EUDR simplification review published: what the 2026 package means for in-scope companies

Context

The December 2025 amendment extended the EUDR’s entry into application to 30 December 2026, introduced a simplified regime for micro or small primary operators, and shifted due diligence responsibilities to the first operator placing a relevant product on the EU market. It also mandated a simplification review by 30 April 2026. On 4 May 2026, the EU Commission delivered updated guidance and FAQs, a draft delegated act on product scope, and an updated implementing act on the Information System – all of which are designed to reduce the administrative burden ahead of 30 December 2026.

This package forms part of the EU Commission’s broader simplification agenda. Earlier in 2026, the Environmental Omnibus I package introduced targeted amendments to several EU sustainability instruments – including CS3D – to reduce overlapping compliance requirements.

What the EUDR requires – and why it matters beyond deforestation

The EUDR prohibits placing, making available, or exporting products linked to deforestation or forest degradation unless three cumulative conditions are met:

1. the products are deforestation-free (produced on land not subject to deforestation after 31 December 2020);
2. they comply with the relevant legislation of the country of production, and
3. they are covered by a due diligence statement or simplified declaration.

The seven in-scope commodities – cattle, cocoa, coffee, palm oil, rubber, soya and wood – have uses that span the food and beverage, cosmetics, packaging, automotive, construction, and textile industries. The Regulation applies from 30 December 2026 for large and medium-sized companies and timber-sector micro and small enterprises, and from 30 June 2027 for all other micro and small enterprises.

Operators[1] must maintain a due diligence system covering three steps: information collection (including plot-level geolocation, supplier identity, production date, and evidence of legality), risk assessment, and, where risk is non-negligible, risk mitigation. A due diligence statement must be submitted through the EU Information System before any product enters or leaves the market. Downstream operators[2] and traders[3] face lighter obligations: collecting and keeping information about direct business partners, passively retaining the due diligence statement identifier, informing authorities of substantiated concerns, and registering in the Information System (for non-SMEs). Non-compliance exposes operators and traders to fines of up to 4% of annual EU-wide turnover, confiscation of products and revenues, temporary exclusion from public procurement, and public disclosure of infringements.

The EUDR does not operate in isolation. Geolocation and traceability infrastructure built for EUDR compliance feeds directly into CS3D chain-of-activities risk assessments, Forced Labour Regulation supply chain screening, and Batteries Regulation sourcing documentation – an interplay that is explicitly addressed in the May 2026 Guidance and FAQs.

How to navigate the updates: what changed in December 2025 and what the May 2026 package adds

The December 2025 amendment introduced several substantive changes; the May 2026 package adds further clarifications, a revised product scope, and Information System upgrades.

1. Application dates. The Regulation applies from 30 December 2026 for large and medium-sized companies and for micro and small enterprises already covered by the EU Timber Regulation, and from 30 June 2027 for all other micro and small enterprises.
2. Downstream operators and traders. The May 2026 Guidance and FAQs confirm that the “collect and keep” obligation is satisfied by retaining information already received through standard commercial documentation such as invoices, and that downstream actors need not routinely verify the validity of reference numbers.
3. Micro or small primary operators.[4] MSPOs need only submit a one-time simplified declaration. The May 2026 Guidance and FAQs clarify that a larger company may still qualify as an MSPO if the part of its business relating to relevant commodities falls within the applicable size thresholds of the EU Accounting Directive (Directive 2013/34/EU), and that a postal address may replace geolocation data where it clearly corresponds to the geographic location of the plots of land or establishment concerned.
4. Product scope. The draft delegated act proposes to add certain downstream products – including soluble coffee and selected palm oil derivatives, such as soap made with palm oil – to Annex I, while removing cattle skins and hides and retreaded tyres. Horizontal exemptions are also proposed for product samples, single-use and reusable packing materials, marketing materials, waste, used and second-hand products, and items of correspondence. Companies should monitor the public feedback period, as the final scope will determine which product lines require a due diligence statement.
5. Information System and repositories. The Information System, temporarily closed to integrate the December 2025 changes, is expected to reopen in June 2026. Before the end of 2026, the EU Commission also plans to establish repositories containing the relevant legislation of producing countries and applicable certification schemes to support operators in meeting their due diligence and legality obligations.

Next steps

With the 30 December 2026 application date firmly in place, companies should treat the coming months as an implementation window. Operators should prioritise regulatory scoping, supply chain mapping, and collection of plot-level geolocation data. Downstream operators and traders should confirm their position in each relevant supply chain, put in place record-keeping arrangements, and – for non-SMEs – register in the Information System.

The public feedback period on the draft delegated act runs from 4 May to 1 June 2026. The EU Commission will then finalise the act and notify it simultaneously to the EU Parliament and the Council of the EU for a two-month scrutiny period – extendable by a further two months – before it enters into force upon publication in the Official Journal of the EU.

The EU Commission’s repositories of relevant legislation and of applicable certification schemes are also expected before the end of 2026.

Luxembourg-based operators and traders should engage with the Ministère de l’Environnement, du Climat et de la Biodiversité ahead of the application date to understand national enforcement priorities, planned inspection programmes, and any national guidance on the penalty framework.

Newsflash authors: Sara Garcia Toledano, Dino Serafini

[1] Proposed Article 2(15): ‘operator’ means any natural or legal person who, in the course of a commercial activity, places relevant products on the market or exports them, excluding downstream operators.

[2] Proposed Article 2(15b): ‘downstream operator’ means any natural or legal person who, in the course of a commercial activity, places on the market or exports relevant products made using relevant products, all of which are covered by a due diligence statement or by a simplified declaration.

[3] Proposed Article 2(17): ‘(17) ‘trader’ means any person in the supply chain other than the operator or downstream operator who, in the course of a commercial activity, makes relevant products available on the market.

[4] Proposed Article 2(15a) EUDR: ‘micro or small primary operator’ means an operator who is a natural person or a micro-undertaking or small undertaking, within the meaning of Article 3(1) and Article 3(2), first subparagraph, respectively, of Directive 2013/34/EU, irrespective of its legal form, established in a country classified as low risk in accordance with Article 29 of this Regulation, and who, in the course of a commercial activity, places on the market or exports relevant products that this operator itself has grown, harvested, obtained from or raised on relevant plots of land, or, as regards cattle, on establishments located in that country; this includes operators who exceed the limits of at least two of the three criteria set out in Article 3(1) and (2), first subparagraph, of Directive 2013/34/EU but who can demonstrate that the parts of their balance sheet total, net turnover and average number of employees during the financial year, related to the relevant commodities and the relevant products, do not exceed the limits of at least two of three of those criteria.