The EU Deforestation Regulation (EUDR) is an EU regulation designed to address deforestation linked to supply chains. It requires relevant products placed on the EU market to be deforestation-free, compliant with the applicable laws in their country of origin, and supported by a due diligence statement (DDS), or, for micro and small primary operators, a simplified declaration.
Because Northern Ireland has dual market access with both the UK and the EU, it must comply with applicable EU regulations. Businesses operating in Northern Ireland are therefore subject to EUDR in the same way as businesses operating within the EU.
Deforestation-free means that a commodity or product has not been produced on land that was deforested after 31 December 2020. For wood, it also means that the wood has not been harvested from a forest in a way that induced forest degradation after 31 December 2020.
Key points
- EUDR requires relevant products placed on the EU market, or exported from Northern Ireland to outside the UK and EU, to be deforestation-free, legally produced, and supported by the correct due diligence evidence.
- Northern Ireland is subject to EUDR because of its dual market access with the UK and EU.
- The rules apply to cattle, cocoa, coffee, oil palm, rubber, soya, wood, and certain products made from these commodities.
- Businesses must identify their role in the supply chain, as obligations differ for operators, micro or small primary operators, downstream operators, and traders.
- Most relevant products will require either a due diligence statement or, for eligible MSPOs, a one-off simplified declaration.
- Businesses may need to gather product, supplier, customer, quantity, country of production, and traceability information, including geolocation data.
- Risk assessment and risk mitigation requirements depend on the risk classification of the country of production and the likelihood of mixing with products from standard- or high-risk countries.
Products and commodities in scope
The following commodities are in scope:
- cattle
- cocoa
- coffee
- oil palm
- rubber
- soya
- wood
- products made from these commodities (such as wooden furniture or chocolate)
The full list of relevant products is set out in Annex I of Regulation (EU) 2023/1115 and the EU’s final delegated act of the regulation.
The rules must also be met for certain packing materials made from these commodities. This only applies if the operator is selling or exporting the packing item itself, or if the item adds value to another product that is being sold or exported.
Packing materials or containers that are used only to support, protect, or carry another product are not in scope. This applies to both single-use and reusable packing materials.
For example, if a business sells a piece of jewellery in a high-quality wooden box that is durable and intended to be reused, the rules apply because the box adds value. However, a slim cardboard sleeve used only to pack the goods would not be subject to the rules.
There are also some exemptions, including products that are:
- product samples
- made entirely from recycled materials or second-hand materials
- at the end of their life cycle and would otherwise be discarded
- made from bamboo
- classified as Goods Not For Resale (GNFR)
The full list of exemptions is available in the EU’s final delegated act of the regulation.
Key implementation dates and enforcement
The rules must be met from 30 December 2026 for medium and large operators, and for micro or small primary operators (MSPOs) already subject to the EU Timber Regulation (EUTR).
For micro and small operators dealing with other commodities, the rules apply from 30 June 2027.
For businesses trading newly added palm-oil-derived products, such as soap, soluble coffee, and other goods covered by the EU’s final delegated act of the regulation, the deadline is 30 December 2027.
For timber and timber products under EUTR that were produced before 29 June 2023, EUTR continues to apply during the transitional period. Products placed on the market after that transitional period must meet the applicable EUDR requirements.
In Northern Ireland, competent authorities will be responsible for enforcing EUDR. Wood and rubber products are covered by the Office for Product Safety and Standards (OPSS), while cattle, cocoa, coffee, palm oil, and soya are covered by the Department of Agriculture, Environment and Rural Affairs in Northern Ireland (DAERA).
Supply chain roles and responsibilities
EUDR obligations vary depending on the role held within the supply chain and the size of the business. A key first step is to determine whether the business is the first party to place the product on the market in Northern Ireland or the EU.
Operators
An operator is the first person or business to place the products on the market, or to export them from Northern Ireland to outside the UK and the EU, and does not meet the definition of an MSPO.
