview with Recent 2024 Developments
The EU Deforestation Regulation (EUDR), which came into force on June 29, 2023, is a landmark law designed to curb the EU's contribution to global deforestation.
It mandates strict due diligence requirements for businesses trading in certain key commodities—such as coffee, cocoa, soy, palm oil, rubber, and timber—ensuring these products are deforestation-free.
Under the EUDR, companies must provide proof that no deforestation occurred on the land used to produce these goods after December 31, 2020.
The regulation’s core objective remains to prevent products associated with deforestation from entering the EU market or being exported from the EU, reinforcing the global push for sustainable and responsible supply chains.
Recent Developments: Potential Delay in Application
As of October 2024, there have been important developments regarding the EUDR. The Council of the European Union has agreed to extend the regulation’s application timeline by 12 months.
This postponement is intended to give businesses, third countries, and EU member states more time to fully prepare their due diligence systems.
If approved by the European Parliament, the new compliance deadlines will be as follows:
- December 30, 2025: for large operators and traders
- June 30, 2026: for micro- and small enterprises
Despite this potential delay, the EUDR’s fundamental goals remain unchanged.
Businesses should continue working on their compliance efforts as the delay is not yet official, and the original enforcement date of December 2024 remains in place until further notice.
The Business Impact of the Delay
The targeted amendment is seen as a strategic move to ensure that all stakeholders—particularly smaller enterprises and operators outside the EU—can implement comprehensive due diligence measures.
These measures include identifying deforestation risks in supply chains and establishing reporting mechanisms to prove compliance with EU rules.
The additional time will also allow businesses to ensure that their monitoring and reporting systems are robust, avoiding potential disruptions once the regulation is fully enforced.
In conclusion, while the postponement offers businesses more time to prepare, the key message from the EU remains clear: only deforestation-free products will be allowed on the market, aligning with the EU's long-term sustainability goals.
Preparing your supply chains for compliance should remain a priority to avoid risks of penalties or product bans in the future.
Read also: EUDR: Get Supplier Data at Scale with TradeAware
What EU EUDR FAQs Are
The EU Deforestation Regulation (EUDR) FAQs are an official set of guidelines published by the European Commission to assist businesses, operators, and stakeholders in navigating the regulation’s complex requirements.
These FAQs are designed to clarify essential aspects of the EUDR, such as its scope, definitions, due diligence obligations, and traceability rules.
The EUDR FAQs cover key topics such as:
- Traceability requirements: These outline how businesses must collect and verify geolocation data for each land plot used in the production of regulated commodities, ensuring products are sourced from deforestation-free land.
- Due diligence processes: The FAQs provide detailed guidance on how businesses should assess and mitigate deforestation risks within their supply chains, including risk evaluation and compliance reporting.
- Legal compliance: Operators must ensure that the legal documentation for commodities complies with both national and international regulations, supporting transparency throughout the supply chain.
EUDR FAQs serve as an evolving resource, regularly updated to incorporate new guidance and address concerns from industry stakeholders.
They are essential for businesses aiming to comply with the EUDR's requirements and avoid penalties by ensuring their supply chains are deforestation-free. Let’s have a look at them in detail:
The original EU Deforestation Regulation (EUDR) FAQs Overview
The original EU Deforestation Regulation (EUDR) FAQs were introduced alongside the regulation in 2023 to offer comprehensive guidance for businesses, operators, and stakeholders.
The FAQs were designed to clarify the fundamental aspects of the regulation, including traceability, due diligence, and the responsibilities of businesses.
They provided crucial details on how operators must comply with the EUDR to ensure that no products contributing to deforestation enter the EU market.
Key Sections in the Original FAQ:
- Traceability Requirements:
- Operators and traders were required to collect geolocation data for each plot of land involved in the production of commodities such as coffee, cocoa, soy, and timber. This traceability was essential to verify that no deforestation had occurred after December 31, 2020.
- Operators and traders were required to collect geolocation data for each plot of land involved in the production of commodities such as coffee, cocoa, soy, and timber. This traceability was essential to verify that no deforestation had occurred after December 31, 2020.
- Due Diligence Obligations:
- The FAQ emphasized the importance of due diligence systems, outlining that businesses had to assess and mitigate risks in their supply chains. This included providing documentation and conducting regular risk assessments to ensure compliance with the regulation.
- The FAQ emphasized the importance of due diligence systems, outlining that businesses had to assess and mitigate risks in their supply chains. This included providing documentation and conducting regular risk assessments to ensure compliance with the regulation.
- Scope of Products:
- The initial FAQ clarified that the regulation applied to a specific list of commodities, including cattle, palm oil, coffee, and rubber, as well as derived products that might contain these commodities.
- The initial FAQ clarified that the regulation applied to a specific list of commodities, including cattle, palm oil, coffee, and rubber, as well as derived products that might contain these commodities.
