EU Deforestation Regulation (EUDR): Which goods are affected – and which are not?

The EU Deforestation Regulation (EUDR) came into force with the aim of combating deforestation and forest degradation through the trade of commodities and products. With clearly defined requirements for traceability and due diligence, companies are obliged to ensure that only deforestation-free products are made available on the EU market.

In recent months, I have read a lot about this topic in the LinkedIn feed, but because the affected goods are mentioned in Annex I of the regulation, it seems clear to many readers which goods the regulation applies to. However, as with the rest of the regulation, the devil is in the details. Let's take a closer look.

Definition of “relevant commodities”

The two terms are defined in Article 2 of the regulation.

The regulation provides for the following products as “relevant commodities”:

• cattle, cocoa, coffee, oil palms, rubber, soy, and wood.

At first glance, the listed commodities may sound surprisingly mundane. In 2023, after the publication of the regulation, I wondered where exactly these products should be classified within the customs tariff because rubber in particular is a diverse product that can also be produced synthetically.

In Annex I, the relevant commodities are listed in words in the left-hand column.

In which headings are they now classified?

These “relevant commodities” can also be found in the right-hand column under “Relevant products”, which can cause some initial confusion.

Definition of “relevant products”

• Products that consist of, contain, are fed with or are made from these commodities.

How does the dictionary define “commodities”?

Raw material / commodity = “any material, such as oil, cotton, or sugar in its natural condition, before it has been processed for use”

”Relevant commodities” and their headings in the HS customs nomenclature

What does “ex” mean for individual headings in Annex I?

For a long time, it was unclear what the prefix “ex” in front of individual headings in Annex I could mean because these prefixes are not defined in more detail in the regulation itself.

Over time, the European Commission published the following definition of the prefix “ex” on an information website set up specifically for the EU Deforestation Regulation (EUDR):

When there is an “ex” before the HS code of products in Annex I, the product described in the Annex is an 'extract' from all the products that can be classified under the HS code.

The text also provides an example:

In case the relevant product, e.g. “ex 4011 New pneumatic tyres, of rubber” is made from a mix of synthetic and natural rubber then the operator (or non-SME trader) has to exercise due diligence only for the natural rubber ingredient.

This example shows that the regulation only covers natural rubber under the relevant commodity “rubber”, i.e. heading 4001, and also the products made from it or with natural rubber components.

Which relevant commodities according to Article 2 are now affected?

Note: non-exhaustive list

So let's now look at the other products with the prefix “ex” for the remaining relevant commodities:

🛑 Which “related” commodities are not affected? 🛑

Note: non-exhaustive list

What applies to composite goods?

The focus is on the main relevant commodity according to Annex I

Example: chocolate bar of heading 1806 (cocoa vs. palm oil)

In the case of a chocolate bar, due diligence is only required for the main relevant commodity, in this case cocoa, which is listed in the left-hand column of Annex I to the EUDR.

For a chocolate bar (1806), cocoa is the main relevant commodity. Due diligence therefore applies to cocoa powder (1805) and cocoa butter (1804), but not to any palm oil that may have been used.

Which “relevant products” made from/with the above-mentioned commodities are affected?

Note: this is not an exhaustive list

Products from/with cattle (of the genus Bos, Bibos, Novibos and Poephagus)

• Fresh and frozen meat, including for the production of animal feed (0201, 0202)

• Slaughter by-products, edible for humans, including for the production of animal feed (0206.10)

• Liver, also for the production of animal feed (0206.22)

• Food preparations with more than 20% beef (except for sausages of heading 1601 or filled pasta of heading 1902) (1602.50)

• Hides and skins (4101, 4104)

• Leather (4107)

Products made from/with cocoa

• Cocoa paste (1803)

• Cocoa butter (1804)

• Cocoa powder (1805)

• Food preparations / chocolate (1806)

Products made from / with coffee

• beans (0901)

• ground coffee (0901)

• roasted coffee (0901)

Products made from / with palm oil from "Elaeis guineensis"

• palm kernel oil (1513)

• oilcake and other residues (2306.60)

• glycerol obtained as a by-product of palm oil (2905.45)

• pure palmitic acid (2915.70)

• pure stearic acid (2915.70)

• pure capric acid (2915.90)

• pure myristic acid (2915.90)

• pure lauric acid (2915.90)

• pure caprylic acid (2915.90)

• above-mentioned acids, technically processed / industrial (all 3823)

Products made of/with natural rubber from "Hevea brasiliensis"

• Rubber mixtures with natural rubber, not vulcanized, in liquid or paste form, as irregular blocks, pieces, bales, powder, granules, crumbs or similar loose forms (4005)

• uncured rubber sheets, plates, strip and rods, cut or printed, containing natural rubber (4005)

• uncured natural rubber rods, tubes, pipes, profiles (other than square or rectangular), discs, rings and seals (4006)

• Vulcanized natural rubber thread and cord (4007)

• Soft natural rubber plates, sheets and strip, cut across the grain and whether or not printed (4008)

• Soft natural rubber rods, sticks, and profiles (other than square or rectangular) (4008)

