DEFORESTATION REGULATION: IMPACTS OF A POSSIBLE DELAY IN RISK CLASSIFICATION OF COUNTRIES AND OTHER RECENT DEVELOPMENTS
On 9 June 2023, the European Union published Regulation (EU) 2023/1115 on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation (the “Deforestation Regulation” or the “EUDR”). The EUDR entered into force on 29 June 2023, although the main prohibitions and obligations will not apply until 30 December 2024.
Pursuant to the EUDR, beginning 30 December 2024, relevant products (derivatives of palm oil, soya, wood, cocoa, coffee, cattle, and rubber, as listed in Annex I to the EUDR) may be placed or made available on the EU market, or exported from the European Union, only if they meet the following requirements:
- Deforestation-free: Relevant products must be traceable to the plot of land where the relevant commodities were produced/harvested, and such plot of land must not have been subject to deforestation (or to forest degradation with respect to wood) after 31 December 2020
- Legality: Production/harvesting of the relevant commodities on the respective plot of land must be compliant with relevant legislation of the country of production
- Due diligence statement (DDS): Each batch of relevant products must be covered by a DDS, which must be submitted into the Information System by an EU operator or trader upon conducting due diligence, or upon ascertaining that due diligence was carried out in accordance with EUDR in a prior step of the supply chain.
In order to meet these requirements, EU operators and traders are required to obtain adequately conclusive and verifiable information along the entire supply chain, starting from the producers of the relevant commodities.
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