The EU Deforestation Regulation (EUDR) includes precise definitions that are essential for understanding its scope and requirements. These definitions form the foundation of the obligations that businesses and stakeholders operating within the EU must comply with.
EUDR – A short introduction
The EU Deforestation Regulation (EUDR) is an important milestone in protecting the world’s forests and combating deforestation and forest degradation. The regulation requires businesses to ensure that the raw materials they trade are sourced legally and sustainably. The raw materials the EU aims to ensure are sourced legally and sustainably include coffee, cocoa, soy, palm oil, cattle, plantation wood fiber, and plantation rubber.
The EU adopted the EUDR on December 6, 2022, and it will come into effect at the end of 2025. Deforestation is one of the major causes of climate change and biodiversity loss—two of the most pressing environmental challenges we face today.
EUDR – Definitions and requirements
Since the introduction of EUDR, 8 key changes have been made under definitions and requirements that all businesses should be aware of.
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4.5 Definition of “Without causing forest degradation”
To ensure that wood products are “deforestation-free,” EUDR sets specific requirements for how timber is harvested. Forest degradation is defined as structural changes in the forest, such as the conversion of primary or naturally regenerating forests into plantation forests or other wooded areas.
A key part of this definition is that timber must be harvested “without causing forest degradation after December 31, 2020.” This means there must be a direct link between timber harvesting and potential forest degradation. However, the regulation acknowledges that forests can also be affected by external factors such as climate change, disease outbreaks, or wildfires, which are not covered under these rules. The focus is therefore on degradation caused by forestry activities.
If timber harvesting leads to permanent forest degradation, products from the affected area cannot be marketed in the EU. On the other hand, timber from new harvesting activities may be considered “deforestation-free” if the forest is restored and is no longer classified as degraded.
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4.6 How is a wood product’s status assessed, and what time period applies?
To comply with the “deforestation-free” requirements, operators must determine whether, as of December 31, 2020, the forest type was a primary or naturally regenerating forest. They must then assess whether logging activities and subsequent land use could result in a change in forest type and thus lead to forest degradation.
This assessment should be based on forest management legislation, sustainable management plans, and documentation on the forest’s condition before harvesting, harvesting methods, and restoration measures.
If there is a risk that logging activities will lead to forest degradation, the wood product cannot be sold in the EU unless the risk is reduced to a negligible level. Uncertainty about the land’s future use after harvesting can also lead to an assessment of forest degradation.
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4.7 Forest degradation caused by external factors
A wood product can still be considered “deforestation-free” even if the forest has undergone structural changes after December 31, 2020, as long as these changes were caused by factors unrelated to timber harvesting. Examples include climate change, disease outbreaks, or wildfires. Such events do not affect the product’s status under EUDR.
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4.8 Can operators be penalized for events after submitting a due diligence statement?
Businesses can be held accountable if their timber harvesting has caused forest degradation before submitting a due diligence statement. By submitting this statement, a company confirms that it has followed the due diligence process correctly and complies with the regulations.
Failure to conduct a thorough risk assessment or ignoring critical information can lead to compliance issues. In such cases, downstream actors, such as traders, cannot rely on the original due diligence statement as a guarantee of the product’s legality.
However, if due diligence has been carried out correctly and the product complies with the regulations at the time of marketing, unforeseen events afterward will not affect its status or the company’s liability.
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4.9 Definition of “forest” in EUDR
According to EUDR, an area is classified as a forest if at least 10% of its land is covered by trees that can grow to a height of at least 5 meters. Young trees expected to meet these criteria, or temporarily unstocked areas still classified as forest land, are also considered forests.
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4.10 Deforestation and land use
Deforestation is defined as the conversion of forests to agricultural use. If a forested area is converted for purposes such as urban development or infrastructure projects, it falls outside this definition. Timber harvested legally as part of a road construction project, for example, would still be in compliance with the regulation.
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4.11 Expanding protection to other natural areas
EUDR currently covers approximately 4 billion hectares of forest worldwide, including savannas and wetlands. Future evaluations will assess whether protection should be expanded to include other types of natural areas beyond forests.
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4.14 Rubber plantations
Rubber plantations fall under EUDR’s definition of “agricultural plantations.” This includes tree-covered agricultural areas such as fruit orchards, oil palm plantations, olive groves, and agroforestry systems where other crops are grown alongside trees.
Since agricultural plantations are not classified as forests, converting a forest into a rubber plantation is considered deforestation and is therefore non-compliant with the regulation.
Stay updated with Prduct.com
These updates provide a clear definition of the key terms and requirements under EUDR. The regulation is complex, and the many rules and definitions can seem overwhelming. Therefore, it is recommended that businesses seek expert guidance and stay informed to navigate the regulation correctly.
Prduct.com offers a solution that simplifies EUDR compliance. We help you keep track of your HS codes and ensure compliance through automated and reliable data processing. In short: we collect your data, conduct risk assessments for your entire supply chain, and help mitigate identified risks.
