Understanding the EU Deforestation Regulation (EUDR)

EUDR Full Citation and Scope

The EUDR, formally known as Regulation (EU) 2023/1115 of the European Parliament and of the Council of 31 May 2023 on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010, entered into force on 29 June 2023. Its core objective is to ensure that products placed on or exported from the EU market do not contribute to deforestation or forest degradation anywhere in the world. This is achieved by mandating strict due diligence obligations for operators and traders.

The regulation specifically covers seven key commodities identified as major drivers of global deforestation:

• Cattle
• Cocoa
• Coffee
• Oil Palm
• Soya
• Wood
• Rubber

Crucially, the EUDR also extends to a wide range of derived products from these commodities, such as leather, chocolate, tyres, and furniture. This comprehensive approach aims to address the entire supply chain and prevent circumvention through processing or manufacturing.

Why South African Citrus is Indirectly Affected

While citrus fruits are not explicitly listed among the primary commodities, South African citrus exporters are not entirely exempt from the EUDR's influence. The regulation's focus on land use change declarations means that any agricultural product, including citrus, originating from land that has been deforested or degraded after the cut-off date of 31 December 2020, could fall under scrutiny. This indirect impact necessitates a thorough understanding of land history and transparent reporting throughout the supply chain.

The Geolocation Requirement: Pinpointing Origin

A cornerstone of EUDR compliance is the stringent geolocation requirement. Operators must provide precise GPS polygon coordinates for all plots of land where the commodities they place on the EU market were produced. This data must be accurate enough to verify that the land has not been subject to deforestation or forest degradation since 31 December 2020. This level of traceability demands robust data collection and management systems from producers and exporters.

Due Diligence Statements: Operator Responsibility

Before placing relevant products on the EU market, operators are required to submit a comprehensive due diligence statement. This statement must confirm that:

1. The products are deforestation-free, meaning they were produced on land not subject to deforestation after 31 December 2020.
2. The products were produced in accordance with the relevant legislation of the country of production, including laws on human rights and the rights of indigenous peoples.

The due diligence process involves three key steps: information collection, risk assessment, and risk mitigation. Operators must gather detailed information about their supply chains, assess the risk of non-compliance, and implement measures to mitigate identified risks.

The EUDR Information System and Digital Product Passport Integration

To facilitate compliance and enforcement, the EU has established an EUDR Information System. This digital platform serves as the central repository for due diligence statements and related information. The system, launched on 4 December 2024, enables operators to submit their declarations and allows competent authorities to conduct checks. The integration of this system with emerging technologies like Digital Product Passports (DPPs) is a natural progression, offering a streamlined and verifiable method for sharing compliance data across complex supply chains. DPPs, underpinned by technologies such as SHA-256 hashing, can provide immutable records of a product's journey and its associated environmental attributes.

South African Context: Land Use, Agriculture, and Compliance

South African Land Use Change History: Post-1994 Agricultural Expansion Data

South Africa has a complex history of land use change, particularly since the end of apartheid in 1994. Land reform policies have aimed to address historical injustices, leading to shifts in agricultural land ownership and usage. While agricultural expansion has been a driver of economic growth and food security, it has also, in some instances, involved the conversion of natural habitats. Understanding these historical patterns and having accurate, verifiable data on land use changes post-1994 is crucial for South African agricultural exporters to demonstrate EUDR compliance. Institutions like the Department of Agriculture, Forestry and Fisheries (DAFF) play a vital role in monitoring and providing data on land use.

How a South African Citrus Farm Demonstrates EUDR Compliance via DPP

For a South African citrus farm to demonstrate EUDR compliance, a multi-faceted approach is required, with Digital Product Passports offering a robust solution. The process would typically involve:

1. Geolocation Mapping: Precisely mapping all citrus production plots using GPS polygon coordinates. This data must confirm that no deforestation or forest degradation occurred on these plots after 31 December 2020.
2. Land Use History Verification: Gathering and verifying historical land use data, potentially involving satellite imagery and local land records, to prove the deforestation-free status of the land.
3. Due Diligence Data Collection: Systematically collecting all necessary information for the due diligence statement, including details on the product, quantity, country of production, and evidence of compliance with local legislation.
4. DPP Integration: Integrating this verified data into a Digital Product Passport. The DPP would serve as a secure, transparent, and easily accessible repository for all EUDR-relevant information, including geolocation data, land use declarations, and due diligence statements. This can be facilitated through platforms that leverage the EU ESPR Regulation 2024/1781 framework.
5. Auditing and Certification: Undergoing independent audits to verify the accuracy and completeness of the data and processes, potentially leading to certification that can be linked to the DPP.

The Perishable Products Export Control Board (PPECB) and industry bodies like Citrus Growers' Association of Southern Africa (CGA) would be instrumental in guiding and supporting exporters through this process.

"The EU Deforestation Regulation (EUDR) mandates that operators and traders placing relevant products on the EU market must exercise due diligence to ensure that these products are deforestation-free and have been produced in accordance with the relevant legislation of the country of production." – Regulation (EU) 2023/1115, Article 3

Regulatory Landscape and Enforcement

The December 2024 Delay and Revised Enforcement Timeline

Initially, the EUDR was set to apply to large and medium operators from 30 December 2024. However, the European Union has introduced simplification measures and revised the enforcement timeline to provide businesses with more time to adapt. The updated application dates are:

• Large and Medium Operators: 30 December 2026
• Micro and Small Operators: 30 June 2027
• Micro and Small Operators already covered by the EU Timber Regulation (EUTR): 30 December 2026

This delay offers a critical window for South African exporters to establish robust compliance systems, including the implementation of Digital Product Passports and enhanced traceability mechanisms.

Comparison: EUDR vs. UK Forest Risk Commodities Regulation vs. US FOREST Act

The EUDR is part of a growing global trend towards regulating supply chains to combat deforestation. Other significant legislative initiatives include the UK's Forest Risk Commodities (FRC) regulation and the proposed US FOREST Act. While sharing the common goal of promoting deforestation-free supply chains, these regulations have distinct features:

South African exporters dealing with multiple markets must navigate these varying requirements, highlighting the need for adaptable and comprehensive compliance strategies.

South African Regulatory Bodies and Industry Support

Compliance with the EUDR and similar international regulations requires a concerted effort from South African government bodies, industry associations, and individual exporters. Key institutions include:

• Department of Agriculture, Forestry and Fisheries (DAFF): Responsible for agricultural policy, land use management, and providing guidance to farmers.
• Perishable Products Export Control Board (PPECB): Ensures the quality and safety of South African perishable products destined for export, and can play a role in verifying compliance with international standards.
• Citrus Growers' Association of Southern Africa (CGA): Represents the interests of citrus growers and provides support and resources for navigating export regulations.
• Hortgro: The umbrella body for the deciduous fruit industry, offering similar support and guidance.
• Fruit South Africa (FPEF): The Fruit South Africa (FPEF) is a non-profit organization that represents the interests of the South African fruit industry.
• Companies and Intellectual Property Commission (CIPC): While primarily focused on company registration, CIPC's role in verifying business entities can be integrated into the broader DPP ecosystem for enhanced traceability.

Furthermore, adherence to local legislation such as the Electronic Communications and Transactions Act (ECTA) 2002 and the Protection of Personal Information Act (POPIA) 2013 is essential when handling sensitive data, including geolocation information, within Digital Product Passports.

See Also

• EU ESPR Regulation 2024/1781
• What is a Digital Product Passport?
• SHA-256 Hashing Explained
• CIPC Verification & DPP Onboarding