For many brand owners and product manufacturers, 30^th December 2026 may feel like just another date in an increasingly crowded compliance calendar, but the fast approaching EU Deforestation Regulation (EUDR) could have implications far beyond the forestry and timber industries.

In addition to protecting the obvious commodity of the raw timber left behind as forests are cleared, the EUDR regulations have been designed to ethically and sustainably manage and control the most common activities which might be undertaken in the space created by illegal and unsustainable deforestation, such as the production of Cocoa, Coffee, Palm Oil, Soy, Rubber and Cattle and all of their derivatives.

By tracing these items to their point of origin, companies can ensure that they are only buying and using professionally managed and sustainable materials; which are not the result of improper or illegal deforestation.

So December. That’s plenty of time.

Despite the regulations not coming into force until the end of 2026 for all large and medium sized companies (and 30^th June 2027 for small and micro companies), they will retrospectively cover all seven of these commodities and their derived products (right down to the material used for paper based labels), which have been harvested since the 31^st December 2020.

Obligations for Businesses

The EUDR requires companies to create and maintain a formal due diligence / chain of custody system for their applicable products and derivatives, which will provide:

• Full supply chain transparency
• Geolocation data identifying the exact place of origin and time of harvest of materials covered by the regulations
• Comprehensive risk assessments determining which products are affected, the risk of deforestation in their supply chain, and country risk classifications
• Mitigating actions taken where risks have been identified
• Due Diligence Statements (to be created by first party producers) which include data on the product’s Harmonised System (HS) code, the precise geolocation and time of harvest of their products, and the name of the company submitting the statement.

Each DDS must be uploaded to the EU’s EC Information System (ECIS); from where they will receive unique codes / DDS reference numbers (RN) that they can, in turn, pass on to their customers.

If the DDS is incomplete, then the relevant products cannot legally be sold within the EU (including Northern Ireland) once the regulations come into force.

Preparation

Creating such a system will probably not be quick, and so, although the implementation date might seem some way off as we enjoy the last throws of a glorious summer, time is most definitely of the essence.

Indeed, here at Mercian Labels, we have been working in close partnership with our supply chain and developing a comprehensive materials chain of custody system since January this year. This will not only ensure our own regulatory compliance, but will also ensure that we can provide greater visibility and traceability for the materials used in our customers’ labels as soon as the EUDR takes effect.

Because when regulations change; having the right supply chain partners can help turn a compliance challenge into a great opportunity. Building greater confidence for your customers, providing the transparency they are looking for, and creating long term resilience for your business.

The benefits

Although being prepared for the EUDR is not simply about compliance, it will also help your business to:

• Reduce your supply chain risk
• Prepare for wholesaler, retailer and customer questions
• Enable continued or emerging access to EU markets
• Improve transparency and confidence throughout your supply chain
• Avoid last minute disruptions when the deadline arrives, and
• Demonstrate your proactive approach to responsible sourcing.

Learn more

If you would like to learn more about the EUDR and the commitments required to ensure compliance, just get in touch with one of our team and ask for a copy of our EUDR Overview to be e-mailed across.