The European Commission is considering a one-year postponement for the implementation of its much-anticipated deforestation regulation. This marks the second time the start of the European Union Deforestation Regulation (EUDR) has been pushed back, raising concerns among stakeholders.
The EUDR seeks to ban products linked to deforestation from the EU market, setting stringent compliance demands for companies dealing with commodities such as soy, palm oil, beef, timber, coffee, cocoa, and rubber.
In correspondence with Members of the European Parliament (MEPs), European Environment Commissioner Jessika Roswall detailed that this delay is crucial due to limitations identified in the central IT system designed to manage compliance data. “Based on the available information, the Commission’s assessment is that this will very likely lead to the system slowing down to unacceptable levels or even to repeated and long-lasting disruptions,” Roswall stated. These issues could hinder companies’ ability to register as economic operators or submit their Due Diligence Statements, ultimately compromising the objectives of the EUDR and potentially disrupting trade flows.
Are the Regulations Too Complex?
Roswall’s proposed delay also serves as an opportunity to simplify the regulations. Since their introduction in 2021, numerous organizations—including Fefac—have voiced concerns regarding the practicality of compliance. They argue that the regulations impose substantial administrative burdens and present legal uncertainties, which could divert commodity flows.
Fefac previously expressed: “Our concerns about the Regulation’s practical applicability focus on its lack of proportionality and the substantial administrative burden it imposes. We emphasize the urgent need for a more targeted, risk-based, and practical implementation strategy that goes beyond what the current Regulation provides.”
Impact on Traders and Importers
Importers and traders of various commodities, including soy, have been preparing for the EUDR requirements well in advance. According to All About Feed, the soy supply chain is highly organized, necessitating a segregated setup for compliance with the EUDR.
Martine Boon, managing director of GMP+ International, noted that the essence of the EUDR is unlikely to change. Traders and operators importing or exporting products such as soy and palm oil into the EU must provide a Due Diligence statement for each batch, detailing its exact origin and affirming that it hasn’t contributed to deforestation or forest degradation while ensuring minimal risk of non-compliance.
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