Review of EU Deforestation Regulation: simplification

Proposal for a Regulation amending Regulation (EU) 2023/1115 as regards certain obligations of operators and traders

Proposal Annex

Update

The European Commission proposes to reduce the administrative burden related to the EU Deforestation Regulation (EUDR, Regulation 2023/1115). Under this proposal, a new category of “downstream operators” is created. These are EU companies that sell or process products falling under the EUDR, but are not the first to place them on the EU market. They would not have to evaluate compliance of these products with the EUDR or submit due diligence statements to the EUDR information system (although they would still have to register on the system).

Also, small operators from low-risk countries putting their own products on the EU market would only need to upload a simplified declaration of EUDR conformity rather than a full due diligence statement.

Under this proposal, the due diligence obligations will apply:

• from 30 December 2025 for large operators
• from 30 December 2026 for micro and small operators (a 6-month delay).

In practice, due to challenges with the information system, EU Member States will begin to undertake checks and other enforcement measures:

• from 30 June 2026 for large operators
• from 30 December 2026 for for micro and small operators).

Impacted Products

Cattle, cocoa, coffee, palm oil, soya, and derived products

What is changing?

The European Commission proposes the following key changes to the EUDR.

Two new categories of operators

Currently, all operators putting deforestation commodities/products on the EU market for the first time must submit a due diligence statement via the EUDR information system. The Commission now proposes to create two new categories of operators with reduced obligations.

“Downstream operators”: no due diligence

The proposed new category of “downstream operators” is defined as businesses in the EU that receive products falling under the EUDR (for processing or marketing) that have already been checked for due diligence by the company that first imported/placed them on the EU market.

Currently, for example, both a biscuit manufacturer using chocolate and a large retailer selling the chocolate biscuits would have to submit due diligence statements, even though the supplier of the chocolate has already submitted a due diligence statement in relation to the cocoa used.

Under the new proposal, downstream operators will no longer have to undertake due diligence or submit due diligence statements. However, they will still have to be registered in the EUDR information system, and must still ensure full traceability by passing on the due diligence statement reference numbers of all the “deforestation commodities” they use.

“Small primary operators”: simpler requirements

The proposed new category of micro and small primary operators comprises:

• micro- or small-sized undertakings (see Background)
• operators established in a country classified as low risk (see EU Deforestation Regulation: Engagement with non-EU countries)
• operators who have themselves grown, harvested, or produced the products they put on the market.

Under the new proposal, micro and small primary operators will only have to submit a one-time simplified declaration to the information system, instead of a due diligence statement (see Proposal Annex).

Postponement of checks and enforcement

The European Commission does not propose to change the date on which the EUDR will apply for large operators. This remains 30 December 2025. However, due to problems with the information system, the Commission proposes that the checks and other enforcement measures set out in the EUDR will only apply from 30 June 2026 (or 30 December 2026 for micro and small operators). If a competent authority becomes aware of non-compliance with the EUDR, it can issue warnings to operators and recommendations to achieve compliance.

For operators that were micro enterprises and small enterprises before 31 December 2024 and for micro and small primary operators, a 6-month delay is proposed, with due diligence obligations applying from 30 December 2026.

Why?

The EUDR information system allowing operators to submit due diligence statements was launched in December 2024. However, due to technical problems it may not be fully operational by the end of 2025. There are also some general concerns regarding the burdens on businesses that could be created by the complex requirements of the EUDR.

Timeline

This proposal will now be discussed by the European Parliament and the Council of the EU (Member States). This process can take several months or longer, but will likely be faster for this proposal.

What are the major implications for exporting countries?

The basic implications of the EUDR for non-EU suppliers are not changed by this proposal: suppliers must provide importers with geolocation data of the plots of land where commodities are produced, and information demonstrating that commodities were produced in line with relevant national laws. They must also ensure that this data and information can be passed through the supply chain.

Although EU Member States will not undertake controls until June 2026, products imported into the EU after 30 December 2025 (or after 30 December 2026 for small operators) must comply with the EUDR.

Non-EU suppliers will not be affected by changes to the obligations on downstream operators.

The new category of “micro and small primary operators” applies to both EU and non-EU operators. In practice, the impact of the simplified declaration is likely to be limited for non-EU operators, as it only affects operators marketing their own produce.

Background

The EUDR sets out the obligations regarding imports into the EU of products related to cattle, cocoa, coffee, palm oil, rubber, soya, and wood. It requires EU importers to ensure there is no or negligible risk that the production of these commodities contributed to deforestation, or that products were illegally produced according to national law. For a summary of these requirements and implications for suppliers, see The EU Deforestation Regulation: Requirements for Stakeholders outside the European Union.

The EUDR was originally intended to apply from 30 December 2024, but was postponed to 30 December 2025 (see EU Deforestation Regulation: 12 month delay to implementation).

The proposed definitions of “micro and small primary operator” are based on Regulation 2013/34/EU (Art. 3) as follows:

A micro-undertaking is one that does not exceed two of the three following criteria:

• balance sheet total: €450,000
• net turnover: €900,000
• average number of employees during the financial year: 10.

A small undertaking is one that does not exceed two of the three following criteria::

• balance sheet total: €5,000,000
• net turnover: €10,000,000
• average number of employees during the financial year: 50.

Resources

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