23 August 2024

EU DEFORESTATION DATA POSES RISKS TO IMPORTS

As the European Union Deforestation Regulation (EUDR) draws closer to its implementation date, the impact on businesses, particularly within the logistics sector, cannot be understated. The EUDR, set to take effect from December 30, 2024, is poised to transform the supply chain landscape by introducing stringent traceability and documentation requirements aimed at preventing deforestation-linked products from entering the EU market.

While industries directly handling commodities such as timber, soy, and palm oil have been at the forefront of the discussion, logistics service providers must also prepare for the substantial changes this regulation will bring. CLECAT has been actively working to raise awareness of the EUDR among its members and their clients, emphasising that compliance is not just a concern for producers and traders but also for those responsible for transporting and clearing these goods.

The EUDR mandates that every actor in the supply chain, including logistics providers, must verify and document that the products they handle are deforestation-free. This means that logistics companies will need to familiarise themselves with the due diligence processes required by the regulation, ensuring that shipments are accompanied by the necessary documentation and that non-compliant goods are identified and handled appropriately.

Failure to meet these requirements could result in severe consequences, including shipment delays, fines, or even the confiscation of goods. As the deadline approaches, it is crucial for all businesses involved in the supply chain to start preparing now. The full implications of the EUDR are still unfolding, and with additional guidelines expected from the European Commission, staying informed and proactive will be key to navigating this new regulatory landscape.

For a deeper understanding of the EUDR and how it may affect your business, you can read the full blog post here