Micro or small primary operators (MSPOs)
An MSPO is an operator that is a natural person, or a micro or small undertaking under EU Directive 2013/34. It must be based in a low-risk country and must directly place the products on the market or export them from the market, or be the primary producer of the products.
Downstream operators
A downstream operator is a person or business that places on the market, or exports, relevant products that have been made using relevant products, all of which are covered by a DDS or a simplified declaration.
Traders
A trader is a person or business that makes a product available on the market without being the first to place it there and without further processing it. For example, this could be a retailer selling coffee beans that are already covered by a DDS produced by the importer of the coffee.
Obligations by role
Each person within the supply chain has different obligations determined by their role. In general, products placed on the market or exported from Northern Ireland and the EU require a DDS. To complete a DDS, an operator or MSPO must have a due diligence system to establish that the products have a negligible risk of being non-compliant. Downstream operators and traders do not require this system because they rely on the DDS provided by operators earlier in the supply chain.
Operators must submit a DDS to the EUDR Information System for relevant products. This generates a unique reference number, which must be passed down the supply chain to downstream businesses. The competent authorities require this number before the products enter Northern Ireland or the EU, or before they are exported from Northern Ireland to outside the UK and the EU.
An MSPO does not need to provide a DDS. Instead, it must make a one-off simplified declaration. This declaration will generate a unique declaration identifier that must be passed down the supply chain. Competent authorities may request this declaration identifier.
Downstream operators and traders must keep relevant information for a minimum of five years, as listed under Article 5, and provide this information to the competent authorities on request. Non-SME downstream operators must register on the EUDR Information System.
Due diligence system and information requirements
Businesses must implement a framework to demonstrate compliance with EUDR. The EU will support the establishment of due diligence systems through two repositories: one covering relevant legislation in the country of production and another covering certification schemes applicable to EUDR.
The system must be reviewed at least annually and updated if required. Any updates must be recorded for at least five years from the date they occur. This includes records, measures, and procedures undertaken to ensure compliance with EUDR due diligence requirements.
Businesses must gather product information to meet the due diligence requirements. This may involve requesting information directly from suppliers and using cooperatives, certification bodies, and national traceability systems.
The information required includes:
- Description of the product, including the trade name, type, list of relevant commodities or products used to make it or contained within it, and, for wood, the common and scientific name of the wood species.
- Quantity – in kilograms and other relevant units (cubic metres for wood)
- Country of production
- Traceability data, including:
- MSPO – postal address and geolocation (latitude and longitude up to 6 decimal places)
- Operator (not MSPO) – for plot under 4 hectares or cattle establishment a single centre GPS point, 4 hectares and over a polygon map outlining the boundaries of the plot
- For cattle products geolocation data is required for all establishments where they were kept (farms, abattoirs, cattle markets)
- Supply chain details.
- Customer details
- Optional information that helps establish that the product is deforestation-free and has been produced in accordance with legislation relevant to the country of origin.
Risk assessment
A risk assessment or risk mitigation is not required where products have been produced in a country classified as low risk and are at low risk of being mixed with products produced in high- or standard-risk countries.
The risk level of a product’s country of origin can be checked in the European Commission’s Country Classification List.
Products that originate in standard- or high-risk countries require a risk assessment to establish that there is a negligible risk of non-compliance with EUDR. The assessment must consider the criteria under Article 10 of EUDR, such as:
- the rate of forest cover, deforestation and illegal production of the relevant commodity in the country of production
- product-specific risks, whether the product contains raw materials from multiple geolocations or has undergone substantial processing
- the complexity of the supply chain
- indications that a company within the supply chain has been involved in practices related to illegality, deforestation or forest degradation, noting that commodities or products sourced from such companies may present a higher risk of non-compliance
- any complementary information on EUDR compliance available from certification schemes, third-party verification schemes, or companies within the supply chain
- other country-level risk factors that could affect the reliability of evidence demonstrating compliance with applicable legislation, including levels of corruption, the prevalence of document or data falsification and the effectiveness of law enforcement – relevant indicators, such as corruption indices, business risk assessments, and similar sources of information, may also be taken into account
The risk assessment should be proportionate to the complexity of the supply chain and the risk profile of the country of origin. Once completed, the assessment must conclude that the products present a negligible risk. Assessments must also be reviewed annually to ensure ongoing compliance.
