2025-02: Publication of EU country risk rating and guidance on European Union Deforestation Regulation

Date of issue: 5 June 2025

Date of effect: 5 June 2025

Expiry: N/A

Reference Number: IAN 2025-02

Purpose

This Industry Advice Notice (IAN) is to inform exporters of certain products to the European Union (EU) of the publication of the country risk rating by the EU as well as further guidance and additional FAQs published by the EC on the European Union Deforestation Regulation (EUDR). This notice concerns exporters of cattle, skins and hides, cocoa, coffee, palm oil, rubber, soya and wood to the EU, and some products containing, having been fed with or having been made using these commodities.

As a reminder, EUDR will be applied from 30 December 2025 to large EU businesses, and from 30 June 2026 to smaller EU enterprises.

Country Benchmarking System

The EUDR establishes a country benchmarking system, which applies a deforestation risk-rating (low, standard, or high) to each country. A country’s risk rating determines the percentage of consignments inspected at the EU Member State border by its competent authority.

The European Commission published a country classification list on 22 May 2025, confirming that Australia has been classified as a low risk under the EUDR.

The low-risk rating means that 1% of importers placing regulated goods exclusively from Australia and other low-risk sources on the EU market will be subject to annual checks by the EU competent authorities, as opposed to 3% for standard risk and 9% for high-risk origins. It also means that regulated goods originating from Australia will be subject to the simplified due diligence process set out in the EUDR. However, even under the simplified due diligence process, Australian producers and exporters will need to provide geolocation data and other information on land use to European operators to undertake their simplified assessment. The details of simplified due diligence are set out at Article 13 of the EUDR.

The department will continue to engage closely with the EC to inform industry of any further updates affecting Australian exporters through our established channels.

Updated EUDR Guidance

On 15 April 2025, the EC published additional guidance documents and updated Frequently Asked Questions (FAQs) concerning the EUDR and its implementation. The guidance is intended to provide additional clarity to companies and enforcing authorities to facilitate the application of the rules and includes flexibilities such as annual due diligence statements.

The guidance is divided into 11 chapters covering issues including legality requirements, timeframe of application, agricultural use, and clarifications on the product scope. In addition, the latest FAQs, published concurrently, features over 40 new additional answers to address questions raised by stakeholders.

Australia notes that further clarification on how the EUDR will be implemented may be needed from the EU. The department will continue to engage with the EU to seek answers on behalf of industry.

Information Requirements

EUDR is a business-to-business regulation, with no formal role for the Australian Government. To comply with EUDR, EU importers, termed ‘operators’, must obtain information, documents and geolocation data from their international suppliers. Affected Australian businesses will need to provide this information to enable EU operators to undertake due diligence. Some systems are already available to help businesses demonstrate compliance and share geolocation information.

For cattle, Integrity Systems Company under the Livestock Production Assurance (LPA) program has developed a tool to enable producers to share the required geolocation data to processors and/or feedlots, ultimately provided onto EU importers to comply with the EUDR. Other information required by EU importers would need to be shared separately. We encourage producers to speak with their buyers to understand what other information they will need to share.
The Programme for the Endorsement of Forest Certification (PEFC) and Forest Stewardship Council (FSC) have developed EUDR aligned standards for forest certification and are working to develop technology solutions which facilitate the sharing of information needed for EUDR compliance.

Further information

Contact information

If you have any questions about this IAN or the EUDR, please contact the department at Europe.tmad@aff.gov.au.

This IAN has been prepared to advise exporters of relevant commodities to the EU of the updated concerning the EUDR implementation dates and guidance issued by the EC. obligations. It does not constitute legal advice. Exporters may wish to seek independent advice based on their circumstances.

The information provided in this notice is current at the date of issue and is intended for use as guidance only. The Commonwealth has exercised due care and skill in the preparation of this information but we do not warrant its accuracy, completeness or suitability for any purpose. Information may be subject to change without notice.

To the maximum extent permitted by law, the Commonwealth will not be liable for any loss, damage, expense or cost incurred by any person directly or indirectly as a result of relying on information contained in this notice.