EU Deforestation Regulation: Commission publishes simplification package ahead of December 2026 application date

The EUDR entered into force in June 2023, requiring operators and traders placing certain commodities and derived products on the EU market – or exporting from it – to demonstrate that these products are (i) deforestation-free, (ii) legally produced and (iii) covered by a due diligence statement. The seven core commodities are cattle, cocoa, coffee, palm oil, rubber, soy and wood, together with a wide range of derived products. Following two consecutive postponements and stakeholder criticism regarding administrative burden, the co-legislators revised the EUDR in December 2025 and mandated the Commission to undertake a simplification review.

The Commission's most significant signal is political as much as legal: there will be no third extension. The 30 December 2026 application date for large and medium-sized companies – and for micro and small enterprises in the timber sector – stands firm. Micro and small operators outside the timber sector retain their deferred application date of 30 June 2027. Companies that adopted a wait-and-see approach in anticipation of further legislative developments should treat this package as the final state of play and move to implementation.

The Commission's report to Parliament and Council provides an overview of simplification measures introduced since June 2023, including those announced as part of the current package. According to the European Commission, these measures are expected to reduce annual compliance costs for companies subject to EUDR obligations by about 75% compared to the original EUDR. The Commission also indicates that the EUDR is already contributing to structural changes in global supply chains, including increased investment in traceability and greater transparency in sourcing practices.

The draft Delegated Act proposes amendments to Annex I of the EUDR, which lists the products covered by the Regulation. Key proposed changes include:

• Additions: Soluble instant coffee and certain palm oil derivatives used in the oleochemicals and soap industries are proposed to be added to the product scope.
• Removals: Leather, retreaded tires and certain other subcategories are proposed to be excluded.
• New horizontal exemptions: Product samples, single-use and reusable packing materials, marketing materials, waste, used and second-hand products and items of correspondence are proposed to be exempted.
• Clarifications on species coverage: The draft introduces the prefix "ex" to several Combined Nomenclature entries to make explicit that only products derived from relevant commodities (e.g., not coconut oil, bamboo or synthetic rubber) are captured.

The draft Delegated Act is open for public consultation until June 1, 2026. Affected businesses should review the proposed changes carefully and consider whether to submit feedback via the Commission's portal.

The updated Guidance Document and FAQs address operational questions that have been most frequently raised by stakeholders. Highlights include:

• Downstream supply chain obligations: The Commission clarifies that the obligation of downstream operators and traders to collect and retain reference numbers or declaration identifiers is passive in nature. Acting in good faith, a downstream actor may presume that its supplier is not an upstream operator if no reference numbers or declaration identifiers are received. In a standard retail situation involving sales to end-users, no obligation to collect such information from the end-user arises.
• Simplified due diligence: Operators sourcing exclusively from countries classified as low-risk under Article 29 of the EUDR benefit from simplified due diligence and are not required to conduct a full risk assessment or adopt risk mitigation measures – unless they become aware of information indicating a risk of non-compliance (so-called substantiated concerns). Micro and small primary operators, who by definition source from low-risk countries, are similarly exempt from risk assessment obligations absent such information.
• Legality requirement: The Guidance provides further detail on how operators should approach compliance with the requirement that products have been produced in accordance with the relevant legislation of the country of production. Operators may conduct an initial examination of publicly available information – including country risk classifications, World Bank governance indicators and other public reports – before deciding whether in-depth documentation collection is warranted. In-depth collection should be prioritized for higher-risk supply chains and production areas.
• Re-importation: The FAQs clarify that re-importing products previously placed on the EU market constitutes a downstream activity. An importer in this scenario may use a conventional reference number at customs and is treated as a downstream operator if it can demonstrate that the goods were previously subject to EUDR compliance.
• Interplay with CSDDD and the EUFLR: The Guidance confirms that where the EUDR and the Corporate Sustainability Due Diligence Directive (CSDDD) overlap, the EUDR's more specific provisions prevail as lex specialis. The EU Forced Labour Regulation (EUFLR) applies in parallel to EUDR-in-scope operators. Due diligence processes under the EUDR can assist in identifying forced labour risks, though the two regimes remain distinct.
• Company groups: The FAQs clarify that EUDR due diligence obligations apply to individual legal entities, not to corporate groups as a whole. Each entity within a group that qualifies as an operator, non-SME downstream operator, or non-SME trader must maintain its own account in the Information System, with SME status determined by reference to the individual entity's balance sheet, net turnover, and employee numbers. Group members may, however, designate one EU-established entity as an authorised representative to submit due diligence statements on their behalf. Legal responsibility for compliance remains with the individual operator. The FAQs reference Judgment C-117/24 of 13 November 2025, in which the European Court of Justice (ECJ) addressed analogous questions on the individual nature of due diligence obligations under the EU Timber Regulation. This raises the compliance bar, as the ECJ found it to be not sufficient for compliance, if a subsidiary only refers to a management system established at parent company level.

The Commission is updating the EUDR Information System to reflect the 2025 amendments and enhance its operational functionality. The system will be taken offline temporarily for the first set of upgrades and is expected to reopen in June 2026. Planned enhancements include a simplified declaration format for micro and small primary operators, voluntary grouping of due diligence statement reference numbers, registration of new operator roles and a contingency plan for unplanned unavailability. Further improvements are scheduled for later this year.

The Commission will establish two new databases ahead of 30 December 2026: one listing relevant legislation of countries of production, to assist operators in satisfying the legality criterion and one covering applicable certification schemes. Both will be hosted on dedicated Commission websites, with information provided by third countries and certification scheme operators respectively.