Following widespread criticism and objections concerning the requirements for applying the Deforestation Regulation, the European Commission is only "a few weeks away" from publishing a new, improved Country Benchmarking System. At the same time, global timber supply chains are "getting ready to become compliant" with the requirements of the European Union Deforestation Regulation (EUDR).

According to information provided some time ago by one of the leading distributors of timber, panels and decorative surfaces in the United Kingdom, the European Union's new Deforestation Regulation has triggered an influx of cheap, uncertified hardwood timber into UK supply chains, creating an environment for a range of problems in the timber market.

The European Commission has, however, taken significant steps to address the problems surrounding the EUDR by publishing new guidelines which, together with the completion of an improved Country Benchmarking System (coming into force on 30 June 2025), will reduce administrative and compliance costs by roughly 30%.

"This will ensure the simple, fair and cost-effective implementation of this important piece of legislation in practice," the European Commission said in a statement. "All the updated measures are expected to significantly reduce the number of due diligence statements that companies have to submit, ensuring simple and efficient data entry for all users."

The new measures, published last month, are backed by a delegated act – currently open for public consultation – which provides further clarification and simplification regarding the scope of the EUDR, responding to stakeholders' requests for guidance on specific product categories. "This will avoid unnecessary administrative costs for operators and authorities," the EC noted.

The EUDR will affect every stage of the timber supply chain

Back in March, Wood Central reported that the new rules could cause timber imports from countries with a high deforestation risk (such as Indonesia, Malaysia and Brazil) to fall by more than 25%, reaching as much as 38% if the definitions include the conversion of agricultural land (known as EUDR⁺). The timber shortfall will be covered by imports from Canada and the United States.

"The results indicate that countries with high deforestation rates, such as Brazil, Indonesia and Malaysia, are expected to see a significant decline in roundwood production and exports, which will affect the prices of sawn timber and wood panels," states the report, which was led by Craig Johnson, who modelled the EUDR's impact on the global supply of timber products. At the same time, countries with a low deforestation risk, including Canada (up 1.4%) and the United States (up 0.1%), may increase output slightly to meet EU demand. Earlier this year, the International Tropical Timber Organization (ITTO) reported that roundwood imports had fallen by more than 60% ahead of the EUDR's introduction.

This came after the European Commission postponed the introduction of the EUDR until December 2025 so that companies could comply with the law, which ensures that products sold into the European Union are not sourced from deforested areas

It was announced that the new law will come into force on 30 December 2025 for large companies and on 30 June 2026 for medium-sized and small companies. In response to concerns raised by European member states, third countries, traders and operators that compliance would not be possible if the rules applied from the end of 2024, the EC proposed postponing the date of application of the Deforestation Regulation by one year.

The European Commission has introduced a number of easements, such as:

• Large companies can reuse an existing due diligence statement where goods previously placed on the European market are re-imported. This means less information has to be submitted in the IT system.
• An authorised representative can now submit a due diligence statement on behalf of members of a group of companies.
• Companies can submit due diligence statements once a year rather than for each consignment or batch placed on the European market.
• It has been clarified how to "ascertain" that due diligence has been carried out, so that large companies can take a simpler approach to meeting their obligations in production processes. Companies now have a minimal legal obligation to collect due diligence statement (DDS) reference numbers from their suppliers and to use those reference numbers in their own DDS submissions.