EUDR: Updated Guidance document

Updated EUDR Guidance Published by the European Commission

On Monday, August 12th, the European Commission released an updated guidance document for the implementation of the European Regulation on Deforestation-Free Products (EUDR). While not legally binding, the document serves as a practical reference for companies seeking compliance with the EUDR, offering detailed clarifications on terms and procedures within the legislation.

Having officially come into force on June 29th 2023, the EUDR is a landmark legislation which aims to curb the European Union’s involvement in deforestation by targeting its incidence in the Union’s supply chains. In doing so, the regulation limits the entry of cattle, cocoa, coffee, oil palm, soy, and timber products in its borders, and requires companies dealing in these commodities to provide a conclusive risk assessment certifying these products to be deforestation-free in their plots of origin.

Despite its ambitious scope, navigating the European deforestation regulation is still incredibly complex. Based on this, the European Commission regularly reviews the terms employed on the EUDR, and where necessary offers guidance on specific points.

Torrin Viergever
Torrin Viergever Sustainability Researcher
Sustainability Research Expert
BSc in Political Science and MSc in International Development Studies by the University of Amsterdam, I am a Sustainability Researcher for Good Growth Collective. I provide up-to-date research on sustainability trends, legislation and innovations to keep our team informed and our clients compliant
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The updated guidance document published on the 12th of August is the latest in a series of supporting documentation for the EUDR. Thus far, counting its latest version, the legislation has counted on three guidance documents, and four documents detailing relevant “Frequently Asked Questions” (FAQ).

In its latest version the EUDR’s Updated Guidance documents details several clarifications divided into 11 main topics:

  1. Definitions of ‘placing on the market’, ‘Making available on the Market’ and ‘Export’
  2. Definition of ‘Operator’
  3. Date of Effect and Time-Frame for Application
  4. Due Diligence and definition of ‘Negligible Risk’
  5. Clarification of ‘Complexity of the Supply Chain’
  6. Legality
  7. Product Scope
  8. Regular Maintenance of a Due Diligence System
  9. Composite Products
  10. The Role of Certifications and Third-Party Verification Schemes in Risk Assessment and Risk Mitigation
  11. Agricultural Use

Below you can find a summarized overview of each of these topics. If you prefer to jump directly to a specific topic you can do so by clicking on the relevant title above.

1. Definitions of ‘Placing on the Market, ‘Making available on the Market’ and ‘Export’

 

 The guidance clarifies distinctions between ‘placing on the market’ and ‘making available on the market’ . Placing, therefore, refers to the first time a product is placed on the European Market. Any further distribution constitutes an instance of the product being ‘made available’ on the market. These distinctions are critically important as they determine whether a company s classified as a Trader or Operator. Operators are responsible for the initial placement of the product on the market, whereas Traders are responsible for subsequently making the product available on the market.

Importantly, the product must be physically present in the EU (released for free circulation by customs) to count as placed on the market. Goods in transit and/or under special customs procedures (e.g.: warehousing, inward processing) do not count. As such, products currently warehoused in the EU, or transiting through to a final destination outside of the Union’s borders without being released for free circulation are ostensibly out of scope.

Finally, the guidance details what is meant by ‘export’ within the EUDR, clarifying that this entails declaring goods under the customs  export procedure. That said, ‘re-export’ of non-union items is excluded from scope.

2. Definition of 'Operator'

The guidance document reasserts that operators are classified as ‘any person or entity that, in a commercial capacity, places a relevant product on the EU market or exports it from the Union. For exports, the operator is typically the person or entity named as exporter in the customs declaration form. Importantly, the guidance makes it clear that companies who do not, themselves, own, or sell the product in question are not operators, and cannot be classified as such. Therefore, companies providing logistics, or auxiliary services are placed out of scope for the EUDR.

3. Application Timelines and Transitional Periods

This section offers clarifications on the relevant application timelines for the EUDR. Despite its entry into force in 2013, application of the of the EUDR will only come into force by the end of 2025. This is due to the EUDR’s 12 month-delay published in December 2024. Application will begin for large enterprises on 30th December 2025, and for SMEs starting in June 2026. Anything before these dates is considered a transitional period and is as such out of scope for EUDR rules. This does not supplant the legislation’s original production cut-off date (29th December 2020).

Special rules regarding Timber are also applicable based on the European Timber Regulation (EUTR). The guidance clarifies, for example, that timber harvested before 29 June 2023 and placed on the market by 30 December 2025 can continue to comply with EUTR rules. Only from 31 December 2028 onward would any remaining pre-2023 timber stock need to fully meet EUDR criteria.

4. Due Diligence and definition of ‘Negligible Risk’

“Negligible risk” is defined as a situation where, after collecting all required information, conducting a thorough risk assessment, and implementing any necessary mitigation measures, there are no remaining grounds for concern that the product may be non-compliant. If a risk cannot be reduced to this negligible level, the product must not be placed on or exported from the EU market.

5. Clarification of ‘Complexity of the Supply Chain’

Supply Chain complexity is among the key factors that determines deforestation risks in the EUDR. The guidance explains that longer supply chains with multiple intermediaries, processing stages, and potential mixing points present greater difficulty in tracing products to their origin, thereby increasing risk. Complexity also includes geographical spread, variety of suppliers, and the prevalence of bulk handling. Conversely, short and direct supply chains, particularly those with robust traceability systems, generally carry lower risk and are easier to monitor for compliance.

6. Legality

The EUDR specifies that products must be compliant with “relevant legislation” of its country of origin. This means that products subject to the EUDR must also be compliant with whatever laws govern land tenure and ownership, land use rights, forest harvesting, environmental protection, and the rights of indigenous peoples. These laws must be directly linked to the prevention of deforestation and forest degradation.

7. Product Scope

The nominal product scope for the EUDR remains what is laid out in Annex I. The guidance document specifies that packaging is included only if sold as the product itself, and not sold only to contain another product.

Waste and recycled products are kept out of scope. However, products containing both recycled and virgin materials  must comply for the non-recycled portion. Similarly, secondary components of a product such as wooden handles on tools are in-scope.

8. Regular maintenance of a Due Diligence System

The guidance reiterates that due diligence is an ongoing, active system that must be adapted to changing circumstances. Operators sourcing from low-risk areas may use simplified checks, but must revert to full due diligence if conditions change.

9. Composite Products

The guidance document introduces the concept of “composite product” . Composite products are products which contain multiple relevant commodities in their makeup. In this case, due diligence applies only for the commodity category under which the final product is classified in Annex I. For example, a chocolate bar (HS 1806) containing cocoa butter (HS 1804), cocoa powder (HS 1805), and palm oil (HS 1511) is classified under cocoa. The operator would only need to perform due diligence on the cocoa-derived ingredients listed under that commodity in Annex I.

10. The Role of Certifications and Third-Party Verification Schemes in Risk Assessment and Risk Mitigation

Certification and third-party are useful tools to support risk assessment and mitigation procedures, not substitutes for the operator’s due diligence obligations. Such schemes must be critically evaluated for their scope, independence, traceability systems, and alignment with EUDR requirements.

11. Agricultural Use

The definitions of forest employed in the EUDR are directly sourced from the definitions laid out by the United Nation’s Food and Agriculture Organization (FAO). As such, Land with at least 10% tree canopy cover, or the potential to reach that threshold naturally, is generally considered forest. However plantations of EUDR-listed crops, even if under an agroforestry scheme are classified as agricultural land regardless of canopy cover. In cases of mixed-use land, each portion must be assessed according to its actual use rather than its official registry designation.