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EU revises product scope, simplifies deforestation rules ahead of 2026 rollout

May 5, 2026 European Union

The European Commission (EU) has proposed updates to the EU Deforestation Regulation (EUDR), which include removing hides and skins from its scope and simplifying compliance requirements for companies

According to the European Commission (EU), the combined measures are expected to reduce annual compliance costs by around 75%, from 8.1 billion to 2.0 billion euros.

Key simplifications include a revised due diligence model that primarily places responsibility on the first operator to place a product on the EU market. Consequently, downstream operators and traders will have more limited obligations, primarily concerning the collection and retention of information.

Micro and small primary operators, such as farmers and foresters, will benefit from a simplified regime requiring only a one-off declaration instead of repeated submissions.

The Commission also estimates that the EUDR could generate around 7 billion euros in economic benefits per year, linked to the avoidance of deforestation of approximately 208,000 hectares and 49 million tonnes of greenhouse gas emissions.

Adjustments To Product Scope

The draft delegated act proposes specific amendments to the products covered by the regulation, including the removal of hides and skins (HS codes ex 4101, ex 4104 and ex 4107) from the EUDR.

Since these materials are mainly used in the production of leather, excluding them would effectively mean that leather and leather-based products would no longer be subject to the regulation.

Meanwhile, cattle would remain within scope, but with a simplified classification. The current categories for live cattle – 0102 21 (purebred breeding cattle) and 0102 29 (other cattle) – are being combined into a single category: ex 0102 (live cattle).

The Commission has also proposed including certain downstream products, such as soluble coffee and selected palm oil derivatives, while exempting categories including samples, packaging materials and second-hand products.

Timelines

The proposed changes are set out in a draft delegated act and an accompanying staff working document. The package also includes a review of simplifications, updated guidance and FAQs, and technical improvements to the EU information system.

The draft is open for public consultation until the 1^st of June 2026, during which time industry and other stakeholders can provide input ahead of final adoption.

The EUDR is scheduled to apply from the 30^thof December 2026 for most companies and will be supported by updated guidance, an enhanced information system and additional tools to facilitate compliance.

“Our efforts are fully focused on facilitating implementation in the most efficient way. We all now need to work towards a successful entry into application of the law by the end of 2026 and keep in mind its important objective of reducing deforestation globally”, said Jessika Roswall, Commissioner for Environment, Water Resilience and a Competitive Circular Economy.

Image Credits: eudr.co

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