EU-Green Deal

Deforestation-free

Supply chains

Do you import goods such as cattle, cocoa, coffee, oil palm, rubber, soya, timber or relevant products containing or fed with these raw materials?

Then you are already affected by the new EU regulation on deforestation-free supply chains, which came into force at the end of June 2023.

The new regulation governs the provision of the above-mentioned raw materials and products that are linked to deforestation and forest degradation for import into the Union market, for provision and for export from the Union.

For companies, this means an extensive compliance analysis of the supply chains, including obtaining information on the goods concerned from the manufacturers, in order to comply with possible import and export bans.

The European Union aims to become climate neutral by 2050. Part of the climate strategy is the forest protection regulation for deforestation-free supply chains.

This includes due diligence obligations to protect global forests against clearing and exploitation in connection with the production of various goods.

The new regulation takes a product-by-product approach. It affects all companies that place cattle, cocoa, coffee, oil palm, rubber, soy and wood or products made from them on the EU market, make them available on the EU market or export them from the EU – regardless of the number of employees or the location of the company.

The regulation has already been in force since the end of June 2023.

Within the framework of an 18-month transition phase until the end of December 2024, the EU is giving companies time to implement the requirements of the regulation. For small and medium-sized enterprises, the transition period will be extended until the end of June 2025.

Affected companies must set up a comprehensive compliance audit of the entire supply chains and prove that the imported, listed goods are “deforestation-free” and have been produced in accordance with the relevant legislation of the producing country.

A due diligence declaration with commodity tariff numbers and the geolocation of the origin of the affected goods must be prepared and submitted as part of the compliance management if required.

  • Name, address and EORI number of the operator.
  • HS code of the product, product description including commercial description and quantity in number of pieces or kilograms.
  • Country of production and geolocation of all sites where the products concerned were produced.
  • Declaration by the operator on the fulfilment of due diligence obligations
  • Reference number of existing due diligence declaration for small and medium-sized enterprises that have made use of simplifications
  • Signature

From the end of 2024, the affected companies must analyse the supply chains (identify raw materials, create transparency, define sustainability standards), compliance structures must be implemented or changed, and customs implementation (for imports/exports) is of important importance (deviating from the regulations of the Supply Chain Due Diligence Act).

Information on the goods concerned must be correctly declared and submitted with the due diligence declaration to the Federal Agency for Agriculture and Food or, in the case of first-time import or export, to the competent customs authorities.

If you are not able to separate your goods or to obtain correct information about affected goods, there is a ban on the marketing, provision and import/export of the “non-deforestation-free” goods.

The Federal Agency for Agriculture and Food and the customs authorities are responsible for checking customs declarations with regard to relevant goods.

In the event of a violation, fines of 4% of the annual turnover or more are imposed. Furthermore, the confiscation of affected goods up to the exclusion from public financing and tenders for up to 12 months is possible.

What can you do?

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