EUDR - EU DEFORESTATION-FREE REGULATION

STOPING DEFORESTATION, REDUCING BIODIVERISTY LOSS AND GHG EMISSIONS AND CONTROLING AGRICULTURAL EXPANSION

WHAT IS THE EUDR - EU DEFORESTATION-FREE REGULATION?

The EU Deforestation Regulation (EUDR) is a strategic legislative initiative by the European Union aimed at minimizing the EU's contribution to global deforestation and forest degradation. By helping to reduce worldwide deforestation, this regulation also aims to decrease the EU's impact on greenhouse gas emissions and biodiversity loss globally.

The EUDR imposes stringent due diligence requirements on organizations that place "relevant commodities" and "relevant products" listed in Annex I onto the EU market, export them, or trade them. These commodities and products either contain or have been produced using relevant raw materials.

Specifically, the regulation defines the obligations for Operators and Traders to ensure that relevant commodities and products are only placed on the market, made available, or exported if they are deforestation-free, produced in compliance with the source country's legislation, and accompanied by a Due Diligence Declaration following specific procedures.

What are the key features of the EU Deforestation Regulation?

  • Aims to minimize the EU's contribution to global deforestation and forest degradation
  • Applies to a list of "relevant commodities" and "relevant products" in Annex I
  • Imposes stringent due diligence requirements on Operators and Traders
  • Requires commodities/products to be deforestation-free and legally produced
  • Mandates a Due Diligence Declaration for compliance

By implementing the EUDR, the EU is taking a leading role in addressing the urgent global challenge of deforestation. Compliance with this regulation is crucial for organizations operating in the affected commodity supply chains to avoid financial penalties and reputational damage.

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Who Must Comply with the EU Deforestation Regulation (EUDR)?

The obligations of the EU Deforestation Regulation (EUDR) must be complied with by all Organizations that place on the market, make available, or export the relevant commodities and products. These include raw materials such as cattle, cocoa, coffee, palm oil, rubber, soy, and wood, as well as any derived products.

What are the benefits of Bureau Veritas' Services for EUDR Compliance?

  • The Gap Analysis activity helps organizations understand how well their current system meets the requirements of the EU Deforestation Regulation (EUDR) and what areas need improvement.
  • Second-party audits at supplier sites allow for verification of the information collected and are useful tools for mitigating supply chain risk.
  • Third-party audits at the organization's premises confirm (based on adequate sampling) that the due diligence system is being properly applied by the organization itself.
  • Training courses (both off-the-shelf and customized) enable personnel at the involved Organizations to acquire the necessary knowledge about the EUDR regulation and keep it up to date.

How Bureau Veritas' EUDR Services are Structured?

Bureau Veritas' activities are highly customized and defined based on the organization's specific needs. The available services include Gap Analysis, Second-party Audits, and Third-party Audits, which can be combined or selected and performed independently:

  • Gap Analysis
    Recommended in the preliminary phase, when the organization has designed and defined its due diligence system and before implementing it.
  • Second-party Audits
    Recommended on an "as-needed" basis, targeting the most critical non-EU suppliers based on the risks associated with the relevant commodity/product, country of origin, and supply chain complexity.
  • Third-party Audits
    Recommended annually to promptly identify any deficiencies in the existing due diligence system. Particularly recommended for non-SME Operators.
    The level of detail for the sampling is agreed with the Organization and may vary from year to year.
    At the end of each activity, the organization is provided with a report summarizing the analysis and the outcome.

Additionally, off-the-shelf training courses are available to acquire the necessary basic knowledge of the EUDR regulation and stay up-to-date. Customized training courses can also be organized to better meet the company's specific needs.

By leveraging this comprehensive suite of services, organizations can effectively implement the EUDR requirements, mitigate risks, and ensure compliance.

READ FREQUENTLY ASKED QUESTIONS ON EUDR (FAQ)

  • Are There Certifications that Automatically Ensure EUDR Compliance?

    No, but the EUDR recognizes that certification and other third-party verification systems can provide useful information on compliance with the regulation when assessing risk under Article 10, providing evidence that the products are legal and deforestation-free.

  • Who is Responsible for Compliance of the Relevant Product with Article 3 of the EUDR?

    Both the Operator and the Trader are responsible, each within their respective scope of competence. Specifically, the Operator is responsible for completing the due diligence declarations and ensuring the accuracy of the information contained therein.

  • Does Using Bureau Veritas' EUDR Services Allow for Automatic Declaration of Compliance?

    No, but it allows for better control over the supply in case of complex supply chains and/or the timely identification of any issues with the existing due diligence system.

  • What are the Penalties for Violating the EUDR Regulation?

    Each Member State will establish the rules on applicable penalties, which may include:

    • Monetary fines commensurate with the environmental damage and the value of the relevant commodities or products
    • Confiscation of the relevant products from the Operator and/or Trader
    • Confiscation of the proceeds obtained by the Operator and/or Trader
    • Temporary exclusion from public procurement procedures and access to public funding
    • Temporary prohibition on placing on the market, making available, or exporting the relevant commodities and products
    • Prohibition on exercising simplified due diligence.