Legal Alert: EUDR: The European Commission abandons the postponement and introduces simplifications and a transitional period
EUDR: No further postponement, simplifications for SMEs, and a transitional period for large companies.
EUDR: No further postponement, simplifications for SMEs, and a transitional period.
In recent months, entrepreneurs across many sectors have been eagerly awaiting the European Commission’s decision regarding a potential postponement of the application of the EUDR (EU Deforestation Regulation). As recently as September, statements by the Commissioner for Environment indicated that a further delay in the entry into force of the new obligations was being considered, particularly in light of numerous requests from businesses and concerns raised about the readiness of IT systems. Ultimately, however, on 21 October, the European Commission presented a set of proposals that abandon the postponement in favour of a package of simplifications and a transitional period. The aim of these measures is to ease the implementation of the regulation and reduce the administrative burden, especially for micro, small and medium-sized enterprises.
Change of the Commission’s strategy: the end of the postponement debate
On 21 October 2025, the European Commission published a proposal for amendments and simplifications to Regulation (EU) 2023/1115 of the European Parliament and of the Council of 31 May 2023 on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010 (Text with EEA relevance) (the “EUDR”)1. The presented draft clearly confirms that, contrary to earlier statements by Commissioner for Environment, Water Resilience and Circular Economy Jessica Roswall, there will be no further postponement of the EUDR entry into force for large and medium-sized enterprises.
This means that for large and medium-sized enterprises, the provisions of the EUDR will start to apply in accordance with the current timeline as of 30 December 2025. However, a six-month transitional period (until 30 June 2026) will be introduced, during which supervisory authorities will focus on information and preventive measures instead of imposing penalties. During this time, businesses will be able to adapt their procedures and systems to the new requirements, and any shortcomings will only result in warnings and recommendations for corrective action.
An exception is provided for micro and small enterprises, which will gain an additional six months to implement the new obligations. For these entities, the regulation will apply in full from 30 December 2026. This approach is a direct response to requests from business associations, which have repeatedly highlighted the disproportionate nature of the new requirements for small entities and the risk of operational paralysis in the SME sector.
| Entity type | Date of entry into force of the EUDR provisions |
|---|---|
| Medium-sized and large enterprises | 30 December 2025 (with a transitional period until 30 June 2026) |
| Micro and small enterprises | 30 December 2026 |
Simplification of supply chain obligations – a new architecture of responsibility
The most significant change proposed by the European Commission is the concentration of key obligations regarding the submission of due diligence statements (DDS) exclusively on the first entity placing products on the EU market (the "operator"). Other participants in the supply chain will be exempt from the obligation to submit individual statements in the EUDR IT system. This obligation will only apply at the stage of import or first sale in the European Union, which in practice will significantly reduce the number of interactions with the IT system and lower costs for businesses. According to the Commission, this approach ensures both the effectiveness of tracing product origins and minimizes administrative burdens.
To this end, the EUDR proposal introduces new categories of entities:
- Micro and small primary operators – meaning natural persons or micro or small enterprises within the meaning of the CSRD2 operating in low-risk countries who themselves produce, cultivate, harvest, or rear the relevant products on their own land and place them on the market or export them in the course of their business activity; and
- downstream operators – meaning any natural or legal person who, in the course of a commercial activity, places on the market or exports relevant products made using relevant products, all of which are covered by a due diligence statement or a simplified declaration.
Micro and small primary operators will be required to submit a one-off, simplified declaration in the EUDR IT system before placing a product on the market or exporting it. Upon submission of the simplified declaration, the IT system will generate a declaration identifier, which should accompany all products placed on the market or exported by the micro or small primary operator. If the required data is already available, for example in a national database3, operators will not be obliged to submit a separate declaration in the EUDR system. In such cases, the Member State will transfer the data to the EU system, and the operator may commence placing the product on the market only after obtaining the declaration identifier. This solution eliminates the previous obligation of regular submission of due diligence statements.
On the other hand, the obligations of downstream operators will be aligned with those of traders, which – according to the Commission’s proposal – will be further limited compared to the current wording of the EUDR. These entities, if not classified as SMEs, will still be required to register in the information system prior to placing products on the market or exporting them, and regardless of their size, will also be obliged to ensure full traceability of products. However, there will no longer be a requirement for these entities to "ensure" that due diligence was exercised at previous stages of the supply chain or to submit their own due diligence statements.
