EUDR - Reading time: 11 Min
Since the European Deforestation Regulation (EUDR) came into force, many companies have faced new challenges - not only large trading groups, but also smaller companies that import or use raw materials such as coffee, cocoa, soya, wood, cattle, palm oil or rubber. The regulation goes further than it seems at first glance: it applies not only to trade, but also when deforestation-free products are imported from abroad solely for the company's own use, for example for the canteen, office, production or training courses. Companies that have previously operated purely locally or in-house are confronted with new questions. Does the EUDR also apply if there is no direct resale? And how should complex supply chains, intermediate products or shipping via third countries be handled? In this article, we shed light on when the EUDR applies - also with regard to self-consumption, self-import and intermediate solutions - and where the regulation leaves room for maneuver or requires interpretation.
Yes - if the product is imported as part of a commercial activity and released for free circulation (also for purely internal use, e.g. canteen/production). Private use/consumption is not covered.
Placing on the market is the first making available of a relevant product for distribution, consumption or use on the Union market in the context of a commercial activity. In the case of imports, typically after release for free circulation.
Yes, as soon as an EUDR-relevant product is imported from a third country, a Due Diligence Statement (DDS) must be prepared and submitted, even without resale.
For purchases within the EU, it is generally not necessary to create a new DDS if the product has already been placed on the market with a DDS. However, as a distributor or downstream actor, there are still retention and transfer obligations (and additional obligations for non-SME distributors, e.g. the 'ascertaining' of upstream due diligence).
In the case of pure transit or storage under certain customs procedures (e.g. transit, bonded warehouse, inward processing), the product is not treated as 'placed on the market'. EUDR obligations typically only arise upon release for free circulation or when a product is exported from the EU.
The European Union Deforestation Regulation (EUDR) to curb global deforestation and forest degradation affects significantly more companies and use cases than is apparent at first glance. It applies not only to traditional trade transactions, but also to own imports, internal company consumption and intra-group transfers - even without resale - the decisive factor is the initial provision as part of a commercial activity (private use/consumption is not covered). The decisive factor is whether a relevant product is made available on the Union market for the first time - in the case of imports, typically after release for free circulation. The so-called "placing on the market" can therefore also occur if materials are imported from a non-EU country exclusively for internal use, for example in the canteen, office, production or for training purposes. In such cases, the same due diligence obligations apply as for commercial trade, depending on the role: the first operator must carry out due diligence and submit a DDS in the EU information system; downstream actors often do not have to create a new DDS, but remain subject to documentation/information obligations. Companies must submit a due diligence statement and prove that the imported raw materials have been produced in a deforestation-free and legally compliant manner. For products that have already been placed on the EU market with a DDS, a new DDS is usually not required; however, depending on the role, documentation/reference obligations may still apply. Pure transit (without release for free circulation) is generally exempt; certain other customs procedures (e.g. customs warehousing/inward processing) also typically do not yet lead to placing on the market. Intermediate solutions and export constellations are critical: EUDR obligations can arise both when placing relevant products on the market and when exporting them. To avoid legal risks, a systematic and risk-based approach is recommended: this includes the clear assignment of responsibilities, well thought-out documentation, internal training and close cooperation with the compliance and legal departments. Only those who integrate the EUDR at an early stage can minimize liability risks, secure their own market position and contribute to more sustainable supply chains.
Numerous companies are currently finding that they are considered market participants within the meaning of the EUDR, even though they are neither traditional traders nor primary producers. Particularly in the case of intra-group uses, service providers with their own imports and independent operating sites, there is a lack of clarity: When is something considered "placing on the market"? Does the due diligence declaration (DDS) also have to be followed for own use of raw materials or own materials? The relevance of these questions increases due to the threat of sanctions and the expectations of business partners. Particularly in sectors such as production, food processing, office supplies or packaging, uncertainties regularly arise: when is an intra-group or internal use subject to EUDR despite own use (because commercial activity / free movement) - and when is a non-commercial case outside the scope of application?
Similar questions arise when exporting outside the EU or importing for special projects. The internal purpose is less relevant for classification than whether and when a product is made available on the EU market for the first time as part of a commercial activity - in the case of imports, typically only after release for free circulation.
"Placing on the market" is the first making available on the Union market in the context of a commercial activity. This can also be the case without sale (e.g. import for internal use). Private use and consumption, on the other hand, are not covered. This means that even if a company only imports raw materials for its own use, for example for the canteen or production, this can already be considered "placing on the market" according to the EUDR. If a product is imported from a non-EU country for own use, the EUDR regulations apply as normal. In the case of EU purchases, there is usually no new DDS if a valid DDS already exists. However, depending on the role (trader, downstream operator), documentation and disclosure obligations remain. Since the changes at the end of 2025 (including the introduction of the 'downstream operator'), the delimitation of roles along the supply chain has become even more important.
