8 October 2024
Purpose
This Industry Advice Notice (IAN) is to alert exporters of certain products to the European Union (EU) of the announcement by the European Commission (EC) of an intended delay to the implementation of EU Deforestation Regulation (EUDR) for one year, as well as further guidance published by the EC on the EUDR. This notice concerns exporters of cattle, skins and hides, timber, cocoa, coffee, oil palm, rubber, soya and wood to the EU, and some products containing, having been fed with or having been made using these commodities.
Delay to EUDR Implementation
On 2 October 2024, the EC announced that given feedback received from international partners about preparations on the EUDR, they have proposed to give concerned parties additional time to prepare. Subject to approval by the European Parliament and the Council, a delay to implementation of one year would make the EUDR applicable on 30 December 2025 for large companies and 30 June 2026 for micro- and small enterprises. The EC has stated that it intends the extra 12 months as a phasing-in period to ensure proper and effective implementation, and that all the implementation tools will be technically ready for this period.
The EC has acknowledged in announcing the delay that numerous trading partners have expressed concerns about the state of preparedness, including within Europe, for commencement of the regulation.
The department will continue to engage closely with the EC to inform industry of any further updates affecting Australian exporters through our established channels.
Country Benchmarking System
The EUDR establishes a country benchmarking system, which will apply a deforestation risk-rating (low, standard, or high) to each country. A country's risk rating will determine the percentage of consignments inspected at the EU Member State border by its competent authority.
The EC has advised the country benchmarking will be complete by 30 June 2025. All countries have been designated as standard risk until a risk assessment has been completed. Australia continues to advocate for a permanent low-risk rating.
Updated EUDR Guidance
The EC has also published additional guidance documents and updated Frequently Asked Questions (FAQs) concerning the EUDR and its implementation. The guidance is intended to provide additional clarity to companies and enforcing authorities to facilitate the application of the rules.
The guidance is divided into 11 chapters covering issues including legality requirements, timeframe of application, agricultural use, and clarifications on the product scope. In addition, the latest FAQs, published concurrently, features over 40 new additional answers to address questions raised by stakeholders.
Further information
The press release from the EC outlining the intended delay can be accessed here.
The updated guidance material published by the EC can be viewed here and additional FAQs here.
The full text of the EUDR (EU 2023/1115) can be found on the Eur-Lex website.
Further background information is also available from: 2023-08: European Union Deforestation Regulation.
This IAN has been prepared to advise exporters of relevant commodities to the EU of the updated concerning the EUDR implementation dates and guidance issued by the EC. obligations. It does not constitute legal advice. Exporters may wish to seek independent advice based on their circumstances.
The information provided in this notice is current at the date of issue and is intended for use as guidance only. The Commonwealth has exercised due care and skill in the preparation of this information but we do not warrant its accuracy, completeness or suitability for any purpose. Information may be subject to change without notice.
To the maximum extent permitted by law, the Commonwealth will not be liable for any loss, damage, expense or cost incurred by any person directly or indirectly as a result of relying on information contained in this notice.
Contact information
If you have any questions about this IAN or the EUDR, please contact the department at Europe.tmad@aff.gov.au.