Preparing for the EU Deforestation Regulation: What businesses need to know about the EU Commission's latest guidance and draft Delegated Act

What's new and why it matters

On 15 April 2025, the European Commission published Updated Guidance, Frequently Asked Questions and a draft Delegated Regulation. These updates aim to simplify compliance, clarify obligations and reduce administrative burdens for in-scope businesses by around 30 per cent.

The guidance document covers a wide range of issues including legality requirements, traceability obligations, and definitions of critical terms such as 'forest', 'negligible risk', and 'operator'.

It also provides detailed instructions on how companies can demonstrate that their products are deforestation-free. This includes using the EU Information System for traceability, which helps verify the origin of products and ensures compliance with the EUDR. The guidance also addresses the submission frequency of due diligence statements and the treatment of composite products, offering a more streamlined approach for businesses.

The FAQs released alongside the guidance document offer further clarifications on common queries related to the EUDR. These FAQs are an invaluable resource for operators and traders, providing insights into the practical application of the EUDR and addressing any ambiguities that may arise during implementation.

With the release of the new guidance documents, the Commission has implemented several simplifications:

• Reuse of due diligence statements: Large companies can now reuse existing due diligence statements for reimported goods that were previously on the EU market, avoiding duplication.
• Authorised Representative submissions: Group companies can now streamline submissions through an Authorised Representative.
• Annual submissions: Companies can submit due diligence statements annually, rather than for each shipment or batch placed or made available on the EU market.
• Simplified downstream obligations: Large downstream businesses can now rely on reference numbers of Due Diligence Statements (DDS) from their suppliers and use these references for their own DDS submissions, reducing verification complexity.

The Commission's draft Delegated Act (open for public consultation until 13 May 2025) proposes additional clarifications and exemptions:

• Samples and testing materials are exempt if products are of negligible value or destroyed during testing.
• Specific product exclusions: the use of 'ex' against product entries in Annex I emphasises that only products made with a relevant commodity are subject to the EUDR. For example, "ex 1207 10 Palm nuts and kernels" means that only specific palm nuts and kernels produced using relevant commodities are regulated, not all products under the code 1207 10.
• Exclusions for waste and second-hand goods: used products and certain waste streams under  Directive 2008/98/EC are outside the EUDR's scope.
• Packing material and containers: exclusions for single-use packing materials and containers used exclusively to support, protect, or carry another product.

How businesses should prepare

The proposed amendments, once finalised, could further simplify compliance for many businesses – but businesses need to prepare now to take advantage of them.

Given the complexities and evolving nature of the EUDR, early preparation is essential. We can support clients by:

• Conducting scoping assessments to understand the level of your exposure under the EUDR;
• Mapping product supply chains to assess and address traceability obligations;
• Drafting and reviewing Due Diligence Statements to ensure they meet regulatory standards; and
• Training teams on practical compliance steps and use of the EU Information System.

We partner with clients to align their compliance processes with new regulatory requirements, turning compliance into a source of commercial advantage.

If you would like to discuss any of the issues covered in this blog, please get in touch with Regulatory Partner Jessica Gardner.