The legal basis is Article 2(16) and (18) of the EUDR, which deliberately define the term broadly. Accordingly, "placing on the market" also includes cases in which products are imported into the EU internal market for own use, internal processing or packaging. The regulation makes no distinction between commercial goods and internal use. The only decisive factor is that the product gains access to the EU market for the first time. Companies that have so far concentrated exclusively on internal company use often underestimate the scope of the regulation and therefore also their obligations to carry out due diligence.
Trade associations such as the Association of German Chambers of Industry and Commerce (DIHK) and consulting firms such as PwC expressly point this out in their interpretations: In-house consumption and intra-group transfers can also be considered "placing on the market" if they lead to the first making available on the EU market. The consequence: due diligence obligations apply regardless of the intended use or planned further processing.
The EUDR does not differentiate between sale and internal use, but whether a product is made available on the EU market for the first time as part of a commercial activity. There is no privileged treatment of internal use. The only decisive factor is whether and when the raw material or product is made available on the Union market for the first time - in the case of imports, typically after release for free circulation. This means that even if a company imports an EUDR-relevant raw material, such as wood, leather, cocoa or soy, from a non-EU country exclusively for its own operations, this may already fall under the regulation. Typical cases, if import or first supply as part of a commercial activity:
All of these scenarios can be considered "placing on the market" within the meaning of the EUDR, even if the products are never placed on the free market. This shows that The regulation does not privilege internal use, but consistently focuses on the first market access within the EU. This harbors considerable risks: Companies that fail to provide clarity here not only expose themselves to possible fines, but also risk reputational damage and exclusion from supply chains if they do not comply with the EUDR requirements. The key recommendation is therefore: Every first-time provision of an EUDR-relevant product on the EU market, regardless of the intended use, must be checked to see whether the due diligence obligations of the EUDR apply. This is the only way to minimize legal risks and secure the trust of partners and authorities.
Companies often import everyday materials such as paper, coffee or cocoa exclusively for their own use. Many companies assume that the EUDR does not apply in these cases. However, a closer look at the regulation and its interpretation shows that EUDR obligations can be triggered when importing from a third country (especially after release for free circulation). In the case of EU-related goods, documentation/evidence obligations apply depending on the role. A separate DDS is often not required.
A medium-sized software company regularly purchases specialty coffee directly from a coffee farm in South America. The coffee is imported exclusively for the company's own use, as it is distributed to employees in the office and not sold on. Despite the purely internal purpose of use, the EUDR applies here. With the import from a third country, the coffee is made available on the EU internal market for the first time and is therefore considered to be "placed on the market" within the meaning of the regulation. The fact that the coffee is not sold is irrelevant. The decisive factor is the first making available in the context of a commercial activity. Private use or consumption, on the other hand, is not covered.
The company must therefore:
Other own imports from non-EU countries, e.g. cocoa, palm oil products or packaging materials made of wood, are also subject to the same obligations, regardless of their intended use in the company.
An industrial company imports printer paper directly from a manufacturer in Indonesia. The paper is used exclusively within the company, for example for internal communication, documentation and accounting. The paper is therefore not sold. Despite the purely internal use, the EUDR also applies in this case. The printer paper consists of wood-based fibers, one of the seven raw materials covered by the regulation. When the product is imported from a third country, it is placed on the EU internal market for the first time and is therefore considered to be "placed on the market" within the meaning of the EUDR.
This means for the company:
The fact that the paper is only used within the company does not change the due diligence obligation. Only the first market access within the EU is decisive - not how or by whom the product is subsequently used. Printer paper can be a relevant product (depending on the CN/HS Code according to Annex I, often Chapter 47/48).
The situation is different for a company that purchases printer paper from a European retailer. Even if the paper is wood-based, it is purchased within the EU internal market, for example via a wholesaler in Germany or Austria. In this case, the EUDR no longer applies, as the paper has already been placed on the market by the retailer. The company is therefore not a "market participant" within the meaning of the EUDR, but merely a downstream user. In the case of EU-related goods, a separate DDS is usually not necessary if the goods have already been placed on the market with a DDS. Depending on the role, however, there are still documentation/verification or reference obligations (trader/downstream operator).
Important: The distinction is therefore not in the purpose of use (e.g. own use), but in the place and time of first placing on the EU market.
The EUDR assesses the first placing on the EU market. Whether for sale or internal use: the decisive factor is the first making available in the context of a commercial activity - in the case of imports, regularly after release for free circulation.
Therefore:
Even if the import is declared as "own consumption", the verification and documentation requirements remain high. However, whether a separate DDS must be submitted depends on the role (first operator vs. downstream/trader). Experts therefore advise that all processes relating to import, own use and documentation should be closely coordinated with the legal department and compliance. The same also applies to technical materials made of wood, cardboard packaging or other EUDR raw materials that are used for internal operations, production or facility management.
