European Commission Publishes Updated EUDR Guidance, FAQs, and a Draft Delegated Act, in a Bid to Provide Further Simplifications

This month, the European Commission published updated guidance, FAQs, and a draft Delegated Act for consultation, in order to “[provide] further simplifications and [reduce] the administrative burden to facilitate the implementation of the EU Deforestation Regulation (EUDR)”.[1] Although no changes have been made to the EUDR itself (beyond the amendments to Annex I as set out in the draft Delegated Act), the updates provide further clarity, including in relation to ascertaining that due diligence has been properly carried out upstream, the status of re-imported products, and product scope. 

Context

As covered in our previous blogs, the EUDR has attracted a degree of controversy in the past. In October 2024, the Commission proposed delaying its application by one year, likely in response to concerns over compliance readiness. The delay was agreed by late December, but getting there was not plain sailing, with the European Parliament suggesting a number of amendments (which were not taken forward) which risked opening up the substance of the law to negotiation once more. Those amendments largely sought to reduce due diligence and documentation requirements. At the time, the Commission promised to update the guidance and FAQs, which can be seen, in part, as a compromise, and a way to address concerns raised about the administrative burden of complying with the EUDR. 

Since December, the Commission has also launched its first sustainability ‘omnibus’ simplification package. Whilst the package does not propose changes to the EUDR, the updated guidance, FAQs, and draft Delegated Act come at a time of considerable focus on simplification and competitiveness  and should therefore be seen in this light. Indeed, in its press release, the Commission noted that the changes will lead to an estimated 30% reduction of administrative costs and burden for companies.

Revised guidance and FAQs

Key updates and clarifications in the updated guidance and FAQs are as follows: 

• Obligations of downstream non-SME operators and non-SME traders, in relation to ‘ascertaining’ that due diligence has been properly carried out: the EUDR requires downstream non-SME operators and non-SME traders to ascertain that appropriate due diligence has already been carried out by the relevant upstream operators or traders. The FAQs clarify that downstream non-SME operators and non-SME traders can fulfil this requirement by collecting the reference numbers and verification numbers of due diligence statements (DDS) submitted upstream, and verifying the validity of the reference numbers. They can then submit their own DDS, referencing all previous DDS received from their direct suppliers. Additionally, ascertaining that due diligence was properly carried out does not require collection of the information required by Article 9 EUDR (which sets out information, documents and data to be collected to demonstrate that products are deforestation-free). However, the FAQs note that as non-SME operators and non-SME traders still retain legal responsibility in the event of a breach of the EUDR, they could “choose to take further steps when ascertaining that due diligence has been carried out”. This could include checking the information provided in previous DDS for completeness and plausibility.
• Re-importing products: the FAQs clarify that where an operator re-imports a product that was previously exported from the EU market, it will be considered a downstream operator, and as a result more simplified obligations will apply. Non-SME operators will be able to rely on existing DDS to ascertain that due diligence was exercised upstream, and SME operators would not need to carry out due diligence. A statement that products are considered as new products when entering the EU market again has been deleted from the guidance. 
• Application to company groups: the FAQs note that company groups can mandate one of their members as an authorised representative to submit DDS on behalf of all members of the group (although legal responsibility for compliance with the EUDR remains with the individual operators and traders). 
• Application to SMEs: the FAQs confirm that there is no legal obligation for an SME trader or SME downstream operator to submit a DDS; as a result, non-SME companies downstream of these SME traders or operators cannot rely on the EUDR to require them to submit a DDS. The FAQs do not stipulate what non-SME downstream companies should do in this situation; options could include referring to DDS submitted further upstream, and supplementing this with further due diligence or checks if thought to be necessary in the circumstances.
• Product scope and application to composite products: both the FAQs and the guidance provide additional clarifications as to the products that are in scope of the EUDR, including in relation to packing and packaging materials. The guidance also provides additional explanation on the extent of the due diligence obligation for composite products, which confirms that the due diligence obligation extends only to the relevant products listed under the commodity deemed relevant in Annex I of the EUDR. 
• Annual submission of DDS: the Commission’s press release also notes that the updated guidance and FAQs permit companies to submit DDS annually, instead of for every shipment or batch placed on the EU market. A statement to this effect was included in the previous version of the FAQs (with one year phrased as a maximum), but the recent revision has added practical clarifications, for example to explain that although DDS should cover commodities that have already been produced, it is not necessary that individual products have already been manufactured – for example, if wooden furniture is included in a DDS, while the trees should have been “harvested” at the time of submission, the furniture does not have to have already been manufactured. 

The press release confirms that the Commission is currently finalising the country benchmarking system (a system for assessing countries or parts of countries and classifying them into risk categories, which may reduce the scope of obligations in respect of commodities coming from lower-risk countries) through an Implementing Act. This will be adopted no later than 30 June 2025 following discussions with Member States.

Draft Delegated Act

The draft Delegated Act proposes to amend the EUDR as regards the list of relevant commodities and relevant products set out in Annex I. The Act clarifies the range of products outside the scope of the EUDR, including in relation to products that can be manufactured with commodities that are not listed in Annex I; waste, second-hand and used products; samples of products; and packing materials and containers. It is currently open for public consultation, which closes on 13 May 2025.[2]

The updated guidance, FAQs, and draft Delegated Act are likely to provide welcome clarity to companies preparing to comply with the EUDR. As noted above, no changes have been made to the EUDR itself (beyond the amendments to Annex I as set out in the draft Act). Whilst the FAQs and guidance provide an indication of how the EUDR is likely to be enforced in practice, compliance procedures should continue to be formulated with careful reference to the requirements in the underlying legislation. For example, although the FAQs note that ascertaining that due diligence has been properly carried out can be limited to referencing previous DDS, Article 4(10) of the EUDR continues to apply, which states that any operator referring to a previous DDS “shall retain responsibility for the compliance of the relevant products”. Careful judgements may need to be made as to whether or not to take further steps to support compliance in certain instances, for example if there are well-founded concerns as to the quality of upstream DDS.

For more information on the EUDR, including on how businesses are preparing, please speak to your usual contact at Slaughter and May. 

[1]Commission takes action to simplify the implementation of the EU Deforestation Regulation

[2]Delegated Regulation amending Annex I of Regulation (EU) 2023/1115 (EU Deforestation Regulation)