The EU Deforestation Regulation (EUDR) is a law that prohibits companies from placing products linked to deforestation on the European Union market. If your business imports or sells commodities like palm oil, soy, cocoa, coffee, rubber, cattle products, or wood in the EU, EUDR compliance is now a legal requirement.
This guide explains what EUDR is, why it exists, what it covers, and what the regulation means for businesses operating in global supply chains.
What Does EUDR Stand For?
EUDR stands for EU Deforestation Regulation. Officially known as Regulation (EU) 2023/1115, it entered into force on June 29, 2023. The regulation is part of the European Green Deal—the EU’s strategy to become climate-neutral by 2050.
Unlike voluntary sustainability commitments, EUDR is legally binding. Companies that fail to comply face fines up to 4% of their EU turnover, product seizures, and potential exclusion from the EU market.
Why Was EUDR Created?
The EU is one of the world’s largest importers of commodities linked to deforestation. Before EUDR, there was no legal mechanism to prevent deforestation-linked products from entering the EU market.
EUDR addresses this by requiring proof that products were not produced on land that was deforested after December 31, 2020. The regulation aims to:
Reduce global deforestation. The EU estimates EUDR will prevent at least 32 million metric tonnes of carbon emissions annually by eliminating deforestation from EU-linked supply chains.
Protect biodiversity. Forests contain 80% of terrestrial biodiversity. By stopping forest conversion for agricultural commodities, EUDR helps preserve ecosystems.
Level the playing field. Companies already investing in sustainable sourcing no longer compete against those using deforestation-linked supply chains.
What Commodities Does EUDR Cover?
EUDR regulates seven commodities and their derived products:
Palm oil — includes crude palm oil, refined products, and anything containing palm oil as an ingredient (food, cosmetics, biofuels).
Soy — includes soybeans, soybean oil, soy flour, and animal feed containing soy.
Cocoa — includes cocoa beans, cocoa butter, cocoa powder, and chocolate products.
Coffee — includes green coffee, roasted coffee, and coffee extracts.
Cattle — includes live cattle, beef, leather, and other cattle-derived products.
Rubber — includes natural rubber and rubber-based products like tires.
Wood — includes timber, wood products, pulp, and paper. Printed products such as books and newspapers were removed from scope by Regulation (EU) 2025/2650.
The regulation applies to raw commodities and any product containing them as ingredients or components. A chocolate bar, a leather handbag, or a wooden furniture piece all fall under EUDR.
Who Must Comply with EUDR?
EUDR applies to two categories of businesses:
Operators are companies that first place covered products on the EU market (importers) or export them from the EU. Operators bear full due diligence responsibilities.
Traders are companies that buy or sell covered products already on the EU market. Large traders have the same obligations as operators. Small and medium enterprises (SMEs) have simplified requirements but must still maintain records and ensure their suppliers have completed due diligence.
Two further categories were added by Regulation (EU) 2025/2650. Downstream operators handle products already covered by due diligence further down the chain and carry the same lighter duties as traders. Micro and small primary operators, meaning small producers in low-risk countries who place products they grew or raised themselves, file a one-time simplified declaration instead of a due diligence statement for each shipment, and may give a postal address in place of plot coordinates.
The regulation applies regardless of where your company is headquartered. If you place covered products on the EU market, you must comply.
What Are the EUDR Requirements?
EUDR compliance requires meeting three conditions for every shipment of covered commodities:
1. Deforestation-Free
Products must be produced on land that was not deforested after December 31, 2020. This is the regulatory cut-off date—any land converted from forest after this date cannot be used to produce EUDR-compliant commodities.
2. Legally Produced
Products must comply with all applicable laws in the country of production, including land use rights, environmental protection, labor laws, and human rights requirements.
3. Due Diligence Statement
Companies must submit a due diligence statement to an EU information system before placing products on the market. This statement confirms that the company has assessed risks and verified compliance.
For detailed compliance steps, see our EUDR compliance guide.
Geolocation Requirements
EUDR introduces a requirement that distinguishes it from previous sustainability regulations: geolocation data. Companies must provide the GPS coordinates or polygon boundaries of every plot of land where commodities were produced.
