EUDR Compliance Guide 2025: Don’t Fall for the Delay Trap
- The EU’s proposed 12-month delay for EUDR compliance gives companies more time to prepare, but waiting could lead to costly last-minute efforts and rushed compliance.
- Compliance will require due diligence systems for tracking deforestation-free products, affecting commodities like soy, coffee, and palm oil—delaying could risk your market access and bring steep penalties.
- Early preparation, traceability technology, and partnerships with EUDR compliance experts are crucial steps to avoid last-minute scrambles and ensure smooth, sustainable supply chain integration.
“This postponement will allow third countries, member states, operators and traders to be fully prepared in their due diligence obligations, which is to ensure that certain commodities and products sold in the EU or exported from the EU are deforestation-free. This includes products made from cattle, wood, cocoa, soy, palm oil, coffee, rubber, and some of their derived products.” - Council of the EU
As the European Union solidifies the 2025 deadline for the EUDR, businesses are getting mixed signals. The proposed 12-month phase-in period for implementation has some companies feeling like they have more time. But here's the reality: waiting to get your supply chain up-to-speed could be a costly mistake. In this guide, we’ll break down what the delay means, why you shouldn't get too comfortable, and how to start prepping for compliance today.
EUDR’s 12-Month Phase-In: Why It Happened and What to Expect
In response to global stakeholder concerns about the feasibility of the December 2024 EUDR compliance deadline, the EU has proposed a 12-month extension, giving large companies until December 30, 2025, and small businesses until June 30, 2026, to comply. This extra time aims to help businesses adjust their supply chains and reporting processes to meet the deforestation-free standards. Plus, it means authorities won’t start checks and customs controls as early as planned, and the current EU Timber Regulation will stay in place until the EUDR fully kicks in.
To streamline compliance efforts and provide additional support, the EU has released updated EUDR guidance and FAQs from the Commission. By June 30, 2025, it will also classify countries and regions as low or high risk, helping businesses prioritize their efforts. Additionally, the Commission has confirmed that the Information System for due diligence statements will be ready ahead of the law’s start, enabling early submissions.
The phase-in is designed to give companies the breathing room they need to address the complexities of tracing commodities like soy, coffee, cocoa, and palm oil to ensure they are not contributing to deforestation. The EU understands that updating supply chain practices takes time and resources, but the expectation is that companies will use this period to start implementing concrete changes. When the clock runs out, fines and penalties will be steep for non-compliance.
Don’t Get Caught in the Delay Trap
“This [extension] would give legal certainty, predictability and sufficient time for a smooth and effective implementation of the rules, including fully establishing due diligence systems covering all relevant commodities and products. These due diligence systems include identifying deforestation risks in supply chains as well as monitoring and reporting measures to prove compliance with EU rules.” - Council of the EU
Delaying action could set you up for more challenges down the line. It’s easy to fall into the trap of thinking you’ve got plenty of time, but the reality is, supply chain overhauls can take months—or even years—depending on the complexity of your sourcing network.
What’s at risk if you wait? For starters, scrambling to meet compliance at the last minute can lead to costly mistakes, rushed solutions, and strained resources. Worse, it could jeopardize your access to the European market. Penalties for noncompliance include:
- Fines up to 4% of annual turnover
- Product confiscation
- 12 month exclusion from public funding or grants
- For serious or repeated infringement, ban from selling those products in the EU
When compliance is non-negotiable, waiting until the last minute simply isn’t an option.
5 Tips to Getting Started on the Right Foot
- Audit Your Supply Chain: Start by identifying which of your products are impacted by the EUDR. Work with your suppliers to gather data and understand where deforestation risks may exist.
- Invest in Traceability Technology: Now’s the time to look at blockchain-enabled solutions or similar traceability tools that give you full visibility from the farm to the shelf. Not only does this streamline compliance, but it also builds consumer trust.
- Engage with Suppliers Early: Don’t wait until the deadline to inform your suppliers. Start conversations now about compliance and what documentation will be required. The earlier you align expectations, the smoother the transition will be.
- Understand the Legal Requirements: Stay informed on what the EUDR entails for your specific industry. Whether you deal with wood products, palm oil, or soy, knowing the fine details can help you avoid compliance issues.
- Partner with Experts: The right technology partners can make all the difference. Look for companies that specialize in EUDR compliance and have a strong track record of working with complex supply chains worldwide.
Real-World EUDR Compliance Example
“BanQu was created for remote farms, and so can work on simple phones with SIM cards in rural, low-connection environments, making it ideally suited for our supply chains and farmers. While the initial focus is on supporting EU deforestation readiness for ourselves and our suppliers, as well as the future EU Digital Product Passport, BanQu’s scope is so much more. Together with innovations throughout our business, and data interconnectivity, we will be able to unlock a universal approach to first-mile data collection, agronomy and crop data, as well as farmer communication, training and support.” - ECOM 2023 Sustainability Report
ECOM Trading, a leading origin-integrated commodities group, has partnered with BanQu, a supply chain traceability software, to fully integrate their origin value chain. This collaboration enables ECOM to track product journeys from farm to customer and enhance accessibility for farmers and suppliers in remote areas—aligning their ambitious ESG goals across all levels of the company. The partnership is live in Vietnam and Nigeria, where BanQu’s platform is being effectively used to:
- Gather farm-level data in remote, offline areas through farmer surveys
- Capture transactions across the supply chain for complete traceability
- Support EUDR readiness with real-time data collection and tracking
BanQu | Globally-Versed EUDR Compliance Software
The proposed delay in EUDR compliance is a welcome reprieve, but it shouldn’t lull you into a false sense of security. The time to act is now. Use this guide as your starting point, invest in the right tools, and partner with experts to ensure your business isn’t caught in the delay trap. Compliance isn’t just about avoiding fines; it’s about securing your place in the market and building a reputation for sustainability.
BanQu’s blockchain-powered traceability platform offers full supply chain visibility and secure data tracking from source to shelf. This allows businesses to meet the EUDR’s strict documentation requirements by capturing data on the origin of commodities, land management practices, supplier compliance, and chain of custody. By integrating with existing supply chain systems and satellite imagery providers, BanQu helps businesses of all sizes comply with the EUDR, while also providing real-time reporting dashboards for staying ahead of deforestation risks. Ready to secure your access to the EU market? Schedule an EUDR consultation with BanQu today.
In this guide, we’ll break down what the EUDR 12-month delay means, why you shouldn't get too comfortable, and how to start prepping for compliance today.
