Navigating the EUDR Delay: What It Means for Your Business
As we enter week two following the European Commission’s proposal to delay the EUDR, experts are speculating on whether it will be approved. The legislative process could take at least 6 to 8 weeks if everything goes smoothly. The Council announced on October 16th to have approved the delay. The European Parliament had a first discussion on the 14th, which will be followed by a vote on an urgent procedure on the 21st or 22nd and a final vote on November 13th or 14th. Meanwhile, the first compliance date for large companies, December 30th, 2024, is fast approaching.
What Should Companies Do Now?
Stay Engaged with Your Supply Chain Suppliers are questioning whether to pause their EUDR preparations due to the proposed delay. Companies must communicate with their suppliers that the delay isn’t confirmed yet, and they should continue working towards the December 2024 deadline. SMEs working with large companies in scope of the EUDR need to remain focused on EUDR compliance until further notice.
Keep an Eye on Developments Although there’s a proposed delay, the EU continues to actively work on the EUDR. Recent updates include a new FAQ, Guidance and website. Stay informed by reading our blog articles on these developments. We will continue to provide any news on where things are, if and when they happen.
Continue Your Efforts Don’t stop the progress you and your supply chain have made. Challenges like gathering geolocation data and assessing deforestation for all plots of land remain significant. The updated FAQ states that local issues (legal or otherwise) won’t exempt operators from their obligations to obtain EUDR data and information. Continuing your efforts will send a strong message to the supply chain to prepare for the inevitable, whether that will be in a couple of months, or a year from now. Implementing data flows along the supply chain takes time and benefits from stable requirements.
Start Now if You Haven’t Already If your company hasn’t begun preparing for EUDR compliance, now is the time. Even if a delay is granted, companies will need all the time they are given to prepare for compliance. Download the QIMA EUDR Checklist to understand how to get started.
Remember the EUTR (EU Timber Regulation) Still Applies The EUDR will eventually replace the EUTR (EU Timber Regulation), but until 31 December, 2027, the EUTR remains in effect for certain timber products that were produced before 29 June 2023 and placed on the market from 30 December 2024.
Why Time is of the Essence
In the past month, we have run a couple of polls on the EUDR which have provided interesting insights into the readiness of businesses.
Product scope uncertainty: 43% of respondents are either unsure or still determining whether their products fall under the EUDR scope.
Supply chain accountability: While 51% believe the EUDR enhance supply chain transparency, 19% are uncertain about its overall impact.
Compliance readiness: It’s encouraging that 43% of businesses consider themselves ready for EUDR compliance. However, 41% are still tackling challenges and a concerning 16% are not prepared at all.
Certification awareness: 36% are unaware of how certifications like FSC, PEFC and Rainforest Alliance, can support EUDR compliance.
Opinions on Delay: Regarding a delay, 54% feel prepared regardless, 39% are hoping for more time, and 11% are about whether a delay would be beneficial.
As the delay proposed by the European Commission is yet to be approved by the European Parliament and get through the Trilogue, businesses should not assume this delay is now confirmed.
If approved, companies will have more time to make sure their products are EUDR compliant. Companies cannot afford to relax but should make use of the extra time to engage with their supply chain, map the supply chains of the relevant products all the way to the farms and forest, collect data and information and perform risk assessments.
In the meantime, check out our EUDR Checklist and EUDR Fireside Chat to learn more or reach out to us to discuss how we can help you.
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