Deforestation regulation – simplification instead of postponement?

In September, the EU Commission wanted to postpone the EUDR deforestation regulation. On October 21, 2025, it published a comprehensive proposal to simplify the EUDR. There is to be no general postponement of the start of application by one year, but rather a variety of graduated measures. Here are the core proposals:

Downstream market participants and traders are to be relieved

The EU Commission would like to reduce the burden on downstream operators and traders
. To this end, the new category of downstream operators is to be introduced. Downstream operators are to be subject to the same obligations as traders. The main relief for downstream operators and traders is that they will generally no longer have to submit their own due diligence declarations.
However, they will still be obliged to pass on reference numbers and identification numbers of due diligence declarations along the supply chain in order to ensure traceability.

However, this proposal, which at first glance appears to be a relief, poses new problems for many companies. Because batch-by-batch tracking of the relevant goods is not yet possible for many companies, a widespread solution, which in principle is also in line with the European Commission’s FAQs, is to work with an aggregation of due diligence declarations. If downstream market participants and traders no longer have to submit due diligence declarations themselves, this practical approach could also be called into question and may even result in increased effort. The draft should be tightened up in a practical manner here.

Exemption for certain micro and primary market participants

There are to be simplifications for natural persons and micro and small enterprises that place their own products on the market or export them. A new category “micro and small primary operators” is to be created for them. These are to be exempt from the obligation to submit a due diligence declaration if they operate in a low-risk country and produce the products in question themselves. Instead, they should be able to submit a one-off “simplified declaration” in the information system. This includes in particular

• Information on the market participant,
• Geolocalization or postal address of the plots,
• Information on the relevant raw materials.

After delivery, a declaration identification number should be issued, which is passed on with the products.

Simplifications and vague new obligations for non-SME downstream market participants and non-SME traders

There are also to be simplifications for non-SME downstream market participants and non-SME distributors. Although they will still have to register in the EU information system, they will also be exempt from the obligation to submit a due diligence declaration.
However, if there are reasonable doubts about the conformity of the products with the EUDR, they should verify that the due diligence obligations have been carried out. They should not pass on the products until they have verified that there is no or only a negligible risk. However, the draft leaves open what this verification means in concrete terms and on what basis of information it should take place, especially as the draft also reduces the disclosure of information along the supply chain and only requires the disclosure of the reference number or the declaration identification numbers. At this point, the draft should be tightened up and made more practicable.

Postponement of the date of application for small and micro enterprises

For most companies, the deforestation regulation should still start on December 30, 2025. The proposal only provides for a postponement for micro and small enterprises. For these, the obligations would only apply one year later, from December 30, 2026.

However, it is important to note that a due diligence number remains required in the import or export declaration. In particular for importers who are not micro or small enterprises, the draft therefore does not change anything significant as of December 30, 2025.

Control and enforcement only six months later

Although the remaining companies will generally have to comply with the EUDR from December 30, 2025, the authorities’ monitoring and enforcement obligations will not take effect until June 30, 2026, according to the proposal. Micro and small enterprises, for which the obligations will not apply until the end of 2026 anyway, will not be subject to sanctions until that date.

Member States must ensure that the competent authorities then carry out risk-based controls. The checks must cover the following

• at least 9 percent of market participants in high-risk countries,
• 3 percent in standard risk countries,
• 1 percent in low-risk countries.

The proposal provides for authorities to issue warnings with recommendations before imposing sanctions if violations are identified.

Without a timely agreement, the deforestation ordinance will apply to everyone at the end of the year

The Commission’s proposals still have to be adopted as part of the legislative process, i.e. the European Parliament and the Council will discuss the proposals. Changes may still be made in the process. If no agreement is reached by the end of December, the EUDR will apply in its current version on December 30, 2025. Relaxations and postponements will then not apply.

The last-minute amendment initiative – even if it is well-intentioned for the economy – means considerable legal uncertainty for the companies affected and, in its current form, even additional work for some companies. However, many companies are already prepared for a start at the end of the year. The remaining companies, including micro and small enterprises, should press ahead with their efforts at least until Parliament and the Council have approved the Commission’s proposals or – in view of the short time available – a further postponement is decided after all. After all, it is by no means certain that the proposals will be adopted, as the surprising rejection of the first omnibus package by the EU Parliament on October 22, 2025 showed. And without the necessary majorities to amend the EUDR, the regulation will apply unchanged as of December 30, 2025.