The European Commission has announced new measures to reduce the bureaucratic burden linked to its anti-deforestation legislation, which is set to take effect at the end of this year. Aimed at cutting costs for businesses, the changes are also expected to have a positive impact on exporters.
The law is designed to block access to the European Union market for seven products—soy, beef, coffee, timber, palm oil, rubber, and cocoa—as well as their derivatives such as leather, chocolate, tires, and furniture, if they are produced in areas deforested after the end of 2020.
Under pressure from importers, the Commission has introduced a simplification package that Brussels says could reduce administrative and compliance costs for companies by 30%.
Among the changes, the EU will reduce how frequently exporters must submit documentation proving product origin.
For goods that were originally exported by the EU and later reimported, large companies will now be allowed to reuse due diligence declarations made before the original export.
Companies will also be able to submit due diligence declarations on an annual basis, instead of for every individual shipment or batch of products entering the EU.
In another change, an authorized representative will now be allowed to submit a declaration on behalf of a group of companies.
EU officials also confirmed they are finalizing a country benchmarking system that will assess deforestation risk by country. This classification will determine the level of scrutiny that products from each country will receive. The system is expected to be adopted by June 30, 2025.
The anti-deforestation law could affect around 34% of Brazilian exports to the EU—shipments worth an estimated US$17.5 billion in 2022, according to data shared last year by the Brazilian government.
Experts point out that this shift was foreseeable. For many observers, it was a necessary correction, as the original system was seen as overly complex and even harmful to the competitiveness of EU-based companies.
They also highlight the broader geopolitical context. In a world marked by growing instability, ensuring access to key raw material supplies has become increasingly urgent. The changes announced in Brussels respond to long-standing demands from European industry and are part of an effort to maintain more stable trade flows.
