The start of the EU Deforestation-Free Products Regulation - #EUDR - is rapidly approaching. Operators (retail, trade, online sellers, brand owners, etc.) must prove that no deforestation occurs at a specific site. This regulation will replace the existing EU Timber Regulation by the end of this year.
The outcome of the combined due diligence efforts required by the EUDR is a Due Diligence Statement (#DDS) that has to be submitted to a new EU Deforestation Information System. This must be completed before products can be placed on the EU market. After registration of your DDS you will get a confirmation number that needs to be part of your import documentation. This new registration system will be connected to the EU Customs IT systems to ensure that only products with a registered DDS can enter. DDS registration has to be done 72 hours before the goods arrive at customs. There is no value threshold, so this also applies to express shipments, even samples.
The key question is: will this EU Deforestation Information System be ready in time and able to deal with the expected volume of information in a way that doesn’t hamper the flow of trading?
The pilot of the Information System started just before the end of 2023. The first results show that a lot still needs to be improved. With the 30 December 2024 deadline approaching quickly and the expectation that the system will only be available just before that date, very little time is left for the involved companies to adjust their processes. To make matters worse, initial concerns about a workable and timely system have not yet been fully addressed, and many red flags are raised to make that clear. EUSTAFOR (
https://eustafor.eu/)
the European State Forest Association, claims that the information system “needs significant improvement,” and a coalition of associations sent a letter to the President of the European Commission stating,
“the system is not yet on track to meet the requirements of properly functioning supply chains.” (Also enclosed documents.)
Worryingly, the introduction of this far-reaching regulation may be frustrated by faltering IT systems, creating opportunities for circumvention by parties that are ‘less compliant’ with legislation.
At ProductIP, we are continuing to monitor the developments. Set your email preferences with us via
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PS: Did you know that registration of a DDS is also relevant before exporting products covered under the new #EUDR from the EU?