Amendments to the act implementing the EUDR regulation have been submitted.
The Ministry of Climate and Environment has published guidelines for a draft law amending certain laws in connection with the implementation of measures to combat deforestation and forest degradation – the law will enable the implementation of the EUDR regulation.
What is EUDR?
The EUDR (EU Deforestation Regulation) is Regulation (EU) 2023/1115 of the European Parliament and of the Council on the placing on the market and export from the Union of certain goods and products related to deforestation and forest degradation and repealing Regulation (EU) No 995/2010. The Regulation prohibits the placing on the market, making available on the market or exporting from the market of products and goods covered by the Regulation, unless:
- they do not cause deforestation;
- they have been produced in accordance with the relevant legislation of the country of production;
- a due diligence statement has been submitted in their regard.
The Regulation covers goods such as cattle, cocoa, coffee, soy, rubber, timber and palm oil, which are referred to as: ‘covered goods’. In addition, the provisions of the Regulation also cover products derived from the above-mentioned raw materials, referred to as ‘related products’ (e.g. furniture, tyres, leather, chocolate).
Obligations under the EUDR
The Regulation imposes a number of obligations on businesses, the most important of which are set out below.
- Due diligence before placing products on the market
Entities placing products on the market are required to exercise due diligence towards their suppliers. For the purpose of due diligence, entities are also required to establish and maintain internal procedures.
- Obligation to collect information
Businesses must collect documents and data confirming that the products and goods placed on the market comply with the requirements of the Regulation.
- Risk assessment
Based on the information collected, businesses are also required to assess the risk of non-compliance of products with the requirements of the Regulation.
- Taking appropriate procedures for the purpose of reducing risk
If the assessment shows that the risk of non-compliance is more than negligible, the trader will have to implement measures to reduce it before placing the products on the market.
What are the provisions of the draft law amending certain laws in connection with the implementation of measures to combat deforestation and forest degradation?
Although the provisions of the EUDR are directly applicable, they are not exhaustive and need to be supplemented by national regulations.
The Ministry of Climate and Environment has proposed, among other things, the establishment of national bodies responsible for carrying out controls and other activities provided for in the Regulation – for specific categories of goods, these will be:
- Environmental Protection Inspectorate – for wood and products derived from this commodity;
- Trade Inspection – for rubber and products derived from this commodity;
- Agricultural and Food Quality Inspection – for cocoa, coffee, oil palm, soybeans and products derived from these commodities.
- Veterinary Inspection – for cattle and products derived from this commodity.
In addition, in accordance with the assumptions, the Act will provide, among other things, for the manner of submitting a due diligence declaration, together with the manner of informing the competent authorities of new information, as well as the procedures and powers of the competent authorities.
When will the EUDR Regulation come into force?
Regulation (EU) 2024/3234 of the European Parliament and of the Council has postponed the date of application of the provisions of the EUDR Regulation by 12 months.
This means that large and medium-sized enterprises will be required to apply the provisions from 30 December 2025, while small and micro-enterprises will only be required to do so from 30 June 2026.
How can we help?
Our law firm offers comprehensive legal support for businesses preparing to implement the provisions of the EUDR. The scope of our assistance includes, among other things, analysis of legal obligations and ongoing advice on the practical application of the provisions. We also support companies in developing and implementing due diligence procedures.
If you are interested in receiving additional information on the above, please do not hesitate to contact us.
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