Simplification report on the EU Deforestation Regulation (EUDR), along with updated guidance and proposed amendments

• The simplification report states that no further amendments will be proposed to the EU Deforestation Regulation. This means that the Regulation itself will no longer be subject to the EU legislative process, and the content of the Regulation will not be amended.

• Updates to the guidance documents specifically concern the definition of the scope of application and the allocation of roles, as well as certain clarifications regarding application issues and the application of the principle of proportionality.

• The delegated regulation, currently published as a draft, on one hand expands the scope of application, and on the other hand introduces new grounds for exemptions. For example, palm oil derivatives will fall within the scope of application, while leather and coated tires, among other things, will be removed from the scope. The exemptions are clarified, and in the future, they would apply, for example, to packaging materials in certain contexts, used products, and products or materials classified as waste. The delegated regulation is a draft, and the consultation period remains open until June 1, 2026.

• The simplification report describes the measures taken and proposes further actions. Based on stakeholder feedback, five key areas were identified where further clarification and simplification were desired: the status of micro- or small producers, the obligations of downstream operators in the supply chain, due diligence obligations, certain ambiguities regarding the scope of products, and the development of the information system.

• The database aspect is being refined: the use of the EUDR database will be made easier, and the Commission will launch entirely new databases on legislation and certification. The Commission has announced its intention to establish two databases: one will compile relevant legislation from countries of origin, and the other will cover certification systems applicable to goods and products falling under the scope of the EUDR. The Commission plans to launch the databases before the EUDR starts to apply in December 2026.

1. Micro and small operators: a one-time simplified statement

A new category—micro or small producers—was introduced into to the Regulation in the 2025 amendment. This applies to micro or small enterprises (or natural persons) established in low-risk countries that, in the course of their commercial activities, place on the market or export products that they have themselves cultivated, harvested, or reared on specific land areas. These operators—in practice, farmers and forest owners—will no longer be required to submit a due diligence statement (DDS) every time they place a product on the market or export it. Instead, they need only submit a one-time simplified statement and pass on the corresponding statement identifier to operators or traders further down the supply chain.

In practice, even a larger company may meet the criteria for a micro- or small-scale producer if it can demonstrate that its business activities related to the relevant commodities and products meet the criteria for that category of enterprises. Furthermore, the simplified statement does not need to be updated if the annual production volume of the product changes.

Micro or small producers have the option of using authorized representatives to submit information on their behalf.

2. Downstream operators: passive obligation, no active duty to investigate

With the simplifications introduced by the Regulation, the due diligence obligation now applies only to the first operator who places an EUDR product on the EU market or exports it from the EU market. Downstream operators and traders are no longer required to submit their own due diligence statements to the information system or to ensure that due diligence has been exercised throughout the supply chain. Instead, their obligations are primarily limited to registering to the EUDR information system (for entities other than SMEs) and receiving the reference numbers of DD statements when the entity placing the products on the EU market for the first time is their direct supplier.

A key clarification concerns the principle of passivity: the obligation of the first downstream operator to collect and retain DD statement reference numbers or notification identifiers is passive in nature. The downstream operator is therefore not required to actively investigate the supply chain or actively request a reference number or statement identifier from their supplier. A downstream operator or trader may in good faith assume that the supplier is not an upstream operator if the latter does not provide them with reference numbers or statement identifiers.

In summary: Downstream operators and traders are not required to comply with the due diligence obligation themselves, provide DD statements, or ensure that due diligence has been carried out further up the supply chain. However, they must collect and retain certain information and provide it to the competent authorities upon request.

3. Legality requirement and risk-based verification

Regarding the due diligence obligation, the Commission reaffirms the principle of proportionality. A comprehensive risk assessment should be targeted at supply chains, production areas, and countries of origin where a preliminary review of available information indicates a higher risk. Conversely, in those supply chains, production areas, and producing countries where a preliminary review indicates a negligible risk, operators should not be required to conduct such in-depth additional data collection and risk assessment.

