The EUDR Explained: What it is and how it affects your business!

Written by: 
Bernd Neufert

Expert in strategic procurement

April 4, 2024
5 min Read

What is the EUDR?

The EU Deforestation Regulation (EUDR) builds on the EU Timber Regulation (EUTR), which has been regulating since 2013 that European companies must not introduce illegally logged wood into the European market. It aims to curb global deforestation by regulating the import and export of commodities linked to forest degradation.

The new EU Deforestation Regulation came into force on June 29, 2023. From December 30, 2024, companies must apply the regulation. There are many overlaps with the supply chain law.

Is your company affected?

In principle, companies that meet at least two of the following criteria are considered affected:

  • More than 40 million euros in sales
  • More than 20 million euros in balance sheet total
  • More than 250 employees

If at least two criteria are not met, the company is considered a Small or Medium-sized Enterprise (SME). A distinction is also made between whether you are a trader or a market participant.

Market participants: a product is brought to the EU market for the first time or is exported from the EU market.

Traders: all other actors in the supply chain

Note: The EUDR applies to all market participants, including SMEs

What deadlines apply to your company?

For non-SME market participants, non-SME traders, and SME traders, the application starts on December 31, 2024.

For SME market participants, the application starts on June 30, 2025.

What are the consequences of violating the Deforestation Regulation?

The sanctions provided for in the regulation are intended to be effective, proportionate, and dissuasive. In summary, this could mean:

  • A fine of at least 4% of the turnover in the EU. In any case, the profit from the violation will be confiscated.
  • The affected products will be seized from all market participants and/or traders.
  • Up to a one-year exclusion from public contracts.
  • A temporary business ban.
  • Publication of the affected companies including the nature of the violation.

Violations can thus have significant financial consequences for affected companies and their business partners, in addition to the risk to reputation.

Which products are affected? The current version of the EUDR lists the following product groups:

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

The individual product groups are further specified according to relevant products.

You can read about them in the regulation in Annex I, Relevant Raw Materials and Relevant Products, according to Article 1. Classifying by tariff numbers/commodity codes may be helpful for some.

In total, more than 800 products are listed in the regulation, including car tires, books, and furniture.

Documentation In addition to risk analysis, companies must provide a due diligence statement in the EU Information System before placing the product on the market.

Customs authorities or the Federal Office for Agriculture and Food (BLE) in Germany check compliance based on these documents. You can find the exact contents of the due diligence declaration in the regulation in Annex II, Due Diligence Declaration.

The due diligence declaration must be kept for at least 5 years.

What should companies do now?

Use the time! There are significant overlaps between the German and thus also the European supply chain law and the Deforestation Regulation. With good preparation for the German Supply Chain Act (LkSG), you can also approach the European Supply Chain Act (CSDDD) and the EU Deforestation Regulation with relative ease.

The basis for meeting the requirements is transparency along your supply chains, especially the knowledge and documentation of supply chains, often referred to as Supply Chain Mapping.

Check your data basis and the availability of this data. Close data gaps and work on data quality.

Our Service for You:

As a user of, you have optimal conditions.

Documentation: current, complete, automated.

Audit: be audit-ready at any time, whether unannounced or planned.

Reliability: reliably check and approve suppliers and materials.

Our approach is to provide practical benefits for your company:

Digitalization: Purchasing, Quality, Regulatory.

Compliance: Efficiently depict the Supply Chain Act as well as other sustainability topics.

With, you have a solution for professional and cross-departmental data management instead of another siloed sustainability software.

In addition, we offer you support through our experts:

Risk-based supplier evaluation as the basis for the Supply Chain Act & Co. Checking and developing your documentation packages, such as supplier and material questionnaires. Support in your documentation or regulatory process. Checking and procuring data/master data for your supplier and supply chain evaluation as well as for your strategic supplier management.

Easily organize your Suppliers with relatico!
Bernd Neufert
Expert in strategic procurement
Customized advice
Solutions to your Problems
Thank you! Your submission has been received! We will get back to you as soon as possible.
Oops! Something went wrong while submitting the form.
Bernd Neufert
Expert in strategic procurement

We're happy to help!

Bernd possesses extensive experience in strategic procurement, shaped by his tenure at Eckes-Granini, Symrise and DuPont de Nemours. Currently, he is focused on sustainable sourcing and supply chains, collaborating with the relatico team to develop practical software solutions. Additionally, Bernd runs his own agricultural business and is involved in supply chain projects globally.

Request a callback from an expert
Completely free
Quick 30 Minutes
Helpful Infos
Thank you! Your submission has been received! We will get back to you as soon as possible.
Oops! Something went wrong while submitting the form.