EU Regulations

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

Commodities that were produced illegally, on land deforested after 31 December 2020 or that is not traceable, do not comply with the rules and cannot be placed on the EU market. Compliant commodities must be stored separately than those that are of unknown origin or are not compliant.

On 18 December 2025, the European Council adopted amendments to the EU Deforestation Regulation (EUDR). The amendments delay the implementation by 12 months and simplify certain compliance requirements, particularly for downstream operators and small and micro enterprises.

The amendments of the EUDR has been officially published in the Official Journal of the European Union on 19 December 2025, which making the revised timelines and requirements legally effective across all EU Member States.

The revised application dates are as below:-

30 December 2026: Large operators and traders
30 June 2027: Micro- and small enterprises

Latest Developments
on EUDR

Simplification of Due Diligence Requirements
The revised EUDR maintains its objective to prevent deforestation while reducing administrative burden. Responsibility for submitting Due Diligence Statements (DDS) will rest solely with the first entity placing a relevant product on the EU market. Key simplifications include:
- Streamlining of due diligence procedures
- Adjustments to reporting and documentation obligations
- Reduced administrative burden (especially for micro and small enterprises)
By 30 April 2026, the European Commission must present a report to assess the law’s impact and administrative burden, in particular for micro and small operators.
EUDR Information System
The European Commission has launched the EUDR Information System, a digital platform for due diligence submissions.

Operators and traders can now:
- Register in the system
- Submit and manage due diligence statements
- Share reference numbers with business partners
The system will be mandatory once the Regulation is fully enforced.
Implications of the EUDR

For Operators

Operators continue to be the primary entities responsible for EUDR compliance.
- Most operators must:
  - Conduct full due diligence; and
  - Submit Due Diligence Statements (DDS) via the EU information system for relevant products placed on or exported from the EU market.
- Traceability requirements remain fully applicable, including:
  - Collection of geolocation data;
  - Risk assessment; and
  - Implementation of risk mitigation measures, where necessary.
- The extended timeline provides additional time to prepare systems, data, and internal processes.
For Downstream Operators and Traders

Under the updated framework, downstream operators and traders are no longer required to submit their own DDS. This responsibility remains with the operator.
- Non-SME downstream operators and traders are required to:
For Micro and Small Primary Operators
- Micro and small primary operators will now only have to submit a one-off simplified declaration, making it easier for businesses to comply with the law without compromising on its objectives (Refer: Article 4(a), no. 2, page 19, Regulation of the European Parliament and of the Council)
- These operators remain responsible for:
  - Ensure accurate producer and plot-level information; and
  - Updating declarations if there are significant changes occur.
- The geolocation referred to in Article 9(1), point (d), may be replaced by the postal address of all plots of land or the postal address of the establishment from which the relevant commodities that the relevant product contains, or has been made using, were produced. (Refer: Article 4(a), no. 5, page 20, Regulation of the European Parliament and of the Council)
- Larger downstream buyers will continue to rely on timely, accurate, and reliable data from micro and small operators. As such, capacity-building and supply chain support remain critical to ensuring overall EUDR compliance.

The European Commission has published additional guidelines, the Guidance Document in October 2024, covering specific aspects of the EUDR that addresses definition of agricultural use, agroforestry and agricultural land, certification, legality and other relevant issues.

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

Step 2: Assess Supply Chain
1. Supply Chain Traceability
  - Mapping Supply Sources
    Identify all suppliers and sources of raw rubber. Complexity of supply chain increases risk of non-compliance (Guidance Document, page. 12)
    - Identify the exact plot of land where the raw material was grown or harvested.
    - Maintain records of all suppliers along the chain.
  - Traceability Mechanisms
    Establish a system to track rubber from plantation to product. This includes:
    - Detailed records of the supply chain.
    - Documentation of all transactions.
2. 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 (FAQ, page 12)
  - 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
3. 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;
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.
1. 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)
2. 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).

Step 4: Develop Documentation

Prepare the following information, which must be stored in a reliable system (Article 9 of the EUDR):

Supplier Declarations
Provide declarations, confirming compliance with EUDR.
1. 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.
2. Quantity: The quantity of the product, expressed in net mass, volume, or number of units.
3. Country of production: The country where the product was produced, including specific regions; if relevant.
4. Geolocation: The geographical coordinates of the production site(s).
5. 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:

Step 6: Compliance and Monitoring
1. 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)).
2. Update Records
  - Maintain and update all records as necessary, particularly in response to any changes in suppliers or sourcing practices.
3. Regulatory Updates
  - Keep abreast of any changes in EUDR and related regulations.
4. 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.

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.