Risk mitigation
If, after completing the assessment, it is determined that there is a non-negligible risk, steps must be taken to mitigate those risks. These steps should be proportionate to the complexity of the supply chain and the risk profile of the country of origin.
Risk mitigation measures must include appointing a compliance officer at management level for non-SMEs and establishing model risk management practices, reporting, record keeping, internal controls, and compliance management. Measures may include gathering more data and documents and carrying out independent audits.
Further information on risk mitigation measures is available in the EU guidance document for EUDR.
Annual reporting requirements
Operators that are not MSPOs must publish annual reports on their due diligence systems. These reports must describe the steps taken to comply with the requirements and include a summary of the information collected, the conclusions of any risk assessments and risk mitigation measures, where applicable, and any communications with relevant parties in the country of production, where applicable.
Due diligence statements
Operators that are not MSPOs must complete a due diligence statement (DDS). This is required before goods can be placed on the market or exported, and a record of the DDS must be kept for five years from the date of submission. A DDS is required for every shipment. The same DDS can be used for multiple batches or shipments as long as it covers all relevant products, but it can only be used for up to one year after submission.
The DDS must be submitted through the EUDR information system. This system can be used to manage due diligence information and includes a dashboard to view and manage existing statements. If moving a product from GB to Northern Ireland, an operator will also need to be registered on TRACES NT.
The DDS requires the name, address, and EORI number of the business, the HS code of the product, and other specific details such as the description, quantity, and geolocation of production. The following text should also be included in all due diligence statements:
“By submitting this due diligence statement, the operator confirms that due diligence in accordance with Regulation (EU) 2023/1115 was carried out and that no or only a negligible risk was found that the relevant products do not comply with Article 3, point (a) or (b), of that Regulation.”
Once the DDS has been submitted, the system will generate a reference number. This reference must be retained for record-keeping purposes and provided to downstream operators and traders.
Simplified declarations for MSPOs
MSPOs are required to make simplified declarations rather than a DDS. This declaration must contain the business name and address, a description and commodity code of the products, a one-off estimate of the quantity of each product, and the geolocation or postal address where the products were produced. Once completed, a declaration identifier will be generated. This must be retained for records and passed to downstream operators or traders.
The declaration must be completed through the EUDR information system. If new or relevant information becomes available about the products, the simplified declaration must be updated.
Due diligence for downstream operators and traders
Non-SME downstream operators and traders must register in the EUDR information system. They must keep records of the suppliers and commercial customers from whom they receive, and to whom they supply, relevant products. This includes contact details and the DDS reference or declaration identifier. Downstream operators that are exporting products do not need to include these references on the customs declaration; they can use the relevant TARIC certificate code that exempts them.
Businesses operating under multiple roles must complete the requirements of each role. For example, if a business is both an operator and a trader, it must complete all requirements of the due diligence system as the operator, as well as the requirements of a trader.
Moving products from Great Britain to Northern Ireland
Businesses that send relevant products to a commercial customer in Northern Ireland will need to supply the relevant information to that customer so they can meet their obligations under EUDR.
Further guidance is expected on the use of movement schemes for movements from GB to NI and for products being re-imported into Northern Ireland and the EU after having previously been placed on the market.
Products moving from Northern Ireland into GB are unaffected and do not need to meet EUDR requirements.
Rest of world movements involving Northern Ireland
Imports into Northern Ireland from the rest of the world are subject to full EUDR requirements, as are exports from Northern Ireland to the rest of the world.
If you need assistance with how this could affect your business, reach out to your DGL representative.
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