The EU Deforestation Regulation (EUDR) enters force in December of this year but, according to Chartered Institute of Export & International Trade customs and trade consultant Joe Goldsworthy, many aren’t ready.
“It’s not a lot of time,” he tells the Daily Update. “It’s going to affect a lot of business that are not used to this type of reporting.”
Data ‘headache’
The EUDR replaces the old EU Timber Regulation (EUTR) which, Goldsworthy said, will “step up the EU’s fight” to combat legal and illegal destruction of forests.
Under this new regulation, firms will be required to produce evidence that their supply chains are free from deforestation. This includes “GPS coordinates or plots of land mapped onto 3D software” which is “way outside what most companies are used to”.
“This has caused a bit of a headache, because how do you get this data? It requires transparency in the supply chain, and there are actors who don’t want this information coming out.
“It is sensitive, and they don’t want the actual plots or where harvesting is taking place revealed. There’s been quite a bit of pushback on this.”
Equally as urgently, some exporters are simply unaware of the regulation and how soon it is due to come into effect. “Companies within Europe are really struggling to get this data,” Goldsworthy says.
Action
So what do you need to do if you haven’t got this data yet?
Goldsworthy emphasises the need to prepare by ensuring they get together any information that’s available on “any commodities that you export”.
“See if it’s within the scope of EUDR, and if it is, understand what you need to put in those statements: geolocation data, information on the products. This is all pertinent for EUDR, which could slow down or stop your exports altogether.”
Crucially, there are many sectors where businesses might be affected unexpectedly. Goldsworthy adds.
“There are certain commodities in timber, for example, that aren’t in the old EUTR format, which was just directly focused on timber. Now there are some timber products that are very much in-scope. There are also products in rubber that will be affected.”
Processed goods affected
It’s not just raw commodities affected. There are a whole host of “quite heavily manufactured goods” which now are covered by the legislation, including “paper and pulp of chapters 47 and 48”, meaning “actual paper goods are coming into scope”.
Wooden furniture and other products made of wood – previously excluded – are also now included. Another example is chocolate bars, rather than just raw cocoa.
“There are a lot of people who still don’t understand just how much it’s going to affect them. Anyone who deals with any cocoa powder or chocolates will be affected, and we’ve got a massive confectionery industry in the UK. It’s one of our biggest food and drinks industries.”
Goldsworthy advises both those who know they’re affected and those who might think otherwise to attend the upcoming Chartered Institute webinar on the EUDR, which he says will help attendees to “understand what the implications are” for their businesses.
You can sign up here for that member-exclusive session, which takes place at 11am on 24 September.
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