In June 2023 the new EU Regulation on Deforestation Free Supply Chains entered law. This legislation aims to help protect against climate change by ensuring that certain products placed on the market within the EU are free from deforestation.
What is Deforestation?
Deforestation can be defined as the conversion of forest to agricultural use, whether human induced or not.
The EU Commission determines that a product is Deforestation Free if it contains, been fed with, or been made using relevant commodities that were produced on land not subject to deforestation.
What products are covered?
The products covered under this new legislation will be kept under regular review. At present products subject to the new requirements include:
- Cocoa
- Coffee
- Cattle
- Palm Oil
- Timber
- Rubber.
Apart from deforestation, does this regulation consider any other areas?
This legislation also requires businesses to ensure that the rights of indigenous people and all other human rights in the country of production have been respected.
I’m based in Northern Ireland does this impact me?
Currently there remains some uncertainty around how EU deforestation regulations will be applied in relation to Northern Ireland. If you are based in Northern Ireland and you import goods from outside the EU which are classed as "At Risk" upon entry into Northern Ireland, you should follow the same steps as businesses in Ireland when preparing for this legislation.
Like the EU, the UK government has committed to reducing deforestation. The UK Environment Act 2021 introduced new measures which aimed to tackle deforestation overseas. Find out more in this press release on GOV.UK. However, there is further legislation required before businesses will face any new requirements regarding deforestation from the UK government. Businesses in Northern Ireland should continue to monitor this area in case of future legislative requirements.
When will the rules take effect?
The new deforestation regulation took effect on 29 June 2023. Large businesses have eighteen months from this date to implement the regulations. Micro and small businesses have until 30 June 2025 to implement the regulations.
However, whilst the main requirements of the new legislation will only apply for SMEs from 2025, they will be required to demonstrate that the land in which the products were produced has not been subject to deforestation since 31 December 2020. Therefore, it would be prudent for businesses to begin preparations for the new legislation as a matter of urgency.
Who is responsible for compliance?
The business who is placing the goods on the market in the EU is responsible for compliance with all regulations.
Will there be penalties for non-compliance?
Businesses who breach the regulations may face further action from the relevant national authorities. This may include fines and seizure of goods.
What Information will businesses need?
Businesses will need to collect the following information to demonstrate that their products are free from deforestation:
- Trade name and type of product
- Quantity of product entering/leaving the market
- Country of production
- Geolocation of plots of land where product was produced along with dates of production
- Supplier/customer contact details
- Information to confirm that your products are Deforestation Free.
How do businesses report Deforestation levels?
To help support organisations in reporting details regarding deforestation the EU will be launching a new digital system. The IntertradeIreland Trade Hub will provide more information about this system as it becomes available.
Where can I find support?
If you are still unsure about how changes in EU Deforestation rules apply to you, click here to access Trade Hub support, where subject to eligibility you may be able to receive specialist consultancy advice from an approved InterTradeIreland Service Provider.