The situation is often even more complex when raw materials or products made from them are both sold within the EU and exported to third countries. The question of whether the EUDR obligations also apply to exports to non-EU countries and the clear delineation of what counts as "placing on the market" within the EU is therefore highly relevant for internationally active companies.
The EUDR is geared towards the EU internal market, but export scenarios can also trigger EUDR obligations under certain conditions. An internationally active trading company imports an EUDR-relevant product, for example soy from Brazil, to Germany. The product is not used or sold domestically, but is to be exported directly to a customer in a third country. The central question is: Does a due diligence check in accordance with EUDR also have to be carried out in this case, even though no domestic distribution is planned? EUDR obligations arise either when a relevant product is placed on the market for the first time or when it is exported from the EU - depending on which action is involved. According to the EUDR, the regulation only applies when a product is made available on the EU market for the first time. This means that
At this point, the due diligence obligations apply in full. The company must then carry out a full due diligence check and submit a DDS (Due Diligence Statement), even if the product is subsequently exported to a third country.
It becomes even more complex if the imported goods are first partially processed or repackaged before they are partially or completely exported outside the EU. We would like to illustrate this with an example: a raw material is converted into a semi-finished product in the EU and is then partially exported, while another part is further processed or sold internally. Not every internal step is a new placing on the market. New obligations arise in particular when a new relevant product is created through processing and this is subsequently placed on the market or exported.
In the case of pure transit or direct export without placing on the market, no EUDR obligations must be complied with. However, if the product is stored, processed or offered in the EU, the EUDR obligations apply in full. Companies with international supply chains should therefore carefully examine their import, storage and export processes and work closely with customs, logistics and compliance, particularly in the case of intermediate solutions.
A wholesaler based in France imports palm oil directly from a producer in Malaysia. The goods are cleared through customs in France, stored in a warehouse and then sold on to various processing companies within the EU, for example in Belgium and Italy. In this case, the EUDR obligations clearly apply. This is because when the palm oil is imported from a third country and then made available on the EU internal market, the goods are deemed to have been "placed on the market" within the meaning of the regulation.
This means:
When reselling within the EU, a new DDS is generally not required if a valid DDS from the first operator is available. Depending on the role, however, documentation or reference number obligations remain (downstream operator, trader). The prerequisite is that the product does not change significantly and a valid Due Diligence Statement (DDS) is available. The obligation lies with the first distributor.
The EUDR applies without restriction to imports from third countries with subsequent marketing within the EU. This applies regardless of whether the sale is made to end consumers, processors or other traders. Companies that are the first to import raw materials or affected products into the EU market are responsible for complying with all due diligence obligations.
A trading company from Switzerland organizes the transport of cocoa beans from the Ivory Coast to a customer in Egypt. The goods are imported into the EU via a port in Antwerp (Belgium), but are not stored or cleared through customs. Instead, they merely pass through EU territory as part of a customs transit procedure and are then exported on to Egypt by ship. In this case, the EUDR does not apply as long as the goods remain under transit or other special procedures and are not released for free circulation. There is no placing on the market within the meaning of the Regulation. The cocoa beans are neither sold, processed, nor used or offered internally, but merely transported onwards.
This means:
However, it is important that the requirements of the customs transit procedure are clearly met. As soon as the goods are temporarily stored in the EU, cleared or made accessible to the internal market in any form, for example through internal processing or offering to customers, the EUDR would apply in full.
EUDR obligations can arise when products are placed on the market or exported from the EU; pure transit is generally not covered. It is irrelevant whether the product is subsequently sold, processed or exported. If a product is only transported through the EU, for example as part of a transit procedure, there is no EUDR obligation. The situation is different if the goods are released for free circulation or made available on the EU market or if a new relevant product is created through processing that is subsequently placed on the market or exported: in this case, the due diligence obligations apply in full. Due diligence is also required for intermediate solutions with downstream export as soon as the product has previously been made available on the internal market.
In view of the far-reaching definitions and obligations of the EUDR, a systematic and risk-based approach is recommended for companies in order to ensure legally compliant processes. This also makes sense, especially for self-consumption, self-import and special solutions.
Companies should check all imported and circulated raw materials for their EUDR relevance, regardless of their intended use. A role-based analysis is particularly recommended for complex groups of companies in which several legal entities, subsidiaries or permanent establishments are involved in the movement of goods. The key question here is always: When will the first entry or export of relevant products from the EU take place - and in which role (first operator vs. downstream/trader)? And: Does this take place as part of a trade, an intra-group transfer or a supposed own consumption? Only a detailed mapping of all affected flows creates legal certainty and prevents sanctions. In this context, it is advisable to create procedural documentation that documents the risks and obligations along the entire value chain in the form of process manuals, flow charts or supplier audits.
