EUDR Regulation regarding deforestation - proposed simplifications

On October 21, 2025, the European Commission published a statement proposing simplifications to Regulation (EU) No. 1115/2023 concerning certain commodities and products associated with deforestation and forest degradation (“EUDR”). The European Parliament and the European Council will review the Commission's proposal and are expected to adopt the amendment to the Regulation before its entry into force on December 31, 2025.

Among the most significant simplifications proposed by the Commission are the following:

• Operators and traders downstream, i.e., those who market EUDR products (such as palm oil, soy, coffee, cocoa, timber, beef, and some derived products: chocolate, tires, wooden articles, books), will no longer be required to submit due diligence statements once these products have entered the EU market. A single submission in the EUDR information system will be necessary at the point of entry into the market for the entire supply chain.

• Micro-enterprises and small primary operators will only need to submit a single simplified due diligence statement in the EUDR information system; if the information is already available, for example in a member state database, they will not need to take any action in the information system.

• A transition period is proposed to ensure a smooth transition and to strengthen the information system, as follows:
  • The entry into force for micro-enterprises and small businesses is postponed until December 30, 2026.
  • The entry into force date remains December 30, 2025, for large and medium-sized enterprises, but they will benefit from a six-month grace period for inspections and compliance with the regulations.

What does this mean for You?

We recommend that companies involved in the import/export of products subject to the EUDR plan ahead for the implementation of the new regulations.

Please be reminded that in cases of non-compliance with Regulation (EU) No. 1115/2023, authorities may impose severe penalties, including fines (the amount of such a fine is at least 4% of the total annual turnover at the EU level obtained by the operator or trader in the financial year preceding the decision to impose the fine), confiscation of products or revenues from their sale, and marketing bans.

The EY team is available for further details regarding the above-mentioned points.