EUDR
EUROPEAN UNION DEFORESTATION-FREE REGULATION

The UN Food and Agriculture Organization (FAO) estimates that 420 million hectares of forest – an area larger than the EU were lost to deforestation between 1990 and 2020. EU consumption represents around 10% of global deforestation.
The deforestation regulation, adopted by Parliament on 19 April 2023, aims to fight climate change and biodiversity loss by preventing deforestation related to EU consumption of products from cattle, cocoa, coffee, palm-oil, soya, wood, rubber, charcoal and printed paper.
On 29 June 2023, EUDR entered into force. Any operator or trader who places these commodities and products on the EU market, must be able to prove the following as mentioned in the Article 3 of the EUDR
On 17 December 2024, a plenary vote in the EU Parliament resulted in the postponement of EUDR with the following new application dates:
- 30 December 2025: Large operators and traders
- 30 June 2026: Micro- and small enterprises


EUDR Step-by-Step for
Malaysian Rubber Exporters
The European Union Deforestation-Free Regulation (EUDR) aims to prevent the importation of products linked to deforestation and forest degradation.
The burden of proof is on the EU companies (Operators) that will have to declare a due diligence statement through an online registry. Malaysian companies need to help their EU importers to provide the following information to ensure compliance with the regulation.
The following outlines the steps Malaysian exporters may undertake to ensure compliance with the EUDR when exporting to the EU.
- Step 1: Understand EUDR Requirements
The regulation aims to curb deforestation and forest degradation caused by products imported into the EU. There are 3 general rules of EUDR
Familiarise yourself with the EUDR requirements, particularly focusing on:
- Traceability of raw materials, including cross-border
- Legality, which means in accordance with laws of production country (land use right, environmental protection, forest-related rules, rights of third parties, labour, and human, principle of free, prior and informed consent, tax, trade and customs regulations)
- Documentation and reporting obligations
Understand what the relevant products are, as listed under Annex I, that are related to the rubber industry:
HS Codes
Relevant rubber products
4001
Natural rubber, balata, gutta-percha, guayule, chicle and similar natural gums, in primary forms or in plates, sheets or strip
ex 4005
Compounded rubber, unvulcanised, in primary forms or in plates, sheets or strip
ex 4006
Unvulcanised rubber in other forms (e.g. rods, tubes and profile shapes) and articles (e.g. discs and rings)
ex 4007
Vulcanised rubber thread and cord
ex 4008
Plates, sheets, strips, rods and profile shapes, of vulcanised rubber other than hard rubber
ex 4010
Conveyer or transmission belts or belting, of vulcanised rubber
ex 4011
New pneumatic tyres, of rubber
ex 4012
Retreaded or used pneumatic tyres of rubber; solid or cushion tyres, tyre treads and tyre flaps, of rubber
ex 4013
Inner tubes, of rubber
ex 4015
Articles of apparel and clothing accessories (including gloves, mittens and mitts), for all purposes, of vulcanised rubber other than hard rubber
ex 4016
Other articles of vulcanised rubber other than hard rubber, not elsewhere specified in chapter 40
ex 4017
Hard rubber (e.g. ebonite) in all forms including waste and scrap; articles of hard rubber
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Step 2: Assess Supply Chain
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Supply Chain Traceability
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Mapping Supply Sources
Identify all suppliers and sources of raw rubber. Complexity of supply chain increases risk of non-compliance (Guidance Document, page. 13)- Identify the exact plot of land where the raw material was grown or harvested.
- Maintain records of all suppliers along the chain.
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Traceability Mechanisms
Establish a system to track rubber from plantation to product. This includes:- Detailed records of the supply chain.
- Documentation of all transactions.
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Mapping Supply Sources
- Geolocation Data
Collect geographical coordinates of the land used for rubber cultivation.- Provide precise geolocation coordinates of the origin plot (or plantation)
- For plots of land of more than four hectares, geolocation has to be provided using polygons (not a unique central point with a circumference) with sufficient latitude and longitude points (FQA, page 13)
- Describe the perimeter of each plot of land.
- Third-party verification is not legally required however, it is an added value in providing complementary information and assistance such as on geolocation. Certifications should meet specific standards such as ensuring products are deforestation-free and comply with relevant legislation (Guidance Document, page 22)
- If the products made are derived from several sources of geolocations, it is necessary to assess the risk for each source and geolocation
- Further Considerations
Ensure the following are taken into consideration:- The presence of forests in the country of production and that the products or its raw materials are not produced from areas that have been deforested after 31 December 2020
- The presence of indigenous people in the country of production and that they are consulted and there is a cooperation in good faith, or existence of duly reasoned claims by indigenous peoples based on objective and verifiable information regarding the use or ownership of the area used for the purpose of producing the relevant commodity
