Deforestation law: make sure you can keep selling your products

Around 10 million hectares of forest are cleared globally every year, which is an area the size of Portugal. Forests are vital to the environment. Trees store large amounts of CO2 and are home to many different speciesof plants and animals. This is why the EU has introduced a new law to help stop deforestation and reduce greenhouse gases: the Regulation on Deforestation-free Products (EUDR). The law bans products that contribute to deforestation. 

Who does the EU deforestation law apply to?

The deforestation law applies to entrepreneurs working with one or more of these high-risk commodities:

• coffee
• soy
• cocoa
• wood
• rubber
• beef
• palm oil

The law also applies to products you make from these raw materials. For example, furniture, leather, car tyres, and chocolate. Every company working with these products must comply with the law, from the smallest chocolate shop to the largest timber yard. Check out the full list of products (click on Table of Contents and then Annex I) to find out if the law applies to you. Please note that the list may change, and other raw materials may be added.

Do your products cause deforestation? As an SME, you will not be allowed to put them on the European market from 30 June 2026. For larger companies, these rules apply from 30 December 2025. Does your product not contribute to deforestation? Then you must be able to prove it with documents and declarations, for example to customs.

Deforestation law: this is what you have to do

To comply with the deforestation law, you need to do 4 things:

Gather information

First, you must check if your product contributes to deforestation. You do this by gathering information about your supply chain:

• Determine the exact production location including coordinates. This way, you can investigate whether your products come from areas where deforestation takes place.
• Talk to your suppliers. Ask them exactly how and when the product is made.
• Also, ask about the agreements and rules the local producer has about deforestation.
• Find out how the local government deals with logging and what the local laws and regulations are.

Make a due diligence statement

If you know that your product is deforestation-free, you must prove it. You do this with a due diligence statement. In this document, you explain where your product comes from and what you do to reduce the risks of deforestation. To do this, you use the information gathered in the previous step. You must be able to show the declaration to customs. At the border, Customs checks if the documents have the correct information.

Provide a due diligence system

A due diligence declaration is never final. You must keep investigating your imported products and the country of origin. How, when, and with whom you do this is recorded in a due diligence system. This is your working method for making the due diligence declaration according to the requirements. Include, for instance, a schedule for checking, a system for storing documentation, and appointing a final responsible person within your company. Creating such a due diligence system can be a lot of work. So, it may be wise to seek help from an expert.

Consider other possibilities

Does your product contribute to deforestation? Then you should look for a sustainable product instead, such as certified wood (FSC) and recycled wood. Or look for other options, such as bamboo from Europe instead of wood. For cocoa and coffee, you can look at different types of production. For example, there are forms of agriculture that help protect forests.

Different rules for company and trader

The deforestation law distinguishes between 2 groups: companies and traders (in Dutch). Companies that make products themselves or buy high-risk raw materials must investigate themselves whether their products contribute to deforestation. They must draw up a due diligence statement for this purpose.

If you buy a product on the European market and then resell it in the same form, the law sees you as a trader. As a small or medium-sized trader, you do not have to make your own due diligence declaration. This is because you use products and raw materials that have already been checked for deforestation. You can use your supplier's due diligence declaration.

Enforcement by NVWA

In the Netherlands, the Netherlands Food and Consumer Product Safety Authority (NVWA) checks the documents you must have. The NVWA looks at the reliability of the information and whether the origin of the product, including coordinates, is correct. Do you not comply with the law? Then you run the risk of fines and cannot take part in government tenders. The NVWA can also confiscate your products and profits, or make sure you are no longer allowed to sell products.