The European Commission (EC) has published a simplification review report on the EU Deforestation Regulation (EUDR), the US Department of Agriculture (USDA) reports.
Due to take effect on 30 December 2026, the legislation will ban the sale in the EU of seven commodities linked to deforestation - palm oil, soyabean, timber, rubber, coffee, cocoa and cattle.
Published on 4 May, the report delivered a range of measures aimed at reducing administrative demands while maintaining the regulation’s environmental objectives, the 7 May report said.
Measures introduced in 2024 and 2025, along with the December 2025 amendments and new simplification measures in the latest report would lead to a substantial reduction in administrative burden and a considerable simplification for companies which fell under the scope of the regulation, the report said.
“This reduction is particularly relevant for operators sourcing from low-risk countries, for micro and small primary operators, and for downstream actors, notably through the introduction of simplified procedures,” the report said.
As a result of the further simplification measures, the EC said it expected to reduce the annual compliance costs for companies subject to EUDR obligations by “about 75%” compared to the original draft.
The package included an updated guidance document, revised frequently asked questions, a draft delegated act proposing changes to product scope and updates to the Information System.
Despite US requests, the EC had not addressed key US concerns with the EUDR, including a request that producers in countries posing negligible risk should not be required to produce due diligence statements (DDSs) or provide geolocation data, the USDA’s Foreign Agricultural Service (FAS) report said.
According to the USDA report, the EUDR has the potential to impact US$9bn in US agricultural exports, including beef, coffee, cocoa, soya, wood, rubber and derived products.
The guidance document set out to provide clarity on application timelines, obligations for operators and traders, and due diligence and traceability requirements.
In addition, the information system would be updated to reflect changes from the revised regulation and enhance user-friendliness. Updates included a simplified declaration form for micro and small primary operators aligned with the existing DDS format.
The updated guidance also clarified obligations for three distinct categories: upstream operators; micro or small primary operators (MSPOs) and downstream operators and traders.
Upstream operators would need to exercise due diligence, conduct risk assessment and mitigation, and submit DDSs prior to placing products on the market or exporting.
Micro or small primary operators (MSPOs) would be subject to a simplified regime with reduced obligations. In place of submitting DDSs, they would need to submit one-time simplified declarations and could use postal addresses instead of geolocation coordinates. They would not be required to conduct risk assessment and mitigation unless they obtained information indicating non-compliance.
Downstream operators and traders would need to collect and keep information about direct business partners and, if their supplier was an operator, the DDS reference numbers. Non-SME (small and medium) downstream operators and traders would need to register in the information system and verify due diligence in case of substantiated concerns.
Operators sourcing exclusively from countries classified as “low risk” would benefit from simplified due diligence obligations under Article 13 of the EUDR.
They would still need to collect information required under Article 9 and establish a due diligence system but would not be required to conduct risk assessment (Article 10) or risk mitigation (Article 11) unless they obtained information indicating potential non-compliance.
However, they would still need to provide geolocation coordinates for plots of land where commodities were produced.
The draft delegated act is open for public feedback until 1 June 2026.
