The new EU regulation sets requirements for ensuring that products imported or exported in the markets have not contributed to deforestation.

The European Union’s Deforestation Regulation (EUDR), which came into effect in June 2023, seeks to reduce deforestation, prevent global forest degradation and loss of biodiversity in the EU area. It will affect several industries operating with the manufacturing and sales of certain products, including the food, wood and chemical industries.

Details of the regulation’s local implementation and certain practicalities still to be specified in 2024. The transition period for companies ends by December 30, 2024, with a longer period for micro and small enterprises. For many operators, this means compliance from the start of 2025.

What is EUDR?

EUDR defines that companies trading in cattle, cocoa, coffee, palm oil, rubber, soy and wood, along with products derived from these commodities, must ensure that they have not contributed to deforestation, forest degradation or the breaching of local or environmental laws. The food industry is one area heavily affected by the requirements. The scope of EUDR applies to the entire supply chain, putting pressure on gathering the required data from sourcing to manufacturing and sales.

In practice, operators are required to produce a due diligence (DD) statement attesting to the validity of the product’s regulatory compliance throughout the supply chain. Exact requirements on which operators are obliged to make the DD statement and at which point vary according on the operator’s size and role in the supply chain.

While local implementation and industry-specific demands depend on the EU’s final guidelines for national authorities, operators and relevant stakeholders, getting acquainted with the current information is key. In Finland, the Finnish Food Authority will provide timely information on EUDR.

Operating under the scope of EUDR?

If your organization deals with raw materials or products that fall under the scope of EUDR, it is necessary to be prepared. For the food supply chain, the regulation will require changes to data gathering and sharing practices, along with other processes. Organizations need to:

• Acquire all relevant information on their existing products, product customs codes and data on raw materials, including information on their origin;
• Keep track of relevant DD statements’ reference numbers: When products or raw materials listed in Annex 1 have already been declared through a DD statement, the batch-specific reference numbers must be received from the previous link in the supply chain. Batch-specific DD statement reference numbers must also be forwarded to buyers of products when dealing with corporate customers.
  
  

Haarla monitors the latest developments in EUDR implementation across industries and ensures that all its products comply with the latest regulation. You can rest assured that all raw materials purchased from Haarla will adhere to the latest requirements. Do you have questions? Get in touch with Haarla’s experts.