The updated guidance includes simplification measures allowing due diligence statements’ reuse, annual submission, and management by authorised representatives on behalf of companies.
By Paul A. Davies, Michael D. Green, James Bee, and Toon Dictus
On 15 April 2025, the European Commission (the Commission) announced measures to simplify the implementation of the EU Deforestation Regulation (EUDR), which is set to apply from 30 December 2025. This initiative is part of the Commission’s more general ongoing focus on streamlining regulatory processes while continuing to apply the overall ambitions of the Green Deal. As part of the simplification measures concerning the EUDR, the Commission published (1) an updated Guidance Document, (2) an updated FAQs document, and (3) a draft Delegated Act.
Background and Implications
The EUDR aims to ensure that certain commodities and goods (the relevant products) sold on, or exported from the EU market do not contribute to deforestation and forest degradation, which are considered significant drivers of climate change and biodiversity loss. Before making the relevant products available on the market or exporting from the EU, the EUDR requires operators and traders (as in-scope companies are referred to in the EUDR) to confirm that the relevant products are: (1) deforestation-free, (2) produced in accordance with the laws of the country of production, and (3) covered by a due diligence statement. For more details on the EUDR, see our previous blog post.
The updated Guidance Document and FAQs were a measure announced by the Commission following the 2024 trilogue negotiations with the Council and the European Parliament on the additional phase-in time for the EUDR. The Commission’s commitment to these updates served as a compromise for the European Parliament agreeing to drop the proposed amendments introducing simplifications as part of the legislative text of the EUDR. See our prior article on these developments for further information.
The updates reflect feedback from Member States and are expected by the Commission to lead to a 30% reduction in administrative costs and burdens for companies.
Key Simplification Measures
Some of the most notable simplification measures introduced by the Commission through the updates are:
- Reuse of Due Diligence Statements (DDSs): Large companies can now reuse existing DDSs when relevant products previously on the EU market are reimported, reducing the level of information required to be processed through the IT system.
- Authorised Representatives: Further clarifications on the role of authorised representatives are being provided. An authorised representative can submit DDSs on behalf of members of company groups, streamlining the submission process.
- Annual Submission: Companies are permitted to submit DDSs annually instead of in respect of every shipment or batch placed on the EU market, potentially significantly reducing the number of DDSs required.
- Simplified Obligations: The Guidance Document provides clarifications on the requirement to “ascertain” that due diligence has been carried out, allowing large companies downstream in the value chain to benefit from simplified diligence and reporting obligations. Such large companies will now be primarily focused on collecting reference numbers of DDSs from suppliers and using those references for their own DDS submissions.
These measures are expected to ease data entry for users and aim to respond to key industry demands for simplification.
A Delegated Act (the Act) will also be introduced to complement the simplification measures. The Act will provide necessary clarifications on the scope of the EUDR, with the Commission outlining in particular that guidance on specific categories of products will be provided. A draft of the Act has now been published and a platform has been established for public consultation, both of which can be accessed here.
As a further update, the Commission is also finalising the country benchmarking system through an Implementing Act, which is set to be adopted by 30 June 2025. This system will further support the EUDR’s implementation by providing clarity on countries’ risk statuses, which in turn will inform the due diligence required by companies. As such, the Commission is continuing the work on the tools necessary to comply with the EUDR.
The Commission has published its revised Guidance Document here, and its revised FAQs document here.
Conclusion
The Commission hopes that the simplifications mark a significant step towards efficient and effective implementation of the EUDR, which has previously been delayed by a year to allow companies and competent authorities additional time to prepare for compliance and implementation.
We will continue to monitor developments and provide updates on the implementation of the EUDR as further guidance and measures are introduced.
This article was prepared with the assistance of Ronan Foley in the London office of Latham & Watkins.