EU Regulation on Deforestation-Free Products (Regulation (EU) 2023/1115), hereinafter referred to as the "EUDR", introduces new obligations for operators and traders concerning the placing on the Union market, the making available on the Union market and exports of commodities and related products linked to deforestation. This document, updated in July 2025, provides an overview of how these obligations apply depending on the type of company (operator/trader), its size (SME/non-SME) and its position in the supply chain (upstream/downstream) within the EU. The EUDR applies to commodities such as beef, cocoa, coffee, palm oil, rubber, soya and timber. It is important to note that this document is for information purposes only and is not legally binding.

Key concepts and obligations of the EUDR

The basis of the EUDR is the requirement for Due Diligence (DD)Operators and traders are responsible for ensuring that the relevant products they place on the EU market or export are deforestation-free and legalThis means that they must be produced on land that has not been deforested after December 31, 2020, and in accordance with the relevant legislation of the country of production.

Part of this process is the obligation to submit Due Diligence Statement (DDS) to the Information System. The DDS must contain details of the country of production and the geolocation of all land where the commodities were produced. For imported or exported products, the DDS reference number must also be included in the customs declaration. One DDS can cover multiple shipments/batch for up to one year, provided that due diligence is carried out for all relevant products and all geolocations are declared.

Division of duties by company type

The EUDR distinguishes between operatorswho place the relevant products on the EU market for the first time or export them, and traders, who only make them available on the EU market. Their obligations also vary depending on their size:

• Upstream Operators:
  • Large enterprises (non-SMEs): They must perform complete due care (Art. 4(1)) and submit the DDS (Art. 4(2)). They retain responsibility for the product's compliance with the EUDR.
  • Small and medium-sized enterprises (SMEs): They have the same obligations as large enterprises – to carry out the DD and submit the DDS (Art. 4(1), (2)). They retain the responsibility. SMEs can entrust another operator or trader to submit the DDS on their behalf, but they still retain the responsibility.
• Downstream Operators: These are companies that transform a relevant product into another relevant product.
  • Large enterprises (non-SMEs): They do not have to perform a full DD if the product has already been subject to DD. However, they must to ascertainthat due diligence has been carried out in accordance with the EUDR (Art. 4(9)), and submit a DDS, referring to existing DDS. They retain responsibility for the compliance of the product.
  • Small and medium-sized enterprises (SMEs): If the product is made exclusively from a commodity that has already undergone due diligence, they are not required to perform a DD or submit a DDS. However, they must keep records on DDS reference numbers (Art. 4(8)). Unlike large operators, they do not retain responsibility for product compliance.
• Traders: They make products available on the market, while the HS (Harmonized System) code remains unchanged.
  • Large enterprises (non-SMEs): They have the same obligations as non-SME operators (verify DD, submit DDS with reference to existing DDS). They retain responsibility.
  • Small and medium-sized enterprises (SMEs): They are not required to perform DD or submit DDS. However, they must keep records about their suppliers and DDS reference numbers (Art. 5(3)). They are not responsible for the conformity of the product.

Specific aspects and important details

EUDR requires high level of traceability, with commodities having to be traceable back to the land where they were produced. Mass balance chains of custody, which allow the mixing of deforestation-free commodities with commodities of unknown origin, are not permitted.This means that commodities must be separated at every step of the supply chain.

It is important to note that not all products are relevant products under Annex I of the EUTR. For example, cosmetics (HS 3304) or animal feed (HS 2309) are not directly relevant products and are therefore not subject to the obligations under the EUTR, even though they may contain relevant commodities. However, an operator who imports a relevant commodity himself (e.g. soybean meal for animal feed) must carry out due diligence for that commodity.

Understanding your company’s position in the supply chain and its size is key to determining your obligations under the EUDR. This comprehensive approach aims to ensure that only products that are demonstrably deforestation-free and legal enter the EU market. Spring