Deforestation Regulation

Reporting
- Companies must submit a statement to a European information system confirming they have exercised their due diligence duties and that the products they place on the EU market are compliant with the relevant EU laws
- Operators must informs competent authorities if new information becomes available after the due diligence procedures is concluded and the statement is submitted
Due Diligence
- Mandatory due diligence rules for operators placing certain commodities (associated with deforestation and forest degradation) on the EU-market
- Operators must collect geographic coordinates of the land where the commodities they place on the market were produced in
- A benchmarking system will identify countries presenting a low, standard, or high risk of producing such products. The obligations for both operators and authorities will vary based on the country’s risk. Products produced in countries classified as low-risk will have simplified due diligence duties.
Other
- Operations are explicitly required to refrain from placing on the market and export without prior submission of a due diligence statement

Human Rights
Environment
- Does not address environmental concerns in general, only those related to deforestation and forest degradation
Broad ranging
- Sector-specific regulation seeking to control commodities associated with deforestation and forest regulation including:
  soy
  beef
  palm oil
  wood
  cocoa
  coffee
  derived products (including leather, chocolate and furniture)

Large Companies
- Traders of the relevant commodities that are large companies are subject to the same due diligence operators as operators
SMEs
- Establishes differentiated obligations for SME traders to collect a record of their suppliers and customers and make this information available to authorities if requested
- SME traders are dispensed from risk assessment, risk mitigations and due diligence obligations
All sectors
- Operators placing commodities linked to deforestation and forest degradation in the EU market

Monitoring
- Enforcing authorities will monitor and inspect compliance with the regulation’s requirements
- Higher inspection levels for high-risk countries
- Article 24 provides rules on control of the relevant commodities placed under the customs procedure (release for free circulation)
- The enforcing authority must respond to substantiated concerns raised by civil society
Administrative Sanctions
- Dissuasive sanctions/penalties for noncompliance including fines, confiscation of commodities and products, confiscation of revenues, suspension or prohibition of relevant economic activities and exclusion from public procurement
- Fines will depend on the operator’s or trader’s annual turnover

Civil Liability
Facilitating Access to Justice
- Article 30 of the proposal enables judicial review of administrative decisions, actions, and omissions