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EUDR Explained

How the EU Deforestation Regulation Will Shape Your Supply Chain

EUDR is not just a compliance exercise. It fundamentally changes which suppliers you can work with, what data you need from them, and how you document sourcing decisions.

June 2025·4 min read·Bruno Fardilha

The EU Deforestation Regulation targets products linked to deforestation from entering and circulating the EU market. Companies must demonstrate that commodities come from deforestation-free land and comply with local laws. For timber importers, this means showing exact harvest locations and proving forest areas have not been cleared after December 2020.

Who Needs to Comply?

Two categories face obligations:

  • Operators: Companies that place these commodities or related products on the EU market for the first time
  • Traders: Companies that buy or sell these commodities or products within the EU supply chain

The scope covers all seven key commodities , including timber , regardless of company size.

Required Actions

Companies must conduct supply chain due diligence including:

  • Knowing the exact origins of your raw materials
  • Gathering geolocation data from harvest sites
  • Maintaining detailed records of supplier documentation
  • Preparing for inspections and audits by authorities

Compliance Deadlines

  • Large companies: December 30, 2026
  • Small and micro enterprises: June 30, 2027

Non-compliance risks include product confiscation, fines of up to 4% of EU-wide annual turnover, and exclusion from public procurement.

How This Reshapes Your Supply Chain

EUDR is not a checkbox exercise , it fundamentally changes which suppliers you can work with. Suppliers who cannot provide geolocation data or verified documentation become liabilities. Compliance becomes a sourcing filter, not just a reporting obligation. Companies that build this into their procurement process early will have supply chains that hold up under audit from day one.

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