EUDR Update: Commission Publishes Review of EUDR, Updates Guidance and Introduces Delegated Act Changing Product Scope

On May 4th, the EU Commission released a package of measures related to EUDR including a review of the simplified regulation, updated guidance and FAQs, and proposed delegated acts updating the product scope. Here are the key points of clarification around scope, due diligence obligations and timelines that you need to know.

December 30th Timeline Reaffirmed

No further extensions were proposed in the Commission's review of the regulation. The regulation will go into effect on December 30, 2026 for large and medium-sized companies and June 30, 2027 for small and micro operators that are not already covered by the EU Timber Regulation.

Proposed Changes to Product Scope

The EU has introduced draft delegated acts to make changes to the EUDR product scope, pending approval from the Member States.

Soluble coffee has been added as a downstream product that is now in scope, as well as palm oil derivatives that were previously excluded (such as soaps). Downstream products that will now be excluded from scope include leather and retreaded tires, as well as exemptions for packing materials that were not already excluded, used and second-hand products and waste products. Finally, the Annex more precisely identifies the scope for downstream products for rubber, wood and beef.

The draft Delegated Act proposing these changes to the EUDR scope are open for public feedback until June 1st. Feedback can be submitted via the Have Your Say Portal.

Passive Due Diligence for Downstream Supply Chain

The updated guidance and FAQs clarify that the obligation of the first downstream operator / trader to collect and keep reference numbers or declaration identifiers is passive. In other words, it is the responsibility of the the primary operator (i.e. the operator placing the good on the EU market for the first time) to pass reference numbers along downstream. It is not the responsibility of the first downstream operator / trader to proactive ask its suppliers for information. The downstream operator or trader, acting in good faith, can presume that its suppliers are not upstream operators if it does not receive reference numbers or declaration identifiers from them.

Operators and traders further downstream have no obligation to retain the reference numbers of upstream products, and must instead only retain the information of the companies that they sell EUDR-relevant products to.

Clarification for Re-imported Products

Products or commodities that have been placed on the EU market, exported, transformed and then re-imported are considered downstream products as long as they are covered by an existing due diligence statement and re-importers can provide evidence of the original import. The guidance and FAQs provide examples of evidentiary documentation that can serve as such evidence to customs authorities. Should re-importers not have the original reference number from the original import, they can make use of the 'conventional reference number' option.

Clarification Around Definitions for Simplified Due Diligence Obligations for Products Sourced from Low-Risk Countries

Operators sourcing from low-risk countries benefit from simplified due diligence and are not required to carry out a full risk assessment or adopt risk mitigation measures under the law. This means that while they still must submit a DDS to EU TRACES as the primary upstream operator, they do not need to conduct deforestation analysis on those polygons nor do they need to conduct a full legality risk assessment unless they obtain or are made aware of information that would point to a risk that the relevant products do not comply with the EUDR.

Potential for Extended Downtime for EU TRACES Due to Introduction of Implementing Act

Finally, the extended downtime of the EU TRACES system may continue into June, as the EU has introduced an implementing act to enhance the TRACES processing capacity, data handling and operational resilience. In addition to updating the system to reflect the changes introduced by the revised Regulation in December, main developments introduced in this implementing act include:

• Registration of new roles created by the 2025 EUDR amendments;

• Enabling simplified declarations to be submitted, following the existing due diligence statement format and aligned with EUDR revisions;

• A simplified declaration form for micro and small primary operators, aligned with the existing due diligence statement format;

• Updated specifications for the automated application interfaces;

• A contingency plan for unplanned unavailability;

• A voluntary grouping feature introduced in response to requests from the business sector.

The implementing act must be approved by the Member States, and once submitted is expected to take 1-2 months for review and approval.

With the December 30th timeline confirmed - and new products added to the scope - companies should ensure they are fully prepared to meet the EUDR deadline as soon as possible. To learn more about how Sourcemap can support your company with EUDR compliance, reach out to a member of our team today.