• Conveyor and transmission belts (whether or not made from fabric impregnated, coated, covered or laminated with rubber), of vulcanized natural rubber (4010)

• New pneumatic tires, of natural rubber (4011)

• Pneumatic tires, of natural rubber, retreaded or used (…) (4012)

• air tubes of natural rubber (4013)

• articles of apparel and clothing accessories (…) for all purposes, of soft natural rubber (4016)

• floor coverings and mats, erasers, seals, boat or dock fenders, air mattresses, cushions and other inflatable goods, water mattresses, elastic wristbands, tobacco pouches, letters and numbers for stamps, rubber stoppers and rings for preserving jars, pump rotors, technical rubber parts for machines and apparatus, vibration dampers, mud flaps, brake pads, parts and accessories for vehicles, plates, sheets and strips (other than rectangular), plasters and patches for inner tubes, hammers with rubber heads, small household items such as suction hooks, table mats and furniture legs made of / with natural rubber (4016)

• Natural hard rubber in all forms, including waste and scrap; articles thereof (4017)

Products made from/with soy

• Soybean flour / meal (1208.10)

• Soybean oil (1507)

• Soybean oilcake and other solid residues (2304)

Products made from/with wood

• all headings of chapter 44 (click on this direct link)

• Wooden pallets sold as a separate product

• Pulp made of/with wood, except bamboo products and recovered products (waste/scrap) (Chapter 47)

• Paper (products) made from wood, except bamboo products and recovered products (waste/scrap) (Chapter 48)

• Books, newspapers, pictures, graphic products, handwritten or typewritten documents and plans, made from (pulp) wood (for example, also photographs in wooden frames, wooden billboards). (Chapter 49)

• Seats (…), whether or not convertible into beds, and parts thereof, with parts (no quantitative restriction) of wood (9401)

• Wooden furniture and parts thereof (9403.30, 9403.40, 9403.50, 9403.60, 9403.91), with parts (no quantitative limits) made of wood

• Prefabricated buildings of wood (9406.10)

🛑 Which similar products are not affected? 🛑

Note: non-exhaustive list

Non-affected products made from/with cattle (of the genus Bos, Bibos, Novibos and Poephagus)

• Slaughter products, not suitable for human consumption

• Pasta (ravioli, lasagne, cannelloni) filled with beef or beef offal

• Other food preparations with less than 20% by weight of beef

• Seasonings with any amount of beef

• Sausages of heading 1601

• Soups (preparations) with any amount of beef

Non-affected products made from/with cocoa

• Buttermilk, soured milk, yogurt, kefir, and other fermented milk products with cocoa

• Food preparations made from flour, semolina, starch, milk powder or milk, with less than 40% cocoa

• Pasta, whether cooked or not, filled or prepared with cocoa

• Foods made from cereals, grains or flakes, with less than 6% cocoa (“chocolate cornflakes”)

• Bakery products such as bread, biscuits, cakes, wafers and waffles, with any amount of cocoa

• Ice cream, with any amount of cocoa

• Non-alcoholic beverages with cocoa

• Alcoholic beverages >0.5% alcohol with cocoa

• Pharmaceuticals with cocoa

Non-affected products made from/with coffee

• coffee wax

• extracts, essences, and concentrates of coffee (including decaffeinated or with coffee substitutes), liquid or powdered, incl. instant coffee made from dried/freeze-dried coffee extract

• non-alcoholic beverages containing coffee

• alcoholic beverages containing >0.5% alcohol and containing coffee

• Food preparations containing coffee

Non-affected products made from/with palm oil

• Foods containing palm oil, except pure cooking oil itself

• Detergents and cleaning agents with palm oil

Non-affected products made from/with rubber

• All products made from/with synthetic rubber according to HS Note 4 to Chapter 40 (unsaturated synthetic substances, thioplasts, specifically modified natural rubber, SBR, XSBR, BR, IIR, CIIR, BIIR, CR, NBR, IR, EPDM, XNBR, NIR)

• All products made from/with balata, gutta-percha, guayule, chicle, zelutong

Non-affected products made of / with soy

• Boiled or roasted soybeans (e.g. “Edamame”)

• other foods made from/with soy, except pure cooking oil itself, raw soybeans and soy flour

Non-affected products made from/with wood

• Scented paper and paper impregnated or coated with cosmetics or soap

• Paper made from 100% recycled pulp

• Paper impregnated with diagnostic or laboratory reagents

• Abrasives applied to paper or paperboard

• Sanitary towels and tampons, diapers and diaper liners

• Hand tools with a working steel head with a wooden handle (only if the handle is imported separately, it is subject to Annex I (4404))

• Parts of shoes

• Walking sticks

• Exclusively recognizable parts of electrical and mechanical devices

• Toys

• Wooden pallets that are delivered in a shipment for packaging purposes with the goods (without separate invoicing)

• Operating manuals that are sent in a shipment with the corresponding product (without separate invoicing)

I hope you found this article helpful. If you have any questions or would like further assistance, feel free to reach out to us—we’re here to support you!