The Deforestation Regulation Will Be Applied from December 30th - Prepare and Check if the Regulation Effects You

The aim of the European Union (EU) Deforestation Regulation (EUDR) is to ensure that products consumed in the EU do not contribute to deforestation or forest degradation anywhere in the world. Additionally, the regulation aims to reduce the EU’s share of greenhouse gas emissions and protect biodiversity. Permanent clearing of forests for agricultural use and the production of products covered by the regulation in such areas is considered deforestation.

The regulation entered into force on June 29th, 2023, followed by an 18-month transition period until December 29th, 2024. The regulation will be officially applied from December 30th, 2024 onwards. In Finland, the Finnish Food Authority has been designated as the competent authority for the regulation and is responsible for ensuring compliance with its obligations.

The Deforestation Regulation applies to seven products 

The regulation covers several products - wood, cattle, cocoa, coffee, rubber, soy, and palm oil, as well as products containing or made from these, which are listed in more detail in Comprehensive list of commodities and products. Import into the EU, export from the EU, trade within the EU and domestically, domestic production and further processing both domestically and within the EU are all covered by the regulation. Products placed on the market in the EU and exported from the EU must comply with the 
regulation. The regulation requires operators to ensure product compliance with a DD insurance (due diligence insurance).

The following conditions must be met for a product to be compliant and allowed to be placed on the 
market or exported from the EU:

• Produced on land that has not been subject to deforestation after December 31st, 2020
• Produced in accordance with the laws of the country of production
• Has not caused forest degradation (e.g., wood products)
• Has a DD insurance

Importer and exporter – follow these steps:

The exporter/importer must check if the product’s customs code can be found from Comprehensive list of commodities and products.

• If the customs code is listed but the product is not covered by the regulation, an additional condition code must be indicated in the customs declaration after December 30th, 2024. This code informs Customs why the goods are excluded from the regulated products.
• If the product is covered by the regulation, the exporter/importer must maintain their own database (DD system), where the information required by the deforestation regulation for the products to be acquired and placed on the market is collected.
• To verify the origin of the products, the required information must be collected, an assessment of the risk of deforestation in the production chain must be made, and any increased risk of non-compliance must be mitigated before the products are placed on the market or exported from the EU. The collected information must be kept for five years.
• The exporter/importer must prepare a DD insurance (due diligence insurance), which is an electronic notification to be made before placing products on the market or exporting them. The DD insurance is made in the Commission’s Traces system before customs clearance for both imports and exports, as well as for domestic production or further processing. Kuehne+Nagel is currently investigating a possibility of making the DD insurance on behalf of the customer. We will inform our customers in more detail once this is clarified.
• The exporter/importer must retain the reference number of the DD insurance and provide it to the purchasing company and the forwarder (if the forwarder cannot make the statement on behalf of the customer). The reference number must be indicated in the customs declaration from December 30th, 2024 onwards. Without a DD insurance, customs clearance cannot be carried out.

More information can be found on the websites of the Finnish Food Authority.

If you have any questions, please do not hesitate to contact your Kuehne+Nagel representative. 

Sources: Finnish Food Authority, Finnish Government, Customs, Ministry of Agriculture and Forestry (Finland)