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Navigating the EUDR Compliance Delay: Steps Forest Product Professionals Need to Take Now

Navigating the EUDR Compliance Delay: Steps Forest Product Professionals Need to Take Now

The European Union Deforestation Regulation (EUDR), initially scheduled for implementation in December 2024, was delayed by a year to give companies and authorities more time to prepare. This means new compliance deadlines are now set for December 30, 2025, for large enterprises, and June 30, 2026, for small and medium enterprises.

While this extension may seem like a cushion, the reality is that complying with the EUDR is a complex process that requires meticulous planning and timely action. Waiting until the last minute is simply not an option.

This article provides insights into what the EUDR entails, the risks of non-compliance, and actionable steps companies in the forest product industries—such as pulp, paper, pellets, and solid wood—can take right now to stay ahead of the regulatory curve.

A New Era for Forest Product Trade

As many now know, the EUDR is a regulation designed to combat deforestation and forest degradation by enforcing strict supply chain transparency. It requires companies importing or trading forest-related products into the EU to prove that their commodities—such as pulp, paper, wood, and biomass—have not contributed to deforestation or degradation. This involves providing geolocation data, due diligence statements, and other evidence of sustainable harvesting practices.

For forest product professionals, the stakes are high, as this regulation redefines the standards for legal and sustainable trade in the EU. Complying isn’t just about meeting new requirements—it’s about maintaining access to the EU market and protecting revenue streams.

Why Time Is of the Essence

At first glance, a one-year delay may seem like ample time to plan for compliance. However, the reality of ensuring EUDR alignment is far more nuanced.

Mapping supply chains, converting geolocation data, and integrating compliance tools with existing systems are not quick fixes. These tasks often require custom development, extensive testing, and deployment timelines that stretch over several months, if not longer. 

Many forest product producers have assessed the time from harvest to clearing customs in the EU as a 1–6-month process, influenced by various factors. The duration of the harvest, time spent in woodyards, inventory turnover for market pulp, and the timing of final goods inventory can all prolong the period from the original harvest geolocation to the finished product's arrival at an EU port. For this reason, companies are beginning to evaluate the dates they need to be compliant in advance of December 30, 2025.

The queue to implement robust compliance tools is growing. Companies waiting too long to start this process may find themselves stuck in bottlenecks, unable to meet demand for services and software needed for compliance.

What’s at Stake?

Non-compliance with the EUDR comes with severe consequences:

  • Revenue Impact: Companies could lose access to EU markets, jeopardizing billions in collective revenue generated by the pulp, paper, and solid wood industries annually.
  • Severe Penalties: Businesses found non-compliant face fines of at least 4% of their prior year’s revenue generated from EU sales, in addition to product seizures.
  • Reputational Damage: Consumers and investors are increasingly scrutinizing sustainable practices. Non-compliance could result in loss of trust and long-term business relationships.

The Role of Compliance Tools in EUDR Preparation

To navigate the intricate landscape of compliance, a strong and efficient solution like Forest Trackt is essential. Developed by ResourceWise, Forest Trackt is an advanced tool designed to streamline EUDR compliance for companies dealing with forest-based products in the EU.

Forest Trackt guarantees complete supply chain transparency by monitoring raw materials from their origin to the final product. Through its ForestLogger mobile app, operators can effortlessly gather geolocation data—even from remote locations—and automatically upload it to a centralized database.

foresttrackt-solution-view

Forest Trackt integrates smoothly with Orbis’s VeriForest platform, providing predictive risk assessment, real-time change detection, and forest verification capabilities. These features ensure that compliance verification is both precise and effective.

Key advantages include:

  1. Real-Time Alerts: Instant notifications for compliance issues, allowing for quick response.
  2. Customizable Reporting: Reports tailored to meet specific business and regulatory requirements.
  3. Centralized Data Management: A unified platform for secure and efficient data handling.

Forest Trackt streamlines the administrative aspects of compliance. It enables the smooth transfer of data from its centralized database into the EU’s customs systems, minimizing paperwork and ensuring continuous trade.

With strong encryption protocols and advanced cybersecurity measures, Forest Trackt safeguards sensitive business data, providing enterprises with peace of mind.

Find out how ForestTrackt can transform your business.

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Compliance is Non-Negotiable—Act Now

The EUDR represents a significant shift in how forest-based products are traded in the EU. While the one-year delay provides valuable time to prepare, forest product professionals cannot afford to delay action. Implementing comprehensive traceability systems like Forest Trackt now ensures your business is well-positioned for success in the face of rising sustainability standards.

Don’t wait until it’s too late—take the first step toward EUDR compliance now.

Explore our eBook, The Trend Toward Supply Chain Transparency in the Forest Products Industry, for expert insights to keep your business compliant and competitive.

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