I. Background and cause for the proposed amendment
Regulation (EU) 2023/1115 of May 31, 2023 on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation came into effect on June 29, 2023, and applies to the raw materials cattle, cocoa, coffee, oil palm, rubber, soy, and wood, as well as products thereof, provided that they are listed in Annex I EUDR.
The information system for the preparation of the required due diligence statements was opened for registration on December 4, 2024. However, experience so far has demonstrated that significantly more declarations of due diligence are being uploaded than the EU Commission had originally expected. At the same time, concerns about the proportionality of the obligations for downstream operators and small primary producers were raised increasingly.
II. Objectives of the proposed amendment
Against this background, the proposed amendment pursues several key objectives:
- Reducing administrative burdens
- Ensuring the functionality of the information system by significantly reducing the number of due diligence statements
- Maintaining environmental objectives to minimize the EU`s contribution to global deforestation and forest degradation
Due to the very far-reaching requirements and the involvement of many different actors in the implementation of due diligence obligations in the current regulatory context of the EUDR, there was certainly scope for simplifications and discharge without jeopardizing the fundamental protection of the world`s forests.
III. Key changes in the proposed amendment
At first glance, only minor adjustments are being made to achieve these objectives, but this will make things considerably easier for some players in the relevant supply and distribution chains.
1. Introduction of the category of “downstream operators“
A key change is the introduction of the category of “downstream operators.” These are actors who, in the course of their commercial activities, place on the market or export relevant products that have been manufactured using other relevant products, all of which are covered by a due diligence statement or a simplified statement. Until now, such downstream operators have been treated like all other operators and are generally subject to full due diligence obligations, including the obligation to prepare a due diligence statement. In some cases, downstream operators can already refer to due diligence statements from upstream operators, but this does not exempt them from their own responsibility.
This proposal aims to align the obligations of downstream operators with those of traders:
- Neither downstream operators nor traders will be required to determine whether due diligence obligations have been fulfilled in the future. Furthermore, neither of these actors will be required to submit a due diligence statement.
- Nevertheless, downstream operators that are not SMEs and non-SME traders must continue to register in the information system in order to maintain transparency in the supply and distribution chains.
- However, all downstream operators and traders, regardless of their size, must continue to ensure full traceability of relevant raw materials and products by collecting reference numbers from due diligence statements and declaration identifiers and passing them on in the supply and distribution chain.
2. New subcategory: Micro and small primary operators
The proposal introduces a new subcategory of market participants: “micro and small primary operators.” These are natural persons or micro or small enterprises established in a “low-risk” country as defined in Art. 29 EUDR and placing on the market or exporting relevant raw materials and products that they have produced themselves.
These small and micro primary operators will no longer be subject to the obligation to submit a due diligence statement. Instead, they must submit a one-time simplified declaration in the information system for the relevant raw materials and products they produce, with particular emphasis on facilitating geolocation. Upon submission of the simplified declaration, the information system then issues a declaration identifier, which must be passed on in the supply and distribution chain.
3. Adjustment of application dates
Although the proposed amendment does not provide for a general postponement of the effective date of the EUDR, as announced by the EU Commission at the end of September, some deadlines will nevertheless be postponed or newly introduced:
- The date of application for SME operators is postponed from June 30, 2026, to December 30, 2026.
- Regulatory enforcement measures are to be applied in all contexts only from June 30, 2026; with regard to SME operators, only from December 30, 2026. If a competent authority becomes aware of non-compliance with the regulation before these dates, it may issue warnings and recommendations to operators, downstream operators and traders.
However, it should also be noted that the date of application for EUDR-related customs controls under Art. 26 EUDR will not be postponed, meaning that, for imports of relevant raw materials and products from December 30, 2025 (except for imports by SME market participants, for whom the obligation will only apply from December 30, 2026), at least avalid reference number of a due diligence declaration must be provided to enable automated verification in the customs procedure. Without the reference number, imports will no longer be possible.
IV. Outlook
The proposal must now go through the ordinary legislative procedure. It remains to be seen how the European Parliament and the Council will respond to the proposed changes, although initial reactions from Parliament suggest that they will approve the proposed changes. In any case, Parliament plans to discuss and decide on the changes in a fast-track procedure without committee involvement.
Economic operators should in any case follow developments closely and prepare for the new requirements as soon as the amending regulation enters into force. Until its final publication in the Official Journal of the EU, affected economic operators, in particular downstream operators and traders, cannot rest assured and should continue their preparatory efforts without delay or reservation.
Proposal available under: Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2023/1115 as regards certain obligations of operators and traders
Do you have any questions or would you like to discuss the news with the author? Please contact Michael Öttinger and Paul Jäde