- Legal Compliance:
- Operators were reminded that they must ensure their products comply with the laws of the country of origin, including environmental and labor regulations. The FAQ provided guidance on verifying documentation to meet these requirements.
The original FAQ served as a foundational document, outlining the basic requirements for compliance with the EUDR and ensuring businesses understood their responsibilities under the new law.
They have since been expanded and clarified to address new developments and provide more specific guidance on compliance.
Updated EU Deforestation Regulation (EUDR) FAQs: What’s New
The 2024 EUDR FAQ update introduces several important clarifications and changes to help businesses comply with the EU Deforestation Regulation more effectively.
These updates build on the original 2023 guidelines, providing more detailed instructions on traceability, due diligence, and product scope.
Below are some of the key changes outlined in the updated FAQ:
1. Geolocation and Traceability Requirements:
- For bulk-traded or composite products (e.g., products containing different materials from multiple locations), operators must ensure that all plots of land are clearly identified and not mixed with products from unknown or deforested areas. The 2024 update emphasizes that no mass balance chains of custody are allowed.
2. Clarification on Definitions:
- The definition of forest degradation has been further refined in the 2024 updates, emphasizing that degradation occurs only if there is a clear causal link between the harvesting activity and the condition of the forest. Changes occurring due to external factors that happen after sourcing are not considered illegal under the regulation. This update provides further clarity for operators assessing risks in timber supply chains.
3. Risk Mitigation and Due Diligence:
- The new FAQ highlights the increased importance of risk mitigation, urging businesses to engage more directly with their suppliers. Companies are encouraged to help their suppliers meet the EUDR’s stringent compliance requirements through capacity-building efforts and monitoring.
- It also introduces the option to duplicate past due diligence statements (DDS), streamlining the submission process for businesses that regularly deal with the same suppliers and commodities.
4. Support for Producers & Team Europe Initiative:
The 2024 FAQ update places a stronger emphasis on supporting producer countries through initiatives like the 'Team Europe Initiative (TEI).' While the original FAQ outlined general compliance requirements, the updated version highlights a more structured and cooperative approach, providing targeted assistance to global supply chains. The TEI focuses on technical support, capacity-building, and enhanced data-sharing, ensuring that producers, especially in high-risk regions, can align with EUDR standards more effectively. This reflects the EU’s commitment to fostering collaboration and making compliance more achievable across diverse supply chains.
These updates aim to simplify the compliance process while ensuring that the regulation continues to effectively address deforestation. Companies are now better equipped to meet the EUDR’s demands, ensuring their products remain compliant as the EU enforces stricter standards across global supply chains. You can download the official updated FAQ PDF here.
EUDR Compliance Steps for 2024
Understanding the EUDR FAQ is crucial for grasping the regulation’s scope, but successfully complying with the EU Deforestation Regulation requires taking concrete, strategic actions. From collecting precise geolocation data to submitting due diligence statements, businesses must follow specific steps to ensure their products are fully compliant with the regulation’s deforestation-free standards.
Here are the key compliance steps:
- Collecting Information: Businesses must gather detailed information about their products, including the exact geolocation of the land used for production. This applies to both imported and exported commodities such as coffee, cocoa, soy, and timber. For operators trading commodities like timber, the date of production refers to the entire harvesting period. For cattle, it refers to the entire lifetime of the animal, from birth to slaughter.
- Risk Assessment: Companies are required to evaluate the risk that the products they deal with might have contributed to deforestation. This involves checking for deforestation-free status and compliance with local laws.
- Risk Mitigation: If any risk is identified, companies must take steps to mitigate it. This could include working more closely with suppliers, verifying geolocation data, or ensuring that certification systems are in place. Businesses should be cautious in over-declaring geolocations to avoid circumvention risks.
- Submit Due Diligence Statements (DDS): Operators must submit a due diligence statement through the designated EU Information System, confirming that all necessary checks have been made and the products are deforestation-free.
Read also: Leveraging Satellite Technology for Sustainable Supply Chains
Need Help? Discover TradeAware
Navigating the complexities of the EU Deforestation Regulation (EUDR) can be challenging, especially for businesses managing extensive supply chains.
That's where LiveEO’s TradeAware solution comes in. TradeAware is designed to simplify compliance by providing advanced geospatial analytics, helping companies monitor deforestation risks across their supply chains in real-time.
With the updated FAQ reinforcing the need to provide geolocation data for all plots, TradeAware's ability to streamline compliance through supplier delegation becomes even more essential. This feature allows businesses to invite suppliers to directly contribute to data collection, ensuring that all necessary plots are accurately tracked and verified across the supply chain, even in complex scenarios.
For companies seeking to stay ahead of the regulatory curve, TradeAware offers an all-in-one solution to ensure seamless, efficient compliance with the EUDR. Let TradeAware handle the complexities of due diligence, so your business can focus on sustainable growth.
Contact us to learn more or try TradeAware for free, by signing up to TradeAware Lite:
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