WDK says latest EUDR simplification measure offers ‘no relief’

Frankfurt am Main, Germany – The German rubber industry association (WDK) has criticised the European Commission’s latest attempt to simplify the European Deforestation Regulation (EUDR), saying the proposal does not cut the “massive bureaucracy” associated with its implementation.

In a 23 Oct statement, WDK managing director Boris Engelhardt said the “long-overdue attempt” is effectively “outsourcing its problems to the member states and economic actors” in order to enable the planned roll-out by the end of the year, despite IT shortcomings.

The regulation, Engelhardt explained, previously required each market participant to obtain a reference number for its natural rubber (NR) products from the EU.

Under the new proposal, the reference number of the first NR importer must be passed on from actor to actor along the entire value chain.

This, the WDK leader noted, raises two major problems: instead of automatically obtaining a single reference number, a large number of reference numbers from suppliers must now be processed and passed on.

“The IT systems in place at companies – created at great financial expense to meet previous EUDR requirements – are not capable of doing [this],” he said.

Furthermore, the adaptation of the systems will be expensive and will take “beyond the turn of the year 2025/2026,” he added.

Even “more dramatic”, Engelhardt said, is the “violation of business confidentiality that the EU Commission is enforcing with its proposal.”

“The mandatory passing on of the reference number gives all companies in the value chain insight into the relevant supply relationships of their suppliers. That is a no-go!,” he added.

Renewing its call for ‘first-touch principle’ for the EUDR, WDK said “only those actors who are the first to import one of the EUDR-relevant raw materials into the EU should be monitored.”

Companies further down the value chain within the EU “should be exempt” from the EUDR, said the association.

“The proposed amendment to the EUDR creates ambiguities and gaps, particularly with regard to corporate liability, the consequences of which are incalculable,’ Engelhardt concluded.