- Integrity of data; source, reliability, validity, and links to other available documentation of the information
- Country risks assessment (to be made available by the EC), which includes:
- the complexity of the relevant supply chain and the stage of processing of the relevant products, in particular difficulties in connecting relevant products to the plot of land where the relevant commodities were produced;
- the risk of circumvention of this Regulation or of mixing with relevant products of unknown origin or produced in areas where deforestation or forest degradation has occurred or is occurring;
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Supply Chain Traceability
- Step 3: Conduct Risk Assessment & Risk Mitigation
It is the responsibility of the Operators to conduct risk assessment and risk mitigation, but exporters should take proactive actions to ascertain the risks in their supply chain and address potential concerns that would be detrimental to the traceability and legality of their supply chain.
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Evaluate Deforestation Risks
Analyse the potential deforestation risks associated with your rubber sourcing.- Recognising origin of the raw material used; if from several sources or geolocations, assess for each
- Check on the assigned risk level of production country. Evaluate the rate of deforestation or degradation associated (Guidance Document, page 10)
- Include factors like legality of land use and adherence to local laws Article 9(1)(h)
- Use Risk Assessment Tools
Utilise available tools and methodologies to assess risks based on the source of rubber. If there is a possibility of non-compliance (e.g: uncertain land use rights or proximity to protected forests), exporters must:- Collaborate with suppliers to mitigate risks (e.g: use certified sustainable sources).
- Exporters may provide independent verification through audits and certifications, which EUDR acknowledges as possibly useful information on compliance with the Regulation (Guidance Document, page 22).
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Evaluate Deforestation Risks
- Step 4: Develop Documentation
- Supplier Declarations
Provide declarations, confirming compliance with EUDR.- Product description: A detailed description of the product, including relevant raw materials used in its production and evidence of legal harvest. Information must include relevant materials (which require cross-border traceability; if imported), used in the making of the product.
- Quantity: The quantity of the product, expressed in net mass, volume, or number of units.
- Country of production: The country where the product was produced, including specific regions; if relevant.
- Geolocation: The geographical coordinates of the production site(s).
- Supplier and recipient information: Details about suppliers and recipients of the product.
- Submission
Documentation is crucial as it needs to be submitted to importers (EU operators), and ultimately to EU authorities.
EU operators need to produce the due diligence statement, which emphasises the importance of evaluating supply chain transparency and the operators' responsibilities in compliance. It must be submitted to the EUDR Information System before exporting the rubber products.
*Note Current EUDR Information System supports GeoJSON fileformat and WGS-84, with EPSG-4326 projection (FQA document, page 11)
- Step 5: Engage with EU Operators
Exporters should work closely with operators in the EU for:- System alignment with EU operator’s due diligence systems.
- Data transfer that is seamless and in the correct format (such as sharing geolocation mapping).
- Open communication with EU operators regarding compliance measures
- Documentation supply of all required documentation to EU operators, including:
- Traceability records.
- Risk assessment and due diligence reports.
- Certificates or declarations from suppliers.
- Step 6: Compliance and Monitoring
- Ongoing Monitoring
- Regularly monitor supply chain practices to ensure continued compliance with EUDR.
- Monitor local land-use laws and forest conservation rules (Guidance Document, page 14). Land Status: the legality of production depends on compliance with laws related to land tenure, management, and legal boundaries.
- Ensure suppliers remain compliant with all environmental and social standards (third parties’ rights; labour rights; human rights protected under international law); the principle of free, prior and informed consent, including as set out in UN Declaration on the Rights of Indigenous people; and tax, anti-corruption, trade and customs regulations (EUDR, Article 2(40)).
- Update Records
- Maintain and update all records as necessary, particularly in response to any changes in suppliers or sourcing practices.
- Regulatory Updates
- Keep abreast of any changes in EUDR and related regulations.
- Legal and Penalty Considerations
Non-compliance with EUDR may result in:- Import bans on non-compliant products.
- Financial penalties and reputational damage.
- Scrutiny from EU market surveillance authorities and low chances of exporting with the same stakeholders.
- Ongoing Monitoring
Prepare the following information, which must be stored in a reliable system (Article 9 of the EUDR):

DISCLAIMER
This Guideline is provided for informational purposes only; it is not intended as legal advice and may not be relied upon as such. This Guideline is provided “as is where is” basis, and the Malaysian Rubber Council makes no representations or warranties (and expressly disclaims all statutory warranties) regarding the Guideline or its use. Please refer regularly to the EU latest announcements and publications. Users should always consult their own legal counsel in determining legal compliance obligations.