On December 17, the European Parliament adopted a Regulation amending the EUDR, i.e., Regulation (EU) 2023/1115 on Deforestation-Free Products (“Amending Regulation”).  The Council of the European Union is now expected to ratify the adoption of the Amending Regulating within the next weeks.

While the new Amending Regulation does not the change the EUDR’s ambitions and overall regulatory framework, it partly reduces its administrative burden by simplifying some of its requirements and postponing its application.  Below, we outline the main changes.

Creation of “downstream operators”

The Amending Regulation introduces a new legal category of obligated persons: “downstream operators.”  These are entities that place on the market or export products made from relevant products already covered by a due diligence statement or a simplified declaration.  They are explicitly distinguished from operators responsible for the first placing of relevant products on the EU market and are subject to the same reduced obligations as traders.

Reduced obligations for downstream operators and traders

The Amending Regulation substantially reduces the compliance burden of downstream operators and traders.  As a result, the obligation and legal responsibility to exercise due diligence and submit a due diligence statement will lie solely with operators that first place the relevant products on the EU market or export them.  

In contrast, downstream operators and traders further down the supply chain will no longer be required to conduct due diligence and submit due diligence statements.  Their obligations will be limited to those of traceability, record-keeping, notification of risks, and cooperation with competent authorities.  In practice, they must collect and retain prescribed information about their suppliers and customers.  Moreover, only the first downstream operator in a supply chain will be required to collect and retain the reference number of the initial due diligence statement or simplified declaration identifier.  Downstream operators and traders further down the supply chain will no longer be required to handle or transmit reference numbers.

However, downstream operators and traders that are not micro, small or medium-sized enterprises (“SMEs”) will still have to register in the EUDR information system.  Moreover, where non-SME downstream operators and non-SME traders become aware, prior to placing or making available products on the market or exporting them, of information indicating non-compliance, they will be required to immediately notify the competent authorities and, where there is a substantiated concern, verify that due diligence was exercised and that no or only a negligible risk exists.  Failing this, they may not place the products on the market or export them.

Furthermore, all downstream operators and traders will be required to immediately inform their downstream customers and competent Member State authorities if they learn of any relevant new information, including substantiated concerns, indicating that products already placed or made available on the market may not comply with the EUDR.

Simplified regime for micro and small primary operators

The Amending Regulation also creates a new category of “micro and small primary operators.”  These are natural persons or micro- or small-sized undertakings, regardless of legal form, that are established in a country classified as low risk under the EUDR (as currently listed under Commission Implementing Regulation (EU) 2025/1093) and that place on the market or export relevant products that they themselves have grown, harvested, obtained or raised

These operators will be exempt from submitting full due diligence statements.  Instead, they will have to submit a one-time simplified declaration containing all the information listed in the new Annex III to the EUDR.  Upon submission, they will receive a declaration identifier that will have to accompany all relevant products the primary operators place on the market or export.  

Where the Annex III information is already available in existing EU or national databases, micro and small primary operators will not be required to submit a simplified declaration themselves.  Instead, the information will be made available by Member States in the EUDR system, and products may only be placed on the market or exported once a declaration identifier has been assigned.

Exclusion of some relevant products

The Amending Regulation also removes from the list of relevant products books, newspapers, printed images and other printed products. 

Postponement of the application deadlines

Rather than introducing the enforcement grace period initially proposed by the European Commission, the Amending Regulation postpones the application of the EUDR one additional year until December 30, 2026.  Moreover, operators that are natural persons, micro or small undertakings and were established as such by December 31, 2024 will benefit from an additional six-month extension and have until June 30, 2027 to comply.

Next steps: Expected Future Review

The Amending Regulation will require the Commission to carry out a dedicated simplification review and present a report with a legislative proposal, if appropriate, by April 30, 2026.  Thus, in 2026, companies should closely monitor the Commission’s assessment of the EUDR, while also preparing to ensure compliance by December 30, 2026.