21 December 2022

The European Parliament and the Council of the European Union have reached a preliminary agreement to ban the import and sale in member states of products that come from deforested areas anywhere in the world., writes Leatherbiz.

When the law comes into effect, companies will be required to issue a due diligence statement. Such declarations must ensure that items coming into the EU have not contributed to deforestation or forest degradation.

Products covered by the measure include cattle, cocoa, coffee, palm oil, soybeans and wood. Other articles that derive from these basic inputs, including leather products, chocolate and furniture are also included.

Companies will be required to collect precise geographical information on the farmland where the commodities that they source have been grown, so that these commodities can be checked for compliance. Member states will make sure that not complying with the rules leads to “effective and dissuasive penalties” for the companies concerned.

Once the new regulation is in force, operators and traders will have 18 months to implement the new rules. Micro and small enterprises will have a longer adaptation period.

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