EUDR compliance. An updated version of “Frequently Asked Questions Implementation of the EU Deforestation Regulation” on commodities, values and other compliance topics. Second analysis.

You can find below the questions and answers listed by Frequently Asked Questions Implementation of the EU Deforestation Regulation.

Is bamboo in scope of the EUDR? What about other products that do not contain or have been made using relevant commodities, but that are listed in Annex I?

Products made solely from bamboo are not in scope of the EUDR. Art. 1(1) EUDR defines that for the EUDR the ‘relevant products’ are only those that contain or are made from relevant commodities, amongst them ‘wood’. The definition in Art. 2(2) EUDR also clarifies that for the purposes of the EUDR the HS codes listed in Annex I are only pertinent to identify which products are captured by the EUDR.

In accordance with the FAO explanatory notes, bamboo is a non-wood forest product, consequentially bamboo does not fall under the commodity wood. In the case of wood products which also contain bamboo components, the bamboo components are not subject to due diligence obligations.

Are exchanges of written letters and other items of correspondence subject to EUDR requirements?

According to Art. 1(26) and 141(2) of Delegated Regulation (EU) 2015/2446 to the Union Customs Code, “items of correspondence” are not subject to customs declarations requirements and thus to the presentation of a DDS reference number. Similarly, within the EU, such items of correspondence are not placed or made available on the market but serve a communication purpose. This is also clarified in a draft Delegated Regulation amending Annex I, published for public feedback.

It is to be noted that relevant products contained in items of correspondence (e.g. in an envelope) cannot be considered as ‘items of correspondence’ and therefore, where applicable, are subject to customs declaration requirements and to the presentation of a DDS reference number.

Are samples and products used for examination, analysis or testing purposes in scope of the EUDR?

In a draft Delegated Act published for public feedback, it is proposed that samples of products, which are of negligible value and quantity and can be consumed or used only to solicit orders for goods of the type they represent under the condition that the manner of presentation and quantity, for products of the same type or quality, rule out its consumption or use for any purpose other than that of seeking orders, are not in the scope of the Regulation. The same, meaning that EUDR obligations do not apply, applies to products which are to undergo examination, analysis or tests to determine their composition, quality or other technical characteristics for purposes of information or industrial or commercial research under the condition that the products to be analysed, examined or tested are either completely used up or destroyed in the course of the examination, analysis or testing, or kept or returned for no other reason and purposes than complying with legal or contractual obligations related to examination, analysis or testing.

Examples of supplies of samples and products used for examination, analysis or testing purposes include:

• A supplier sending tyres to a vehicle manufacturer for the recipient to test its quality and durability – the tyres will be destroyed in the course of testing.
• A supplier sending small quantities of a new ingredient (e.g. cocoa or coffee beans) to a food manufacturer for the purpose of sensory evaluation, and to test its quality and food safety within the business. The ingredient is completely used up in the course of analysis and testing. In this case, the supplier and the food manufacturer are out of scope if the ingredient is clearly intended to be used for analysis and testing purposes given the contractual arrangements and surrounding circumstances.
• A coffee company importing a small sample of coffee beans from a new area of production to use and consume them in their business in order to decide whether to order a large amount of coffee beans from the same area.

Does the Regulation cover the renting out of relevant products?

If a relevant product is rented out, or provided under a similar contractual arrangement, the product is not considered to be placed or made available on the market. A supply under the EUDR presupposes an agreement (written or verbal) between two or more legal or natural persons for the transfer of ownership or any other property right concerning the product in question (see FAQ 2.10). However, as specified in paragraph 3 of FAQ 2.10, any product released for free circulation on the EU market or placed under the customs procedure ‘export’, incl. where rented out, is considered as being placed on the market and is thus subject to the Regulation.