A common mistake is to assume that due diligence obligations only apply to commercial sales. In fact, own use can also be EUDR-relevant. However, whether a separate DDS must be submitted depends on the role (first operator vs. downstream/trader). Downstream operators often have to maintain and pass on DDS references/information. This applies in particular to products that are only used or processed internally after import. Companies should check at an early stage whether their procurement, internal processing or transfer to closed user groups falls within the scope of the EUDR. In addition to the formal creation of a DDS, this also includes the establishment of processes for supplier verification, risk analysis and verification management. Industry-specific software and templates can reduce the effort involved and enable standardized implementation.
Clear communication about EUDR-compliant processes and obligations is crucial for both external partners and internal stakeholders. Companies should involve purchasing, logistics, production, facility management and internal service providers in the documentation and compliance processes in good time. Securing evidence is becoming more legally relevant due to the potential fines under the EUDR. It is advisable to archive all relevant process steps, decisions and checks electronically in an audit-proof manner and to monitor them regularly through internal audits. An unexpected risk arises, particularly in the case of in-house consumption, as many highly qualified employees are not familiar with the documentation requirements of the EUDR. Finally, open communication with business partners, suppliers and relevant authorities is a must. This is the only way to avoid compliance pitfalls and ensure sustainable, trustworthy supply chain management.
The example of in-house consumption, in-house imports and intermediate solutions shows that the EUDR goes much further than many companies assume. It not only affects traditional importers or wholesalers, but also companies that use raw materials and products such as cocoa, coffee, wood, palm oil, rubber or products made from these exclusively internally - for example in production, administration, canteens or special projects. The decisive factor is not the intended use, but whether a relevant product is made available on the EU market for the first time as part of a commercial activity - in the case of imports, typically after release for free circulation under customs law. An EUDR obligation can therefore arise even without resale.
At the same time, the distribution of duties along the supply chain should be more role-based: Whoever places a product on the EU market for the first time (first operator) regularly bears the central responsibility for due diligence and DDS. Downstream players often do not have to create their own DDS, but in practice remain involved in documentation and information chains. For internationally active companies, there is also the fact that EUDR obligations can become relevant not only when placing relevant products on the market, but also - depending on the constellation - when exporting them from the EU, while pure transit is generally exempt.
Decentralized company structures, complex supply chains and cross-company processes are particularly risky because roles, responsibilities and data flows quickly become unclear. Companies should therefore systematically record their flows of goods and procurement channels, clearly define responsibilities and train affected teams (purchasing, logistics, production, facility management, compliance) at an early stage. Digital, audit-proof documentation is a key success factor here - not only for controls, but also for customer requirements and proof to business partners.
Yes, if the company is the first operator to place a relevant product from a third country into free circulation and thus makes it available on the EU market for the first time, it must carry out due diligence and submit a DDS in the EU information system. For purchases within the EU, a new DDS is usually not required if a valid DDS is already available - however, depending on the role, documentation/reference obligations (downstream/trader) may still apply.
The EUDR applies to raw materials as well as to intermediate and end products made from them, provided they contain the listed materials and are made available on the EU market for the first time. Internal processing is not automatically "new placing on the market"; it is particularly relevant if this results in a new Annex I product and this is subsequently placed on the market or exported.
Imports from third countries are a typical trigger because the first operator must carry out due diligence and a DDS when accessing the market for the first time (usually after release for free circulation). No new DDS is usually required for intra-EU acquisitions if one already exists - however, documentation and reference obligations may exist for downstream operators/traders. In addition, the export of relevant products from the EU can also trigger EUDR obligations.
Yes, such own uses can be EUDR-relevant if the company as first operator transfers the goods from a third country into free circulation and thus makes them available on the EU market for the first time. Due diligence, DDS and evidence are then required - even without a sale.
If goods are released for free circulation from a third country and are therefore made available on the EU market for the first time, the obligations apply - even if they are later exported. If, on the other hand, a pure customs procedure without free circulation takes place (e.g. transit/customs warehouse/inward processing), there is typically no placing on the market; however, obligations may become relevant when exporting or when a new Annex I product is created, depending on the constellation.
A product is "placed on the market" when it is made available on the Union market for the first time. In the case of imports, it is usually decisive that the goods are released for free circulation under customs law. A mere transit or storage under certain customs procedures (e.g. bonded warehouse) does not typically trigger this.
The core obligations do not differ for the first operator: due diligence, risk assessment and DDS are required regardless of whether the product is sold or used internally. For downstream operators (downstream/traders), on the other hand, the focus is usually on documentation/reference obligations; a separate DDS is often not necessary.
Downstream movements within the EU do not generally constitute a new placing on the market. Depending on the role, however, retention and transfer obligations (e.g. DDS references) remain in place. New operator obligations may arise if a new Annex I product is created through processing and this is placed on the market or exported.
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