EUDR Regulation 2023/1115: a complete guide for EU importers and manufacturers

What the EUDR Regulation is and to whom it applies

The Regulation (EU) 2023/1115 aims to reduce the European Union’s contribution to global deforestation and forest degradation.

The EUDR repeals the previous Regulation (EU) 995/2010 on timber (EUTR) and significantly expands its product scope.

The regulation applies to anyone who places on the EU market, exports from the Union or makes available products containing or derived from one of the seven commodities classified as at-risk:

• cattle;
• cocoa;
• coffee;
• oil palm;
• natural rubber;
• soy;
• wood.

For Italian importers purchasing wooden furniture, rubber accessories, leather footwear or cardboard packaging from non-EU suppliers, the EUDR sets three cumulative obligations:

• the product must be deforestation-free (no deforestation or forest degradation after 31 December 2020);
• the product must comply with the legislation of the country of production (land use, environmental protection, workers’ rights, anti-corruption, customs and tax discipline);
• the product must be accompanied by a Due Diligence Statement (DDS) lodged in the EU Information System before being placed on the market.

What changed with Reg. (EU) 2025/2650

The original architecture of the EUDR has been the subject of two successive regulatory interventions.

The first, Reg. (EU) 2024/3234, postponed the dates of application by twelve months.

The second, Reg. (EU) 2025/2650, which entered into force on 26 December 2025, introduced a further twelve-month postponement and a substantial simplification package. A summary of the simplification package effects is available in the update article of 23 December 2025.

The current application timetable is therefore:

• 30 December 2026 for non-SME operators and traders;
• 30 June 2027 for micro and small enterprises established as such by 31 December 2024.

The simplifications introduced have significantly modified the operational impact of the regulation. In summary:

• the heading “ex 49” (printed books, newspapers and other printed matter) has been removed from Annex I. User manuals, leaflets, catalogues and labels accompanying other products are therefore exempt from EUDR obligations, unless imported as standalone commercial products;
• a new downstream operator category has been introduced, reserved for those who place on the market products manufactured using other relevant products that have already been the subject of an upstream DDS. This figure has the same obligations as a trader: no new DDS, only retention of reference numbers for five years;
• a simplified regime for micro or small primary operators established in low-risk countries has been set up, with a one-off simplified declaration in the Information System and the option to replace GPS geolocation with the postal address of the plots;
• it has been clarified that B2B downstream transmission is limited to DDS reference numbers only: the operator is not required to share geolocations or upstream supplier identification data. The EU Information System allows geolocations to be hidden also from those who reference the DDS via reference number, protecting commercial confidentiality.

The seven commodities and the products covered by Annex I

Annex I to the EUDR Regulation exhaustively lists the Combined Nomenclature (CN) codes subject to the obligations.

The logic is that of the customs code: if the finished product is classified under a CN code in Annex I, it is in scope; if the code does not appear there, the product is out of scope even if it contains a critical raw material. There is no de minimis threshold by volume or value.

For the seven commodities, the most relevant CN headings for Italian importers are the following:

• cattle: CN 4101, 4104, 4107 (raw, tanned and prepared hides and skins). Chapter 42 (Articles of leather) and Chapter 64 (Footwear) are not included in Annex I, therefore finished products of Chapter 42 and 64 are out of scope even if made with bovine leather;
• cocoa: CN 1801-1806, from raw material to finished products such as chocolate and food preparations;
• coffee: CN 0901, including roasted, decaffeinated and substitutes;
• oil palm: CN 1207 10, 1511, 1513, 2306 60, ex 2905 45, 2915 70, 2915 90, 3823 11, 3823 12, 3823 19, 3823 70;
• natural rubber: CN 4001, ex 4005-4008, ex 4010-4017. Relevant for tyres, mats, suction cups, rubber accessories. CN code 4009 (tubes and hoses) does not appear in Annex I, therefore shower hoses and rubber pipes are out of scope;
• soy: CN 1201, 1208 10, 1507, 2304;
• wood: CN 4401-4421, Chapters 47 and 48, ex 9401, 9403, 9406 10. Highly relevant for furniture manufacturers (CN 9401, 9403), tools with wooden handles (CN 4417), paper and cardboard packaging (Chapter 48).

On exclusions and the most recurring operational scenarios, several points confirmed by the European Commission deserve attention:

• synthetic rubber (SBR, NBR, EPDM) and silicone are entirely outside the scope of application. Where a natural and synthetic rubber blend is present in the same product, due diligence is exercised exclusively on the natural rubber share;
• bamboo is classified by FAO as a non-wood forest product and is out of scope. Products marketed as “bamboo” containing an MDF or chipboard core remain in scope for the wood component only;
• accessory packaging (boxes, master cartons, secondary, tertiary) used exclusively to support, protect or transport another product already contained inside is out of scope; cardboard packaging imported empty for filling in the EU is fully in scope;
• wooden pallets are exempt if they carry other goods placed on the market; they are in scope if imported as a standalone commercial product;
• no volume or value threshold exempts the operator. A Commission Delegated Act is in the adoption phase, proposing to exclude commercial samples of negligible value and quantity.

