The EU Deforestation Regulation (EUDR), officially Regulation (EU) 2023/1115, is enacted by the European Union to combat global deforestation and forest degradation linked to products placed on or exported from the EU market.

The EUDR replaces the EUs Timber Regulation (EUTR) and expands its scope to cover a broader range of commodities. It defines "deforestation-free" as products sourced from land not subject to deforestation or forest degradation after 31st December 2020.

It entered into force on 29th June 2023 as part of the EU Green Deal, aim to reduce the EU’s contribution to deforestation, greenhouse gas emissions, and biodiversity loss.

The regulation mandates that certain commodities and products must be "deforestation-free" and legally produced according to the laws of the country of origin.

Companies producing these products are required to conduct extensive due diligence to ensure compliance, including tracing supply chains back to the plot of land where commodities were produced.

Following Products are covered under these regulation (Please check EUDR ANNEX I on  https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023R1115&qid=1687867231461#d1e32-243-1)

Cattle– Includes beef, leather, and other cattle-derived products.

Cocoa– Covers cocoa beans, cocoa powder, chocolate, etc.

Coffee– Includes coffee beans and coffee-based products.

Oil Palm– Palm oil and its derivatives (e.g., used in food, cosmetics, biofuels).

Rubber– Includes natural rubber and products like tires.

Soy– Covers soybeans, soy oil, soy flour, and animal feed containing soy.

Wood-Includes timber, paper, furniture, and other wood-based products.

We went through the detailed product list mentioned in Annex I (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023R1115&qid=1687867231461#d1e32-243-1) of the regulation, identified by specific customs codes (e.g., HS codes) and found following chemicals (Palm Oil derivatives) are coming under the CHEMEXCIL are also comes under EUDR.

1513 21 Crude palm kernel and babassu oil and fractions thereof, whether or not refined, but not chemically modified

1513 29 Palm kernel and babassu oil and their fractions, whether or not refined, but not chemically modified (excluding crude oil)

2905 45 Glycerol, with a purity of 95 % or more (calculated on the weight of the dry product)

2915 70 Palmitic acid, stearic acid, their salts and esters

2915 90 Saturated acyclic monocarboxylic acids, their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives (excluding formic acid, acetic acid, mono-, di- or trichloroacetic acids, propionic acid, butanoic acids, pentanoic acids, palmitic acid, stearic acid, their salts and esters, and acetic anhydride)

3823 11 Stearic acid, industrial

3823 12 Oleic acid, industrial

3823 19 Industrial monocarboxylic fatty acids; acid oils from refining (excluding stearic acid, oleic acid and tall oil fatty acids)

3823 70 Industrial fatty alcohols

The European Commission will review the scope of EUDR by 30th June 2025 by adding commodities like maize or biofuels if they are deemed significant contributors to deforestation.

Timelines for the EUDR

• Entry into Force: 29th June 2023 (an initial transition period.)

• Date of application to products: 30th December 2024, for large and medium-sized enterprises, with micro and small enterprises given until 30th June 2025.

• Mandatory compliance: from 30th December 2025 to large and medium-sized operators and traders.

• Mandatory compliance 30th June 2026 for micro and small enterprises (fewer than 50 employees and turnover/balance sheet below €10 million).

Please note EUDR applicable to non-EU manufacturers also if they place relevant commodities or products on the EU market or export it from the EU.

Non-EU manufacturers are indirectly impacted because EU-based importers (operators) will require them to provide detailed information—such as geolocation data of production plots and proof of compliance with local laws—to meet EUDR due diligence requirements. This means non-EU manufacturers must adapt their supply chains and documentation to maintain access to the EU market, even if they don’t operate within the EU themselves.

Overview of the Regulation: The EUDR imposes three core requirements on eligible products:

Deforestation-Free: Products must not originate from land deforested or degraded after 31st December 2020.

Legal Production: Products must comply with the producing country’s laws, including land use rights, environmental protection, labor rights, human rights (e.g., Free, Prior, and Informed Consent), and tax/customs regulations.

Due Diligence: Operators must submit a due diligence statement to EU authorities via the EUDR Information System, confirming compliance after Gather data like geolocation coordinates of production plots, supplier details, and legal compliance evidence. Evaluating the risk of deforestation or illegality based on the country of origin and supply chain complexity. And implementing the measures to reduce risks to a negligible level.

For more details members can visit below official links on this topic.

https://green-business.ec.europa.eu/deforestation-regulation-implementation/information-system-deforestation-regulation_en

https://environment.ec.europa.eu/topics/forests/deforestation/regulation-deforestation-free-products_en

https://environment.ec.europa.eu/news/eu-deforestation-regulation-information-system-launches-2024-12-06_en