In practice, this means the need to collect and transmit information regarding their business partners, as well as reference numbers of DDS and identifiers of simplified declarations, as well as passing them on to the next entities in the supply chain, and responding to any new information or substantiated concerns regarding the risk of non-compliance with EUDR requirements. The obligation to retain such information for a period of five years from the date of placing on the market, making available or exporting the product and to provide it to the competent authorities upon request will also remain in force.
| Entity type | Obligations under EUDR | |
|---|---|---|
| SME | Non-SME | |
| Operator | Obligation to carry out due diligence and submit due diligence statement | Obligation to carry out due diligence and submit due diligence statement |
| Micro and small primary operator | Obligation to submit a one-off, simplified declaration in the EUDR IT system before placing the product on the market or exporting it | |
| Downstream operator | Obligation to ensure product traceability by collecting and passing on DDS reference numbers and simplified declaration identifiers | Obligation to register in the EUDR IT system Obligation to ensure product traceability by collecting and passing on DDS reference numbers and simplified declaration identifiers |
| Trader | Obligation to ensure product traceability by collecting and transmitting DDS reference numbers and simplified declaration identifiers | Obligation to register in the EUDR IT system Obligation to ensure product traceability by collecting and transmitting DDS reference numbers and simplified declaration identifiers |
The Commission maintains its environmental ambitions but responds to market signals
The Commission’s new approach is the result of extensive consultations with representatives of business, Member States and industry organisations. In response to calls regarding disproportionate burdens and the risk of unprepared IT infrastructure, the Commission has opted for a substantial simplification of the regulatory framework, while maintaining the core objectives of the EUDR, namely the effective fight against deforestation and forest degradation. The IT system, which was previously identified as the main implementation risk, has been optimized in recent months and, according to the Commission’s statement, is now ready to handle the full flow of information.
Article 34 of the EUDR, concerning the review of the Regulation’s functioning, will also be amended. The new proposal provides for the replacement of several separate impact assessments with a single, comprehensive review, which is to be conducted for the first time by 30 June 2030. Subsequent reviews are to take place at least every five years thereafter.
Practical implications and recommendations for businesses
The change in the Commission’s approach means that large and medium-sized companies can no longer count on a further postponement of the implementation deadline. It is essential to promptly adapt due diligence procedures and integrate IT systems with the EUDR platform. In particular, it will be important to appoint persons responsible for preparing and submitting DDS, verifying the supply chain, and setting up internal communication processes with business partners. As a form of “compensation” for the lack of postponement for large and medium-sized businesses, the transitional period is intended to enable companies to implement the new obligations in practice without the risk of penalties in the initial phase of application.
Micro and small enterprises gain an additional six months to adapt to the requirements; however, given the complexity of international trade and regulatory risks, we recommend commencing preparations for implementing simplified declaration procedures as soon as possible.
Regardless of the simplifications introduced, it remains crucial to monitor the further legislative process. The proposal will now be considered by the European Parliament and the Council, and the Commission is calling for the swift completion of work to enable the regulation to enter into force smoothly by the end of the year.
In parallel, work is underway in Poland on a national act implementing the EUDR, which will set out the rules for application and enforcement of the new provisions at the national level (register number in the List of Legislative and Programme Works of the Council of Ministers: UC101).
Summary
The European Commission’s decision to abandon any further postponement of the EUDR in favour of a transitional period for large and medium-sized businesses, as well as the simplification of obligations, is a response to real market challenges and a signal that the European Union remains committed to its ambitious climate agenda. The new architecture of the EUDR, focused on the first entity placing the relevant products on the market and significantly less burdensome for other market participants, represents an opportunity for a more effective and proportionate implementation of key rules for the protection of the world’s forests.
Scope of support for Clients
The KPMG Law team supports businesses at every stage of implementing new obligations arising from the EUDR. Our services include, among others:
- Review and clarification of current regulatory requirements in the context of your business activities.
- Support in preparing and updating procedures related to the preparation of DDS.
- Assistance in identifying products and processes falling within the scope of the new regulations.
In addition, we monitor ongoing legislative changes and the practice of supervisory authorities, which enables us to recommend optimal solutions tailored to the company’s profile on an ongoing basis.
