Classification of goods and related products – EUDR criteria

By implementing the provisions of EU Regulation 2023/1115 on deforestation-free products, the European Commission has imposed an obligation on European companies to ensure that goods they place on the EU market or export from it do not contribute to processes harmful to the environment, such as deforestation, global forest degradation and greenhouse gas emissions.

Determining which goods and products are covered by the requirements of the Regulation and what role HS codes play in establishing this is one of the first steps a company should take if it wishes to operate in the EU market in accordance with the requirements of the EUDR.

Covered goods and covered products under the EUDR

The EUDR aims to restrict the import and sale of raw materials and products that are linked to deforestation or originate from areas at risk of deforestation.

This applies to both goods originating within the EU and those imported from third countries.

The basic principle of the EUDR is that, regardless of the country of origin of a given commodity or related product listed in Annex I to the Regulation, it is subject to specific EUDR obligations.

Key commodities

Annex I to the EUDR sets out an exhaustive list of seven basic raw materials, referred to as ‘commodities’. These include:

• timber,
• cocoa,
• coffee,
• palm oil,
• rubber,
• soya,
• cattle.

Related products

The EUDR Regulation also covers another group of products. These are the so-called ‘related products’, which (together with their assigned HS codes) are listed in Annex I to the Regulation.

• According to Annex I, a product may be considered a related product if:
• it contains any of the seven related goods listed above,
• it has been fed to an animal (e.g. in the case of cattle), or
• it has been produced using such a good.

According to this definition, the scope of the relevant products subject to the obligations under the Regulation is very broad. Among the listed derivative products are, inter alia:

• wood derivatives: furniture, chipboard and fibreboard, paper, books, newspapers,
• made from cocoa: cocoa butter, chocolate and chocolate confectionery,
• made from soya: animal feed and food products (soya meal and soya oil),
• derived from cattle: meat and leather,
• coffee: a wide range of coffee-containing products,
• made from natural rubber: tyres, footwear, industrial goods,
• containing palm oil: cosmetics, food, biofuels.

HS codes and their application in relation to Annex I of the EUDR

The Harmonised System, which comprises a comprehensive yet clear system of HS codes, is an international customs system used to classify goods in international trade.

In the context of the Regulation, HS codes play a key role in identifying selected derived products. On this basis, a company can determine the correct HS code for a derived product that it exports or imports outside the EU, as well as check whether a derived product that it manufactures or places on the market is subject to the EUDR.

It is very important for businesses to note that not all derived products made from or containing a derived product are covered by the EUDR. It should be remembered that the EUDR requirements apply only to those derived products whose HS codes are listed in Annex I to the Regulation. We encourage you to familiarise yourself with our EUDR implementation services for your company LINK