The EU Deforestation Regulation (EUDR) will soon determine whether your goods can legally enter or leave the European Union. Covering key commodities such as coffee, cocoa, palm oil, soy, rubber, beef, and wood, the regulation requires companies to prove that their supply chains are not linked to deforestation. This proof takes the form of a legally binding due diligence statement, which must be filed before goods are imported into or exported from the EU.
For CFOs, customs teams, and compliance departments alike, the impact is very concrete. Without a valid EUDR reference number, customs clearance will fail. Shipments may be blocked, revenue delayed, and contractual obligations breached. Noncompliance also exposes the company to penalties and reputational risk.
In practice, the EUDR introduces a new control layer across finance, trade, and sustainability functions. Understanding how it works and how it connects to your supply chain and customs processes is now essential to protect your operations in 2026 and beyond.
What is the EUDR, and why is it important for Market Access?
The EU Deforestation Regulation was designed to ensure that the European market no longer contributes to global deforestation or forest degradation. From 31 December 2026, any covered product that is linked to deforestation will be prohibited from being imported on the EU market or exported from the EU.
This is not a voluntary framework. It is a market access rule. If your product does not comply, it cannot legally be sold or shipped.
Micro and small enterprises benefit from a short transitional period. Their obligations will apply from 30 June 2027. For all other businesses, the clock is already ticking.
What makes the EUDR particularly significant is that it shifts responsibility onto the company importing the goods on the market. Even if deforestation occurred several tiers up the supply chain, the importer or exporter remains legally accountable.
Scope of the Regulation: Which products are affected by EUDR?
The regulation focuses on commodities with the highest deforestation risk:
- Coffee
- Cocoa
- Rubber
- Palm oil
- Soy
- Cattle and beef
- Wood
A broad range of downstream products is also covered, including leather, paper, printed materials, and charcoal, for instance. This means that many companies will be affected, even if they never source raw materials directly. Distributors, manufacturers, brand owners, and trading companies all fall within the scope as soon as they import these goods into the EU market or export them from the EU.
EUDR compliance in practice: The new operational standard
Establishing a Permanent Due Diligence System
The EUDR requires companies to implement a formal due diligence system. This is not a one-off exercise; it is an ongoing internal control framework designed to demonstrate that products are:
- legally produced in their country of origin ;
- and not sourced from deforested or degraded land.
This involves collecting geolocation data, supplier information, production dates, and legal compliance evidence, then assessing and mitigating risk. The system must be reviewed at least once per year. For larger companies, it must also be disclosed publicly through an annual compliance report.
For finance and compliance teams, this is comparable to a new regulatory reporting obligation, one that must be embedded into procurement, supplier onboarding, and trade documentation.
The Due Diligence Statement: A New Mandatory Customs Requirement
Before any covered product can be imported into or exported from the EU, the company must submit a due diligence statement to the EU’s central EUDR system. This statement is not just a sustainability declaration; it is now part of the customs clearance process.
The reference number generated by this filing must be included in the customs declaration. If it is missing, the shipment cannot be cleared properly. Customs Authorities may block, delay, or even reject the goods. If goods are imported into the market without a valid statement, they are legally considered prohibited goods, triggering customs offenses, penalties, and potential seizures. This is where the EUDR becomes a critical link between supply chain data, compliance systems, and customs operations.
Next Steps: How to Prepare for EUDR Enforcement in 2026
The EUDR introduces a new compliance layer that sits between procurement, sustainability, finance, and customs. Companies that treat this as a last-minute ESG exercise will face operational risk, delayed shipments, disrupted cash flow, and regulatory exposure. Companies that integrate EUDR into their trade and compliance architecture will protect their ability to operate across borders.
At Easytax, we see the EUDR as part of a broader evolution; customs, VAT, and regulatory compliance are becoming increasingly interconnected. Managing these obligations in silos is no longer sustainable.
Preparing early means mapping your supply chains, aligning your data flows, and ensuring that EUDR compliance is built into your import and export processes long before the regulation becomes enforceable.
