What is the EUDR?

The EUDR (European Union Deforestation Regulation) is a new European Union regulation (No 2023/1115 of 31 May 2023) establishing strict requirements to combat deforestation and forest degradation. The aim of the EUDR is to remove from the EU market products whose sourcing has contributed to the destruction of forests – whether through illegal or legal logging. The regulation has replaced the previous timber regulations (EUTR), extending their scope to a range of raw materials and goods linked to deforestation.

Which products does the EUDR cover? The regulation applies to the placing on the EU market (and export from the EU) of seven groups of raw materials associated with the risk of deforestation. These include, amongst others: soya, beef (cattle), palm oil, timber, cocoa, coffee and rubber – as well as derived products such as leather, chocolate, paper and furniture. The EUDR prohibits the sale or export of these goods if their production involved deforestation after 31 December 2020 or contravenes the laws of the country of origin. In other words, a trader must prove that the products being imported or sold are ‘deforestation-free’ and have been produced legally. The new law is intended to give consumers confidence that products available on the EU market have not contributed to the destruction of forests.

Due diligence obligations. To meet the requirements of the EUDR, companies must implement a due diligence system across their supply chain. In practice, this involves gathering detailed information on the origin of raw materials, conducting risk assessments, and documenting measures to ensure compliance with the regulations. Companies must gather evidence that their products do not contribute to deforestation and are legally compliant – including precise geolocation data for the production site of each raw material, production dates, information on suppliers and recipients, a description of the goods and their quantities. Each consignment of goods should be linked to a specific plantation or plot, enabling verification that the area in question has not been deforested. Additionally, companies are required to retain all documentation and declarations confirming due diligence for a minimum of five years in the event of an inspection by supervisory authorities.

The EUDR Regulation, which has been in force since 2023, was updated at the end of 2025 and is directly applicable in all EU countries, including Poland. In its current form, it sets out strict requirements for specific sectors covered by the regulation regarding the placing on the EU market and export of certain goods linked to deforestation and forest degradation – including timber, furniture, paper products, coffee, cocoa, soya, palm oil and cattle. Every company operating in this sector, depending on its role in the supply chain, will have to adapt its documentation and operations to the criteria set out in the aforementioned Regulation.

Why should the EUDR requirements be implemented?

To comply with the law and avoid penalties. The EUDR is not a voluntary standard – it is binding EU law, and failure to comply carries severe consequences. Non-compliance carries the risk of severe financial penalties (fines of up to 4% of a company’s annual turnover), confiscation of the products in question or profits from their sale, temporary exclusion from public procurement and grants, and even a ban on placing goods on the EU market. A breach of the EUDR regulations may therefore result not only in financial losses but also in the loss of access to the European market. Implementing the requirements of the regulation helps to minimise these risks and ensure the continuity of the company’s operations.

Protecting the supply chain and the company’s reputation. Compliance with the EUDR enhances the security and transparency of the supply chain. Identifying the origin of raw materials and eliminating high-risk suppliers protects the company from sudden supply disruptions (e.g. the blocking of imports of goods that do not comply with regulations). By implementing supplier control mechanisms and crop geolocation, the company gains greater control over the quality and legality of raw materials. This translates into building trust among customers and business partners, who increasingly expect guarantees that products are manufactured with respect for the environment. A company that meets the EUDR requirements can boast the status of a responsible supplier, which strengthens its brand and competitive advantage. In the agri-food, forestry and raw materials trading sectors, compliance with the EUDR may become a prerequisite for cooperation – companies that implement these requirements early on will gain an advantage in tenders and commercial negotiations.

Long-term business benefits. Implementing the EUDR is an investment in sustainable development and business resilience. A transparent supply chain free from illegal deforestation means lower reputational and operational risks (e.g. those associated with future regulatory changes or consumer boycotts). Furthermore, companies that adhere to sustainable production principles find it easier to establish partnerships with international partners and can count on the support of investors and financial institutions that prioritise ESG considerations. The EUDR is part of a global trend towards stricter environmental responsibility standards – meeting these requirements now will prepare a company for future regulations in the areas of climate protection and human rights in supply chains. In summary, implementing the requirements of the regulation is not only a matter of legal compliance, but also an opportunity to strengthen one’s market position by conducting business in an ethical and sustainable manner.