What is EUDR? What Vietnamese businesses need to know about the EU Deforestation Regulation

The European Union (EU) is introducing new requirements that will affect many companies trading with Europe. The EU Deforestation Regulation (EUDR) is designed to prevent products linked to deforestation from being sold within the EU market.

If your business exports regulated products to customers in Europe, understanding EUDR requirements is becoming increasingly important. Failure to comply could result in customs delays, shipment holds, penalties, or restricted market access.

This guide explains what EUDR is, which products are affected, and what Vietnamese businesses need to prepare when exporting to the EU.

What Is the EU Deforestation Regulation (EUDR)?

EUDR, the regulation on deforestation-free products, 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.

It replaces the EU Timber Regulation (EUTR) and significantly expands the scope of products and supply chains that must demonstrate compliance.

Under EUDR, companies placing regulated products on the EU market must be able to prove that:

• The products are deforestation-free
• The products comply with applicable local laws in the country of production
• A Due Diligence Statement (DDS) has been submitted through the EU Information System

For Vietnamese exporters, this means greater transparency and traceability requirements across the entire supply chain.

Why EUDR Matters for Vietnamese Exporters

The EU is one of Vietnam's key export markets, and Vietnam is also a major global supplier of coffee, rubber, wood and furniture. Many industries may be affected, including:

• Coffee, cocoa, and food and beverage manufacturing
• Rubber and rubber products
• Wood, furniture, paper and paper products
• Packaging materials
• Consumer goods

Even if raw materials are sourced from other countries, finished products exported to the EU may still fall under EUDR if they contain, for example:

• Natural rubber used in tires or industrial components
• Wood used in furniture, packaging, or paper products
• Coffee or cocoa ingredients in food and beverage products
• Palm oil derivatives used in manufacturing

Businesses selling to customers in Europe should determine whether their products fall within the scope of EUDR and whether additional documentation is required before shipment.

Which Products Are Covered by EUDR?

EUDR applies to seven key commodities and their derived products:

• Cattle
• Wood
• Cocoa
• Coffee
• Palm oil
• Soy
• Rubber

Examples of affected products include:

• Tires and rubber components
• Paper and paper packaging
• Wooden furniture
• Construction materials
• Chocolate and cocoa products
• Coffee products
• Leather goods

Only products listed in Annex I of Regulation (EU) 2023/1115 and made from these commodities are subject to the regulation.

Because many manufacturers use imported raw materials in global production networks, it is essential to verify whether exported products contain regulated commodities.

What Does 'Deforestation-Free' Mean?

To comply with EUDR, products must come from land that was not deforested after 31 December 2020.

Businesses must be able to trace raw materials back to their place of origin, which may include:

• Farms
• Plantations
• Forest plots
• Production sites

Supporting documentation must demonstrate that the raw materials were not sourced from land converted from forest to agricultural use after the cut-off date.

This traceability requirement is one of the most significant compliance challenges for global supply chains.

Who Must Comply with EUDR?

Operators – Businesses that place regulated products on the EU market for the first time or export them from the EU as part of a commercial activity.

Traders – Businesses that make regulated products available within the EU market after they have been placed on the market.

Both B2B and B2C transactions are covered by the regulation.

For Vietnamese exporters, the EU-based importer is often responsible for submitting the Due Diligence Statement. However, European customers may request detailed supply chain documentation from their Vietnamese suppliers to support their own compliance obligations.

As a result, exporters should be ready to provide product traceability and sourcing information when requested by EU customers.

What Information Is Required for the Due Diligence Statement (DDS)?

To comply with EUDR, companies must complete three key steps.

1. Collect Supply Chain and Origin Information

Businesses must gather and maintain information including:

• Geolocation data for production areas
• Product quantity and description
• Production dates
• Supplier information
• Documentation proving products are deforestation-free

2. Conduct a Risk Assessment

Companies must assess whether:

• Products comply with local laws
• There is a risk of deforestation in the supply chain
• Information provided by suppliers is complete and reliable

The assessment process should be documented and retained for audit purposes.

3. Mitigate Identified Risks

If risks are identified, businesses must implement corrective measures, such as:

• Additional supplier verification
• Independent audits
• Enhanced documentation requirements
• Alternative sourcing strategies

Companies should retain compliance records for at least five years.

Which Products Are Exempt?

EUDR does not generally apply to:

• Products produced before 29 June 2023
• Second-hand products
• Products made entirely from recycled materials
• Non-commercial consumer-to-consumer shipments

However, businesses should verify product-specific requirements before shipping.

Impact on Shipping and Customs Clearance

EUDR compliance will increasingly become part of the customs clearance process for eligible shipments entering the EU.

Shipments that do not meet the required documentation standards may face:

• Customs delays
• Additional inspections
• Goods being held at the border
• Financial penalties
• Potential restrictions on future EU market access

For exporters, providing accurate compliance information before shipment will be crucial to avoiding disruptions.

Preparation Checklist for Businesses

• Identify whether exported products fall within the scope of EUDR
• Review raw material sourcing and supplier traceability processes
• Discuss EUDR requirements with EU customers and importers
• Establish procedures for collecting supplier documentation
• Seek advice from customs, legal, or sustainability specialists when necessary
• Ensure required DDS information is available before shipment

Early preparation can help avoid costly disruptions once enforcement begins.

How Can DHL Express Support You?

DHL Express supports businesses trading with the European Union by helping shipments move through customs as smoothly as possible.

For products subject to EUDR, customers should provide the Due Diligence Statement (DDS) Reference Number (DDN) before shipment.

If products qualify for an exemption, the relevant TARIC exemption code should be provided to DHL prior to customs clearance.

DHL can help customers:

• Understand shipping documentation requirements
• Identify potentially affected product
• Facilitate customs processing
• Support import and export data requirements
• Navigate evolving trade compliance requirements

Please note: DHL does not validate DDS submissions or determine product eligibility. However, providing complete and accurate information in advance can help reduce customs clearance delays.

Frequently Asked Questions (FAQ)