The four pillars of due diligence

The due diligence system governed by the EUDR is structured in four sequential phases, applicable under the ordinary regime.

1. Information collection

The operator collects and retains for five years the eight categories of information listed in Article 9 of the EUDR:

• product description and quantities;
• country of production and geolocation of all plots;
• production period;
• supplier and buyer identification data;
• verifiable evidence of absence of deforestation and compliance with the legislation of the country of production.

Geolocation is the technically most demanding requirement. The regulation requires the use of latitude and longitude coordinates with at least six decimal digits.

For plots larger than four hectares a perimeter polygon is mandatory; for smaller plots a single GPS point is allowed. Data must be uploaded to the EU Information System exclusively in GeoJSON file format.

2. Risk assessment

The operator verifies the information collected and assesses the risk of non-compliance based on fourteen criteria listed in Article 10 of the EUDR, including:

• the complexity of the supply chain;
• the level of risk of the country of production;
• the presence of indigenous peoples;
• substantiated evidence of previous non-compliance;
• the reliability of the information received.

The product can be placed on the market only if the risk is assessed as none or negligible.

3. Risk mitigation

If the risk is not negligible, the operator must adopt mitigation measures until the required level is reached:

• request for additional information;
• independent investigations or audits;
• contractual modifications with the supplier.

For non-SME operators, Article 11 imposes specific organisational obligations: appointment of a compliance officer at managerial level and establishment of an independent audit function.

4. Due Diligence Statement (DDS)

Before placing the product on the market or exporting it, the operator lodges in the EU Information System the Due Diligence Statement (DDS), the minimum content of which is set out in Annex II as amended by Reg. (EU) 2025/2650.

The DDS receives a unique reference number to be communicated to downstream operators and downstream traders.

Operator, downstream operator, trader: the roles under the EUDR

The EUDR, as amended by Reg. (EU) 2025/2650, distinguishes five economic figures with differentiated obligations.

The operator is the natural or legal person who, in the course of a commercial activity, places the relevant products on the EU market or exports them. For Italian importers purchasing directly from non-EU suppliers, this is the most recurrent qualification.

The downstream operator, newly introduced, is anyone who places on the market or exports products manufactured using other relevant products that have all already been the subject of an upstream DDS. Their obligations are equated with those of the trader: no new DDS, only collection and retention for five years of supplier identification data and upstream DDS reference numbers.

The micro or small primary operator is a micro or small enterprise based in a low-risk country that places on the market products grown or obtained on its own plots located in that country. It benefits from a simplified regime with a one-off declaration (Annex III) and the option to replace GPS geolocation with the postal address.

The trader is the actor in the chain other than the operator or downstream operator who makes the products available on the market.

Only the first trader receiving the goods from the operator must collect and retain DDS reference numbers; subsequent stages of the chain, in particular large-scale retail, are exempt.

The authorised representative is the person established in the Union, authorised in writing to act on behalf of the operator for the lodging of declarations. It is the operational tool that allows an Italian holding or parent company to centralise DDS for foreign subsidiaries belonging to the same corporate group.

Is my company an SME or non-SME under the EUDR?

The qualification as an SME under the EUDR is based on the criteria of Directive 2013/34/EU (Accounting Directive), by express reference of the regulation.

A company is considered “medium” (and therefore falls within the SME category) if, at the balance sheet closing date, it does not exceed the limits of at least two of the three following criteria:

• balance sheet total: EUR 25 million;
• net turnover: EUR 50 million;
• average number of employees during the financial year: 250.

A company exceeding at least two of these thresholds is non-SME and must apply the EUDR from 30 December 2026.

A company that does not exceed them is an SME and benefits from a six-month deferral, with application from 30 June 2027, provided it was legally established as such by 31 December 2024.

Application timeline and transitional regime

The main dates of the current EUDR regime are:

• 29 June 2023: entry into force of Reg. (EU) 2023/1115;
• 22 May 2025: publication of Implementing Reg. (EU) 2025/1093 on country classification;
• 26 December 2025: entry into force of Reg. (EU) 2025/2650 on simplification;
• 30 December 2026: application of the essential obligations to non-SME operators and traders;
• 30 June 2027: application of obligations to micro and small enterprises;
• 31 December 2029: definitive end of the EUTR transitional regime for wood.

On the wood transitional regime, Reg. (EU) 2025/2650 has extended the timeframes for the wood sector only.

For wood and derived products produced before 29 June 2023 but placed on the market from 30 December 2026 onwards, the rules of the previous Timber Regulation (EUTR) continue to apply until 31 December 2029.

After that date, even pre-2023 wood will have to comply with the EUDR.

In general, the regulation does not apply to raw materials whose production (meaning cultivation, harvesting or obtaining) took place before 29 June 2023, regardless of the customs clearance date.

