8 October 2024
Purpose
This Industry Advice Notice (IAN) is to advise industry of a delay to the implementation of European Union Deforestation Regulation (EUDR) for certain products exported to the European Union (EU).
Summary of changes and key points
- On 2 October 2024, the European Commission announced an intended delay to the EUDR implementation based on feedback received from international partners about preparations on the EUDR.
- The EUDR impacts exporters of timber, cocoa, coffee, oil palm, soya, wood and some products containing or having been made using these commodities to the EU.
- The delay will provide concerned parties additional time to prepare for the EUDR.
- Subject to approval by the European Parliament and the Council, a delay to implementation of 12 months would make the EUDR applicable on 30 December 2025 for large companies and 30 June 2026 for micro and small enterprises.
- The European Commission has stated that it intends the extra 12 months to act as a phasing-in period to ensure proper and effective implementation, and that all the implementation tools will be technically ready for this period.
- The European Commission has also published additional guidance documents and updated Frequently Asked Questions (FAQs) concerning the EUDR and its implementation. The guidance is intended to provide additional clarity to companies and enforcing authorities to facilitate the application of the rules.
Background
- When implemented, the EUDR will require certain operators exporting commodities or products for the EU market (see Annex 1 of the Regulation for the full list of products) to conduct due diligence to ensure these commodities or products were not produced on land subject to deforestation or forest degradation after 31 December 2020.
- Refer to IAN 2023-74 Plant Export Operations – European Union Deforestation Regulation for further information.
- We will continue to engage closely with the European Commission to inform industry of any further updates affecting Australian exporters.
Country Benchmarking System
- The EUDR establishes a country benchmarking system, which will apply a deforestation risk-rating (low, standard, or high) to each country.
- All countries have been designated as standard risk until a risk assessment has been completed.
- A country’s risk rating will determine the percentage of consignments inspected at the EU Member State border by its competent authority.
- The European Commission has advised the country benchmarking will be complete by 30 June 2025.
- Australia continues to advocate for a permanent low-risk rating.
Exporter responsibilities
We encourage exporters to familiarise themselves with the EUDR and its implications. Further information can be found at:
- European Commission Press Release
- Preferred By Nature Webinars – EUDR Introductory information
- PEFC Webinar - Introduction to the new EUDR
- International Trade Centre (ITC) and World Resources Institute (WRI) Roundtable recording - Deforestation-Free Global Value Chains
Contact information
If you have any questions regarding this IAN or the EUDR, please contact Europe Trade Market Access Division.
Gaylene Podhajski
Acting Assistant Secretary
Plant Export Operations Branch