“We will help our economy to be a global leader by moving first and moving fast” said the President of the European Commission, Ursula von der Leyen, in 2019, when unveiling the European Green Deal, whose objectives for sustainable and deforestation-free trade are addressed through the European Union Deforestation Regulation (“EUDR”).
The EU indeed moved first, and aims to continue moving fast, even in the face of implementation challenges.
Originally scheduled to take effect on 30 December 2024, the EUDR’s application was postponed for 12 months, to 30 December 2025, giving operators extra time to fully prepare. Over the deferral period, operators were expected to develop inventory-tracking systems, building in-house compliance tools or using service providers to connect their product management systems directly with EUDR information systems.
This intensive preparation led to higher-than-expected traffic on the EUDR IT platform and growing concerns about the system’s operability. To address these issues, the European Commission proposed simplifying certain reporting obligations and reducing what it now considers to be unnecessary administrative burdens, focusing instead on the essential elements needed to make the Regulation work.
The new proposal introduces simplified regimes for small and micro “primary operators” as well as downstream operators.
In short, the Commission has proposed:
- Creating a new category: “Downstream operators”
Downstream operators are no longer required to conduct due diligence or submit due diligence statements. Now, only one submission in the EUDR IT system at the entry point in the Union market is required for the entire supply chain, with the focus being entirely on the operator placing products on the market first. Previously, downstream operators fell under the general definition of “operator”, but this definition has now been narrowed to exclude them.
However, given their significant influence on supply chains, downstream operators remain obliged to register in the EUDR information system and to ensure full traceability by collecting and passing along the reference numbers or declaration identifiers. In addition, where there are indications that a product may be non-compliant, downstream operators must verify that due diligence was carried out and that no, or only a negligible risk, was found.
Also, downstream operators or traders may be designated as “authorized representatives” by natural person or microenterprise, in which case they become responsible for compliance and the submission of due diligence statements on behalf of the designating person/entity. In addition, and although no longer subject to the due diligence statement obligation, Member States authorities must still perform annual checks on at least 3% of operators, including non-SME downstream operators.
- Creation of a new category for SME: “Micro and small primary operators”
The new “micro and small primary operators” category covers SMEs, as defined in Directive 2013/34/EU, irrespective of their legal form, located in low-risk countries, that place on the market or export products they have grown, harvested, obtained from or raised (covering close to 100% of farmers and foresters in the Union). These operators must now file a one-time simplified declaration in the information system (unless the requested information already exists in another Union or national database or system). They are not required to submit due diligence statements.
- Extended transition period for micro and small operators
To strengthen the IT system and guarantee a smooth transition, the Commission proposes postponing the entry into force of the EUDR for SMEs by 6 months, to 30 December 2026 (instead of 30 June 2026). This extension does not affect other operators and traders, who remain subject to the current deadline, i.e., 30 December 2025.
The goal of this Proposal is thus to ensure that the majority of the EUDR will enter into force in two months’ time and avoid any further delays, except for SMEs.
This Proposal will now have to be approved by the European Parliament and the Council of the EU to become law.
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This Proposal comes shortly after the European Commission published additional guidance to help operators ahead of the entry into force of the EUDR (see our alert here).
Please do not hesitate to get in touch with Cassidy Levy Kent’s supply chain team in Brussels, or your usual contact in any of Cassidy Levy Kent’s offices, with any questions.