This week, the EU Commission released the details of the EUDR simplification review.
This article gives an over of the newest documents and digests what updates are new compared to information that had already been announced previously.
The EU Commission estimates a reduction in annual EUDR compliance costs by about 75% due to the proposed simplifications. Therefore, according to the Commission, there is no need to further reopen or postpone the regulation.
Summarizing the recent updates, there is not much new information shared in the latest documents.
They mostly contain clarifications on updates proposed in December 2025, such as:
Obligations for the downstream supply chain
Simplifications for micro and small primary operators (MSPO)
Confirmed Timelines: 30 December 2026, 30 June 2027 for micro- and small companies
You can find more information on the simplifications proposed in December 2025 in one of our previous articles (attached below).
The EU Commission announced that the EU Information System TRACES will be available again from June with new functionalities. For example, including the new functionalities of simplified due diligence for downstream operators.
Changes in EUDR Product Scope
The Draft Delegated Act proposes certain changes and updates to the scope of the EUDR based on previous feedback received from the industry and the public.
To be clear, this is currently just a proposal and not yet legally binding.
The draft Delegated Act is open for public feedback until 1 June 2026.
No more differentiation between pure-bred and other cattle
The two HS codes:
Cattle, pure-bred breeding animal (HS Code 0102 21) and
Cattle, other (HS code Code 0102 29)
are replaced with one HS Code ex 0102 Live cattle
Frozen cattle tongues added to scope
(HS Code ex 0206 21 00)
Currently only fresh cattle tongues are included in scope
Removal of leather downstream products such as cattle skins and hides
The following HS Codes will be removed:
ex 4101 Raw hides and skins of cattle …
ex 4104 Tanned or crust hides and skins of cattle …
ex 4107 Leather of cattle, further prepared after tanning or crusting …
Soluble coffee added to scope
HS Code 2101 11 00 Extracts, essences and concentrates of coffee
Further specification of wood products outside of scope
‘Wood’ products do not fall within the EUDR scope if they are made of bamboo, rattan, and other materials of woody nature, such as reeds, rushes, osier, raffia, cleaned, bleached or dyed cereal straw, and lime bark (in addition to bamboo and rattan which were previously already mentioned).
Adding of additional palm oil derivatives (Oleochemicals)
Not all relevant palm oil derivatives used in the oleochemicals industry are currently in scope which may lead to relocation rather than elimination of deforestation.
The EUDR scope should be amended to include HS codes of additional palm oil derivatives of the oleochemicals supply chain.
Only new rubber in retreaded tyres should fall in scope
Through retreading, a new rubber tread is applied to the old tyre casing, which extends the life cycle of used tyres.
HS Code ex 4012 should be replaced with HS code ex 4012 90 30 to limit the EUDR obligations exclusively to the new rubber tread.
What is further clarified in the latest EUDR FAQs?
Concept of (First) Downstream Operators
Differentiation between (upstream) operators with full due diligence requirements vs. first downstream operators
Operators only need to pass on their DDS numbers to the first downstream operator/trader
There is no obligation to pass reference numbers to other clients
How do you know you are the first downstream operator/trader?
By receiving DDS reference numbers from your supplier
You don’t need to proactively ask for reference numbers or investigate your supply chain position
Substantiated Concerns
They can arise via email/ meetings/ information from the Commission, national authorities, other private entities or the media
ONLY if a substantiated concern arises, non-SME (first) downstream operators/traders need to verify that DD was exercised (this does not have to be done by default!)
