Introduction
As we explained in an earlier article, under EU Regulation 2023/1115 on deforestation-free products (the EUDR), which entered into force on 29 June 2023, any operator or trader who places relevant commodities or their products on the EU market, or exports from it, must be able to prove that the products do not originate from recently deforested land or have not contributed to forest degradation.
Earlier this week, Commissioner Jessika Roswall sent a letter to the Chair of the European Parliament’s ENVI Committee, indicating that the Commission is considering postponing the entry into application of the EUDR by one year (from 30 December 2025 to 30 December 2026). The explanation is rooted in concerns over the centralised IT system that supports the EUDR — specifically, whether it is capable of handling expected transaction volumes and complexity without service degradation or failures.
This development is material for any business preparing to trade in EUDR-covered commodities, such as cattle, cocoa, coffee, oil palm, rubber, soy, or wood. In this article, we bring you up to speed on the reasons for the proposed delay to the EUDR deadline and set out our recommendations for in-scope businesses.
Key Points from the Commission’s Letter
- Load Forecasts Revised Upwards: The Commission states that earlier load estimates for the IT platform have been revised significantly upward, due to:
- Multiple modes of system engagement by operators (resulting in overlapping or duplicated interactions).
- The inclusion of downstream operators, despite simplification efforts.
- High volumes of small parcels entering the EU, which complicate tracking and verification.
- The burden of verification checks by both the Commission and national authorities.
- Risk of System Failure or Severe Slowness: If the system cannot absorb the higher-than-expected load, operations may suffer from persistent delays, failures in registrations or declarations, and inability to access necessary system functions or data.
- Proposal to Delay Implementation: To mitigate these risks, the Commission is weighing a one-year postponement. It states that this approach would give additional time to stress-test and strengthen the IT system, avoid transitional chaos, and allow stakeholders to adapt.
- Still Under Consultation: The proposal is not yet final. The Commission has sought input from both the European Parliament and the Council. Formal adoption will require alignment across EU institutions.
What This Means for Your Business
While the possibility of delay may be welcomed from a compliance perspective — giving additional potential runway for compliance — uncertainty remains. In the meantime, therefore, we recommend that businesses:
- Do not pause preparation: Continue with your due diligence planning, supplier mapping, internal systems design, and documentation practices. Treat the December 2025 date as operational until otherwise confirmed.
- Maintain stakeholder dialogue: Keep stakeholders updated, noting that while delay is being considered, final clarity may not arrive until late in 2025.
- Be cautious with supplier commitments: Avoid overcommitting to investments or contractual changes that are premised on a firm December 2025 implementation — should the delay go ahead, these may need renegotiation or redirection.
- Monitordevelopments closely: We expect the Commission, Parliament, and Council to engage in consultations over the coming months. A political consensus will need to be reached, and formal adoption published.
- Engage in scenario planning: Develop two parallel implementation paths: one assuming December 2025 proceeds, and one accommodating a 12-month delay. Use these to stress-test internal resource allocation, system loads, and supplier engagement.
- Conduct a legal and commercial review: Revisit supplier and logistics contracts to check for clauses triggering on regulatory change or delay. Where possible, maintain flexibility or escape options to adapt to shifting timelines.
Conclusion
In this transitional moment, readiness remains the prudent course, enabling in-scope businesses - once clarity emerges - to pivot swiftly, as necessary, with minimal disruption.
For more information, please contact John Gaffney or your usual contact in Beauchamps LLP.
