Study Guide

Deforestation occurs when forests are permanently cleared, often for agriculture, mining, or construction. Forest degradation weakens forests so they can no longer support biodiversity, carbon storage, or ecosystem services. Both processes contribute significantly to climate change, biodiversity loss, and soil and water degradation.

Customs authorities are increasingly implementing deforestation‑related controls by requiring proof that certain commodities entering the market are deforestation‑free and legally produced. This includes verifying that products are not derived from recently deforested land and ensuring compliance with environmental and land‑use laws in the country of origin.

The European Union has implemented the Deforestation Regulation (EUDR), which aims to prevent products linked to deforestation and forest degradation from entering the EU market. Its purpose is to reduce the EU’s contribution to global deforestation by ensuring that relevant commodities and products are Deforestation‑free and legally produced in the country of origin.

The regulation covers seven key commodities: cattle, cocoa, coffee, oil palm, rubber, soy, and wood, as well as a wide range of derived products such as leather, chocolate, furniture, paper, tyres, and palm‑oil derivatives. Under the EUDR, operators and traders must:

•          Ensure full traceability, including geolocation coordinates of the land where the commodity was produced
•          Conduct risk assessments and risk mitigation
•          Submit due diligence statements before placing goods on the EU market
•          Demonstrate that products are deforestation‑free and legally produced

Customs administrations may verify documentation, inspect goods, check geolocation data, and block or prevent the import of non‑compliant products. Implications for businesses sourcing from high‑risk regions include:

01 Supply chain changes Companies may need to shift to certified or verified deforestation free suppliers and invest in traceability systems.

02 Increased Due Diligence requirements Businesses must implement robust due diligence procedures to ensure compliance with the EUDR and similar regulations emerging globally.

03 Market assess risks Companies sourcing from areas with high deforestation risk may face higher compliance costs, delays, or loss of access to the EU market.