New green obligations for importers and exporters will come into force in 2024

The European Union is about to take another major step towards reducing its impact on global deforestation and forest degradation.

The goal, of course, is commendable, however, its consequences will be felt by importers and exporters of products such as palm oil, soy, timber, cocoa, coffee, cattle, and rubber.

What will the key obligations for importers and exporters cover?

Key responsibilities for importers and exporters will include:

• checking and proving the origin of goods: it will become necessary to implement due diligence procedures to ensure that products do not contribute to deforestation;
• monitoring of supply chains: operators will be required to closely monitor their supply chains; this means having complete information on the origin of products, including where raw materials are sourced.

EU operators will, for example, be responsible for ensuring that livestock feed does not lead to deforestation. In this respect, due diligence systems are required to include risk assessments and risk mitigation measures for feed, with geolocalisation requirements limited to the location of cattle farms. Operators may be required to make evidence available on request to competent authorities to confirm that feed does not cause deforestation.

Obligations for importers and exporters – due diligence declaration

The new regulation introduces a requirement for operators to formally accept responsibility for the compliance of products with a due diligence statement. It is envisaged that such a statement will facilitate enforcement and increase compliance. In addition, third-party verified certifications and systems will be allowed to be used in risk assessment, but they will not replace the entity’s responsibility for due diligence.

In the context of the new regulations, the importance of maintaining fair prices for producers, particularly small-scale farmers, is also gaining prominence. This aims to combat poverty, which remains one of the primary drivers of deforestation.

When will the new obligations for importers and exporters come into force?

The new obligations are due to come into force from 30 December 2024. As such, it is important to look at your supply chains now, verify that you are not in breach of anti-deforestation regulations and prepare for the new challenges involved.

It is worth taking this opportunity to ensure that the new procedures are properly integrated with the rest of the organisation’s procedures (customs, tax, supply risk management), especially at customs permit holders.