EU Commission Eases Compliance Rules Under New Supply Chain Deforestation Law

• 30% cost reduction: Revised due diligence processes expected to lower compliance costs for companies by 30%.
• Annual reporting allowed: Businesses can now submit due diligence statements annually instead of per shipment.
• Flexibility for reimports & groups: Reuse of due diligence statements and group-wide submissions now permitted.

The European Commission has rolled out a set of revisions to simplify implementation of its EU Deforestation Regulation (EUDR), aiming to ease compliance burdens while maintaining its environmental objectives.

The EUDR, which bans deforestation-linked products from the EU market, requires companies to conduct strict due diligence on commodities like palm oil, beef, timber, coffee, cocoa, rubber, and soy — including derived goods such as leather, chocolate, tires, and furniture.

Under the law, companies must trace products back to the specific plot of land they were produced on and verify that no deforestation occurred post-2020. The regulation officially came into force in June 2023, with large companies initially expected to comply by the end of 2024 and small businesses by June 2025.

However, the EU introduced a one-year delay in October 2024, citing readiness concerns from both international and EU stakeholders. The delay aligns with broader goals under the EU’s Competitiveness Compass, a strategy launched in January to enhance Europe’s productivity and cut red tape by 25% across the board — and 35% for SMEs.

Key revisions include:
-- Annual submission of due diligence statements rather than per shipment.
-- Reuse of existing due diligence documentation when goods are reimported.
-- Group-level reporting via authorized representatives.
-- Clarified guidelines for upstream due diligence using supplier reference numbers.
These steps are projected to cut administrative costs by 30% for businesses navigating the EUDR.

Source: esgnews.com