New due diligence and reporting obligations for imports and exports as of 1 January 2025
The EU Deforestation Regulation (EU) 2023/1115 (EUDR) enters gradually into force as at 1 January 2025. Without prior submission of a due diligence statement, companies are not permitted to place the respective products on the market or to export them. The EUDR replaces the EU Timber Regulation (EU) 995/2010, which is currently in force. It is the EUDR’s aim to take action to minimise global deforestation and forest degradation, driven by consuming certain commodities and products, to reduce greenhouse gas emissions and global biodiversity loss as well as promote sustainable production and consumption patterns.
Material scope of the EUDR
The EUDR comprises placing and making available on the Union market as well as the export from the Union of the products below as listed in Annex I of the EUDR, that contain, have been fed with or have been made using the following relevant commodities:
- Cattle
- Cocoa
- Coffee
- Oil palm
- Rubber
- Soya
- Wood
The products as listed in Annex I EUDR are based on tariffs under customs law corresponding to the CN codes.
Products under the EUDR are only permitted to be placed on the market, made available on the market or exported pursuant to Article 3 EUDR, if they
- are deforestation-free,
- have been produced in accordance with the relevant legislation of the country of production,
- and are covered by a due diligence statement.
Not included are products that were produced before 29 June 2023, except for EUTR timber products.
Personal scope of the EUDR
The EUDR applies to so-called operators and traders. Operator means any natural or legal person who, in the course of a commercial activity, places relevant products on the market or exports them.
Trader means any person in the supply chain other than the operator who, in the course of a commercial activity, makes relevant products available on the market.
Operators shall exercise due diligence in accordance with Article 8 EUDR prior to placing relevant products on the market or exporting them in order to prove that the relevant products comply with Article 3 EUDR.
Due diligence and due diligence statement
In order to submit the due diligence statement, the operators or traders are required to ensure that the products comply with the requirements set out in Article 8 EUDR. Article 8 EUDR regulates due diligence as described below:
- the collection of information, documents and data according to Article 9 stating that the product fulfils the requirements set out in Article 3 EUDR;
- risk assessment measures as referred to in Article 10 EUDR;
- risk mitigation measures as referred to in Article 11 EUDR.
The due diligence statement is to be submitted electronically via a corresponding platform which the Commission is required to establish until 30 December 2024.
As of 1 January 2025, operators are not permitted to place products included in the EUDR on the market or to export them without previously submitting a due diligence statement.
The due diligence statement is to be stored for five years.
Under certain circumstances a simplified due diligence applies to operators for relevant products associated with low risk.
Authorised representatives
In general, operators or traders may mandate an authorised representative to submit the due diligence statement on their behalf.. An operator that is a natural person or a microenterprise may mandate the next operator or trader further down the supply chain to act as an authorised representative.
However, the operator shall retain responsibility for the compliance of the relevant products with EUDR and for the relevant products not being subject to the prohibition of Article 3 EUDR.
Placing on the market by operators established in third countries
Where a person established outside the Union places relevant products on the market, the first natural or legal person established in the Union who makes such relevant products available on the market shall be deemed to be an operator responsible for compliance with the obligations of the EUDR.
Reporting
Operators that are not SMEs pursuant to Article 3 Directive 2013/34/EU, microenterprises or natural persons shall, on an annual basis, publicly report as widely as possible on their due diligence system.
Furthermore, by 30 April of each year, Member States shall make available to the public and to the Commission information on the application of the EUDR during the previous year.
Assessment of countries
The Commission conducts a risk assessment of all countries or parts thereof. On 29 June 2023, all countries shall be assigned a standard level of risk.
The Commission shall adopt a list of countries or parts thereof that present a low or high risk by 30 December 2024.
Competent authority
In Austria, the Federal Forest office and Agrarmarkt Austria are responsible for compliance with the obligations pursuant to EUDR.
Penalties
Non-compliance with the obligations pursuant to EUDR may result in extensive penalties which will be further regulated in a national implementing act until 31 December 2024.
Our experts are happy to support you with any questions you may have.
