EUDR: What you need to know

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2026
BDO Customs & International Trade Updates
EUDR: What you need to know

EUDR: What you need to know

The EU Deforestation Regulation (EUDR) is a new piece of legislation aimed at reducing the European Union’s contribution to global deforestation and forest degradation. It forms part of the EU’s broader sustainability and climate agenda and places new obligations on companies that produce, trade, or use certain commodities linked to deforestation.

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The goals of EUDR include:

Ensuring all in scope products placed on the EU Market are deforestation-free and legally produced
Improving supply chain transparency and traceability
Strengthening enforcement and accountability, with meaningful penalties for non-compliance
Lowering carbon emissions and slowing climate change by curbing deforestation.

How does it apply?

The EUDR applies to 7 commodities and their related products, selected because of their strong links to deforestation.

Cattle (beef)
Coffee
Cocoa
Palm oil
Rubber
Soy
Timber

These relevant commodities / products must not be sourced from land which has been deforested after 31 December 2020.

Key dates

30 Dec 2026: applies to non-SME operators & traders
30 Jun 2027: applies to SME operators / traders and micro & small primary operators

Businesses in scope will need to:

Identify their role within the supply chain: obligations will differ based on whether a business acts as an operator or trader, upstream or downstream, and SME, etc.
Conduct due diligence: companies must collect detailed information on their supply chains, in particular the geolocation of the land where the relevant commodities were produced
Assess & mitigate risk: companies must assess the risk that relevant commodities have been produced from deforested land and take steps to reduce this risk where necessary. More complex supply chains will increase risk.
Submit a Due Diligence Statement: companies must submit a due diligence statement prior to placing relevant products on the EU market.
Maintain records: documentation must be retained and made available to authorities upon request.

What does this mean for Businesses?

Stricter traceability requirements: gathering accurate geolocation data and collecting, retaining and passing on DDS reference numbers / Simplified Declaration Identifiers where required.
Greater compliance burden: the regulation introduces new administrative and governance responsibilities, particularly around due diligence, reporting, and audit readiness.
Increased supplier engagement: strengthening supplier engagement is vital for collecting necessary data and reducing risk of non-compliance.
Potential commercial impacts: non-compliance can result in a range of costly impacts, ranging from fines and penalties to being prohibited from placing products on the EU market and reputational damage.

How BDO can help:

Assess EUDR readiness
Identify your role in the supply chain
Examine your product portfolio to highlight in scope products
Identify compliance gaps
Build practical implementation plans
Supplier engagement and contract support
EUDR Training

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BDO Global Trade Services

As Global Trade becomes more complex, and more subject to risk, we can advise on your trade implications in a Geo-Political context, assess the Risk Landscape and provide proactive duty planning, ensuring security of supply, and support in accessing new markets. In addition, we can provide Board Level briefings in order to support and advise in this new environment. If you think any of these updates could affect your business, don’t hesitate to contact us for further information or to arrange a consultation.

This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO to discuss these matters in the context of your particular circumstances. BDO, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it. BDO is authorised by the Institute of Chartered Accountants in Ireland to carry on investment business. BDO, a partnership established under Irish Law, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO International network and for each of the BDO Member Firms.