Country classification

Implementing Reg. (EU) 2025/1093 identifies three levels: low, standard and high risk.

Low-risk countries (including China, the United States, India, Vietnam and all EU Member States) benefit from simplified due diligence: the operator collects basic information but is exempt from the risk assessment and mitigation phases.

High-risk countries (Belarus, Russian Federation, Myanmar, Democratic People’s Republic of Korea) are subject to enhanced controls.

Countries not listed (for example Brazil, Indonesia) remain under the standard regime.

Penalties and enforcement mechanisms

Article 25 of the EUDR, as amended by Reg. (EU) 2025/2650, defines an articulated sanctioning framework that applies to operators, downstream operators and traders. Penalties are determined by the Member States and must be effective, proportionate and dissuasive.

The main pecuniary sanction has a precise minimum calculation threshold: the maximum amount must be at least 4% of the total annual turnover at Union level.

The calculation basis is not the single sanctioned entity, but the consolidated group turnover determined under Reg. (EC) 139/2004 on concentrations.

Additional sanctions are also envisaged:

• confiscation of the relevant products and the proceeds derived from them;
• temporary exclusion from public procurement procedures and access to public funding for a maximum period of twelve months;
• temporary prohibition on placing or making available the products on the market in case of serious infringement or repeated offence;
• prohibition on benefiting from the simplified due diligence;
• publication of final judgements against legal persons on the European Commission website.

Border enforcement

On the border enforcement side, the EUDR sets up a clear separation of powers between the Customs Authority and the Competent Authority designated by the Member State.

The Customs Authority verifies, through an interoperable electronic interface, the status assigned to the DDS by the EU Information System. When the system flags a high risk, it suspends release for free circulation for a maximum of three working days (or 72 hours for perishable products).

The Competent Authority can extend that period by a further three days and has the exclusive power to adopt immediate provisional measures, including physical seizure of goods.

The definitive logistical block is applied by customs only following a notification of established non-compliance transmitted by the Competent Authority.

Frequently Asked Questions (FAQ)

How do I check whether my company is an SME under the EUDR?

The check is carried out on the closing data of the latest approved balance sheet, applying the three dimensional criteria of the EU Accounting Directive described in this guide. It is sufficient not to exceed the limits of at least two of the three parameters (assets, turnover, employees) for the company to fall within the SME category and benefit from the deferral to 30 June 2027.

The check must be repeated at each financial year-end: exceeding the thresholds for two consecutive financial years causes loss of SME status for accounting purposes and consequently also for EUDR purposes. For corporate groups, each legal entity is assessed autonomously, save for the application of the consolidation rules provided by the Accounting Directive.

Are products with synthetic rubber or silicone subject to the EUDR?

No. The regulation applies exclusively to natural rubber and the derivative products listed in Annex I. Purely synthetic materials (SBR, NBR, EPDM rubber or silicone) are entirely outside the scope of application.

Where a product in scope (for example tyres, HS code 4011) is manufactured with a blend of natural and synthetic rubber, the operator must exercise due diligence exclusively on the percentage of natural rubber contained in the product.

Are user manuals and paper leaflets still subject to the regulation after Reg. 2025/2650?

No, they are no longer subject. Reg. (EU) 2025/2650 has officially removed the customs chapter ex 49 (books, newspapers, printed matter) from Annex I to the EUDR.

The European Commission has clarified that user manuals, leaflets, catalogues and labels accompanying other products are exempt, unless imported or placed on the market as standalone commercial products (for example entire pallets of manuals sold separately).

The Chinese supplier cannot send the geographic coordinates of the plantations: is one exempt?

No. The European Commission’s position is uncompromising. European operators cannot invoke the laws of third countries (such as data security regulations in China) prohibiting the sharing of geospatial data to justify the absence of such information in the EU Information System.

The obligation to provide geolocation is non-derogable: if the supplier does not provide the required GeoJSON files, the EU importer must refrain from placing the product on the market, on pain of breach of the regulation and the related penalties.

Does FSC or PEFC certification replace due diligence?

No. The EUDR recognises that voluntary certifications (such as FSC or PEFC) and third-party verification systems can provide valuable supplementary information during the risk assessment phase, in particular to demonstrate that a product is legal and deforestation-free.

However, the use of such standards does not provide any green lane: holding a certificate does not relieve the operator from the obligation to personally exercise due diligence (including the collection of geolocations) nor from legal liability in case of non-compliance.

Does a product with cardboard packaging require a DDS?

It depends on the function of the packaging at the time of customs clearance. If cardboard boxes (HS code 4819) are used exclusively to support, protect or transport another product already contained inside them, they do not fall within the scope of the regulation and do not require a Due Diligence Statement (DDS).

If, on the other hand, cardboard packaging is imported empty as a standalone product (for example to be filled later in Europe), or if the packaging gives the product its essential character (such as decorative gift boxes), it is fully subject to the EUDR and requires traceability and a DDS.