With RSM’s EUDR compliance and implementation service, we support companies in identifying in-scope products and the relevant supplier base, designing due diligence processes and internal policies, and planning the data requirements and IT workflows connected to the TRACES / EUDR Information System. Our EUDR advisory therefore not only helps ensure regulatory compliance, but also contributes to reducing supplier and reputational risks.

The EUDR (EU Deforestation Regulation) – the EU’s deforestation-free regulation

The EUDR (Regulation (EU) 2023/1115) requires that certain commodities and related relevant products — wood/paper, cattle (beef), cocoa, coffee, soy, palm oil and rubber — may only be placed on the EU market or exported from the EU if they are demonstrably deforestation-free and have not contributed to deforestation or forest degradation.

Compliance with the EUDR is not merely an administrative exercise: it means establishing deforestation-free supply chains, a transparent supplier due diligence system, and operating in a way that aligns with broader ESG requirements (including CSRD/ESRS).

Who does the EUDR apply to?

The EUDR applies to any operator and trader who, in relation to in-scope goods or products:

  • places them on the EU market for the first time,
  • exports them from the EU, or
  • makes them available on the market in the course of a commercial activity.

Entities affected by the EUDR include, among others:

  • EU-based manufacturers and distributors,
  • importers bringing relevant products into the EU from third countries,
  • trading houses and distributors.

Key components of RSM’s EUDR Compliance and Implementation Service

1) EUDR Rapid Assessment – a snapshot of corporate readiness

A short, focused assessment of the company’s EUDR exposure: product-based exposure, supplier network, operational processes, and the maturity of data systems. Based on identified risks, we define development priorities and an implementation timeline, aligned with related sustainability initiatives.

2) Supplier transparency and risk management framework

Design of a data collection and risk assessment approach covering the entire value chain. We set up tailored data request logic, supplier information channels, and risk tiers across the end-to-end process—from procurement to sales.

3) Review of the EUDR Governance and Compliance Framework

Design of an EUDR compliance system integrated into day-to-day operations: policies, procedures, contractual addenda, and linkage to ESG reporting. We support the enhancement of governance elements so that EUDR requirements remain sustainable in the long term.

4) EUDR Knowledge and Readiness Programme

Corporate training and readiness programmes focused on the practical application of EUDR requirements, meeting partner expectations, and preparing for potential regulatory inspections.

The three core requirements of EUDR compliance

For every relevant product, companies must meet the following three baseline conditions:

  1. Deforestation-free — the commodity/product originates from land where, since 31 December 2020, there has been no deforestation or forest degradation.
  2. Legality — production complies with the laws of the country of production (e.g., land use, environmental protection, labour law, taxation, anti-corruption rules, etc.).
  3. Due diligence statement (DDS) — for each lot placed on the market, an electronic Due Diligence Statement must be submitted in the EU IT system (TRACES NT / EUDR Information System).

In Hungary, the authority designated to carry out EUDR inspections is NÉBIH. It may conduct regular checks and, in the event of non-compliance, impose fines of up to at least 4% of annual (EU) turnover, alongside measures such as seizure of products and exclusion from public procurement.

EUDR: tasks and deadlines for in-scope companies

Under the new EUDR rules, companies acting as distributors, importers or exporters in the seven commodity groups listed above must implement and operate an appropriate risk management and due diligence system. The system must ensure that products are deforestation-free, i.e., sourced from land where no deforestation or forest degradation occurred after 31 December 2020. The EUDR affects both large companies and SMEs, although SME obligations will apply with certain simplifications.

EUDR obligations will apply according to company size, with different timelines. Under the most recent deadlines approved at the end of December 2025, the key dates are:

  • 30 December 2026 — large and medium operators and traders
  • 30 June 2027.  — micro and small enterprises

This one-year postponement effectively provides an additional year for affected companies to build the necessary compliance processes, systems and supplier chain arrangements.

Why entrust your EUDR compliance to RSM?

  • Integrated, end-to-end support – we combine tax, legal, accounting, ESG and customs advisory capabilities within one integrated EUDR compliance project, so you don’t need multiple providers.
  • International network, local expertise – leveraging the RSM global network, we deliver solutions tailored to Hungarian market and supervisory specifics (including NÉBIH practices and EUDR inspections).
  • Digital and process automation focus – we support EUDR projects from an ERP/SAP, TRACES/EUDR IS, and data-driven reporting perspective - not just drafting policies.
  • Senior expertise and industry experience – we apply practical experience from the timber/building materials sector, agribusiness and trade to develop a roadmap tailored to your organization.
  • Long-term partnership – we treat EUDR not as a one-off compliance task, but as a continuously improved framework embedded in your ESG and compliance strategy.

Assess your current EUDR compliance status and define the steps required through 2026/2027. Use our comprehensive EUDR readiness assessment and our service for developing a concrete, time-phased roadmap.

Request advisory to EUDR

EUTR vs. EUDR: What is the difference in timber compliance?

The EUTR (EU Timber Regulation – Regulation (EU) No 995/2010) sets the EU’s due diligence framework for timber and timber products, aiming to prevent illegally harvested timber and derived products from being placed on the EU market. Under the EUTR, operators placing timber and timber products on the EU market for the first time are required to operate a Due Diligence System (DDS) (information gathering – risk assessment – risk mitigation), while traders must ensure traceability by retaining information on their suppliers and customers.

By contrast, the EUDR applies to a broader range of commodities and imposes stricter requirements: compliance extends beyond legality and risk management to include the deforestation-free criterion and the submission of an electronic due diligence statement (DDS) in the EU IT system (TRACES / EUDR Information System).

Frequently Asked Questions (FAQ)

What is the EUDR?

The EUDR (Regulation (EU) 2023/1115) is the EU regulation on deforestation-free products. It requires that certain goods and products may only be placed on the market or exported from the EU if they are proven not to contribute to deforestation or forest degradation.

Which products does the EUDR cover?

The regulation covers, among others, wood and paper, cattle (beef), cocoa, coffee, soy, palm oil, rubber, and specified relevant products derived from these commodities.

Who does the EUDR apply to, and what are the main deadlines?

The EUDR applies to operators and traders who place in-scope products on the EU market for the first time or export them, including both large companies and SMEs.

Which EUDR deadlines must be met?

Depending on the adoption of amendments, application is expected from 30 December 2026 (large and medium entities) and 30 June 2027 (micro and small enterprises). However, the earlier dates in the current legal text may still formally apply until amendments enter into force.

What does the EUDR due diligence obligation mean?

EUDR due diligence is a documented risk management system under which a company collects data on product origin, performs risk assessment, applies risk mitigation measures, and submits an electronic EUDR Due Diligence Statement (DDS) for each lot.

What penalties and sanctions apply for EUDR non-compliance?

Non-compliance may result in fines of up to 4% of annual turnover, seizure or confiscation of the relevant products, confiscation of unlawfully obtained revenues, exclusion from public procurement, and other regulatory sanctions.