The EU Deforestation Regulation (EUDR) is a landmark law introduced under the European Green Deal to ensure that products sold in or exported from the European Union do not contribute to deforestation or forest degradation.
As global supply chains evolve, EUDR will significantly impact how businesses manage sourcing, compliance, and sustainability. For importers and exporters, understanding EUDR is essential to maintain market access and build deforestation-free supply chains.
Why EUDR Was Introduced?
Forests play a critical role in absorbing carbon dioxide, preserving biodiversity, and regulating climate. The EU aims to reduce its contribution to global deforestation driven by agricultural expansion. By enforcing EUDR, the EU seeks to ensure that its demand for commodities does not lead to forest degradation worldwide.
What Does 'Deforestation-Free' Mean?
To comply with EUDR, products must come from land that was not deforested after 31 December 2020. Businesses must trace raw materials to their origin—down to the farm or plantation level. If land was forested after that date and later converted to agriculture, it is considered deforested. Natural regeneration after events like fire may allow sourcing again, once the area returns to forested status.
Products Covered by EUDR
EUDR applies to seven key commodities and their derived products: cattle, wood, cocoa, coffee, palm oil, soy, and rubber. These include items such as beef, furniture, chocolate, tires, and paper. Only products listed in Annex I of Regulation (EU) 2023/1115 and made from these commodities are subject to the regulation.
Who Must Comply with EUDR?
Operators placing products on the EU market or exporting them must submit a Due Diligence Statement (DDS). Traders selling these products within the EU must also comply. Both B2B and B2C transactions are in scope, while C2C shipments for non-commercial use are exempt.
Simplified procedures apply to SMEs (Small and Medium Enterprises), including extended deadlines and reduced reporting obligations. Exemptions include second-hand goods, recycled materials, non-commercial shipments, and products produced before 29 June 2023.
Deadlines & Requirements
Key Deadlines
- 30 December 2026 – Large and medium businesses must comply (On October 21, 2025 the European Commission proposed to introduce a grace period of six months for checks and enforcement.)
- 30 June 2027 – Micro and small businesses must comply
Due Diligence Requirements
As a general rule, operators will need to implement a Due Diligence System for each of their suppliers by:
- Collecting geolocation data of the land where the goods were produced;
- Requesting documents and data from suppliers, proving that the goods are deforestation-free;
- Checking compliance with local laws in the country of origin;
- Submitting a Due Diligence Statement (DDS) in the EU Information System before placing goods on the market or exporting;
- Assessing and mitigating risks of deforestation in their supply chain;
- Keeping records for at least 5 years.
EUDR does not apply to:
- Products produced before 29 June 2023
- Second-hand or 100% recycled products
- Non-commercial shipments (e.g., consumer-to-consumer)
Simplified procedures exist for SMEs, including extended deadlines and reduced reporting obligations.
Impact for Shippers
EUDR is not just a legal requirement—it’s a competitive advantage. Companies that can prove their supply chains are transparent and sustainable will build trust with customers and partners. Cases of non-compliance might lead to fines (4% of annual EU turnover), confiscation of goods and profits and temporary bans from trading within the EU market.
To avoid delays, shippers should:
- Verify their legal obligations with external specialist on this topic.
- Ensure that, where required, to follow the EUDR requirements, including the submission of the Due Diligence Statements to the EU Information System.
- Ensure that the DDS reference number or the applicable TARIC code is submitted to the partner customs broker before customs clearance.
EUDR Complience Guide
Download our comprehensive EUDR Compliance Guide to learn more about due diligence requirements, exemptions and actions required from shippers.
How DHL Can Support
For businesses, navigating new customs requirements can feel complex – but preparation does not need to be. DHL Express can support businesses with the expertise, tools and international experience needed to keep shipments moving smoothly.
To ensure smooth handling and timely customs clearance of your shipments, we kindly ask you to provide the DDS Reference Number (DDN) for all products subject to the EUDR prior to shipment.
This reference must be included in your shipping documentation and shared with DHL in advance.
If your products are exempt from the Regulation, we require to receive information in the form of a special Taric (Y) code. Please submit this to DHL before the shipments arrive or depart. Kindly note that customs authorities may still request additional clarification or proof regarding the exemption.
DHL provides import/export data, helps identify affected products, and offers regulatory guidance. While we do not directly validate DDS or TARIC codes, we can facilitate smooth customs processing with provided accurate data on behalf of our customers.
To get started, open a DHL Express Business Account.
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