What is EUDR?

On 23 June 2023, the European Union adopted Regulation 2023/111 on the EU Deforestation Regulation (EUDR) to address deforestation and forest degradation caused by agricultural goods production. The product groups affected by this Regulation are soya, cattle, oil palm, wood, cocoa, coffee and rubber. The regulation demonstrates the European Union’s commitment to protecting forests, contributing directly to the achievement of climate targets by reducing greenhouse gases from deforestation and forest degradation, and protecting biodiversity.

According to the Regulation, the above materials and products produced and supplied in the entire production chain if causing deforestation and forest degradation since 01/01/2021 will not be consumed in the EU market. The Regulation also applies to materials and products for EU exporting enterprises.

 

The EUDR will entry into force from 29 June 2023, applying to small and medium-sized enterprises (SMEs) importing the above products into the EU from 30 December 2024 and 6 months later for micro-sized enterprises.

EUDR requirements

Enterprises exporting and importing materials and products covered by the EUDR must meet the following three (3) requirements:

  • Deforestation-free: The production and supply of the deforestation and forest degradation regulation products after 31 December 2020. Geographic information on the harvesting area and reference forest maps will be used to demonstrate this requirement.
  • Legally produced: Relevant legislation of the country where the production took place must be complied. These include: (1) Land use rights; (2) Environmental protection; (3) Forest-related regulations, including forest management and biodiversity conservation for areas where timber is harvested; (4) Third-party rights; (5) Labor rights; (6) Human rights protected follow international law; (7) Free, Prior and Informed Consent (FPIC), including as Declaration the United Nations on the Rights of Local Peoples; (8) Tax, anti-corruption, trade and customs regulations.
  • Due diligence: Individuals and organisations supplying and trading products regulated in the EU must establish a Due Diligence System (DDS) to provide information relevant to the requirements of the EUDR.

How to adapt EUDR through VFCS/PEFC

The Vietnam Forest Certification System (VFCS) and the Programme for the Endorsement of Forest Certification (PEFC) set the goal of forest certification to ensure that the materials and products produced are: (1) Legal, (2) Sustainable, and (3) Environment integrity.

To support enterprises in meeting the EUDR requirements, on 20 July 2024, PEFC published the module standard PEFC ST 2002-1:2024 Requirements for Implementation of the PEFC EUDR Due Diligence System (PEFC EUDR DDS). The PEFC EUDR DDS module standard is an option that organizations already certified or developing a PEFC CoC certification profile can add to their existing certification scope to support their demonstration of EUDR compliance. The module standard includes specific requirements to ensure that any wood material entering the PEFC system has been subject to Due Diligence System (DDS) according to EUDR regulation and not at risk from controversial or non-compliant sources. To perform, the organization needs to build a management system that meets EUDR requirements and implement DDS in the following five main steps.

  • Step 1 Collecting information, including: reference number, description information, country of production, geolocation of all production areas, time of exploitation and production, information about the supplier (name, address, license, certification), conclusion that the related product does not cause deforestation, and information that can verify that the product has been manufactured in compliance with the laws of the host country.
  • Step 2 Risk assessment: Conduct a risk assessment of the concerned product, identifying risks from controversial or non-compliant sources. The assessment should classify the product as no risk or negligible risk, considering factors such as deforestation and legality.
  • Step 3 Identify dependable concerns: Investigate information relating to the risk of EUDR violation. If a concern is identified, it must be reported immediately to the competent authority and acted upon within 10 working days.
  • Step 4 Mitigating risks: If there is a risk, the organization should require the supplier to demonstrate legality and conduct an on-site inspection. Remedial measures may include suspending the contract until the risk is resolved.
  • Step 5 Submission and approval of the due diligence statement: The organization must submit the due diligence statement to the competent authority before placing products on or exporting them outside the EU market. The statement must be kept for at least 5 years and an annual report on EUDR compliance must be public.

Details of the PEFC ST 2002-1:2024 module standard here.

Details on EUDR according to PEFC here.

PHP Code Snippets Powered By : XYZScripts.com
X