When sourcing from low-risk countries, the obligations are more limited: operators sourcing from low-risk countries who apply the simplified due diligence obligation are not required to conduct a risk assessment or take measures to mitigate risk, unless they become aware of, or are made aware of, information indicating a risk that the product does not comply with the Regulation.

Since micro- or small-scale producers, by definition, source exclusively from low-risk countries, they generally do not need to conduct risk assessments or implement risk management measures unless they become aware of information indicating otherwise.

4. Changes to the scope: additions, deletions, clarifications

As part of the report’s publication, the Commission also released a draft delegated regulation amending the product list in Annex I to the EUDR. The proposed additions aim to address gaps in supply chain obligations.

It is proposed to add, among other things,

• Instant coffee (HS 2101 11 00 Coffee extracts, essences, and concentrates)

• Certain palm oil derivatives, including soap made from palm oil.

It is proposed to remove the following from the scope

• Hides and skins, as well as bovine hides processed beyond the tanning or manufacturing stage (HS codes 4101, 4104, 4107) are removed from the scope of application, among other reasons, because EU operators in the leather value chain have limited leverage to require compliance information from their suppliers.

• For retreaded tires, the new approach limits obligations exclusively to the retreading rubber (HS 4012 90 30), as a retreaded tire is a used tire at the end of its life cycle, and the impact of the new rubber used in the retreading process on deforestation is relatively minor.

In addition, the draft includes clarifications regarding packaging materials, recycled and used products, and samples.

5. Information system and other measures to facilitate EUDR compliance

The EU’s EUDR information system will be reopened in phases, with the reopening scheduled for June 2026 for both the training and production environments. The key changes are.

• Submission of simplified reports following the format of the current DD statement and in accordance with the revised EUDR text, including via the API interface.

• Registration of new roles: micro- or small producers, as well as downstream operators and traders (other than SMEs).

Completely new facilitation measures include legislative and certification databases: the Commission has announced its intention to establish two databases: one will compile relevant legislation from producing countries, and the other will list certification schemes applicable to commodities and products covered by the EUDR. The Commission plans to launch the databases before the EUDR takes effect in December 2026.

In addition, the Commission has clarified the role of certification systems. The EUDR recognizes that certifications and other third-party verified systems can provide useful information on compliance as supporting evidence in risk assessments that products are legal and free from deforestation. However, this does not constitute automatic approval: the use of certification does not mean that the operator is exempt from the due diligence obligation. The operator remains liable if it fails to meet the EUDR’s due diligence obligations.

Simplification measures are expected to reduce the administrative burden and significantly simplify the requirements for companies falling within the scope of the regulation. In particular, the obligations of operators sourcing from low-risk countries, micro and small producers, as well as downstream operators and traders, will be eased.

Practical checklist:

• Be sure to check whether your product categories are covered by the list in Annex I of the EUDR. This basis for application has not changed, but the list of categories is being updated.

• Determine whether your company falls into the micro- or small-scale producer category. Note that even a part of a company may meet the criteria in certain cases.

• Analyze your own EUDR role in the supply chain: are you an operator placing products on the EU market for the first time and thus required to provide a DD statement for the goods/products, a downstream operator, or possibly both simultaneously for different products?

• Determine your suppliers’ positions in the supply chain.

• Check the risk classification of the countries of origin: procurement from a low-risk country qualifies for a simplified due diligence procedure without separate risk assessments or risk mitigation measures.

• Monitor the launch of the Commission’s databases before December 2026. Note, however, that it is not yet clear whether this information can be relied upon or whether you must primarily take the initiative to familiarize yourself with the content of the relevant legislation.

• Register in the EUDR information system as soon as it reopens in June 2026.

• Confirm the effective date of obligations and transition periods: EUDR obligations apply to most operators, downstream operators, and traders starting December 30, 2026. For operators established as micro or small enterprises by December 31, 2024, the obligations take effect on June 30, 2027, meaning such companies benefit from a longer transition period.

• Please note the separate timeline for products falling within the scope of the EU Timber Regulation.

There is still time to prepare, but taking control of supply chains takes time: it is advisable to begin the assessment process now at the latest.