The European Commission estimates a 75% reduction in compliance costs for the EU Regulation on deforestation.
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The simplification package includes updated guidelines, proposed changes to the list of targeted products, new functionalities of the information system, and tools to facilitate trade.
The European Commission has published the simplification review of the EU Regulation on deforestation, EUDR, and estimates that the measures introduced from 2024 onwards could reduce annual compliance costs for the targeted companies by approximately 75%.
In short
The European Commission has published the simplification report of the EU Regulation on deforestation, along with updated guidelines, an updated FAQ, and a draft delegated act regarding the list of products.
The package is expected to reduce annual compliance costs by approximately 75%, from 8.1 billion euros to 2 billion euros.
The Commission proposes to include products such as instant coffee, certain derivatives of palm oil, soap made with palm oil, and frozen beef tongues.
The draft proposes to exclude from the scope hides and skins of cattle, retreaded tires, samples, certain packaging, second-hand products, and waste.
EUDR will apply from December 30, 2026, for large and medium-sized companies and from June 30, 2027, for most micro-enterprises and small enterprises.
The European Commission has presented a simplification package for the EU Regulation on deforestation before the rules are set to start applying at the end of 2026. The package includes a report to the European Parliament and Council, an updated guide, a new set of questions and answers, a draft delegated act regarding the list of targeted products, and the preparation of an implementing act for the EUDR information system.
According to the Commission, the simplification measures introduced in 2024 and 2025, along with the amendments from December 2025 and the new measures published now, will significantly reduce the administrative burden for companies under the regulation. The Commission's estimate indicates a reduction in annual compliance costs by approximately 75%, from 8.1 billion euros per year to 2 billion euros per year.
EUDR aims to limit the European Union's contribution to deforestation and forest degradation through due diligence obligations for products associated with seven commodities: cattle, cocoa, coffee, palm oil, rubber, soy, and wood. Operators introducing these products to the EU market or exporting them must be able to demonstrate that they do not originate from recently deforested or degraded land and that they have been produced in compliance with the relevant legislation of the country of production.
The Commission clarifies that it does not propose new changes to the core text of the regulation, citing the need for legal stability and the progress already made in reducing compliance costs. Instead, the institution proposes adjustments through guidelines, clarifications, delegated acts, implementing acts, and improvements to the information system.
An important part of the package targets downstream supply chain actors. Following the EUDR review in December 2025, the obligation to submit due diligence declarations primarily falls on the first operator introducing the relevant product to the EU market or exporting it. Downstream actors and traders no longer need to submit their own due diligence declarations, and their obligations are mainly limited to collecting and retaining information about direct trading partners and, where applicable, received reference numbers.
The Commission also clarifies that the role of the first downstream actor in collecting reference numbers or declaration identifiers is a passive one. They do not need to actively investigate the position of their supplier in the supply chain and can reasonably assume that the supplier is not an upstream operator if they do not receive reference numbers or identifiers.
For micro-enterprises and small primary enterprises, especially farmers and foresters in low-risk countries, the package confirms a very simplified regime. These operators do not need to submit due diligence declarations every time they place products on the market or export them, but only a unique simplified declaration. In certain cases, they can use the postal address or cadastral information in place of geolocation, provided that these clearly identify the targeted plot or farm.
The Commission states that the updated guide and FAQ also provide clarifications for online trade, re-imports, composite products, obligations of downstream actors, enterprise size, and legality requirements. In the case of products from low-risk countries, operators can benefit from simplified due diligence, but they must continue to collect basic information and respond if signs of risk or non-compliance arise.
The package also includes a draft delegated act regarding the list of products targeted by EUDR. The Commission proposes adding downstream products to avoid gaps in the supply chain and the relocation of deforestation risk. Among the products proposed for inclusion are instant coffee, certain derivatives of palm oil used in the oleochemical industry, soap made with palm oil, and frozen beef tongues.
At the same time, the Commission proposes excluding hides and skins of cattle, as well as retreaded tires. For retreaded tires, the obligations would be limited to the new rubber tread applied to the old casing, as retreading extends the lifespan of tires and is presented as a circular economy practice.
The draft delegated act also introduces horizontal clarifications to avoid including products without relevant deforestation risk or situations considered disproportionate. Thus, negligible value and quantity samples, products used for examination, analysis, or testing, certain packaging materials, marketing or informational materials that reference other products, second-hand products, used products, waste, and correspondence would be exempted.
The Commission also proposes clarifications regarding products that have the same customs code but are not made from commodities relevant to EUDR. For example, bamboo, rattan, or other wooden products that do not fall under the definition of wood targeted by EUDR should not be captured by the regulation. Similarly, synthetic rubber does not fall under the scope of EUDR, and in the case of mixed products, obligations apply only to the relevant natural rubber component.
The EUDR information system will be updated to reflect the changes in the revised regulation and to respond to requests from companies and authorities. The Commission announces forms for simplified declarations for micro-enterprises and small primary enterprises, updates to automated application interfaces, a contingency plan for unplanned unavailability, and a voluntary function for grouping reference numbers.
The information system is set to be reopened in phases in June 2026, both for the testing environment and for production. The Commission states that subsequent updates will be introduced in the summer and before the regulation's application date.
The Commission is also preparing two trade facilitation tools. The first will be a register of relevant legislation from producing countries, and the second a register of certification and verification schemes applicable to products targeted by EUDR. The aim is to help operators and competent authorities assess the legality of products and avoid duplicating efforts among member states.
The Commission's report states that EUDR is already generating structural changes in global supply chains. The institution notes increased investments in traceability, enhanced transparency, and wider use of digital solutions, including traceability systems for coffee, cocoa, soy, palm oil, rubber, and wood in producing countries in Africa, Asia, and Latin America.
The Commission estimates that, after removing the chapter on printed materials and after the proposed changes through the delegated act, EUDR could generate economic benefits of approximately 7 billion euros per year by monetizing 208,000 hectares of avoided deforestation and 49 million tons of avoided greenhouse gas emissions.
The regulation will apply from December 30, 2026, for large and medium-sized companies, as well as for micro-enterprises and small enterprises in the wood sector already covered by the EU Timber Regulation. For other micro-enterprises and small enterprises, the application date will be June 30, 2027.
The EU Regulation on deforestation was adopted in 2023 to reduce the European Union's contribution to global deforestation, forest degradation, greenhouse gas emissions, and biodiversity loss. The regulation establishes that certain commodities and products cannot be placed on the EU market or exported if they are linked to deforestation, do not comply with the relevant legislation of the country of production, or are not covered by a due diligence declaration.
After criticism and requests for clarification from companies, member states, partner countries, and environmental organizations, EUDR has been revised twice, in 2024 and 2025. The December 2025 review granted another year for preparation and introduced changes aimed at reducing the volume of declarations and the administrative burden.
The Commission states that it does not currently consider a new amendment to the core regulation necessary. Instead, the institution wants to facilitate implementation through legal clarifications, operational simplifications, adjustments to targeted products, improvements to the information system, and support tools for legality and certification.
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