Verification can be done by verifying the validity of reference numbers, analysing information (publicly available reports, audit results, supplier information), verifying that suppliers have DD systems (including policies, & controls to mitigate risks)
If such information cannot be obtained, competent authorities can be supplied with information to assess the substantiated concern
A company can be both operator & downstream operator
A company can be both an (upstream) operator & (first) downstream operator in the same supply chain: when an entity places a product on the market & then transforms it into a derived product which it places on the market
Eg. a company imports timber & uses the timber to make sawn wood which it sells to a furniture manufacturer
Company must submit a DDS prior to importing the timber
As both roles coincide in the same legal entity, reference numbers or declaration identifiers are already available
When selling the sawn wood to a furniture manufacturer, the company is not required to pass on the reference numbers
C2C products are not in scope of the EUDR
The EUDR applies only to products placed in the EU within a commercial activity, for B2B & B2C
products intended for private use (C2C - consumer to consumer) are not covered by the EUDR
Example: a person in a third country sending products to a relative in the EU
E-commerce and other distance sales are included in the EUDR
The EUDR also applies to products made in the context of online sales (e-commerce) or other distance sales
Obligations of online distributors/retailers/marketplaces
If the online marketplace only facilitates an online sales agreement for two other parties and does not intervene in the product supply, the online marketplace is an intermediary with no EUDR obligations
If a company imports a relevant product in execution of an online sales contract in a commercial activity, it is considered an operator, no matter whether such a company is established in the EU or not
Where a provider offers different functions (such as selling/delivering a relevant product/acting as an online marketplace allowing other operators/traders to sell their products), it will be decided on a case-by-case basis whether the provider is an operator/downstream operator/trader
How to determine the company size if it changes over time
Each financial year, a company should determine its size classification via balance sheet total, net turnover & average number of employees in the latest year
The size classification only changes when 2/3 thresholds are exceeded or undershot for TWO consecutive years
Micro and Small Primary Operators
a company can be both an MSPO and a "normal” operator if it imports relevant products produced by a different entity (operator), and places relevant products on the EU market produced itself (MSPO)
A DDS must be submitted for the imported products, and a one-time simplified declaration for domestic products
Companies can qualify as an MSPO within parts of their business
The thresholds are not calculated for the entire company, but only for activities relevant to the EUDR product
How to determine if you are an MSPO if you have no balance sheet
Eg. Farmers & foresters may establish their balance sheet by assessing and estimating the value of their production facilities and other assets
If you fall below the other two thresholds of a small undertaking (net turnover & number employees per year), you do not need a balance sheet, as you are already considered an MSPO
MSPO self-declaration - When to update?
An MSPO can declare multiple relevant products in their simplified declaration (eg. cattle & timber)
Multiple plots of land or establishments can be added in one declaration
Only when an MSPO changes their business activity & places completely new products on the market, a new SD must be submitted
How MSPOs declare their estimated annual quantity for irregular production
If an operator places products on the market irregularly, only the years in which the products are produced/harvested count
If a multi-year harvest plan is required (e.g. a 10-year harvest plan in Czechia), the annual estimate can be the highest annual harvest
The total harvest quantity can also be divided by the amount of years in the harvest plan
If not available, the estimate can be based on the last year in a normal business scenario
For new operations, the average yield from a comparative plot of land can be used as a baseline
DDS should be submitted after harvest
DDS should be submitted for products that have already been produced
As an exemption, when an operator sources from stable plots of land with unchanged conditions in terms of legality & absence of deforestation, a DDS can be submitted prior to harvesting
One production place possible for all plots within a country
It is possible to declare all plots within one country of production under one ‘production place’.
Transitional Period
For products falling in the transitional period, the customs declaration for export or re-import can be used
The conventional DDS reference number is 99EU9999999999.
New map of Global Forest Types for the year 2020
GFT 2020 indicates primary forest, naturally regenerating forest & planted forest (including plantation forest) at 10m resolution by 31 December 2020
Please note: this map is only a supporting tool & NOT legally binding!
Caroline is an experienced data scientist with a management degree from TU Munich and a degree in earth observation from the University of Würzburg, which is co-chaired by the German Aerospace Center (DLR). She has worked as a data scientist in the areas of nature conservation and land use change monitoring at WWF, the German Centre for Integrative Biodiversity Research (iDiv), and at tech companies such as Celonis and Deloitte.
.svg)
.svg)
