What You Need to Know About the EU Deforestation Regulation (EUDR)

11.

May

As supply chains grow increasingly complex and globally connected, regulatory expectations around environmental responsibility are rising fast. One of the most impactful changes on the horizon is the EU Deforestation Regulation (EUDR), and yes, it applies to wooden pallets, too.

If your operations rely on wood-based transport packaging, this regulation could significantly affect how you source, document, and ship products across borders.

When Does EUDR Take Effect?

The EUDR comes into force in two phases:

From these dates forward, affected companies must ensure that any products containing or relying on wood, including wooden pallets, are sourced without contributing to deforestation.

Why Wooden Pallets Fall Under EUDR

Wood is one of seven key commodities covered by the regulation. And while your company may not be in the forestry business, if your distribution model includes wooden pallets, your supply chain is directly affected. This means:

You must prove that the wood in your pallets is legally harvested and not linked to deforestation after 31 December 2020
You’ll need plot-level geolocation data showing where the wood was sourced
You’ll be expected to submit a due diligence statement for each relevant product placed on the market via the new EU Information System (EUIS)

Who Is Responsible?

The EUDR distinguishes between two types of actors:

Operators – those placing products (like wood pallets) on the EU market for the first time
Traders – those who purchase or sell these products within the EU

Even if your company is not directly importing pallets, you may still be considered a trader. While SME traders are exempt from full due diligence obligations, they are still required to:

Store sourcing information for at least five years
Ensure traceability and transparency across their supply chain

For larger traders, full traceability and data sharing responsibilities apply.

What This Means for Your Logistics Operations

The EUDR is not just a forest regulation, it’s a supply chain compliance challenge. For companies that ship globally, particularly under time-sensitive and high-value conditions, this adds another layer of accountability and documentation.

Increased administrative load: Trace pallet sourcing back to the specific plot of land
Potential customs delays: Non-compliant pallets may delay or block shipments
Higher compliance costs: Includes supplier vetting, due diligence systems, and risk mitigation

All of this comes on top of existing responsibilities faced by logistics and compliance teams.

What You Can Do Now

While final clarifications are still expected from EU authorities, companies that depend on wood-based packaging, especially in regulated sectors, should begin preparing:

Map and audit pallet suppliers to assess risk and documentation readiness
Engage in early traceability planning to ensure on-time compliance
Review whether alternative materials may reduce long-term regulatory exposure