For plots smaller than 4 hectares, a single GPS coordinate suffices. For larger plots, companies must provide polygon coordinates that map the plot boundaries.
This geolocation requirement enables verification. Satellite imagery can confirm whether land at those coordinates was forested on the cut-off date and whether deforestation occurred afterward. Traditional document-based audits cannot provide this level of verification—only satellite-based land cover analysis can verify compliance at scale across thousands of sourcing locations.
EUDR Timeline and Deadlines
The regulation entered into force on June 29, 2023. After delays, the current compliance deadlines are:
December 30, 2026 — Large and medium enterprises, and all other operators and traders except those below, must be fully compliant.
June 30, 2027 — Natural persons and micro and small enterprises established as such by December 31, 2024 must be compliant. Medium-sized enterprises are on the December 30, 2026 date, under Regulation (EU) 2025/2650.
Companies should not wait until deadlines approach. Building supply chain traceability systems, collecting geolocation data from suppliers, and establishing verification processes takes months of preparation.
Enforcement and Penalties
EU member states will enforce EUDR through their national competent authorities. Enforcement includes:
Inspections. Authorities will conduct regular checks, often unannounced, based on risk-based criteria.
Product seizures. Non-compliant products can be confiscated at EU borders or removed from the market.
Financial penalties. Fines can reach up to 4% of a company’s EU-wide annual turnover.
Market exclusion. Repeat violators may be temporarily or permanently banned from placing products on the EU market.
The EU also maintains a country benchmarking system that classifies countries as low, standard, or high risk based on deforestation rates. Products from high-risk countries face increased scrutiny and inspection rates.
EUDR Compliance Guides by Topic
Each aspect of EUDR compliance involves specialized knowledge. These guides cover the specific areas you need to address:
- EUDR Compliance: Step-by-Step Guide – Implementation checklist covering due diligence statements, data collection, and risk assessment procedures.
- EUDR Regulations: Key Rules and Deadlines – Detailed breakdown of Regulation (EU) 2023/1115 including country risk classifications and enforcement mechanisms.
- Supply Chain Traceability for EUDR – How to build traceability systems that meet geolocation and documentation requirements.
- Palm Oil Traceability – Satellite-based verification methods for palm oil supply chains, from mill-level to plantation-level data.
- EUDR Software: How to Choose – Comparison of compliance tools including features, data coverage, and integration capabilities.
- Deforestation Due Diligence – Practical guide to building due diligence systems that satisfy EUDR verification requirements.
Frequently Asked Questions
What products are covered by EUDR?
EUDR covers seven commodities—palm oil, soy, cocoa, coffee, cattle, rubber, and wood—plus any products derived from them. This includes chocolate, leather, furniture, paper, biofuels, animal feed, and many other goods containing these commodities as ingredients or components.
Does EUDR apply to companies outside the EU?
Yes. EUDR applies to any company placing covered products on the EU market, regardless of where the company is headquartered. Non-EU exporters must ensure their products meet EUDR requirements, or their EU-based importers will be held responsible.
What is the EUDR cut-off date?
December 31, 2020. Products must be sourced from land that was not deforested after this date. Any land converted from forest to agricultural use after December 31, 2020 cannot be used to produce EUDR-compliant commodities.
How do I prove my products are deforestation-free?
You must collect geolocation data (GPS coordinates or polygon boundaries) for every plot where commodities were produced, then verify those locations haven’t experienced deforestation since the cut-off date. Satellite-based land cover analysis is the most scalable way to verify compliance across large supply chains.
What happens if I don’t comply with EUDR?
Non-compliance can result in fines up to 4% of EU turnover, product seizures, and potential exclusion from the EU market. Authorities will conduct inspections and can confiscate non-compliant products at borders or remove them from sale.
Next Steps
EUDR represents a fundamental shift in how companies must manage commodity supply chains. The regulation requires not just documentation but verifiable proof of where products originated and confirmation that those locations are deforestation-free.
Start by mapping your supply chain to identify all sources of covered commodities. Engage suppliers to collect geolocation data. Then establish verification processes—whether through manual assessment or automated satellite screening—to confirm compliance before products reach the EU market.
