Key takeaways
Removal of requirement to submit a due diligence statement for downstream operators and traders
To address the significant volume of submissions in the EUDR IT system and the administrative burden imposed on companies by the EUDR, the proposal put forth by the Commission sets out a new defined "downstream operator" category. Under the proposal, downstream operators and traders would no longer be required to submit a DDS or "ascertain" that due diligence has been exercised. Instead, only a single DDS submission at the entry point in the market would be required for the entire supply chain of the relevant product. Downstream operators and traders would still be required to register in the information system (if non-SME), retain relevant data, and collect and pass on DDS reference numbers.
Currently, downstream non-SME operators and non-SME traders are required to submit a DDS and "ascertain" that due diligence has already been undertaken by an entity above them in the EU supply chain (or conduct due diligence to the extent not already conducted by an entity above them in the EU supply chain). The Commission's proposal would therefore result in a significant simplification compared to the current approach, as it effectively removes the requirement for a DDS to be submitted by entities at multiple stages along a product's supply chain.
New category of micro and small primary operators
The Commission is also proposing the introduction of a new sub-category of operators, "micro and small primary operators", who would be entirely exempt from submitting a DDS. This new subcategory is intended to cover natural persons or micro- or small-sized enterprises established in a country classified as low risk - whether within or outside the EU - where they place the relevant product on the market or export it themselves. According to the Commission, this new category would cover nearly 100% of farmers and foresters in the EU.
Instead, micro and small primary operators would be required to submit a one-time simplified declaration in the information system. This requirement will not apply to micro and small primary operators where this information is already available in national databases because they are already subject to equivalent traceability and reporting requirements under existing EU legislation.
Updates to EUDR timeline and enforcement
Two key timeline adjustments have been introduced by the proposal. First, micro- and small businesses will benefit from a delay in the application of the EUDR to 30 December 2026. Second, for large and medium-sized companies still subject to the EUDR from 30 December 2025, a six-month grace period for checks and enforcement by national competent bodies will apply until 30 June 2026. This buffer period is designed to give businesses additional time to align their operations with the EUDR's requirements.
Next steps
The Commission's proposals must be approved by the European Parliament and Council. The Commission has confirmed that it is working on contingency plans in the event the proposals are not adopted by the co-legislators before the current date of application of 30 December 2025.
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