EUDR – new country classification and simplifications for businesses

The whole importance of the country classification according to risk boils down to Article 3(a) EUDR. It stipulates that relevant commodities and relevant products may be placed or made available on the market only if they are deforestation-free. Now, the EU lawmakers have graded that risk. The risk that commodities and products may contribute to deforestation depends on their country of origin and production methods. Companies which buy goods from countries of low risk of deforestation face fewer obligations when it comes to ensuring compliance in accordance with Article 13 EUDR. 

The country classification forms the foundation of the EDUDR’s risk assessment system. It lets the competent authorities control operators’ and traders’ due diligence systems and compliance of relevant products with the EUDR. It also helps to tell when entities may use the simplified due diligence procedure.

The EUDR differentiates business obligations depending on the risk level of the country of origin of commodities and products placed or made available on the market.

One example of such an obligation is to constantly monitor data received from suppliers and assess risks in accordance with Article 10 EUDR. The risk assessment is meant to check if there is a risk that the relevant products intended to be placed on the market or exported comply with the requirements.

Moreover, Article 11 EUDR requires operators to adopt risk mitigation measures, except where the risk is none or negligible. 

The monitoring and the risk mitigation procedures will not be necessary for relevant products which have been produced entirely in low-risk countries. As a consequence, an operator may be obliged to share documentation demonstrating such negligible risk with the authorities.

So, the higher the risk rating of the commodity’s country of origin, the more stringent the due diligence and compliance requirements.

All countries were awarded standard risk level on 29 June 2023. This classification has not changed until the Implementing Regulation discussed here, in which the Commission has divided the countries into low-risk and high-risk ones. The first category includes, among others, all EU Member States. The complete list is available here »​ The list of high-risk countries includes Belarus, North Korea, Myanmar and Russia.

Countries that are not on any of the above lists have retained their standard risk level.

Have you got questions about your obligations under the EUDR?

Our experts help businesses adapt to the new regulations and assess supply chain risk. Contact us to discuss how the new legislation may affect your business.