There is still a lot of uncertainty about the EUDR, but one thing is certain: it’s coming. Although many organizations are urging the EU to postpone the implementation of this regulation, it currently appears that it will come into force on December 30, 2024. How do you prepare as a timber company for this new EU regulation without having answers to all your questions? Focus on what you already know and follow this EUDR checklist.
In short, the following 7 raw materials are covered by the EUDR:
But the EUDR also applies to derived products such as leather, furniture, and chocolate. An overview of all products and HS codes can be found in the first annex of the EU regulation.
Are you the first company to place products on the EU market or create a new product listed in Annex 1 of the EUDR? Then you are considered an economic operator and must establish your own due diligence system.
In all other cases, you are considered a trader. Whether you as a trader need to establish your own due diligence system depends on various factors, such as the size of your company.
Do you have fewer than 250 employees and less than €50 million in turnover or a balance sheet total of less than €43 million? Then, according to the EU, you are considered an SME or micro-enterprise.
As an economic operator, SMEs and micro-enterprises have the same obligations as large enterprises, namely: you must establish your own due diligence system. However, if you are an SME or micro-enterprise that does not deal in wood or wood products, you only need to comply with the EUDR from June 1, 2025.
As a trader, SMEs and micro-enterprises are not required to have their own due diligence system, but other obligations apply, which you can find below. If you are an SME or micro-enterprise that does not deal in wood or wood products, you only need to comply with the EUDR from June 1, 2025.
As a large trader, you have the same obligations as an economic operator and must establish your own due diligence system.
Do you need to establish a due diligence system? Implement it now so you’re ready for the EUDR on December 30, 2024. Hire a specialized company for this or set it up yourself. You can find tips for this on the NVWA website. Once the EUDR is in effect, you will need to make a due diligence declaration for each shipment and upload it to the European Information System (which is still under development).
Don’t need a due diligence system? Then, if you fall under the EUDR, you must still track which suppliers you purchase your products or raw materials from and to whom you sell your products (if they are not private individuals). You must also provide the reference numbers of your suppliers’ due diligence statements and keep this documentation for five years.
Use the remainder of the year to read up and find out what the EUDR means for your business. You can find a lot of information on the European Commission’s website and also on the NVWA website.
As a software provider for the timber industry, acadon’s goal is to help our customers comply with EUDR obligations. We actively gather solutions in close contact with organizations like GD Holz.
However, implementing software without clear guidance from legislators brings the risk of errors. That’s why acadon also focuses on what we know: we enable the tracking of reference numbers in our ERP solution for timber companies.
To avoid errors in our software, collecting information, conducting risk analyses, or implementing an interface linked to the APIs of the European Information System are not yet on our priority list. This may change in the future once our key questions are answered.
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More EUDR:
1. EUDR Webinar
2. EUDR Software
3. European Union Deforestation Regulation
