The EU Deforestation Regulation (EUDR) is fundamentally reshaping global supply chains. From 30 December 2026, companies within scope must show that the products they place on the EU market or export from the EU are deforestation-free and legally produced. This is not optional: compliance is a legal obligation. What is at stake is your market position, your corporate reputation and avoiding regulatory penalties. (For micro and small enterprises, the new date is 30 June 2027.)

On 17 December 2025, the European Parliament voted to amend the EU Deforestation Regulation. The amendment aims to reduce the administrative burden and give companies more time to prepare. The products covered by the Regulation remain the same. Obligations may differ from company to company compared with the original legislation, so the complexity of preparation can vary too.

Who is affected?

The EUDR covers the entire value chain:

Relevant commodities: wood, soya, cattle, coffee, cocoa, rubber, oil palm.

The EUDR covers more than raw materials. It also applies to processed products made from them, so it affects far more companies than you might expect:

• Food industry: chocolate (cocoa), coffee, beef and processed meat products, foods containing palm oil.
• Cosmetics and chemicals: palm oil-based cosmetics, glycerol, stearic acid, industrial fatty acids.
• Automotive and logistics: natural rubber, tyres, conveyor belts, transmission belts.
• Furniture and paper: timber, furniture, paper, books, packaging materials, prefabricated wooden buildings.
• Livestock and feed: live cattle, beef, soya beans, soya flour, soya bean meal, soya oil.

Important: you must submit a separate due diligence statement (DDS) in the TRACES system for each relevant product, whether it is a raw material or a processed end product.

What does compliance mean?

Compliance rests on three pillars:

What obligations may the EUDR bring?

In practice, the Regulation introduces new compliance obligations:

• Traceability: exact geolocation data on where the product was produced or raised must be recorded for every product.
• Risk assessment and mitigation: you must make sure the supply chain is deforestation-free, adding supporting documents where needed.
• Mandatory due diligence statement: operators must show that the product complies with the Regulation.
• Record keeping: data and processes must be kept for at least 5 years.

Failure to comply can lead to heavy fines, competitive disadvantage, and even confiscation or seizure of products.

Preparation deadlines (amended)

The obligations under Regulation (EU) 2023/1115 (EUDR) take effect in phases, depending on company size:

• For medium-sized and large companies, the Regulation applies from 30 December 2026 instead of the original 30 December 2025.
• For micro and small enterprises, the new date is 30 June 2027.

Company size categories: as defined in Article 3 of Directive 2013/34/EU.

What are the risks of non-compliance?

• Fines: a maximum of at least 4% of the company’s total annual EU turnover.
• Seizure of products or exclusion from the EU market.
• Temporary exclusion from public procurement procedures.
• Reputational risk: loss of trust among suppliers and customers.
  
  

[Read the obligations set out in Regulation (EU) 2023/1115 on deforestation-free products (EUDR)]

[Amended Regulation: Regulation - EU - 2025/2650 - EN - EUR-Lex]

How can BDO help?

Our advisory team supports your company in meeting the EUDR requirements:

• Applicability assessment: we identify how the Regulation applies to your company and show what compliance requires.
• Data collection and documentation processes: we help you organise the required data and build compliance processes into your day-to-day operations.
• Risk assessment and mitigation: we develop a simplified or full due diligence system.
• Preparation of the due diligence statement: we prepare the documents to be submitted so you can be sure you comply with the Regulation.
• Training and practical guidance: we prepare your employees to apply the EUDR in practice.
• Software partnership advisory: we help you select and implement the digital solutions that best fit your operations and support EUDR compliance.

Why start preparing now?

• Despite the postponement, many customers are already asking for proof of compliance. Companies that do not start preparing in time face more than fines for non-compliance. They also risk losing customer orders or being removed from supplier lists.
• A well-planned preparation process keeps your access to EU and global markets, strengthens partner relationships and makes operations predictable.
• EUDR compliance is complex and involves legal, procurement, logistics and data management questions. Preparation that starts early and builds on a targeted assessment is the most cost-effective approach. It avoids a last-minute rush and makes your operations more efficient. Our experienced team is happy to share its knowledge and practical experience with companies preparing for compliance.