EU Commission proposes ‘first entry’ rule for EUDR, delayed full rollout

Brussels – The European Commission has proposed a package of measures to simplify and streamline the EU Deforestation Regulation (EUDR), aiming to ease compliance for smaller businesses and avoid bottlenecks in its IT system.

Under the proposal, micro and small businesses will have reduced reporting obligations and an extra year to comply, with their formal entry into application postponed until December 2026.

For larger companies, the regulation will still take effect on 30 Dec, but checks and enforcement will be phased in over a six-month grace period to address IT readiness issues, the Commission announced 21 Oct.

The EUDR seeks to ensure that eight commodities – including rubber, coffee, cocoa, soy, beef, leather, palm oil, and wood – entering the EU market are not linked to deforestation or forest degradation.

As part of the new measures, “downstream operators”, including retailers and manufacturers using such commodities, will no longer be required to submit due diligence statements, explained the Commission.

Instead, the requirement will apply only to the first operator placing the products on the EU market.

Meanwhile, micro and small primary operators from low-risk countries will be required to submit “a one-off declaration” instead of regular due diligence statements.

Once the data of the small operators enters a member state’s database, no additional IT action will be required.

The Commission said the changes aim to “support companies, global stakeholders, third countries and member states to ensure a smooth implementation” while maintaining the EUDR’s "core environmental goals".

It added that the adjustments follow feedback from stakeholders who raised concerns about administrative burdens and the capacity of the IT system to handle the expected load.

The European Parliament and Council will now review the proposal.

The Commission has urged both institutions to adopt the amendment swiftly, ideally by the end of 2025, to allow for a seamless transition.