From 30 December 2026, the EU Deforestation Regulation (EUDR) will apply to medium-sized and large operators, and from 30 June 2027 to most micro and small operators.

The regulation covers cattle, cocoa, coffee, oil palm, rubber, soya and wood, as well as certain derived products. To be placed on the European market, covered products must meet three core requirements:

• be deforestation-free
• have been produced in accordance with the relevant legislation of the country of production
• be covered by the due diligence statement required under the regulation

The EUDR sets 31 December 2020 as the deforestation cut-off date.

As a rule, the regulation does not impose obligations directly on producers established outside the European Union that do not themselves place the products on the EU market. That does not, however, leave Brazilian suppliers unaffected.

To comply with its own due diligence obligations, the European operator will need to obtain reliable information from its supply chain. The European Commission expressly acknowledges that producers and companies in third countries may be asked to provide information on the legality of the products and the geolocation of the areas where they were produced. European buyers are likely to incorporate these requirements into their supplier qualification, audit and contracting processes.

The information that may be requested includes:

I- location and georeferencing of production areas

II – identification of the origin of the products and the parties involved in the supply chain

III – land tenure and land-use rights documentation

IV – environmental documents and permits applicable to the activity

V – evidence demonstrating the absence of deforestation after the cut-off date

VI – information on any embargoes (administrative orders restricting activities in an area), restrictions or irregularities

VII – traceability mechanisms capable of linking the marketed product to its origin

The regulation also requires the geolocation of the areas where the commodities were produced and verifiable information showing that production complied with the relevant legislation of the country of production.

EUDR Goes Beyond Identifying Deforestation

One of the requirements for placing a product on the European market is demonstrating that it was produced in compliance with the relevant legislation of the producing country. Under the EUDR, this includes, among other matters, land-use rights, environmental protection, forest-related rules, third-party rights, certain labor and human rights, and rules governing trade and production activities.

Depending on the commodity, the region and the characteristics of the operation, this assessment may require a coordinated review of land tenure documents, the Rural Environmental Registry (CAR), Permanent Preservation Areas (APP), Legal Reserve requirements, vegetation-clearing permits, environmental licenses, embargoes and other administrative restrictions, as well as any disputes or rights affecting the land.

This means that technology-based traceability and satellite imagery, on their own, may not be sufficient. European buyers will also need reasonable grounds to conclude that Brazilian production complies with applicable law.

The issue takes on added significance because Brazil is currently classified by the European Union as a standard-risk country. Operations originating from countries in this category remain subject to the full due diligence requirements under the EUDR.

For many Brazilian companies, the most immediate consequence may arise even before the regulation becomes applicable: new contractual requirements imposed by European buyers. Supply and export agreements may therefore begin to include specific obligations concerning:

• provision and updating of origin and geolocation data
• representations and warranties regarding environmental and land tenure compliance
• retention and availability of supporting documentation
• audit and inspection rights
• notification of embargoes, enforcement actions or material changes
• traceability of direct and indirect suppliers
• suspension or rejection of products lacking adequate supporting evidence
• liability for incorrect or incomplete information
• indemnification and termination in the event of non-compliance

For Brazilian suppliers, the risk therefore goes beyond potential EU sanctions. Failure to provide sufficient evidence of compliance may lead to lost contracts, blocked shipments, or replacement by suppliers deemed lower-risk.

What Should Companies Do Now?

With the EUDR set to apply from December 2026, Brazilian suppliers integrated into European supply chains should use the coming months to get ahead of buyer requirements.

Priorities include:

I – mapping products and operations potentially covered by the EUDR

II – identifying the areas of origin

III – reviewing environmental and land tenure documentation

IV – assessing traceability gaps

V – mapping indirect suppliers

VI – reviewing contracts with customers and upstream suppliers

The European Commission has already published updated guidance on implementing the regulation, reinforcing the need for companies to prepare for its application. Accordingly, international companies sourcing Brazilian products should conduct local legal due diligence to assess EUDR requirements against the Brazilian regulatory framework and identify the documents and controls needed to demonstrate compliance. 

Compliance with the EUDR is therefore likely to evolve from a purely European regulatory obligation into a new commercial requirement for Brazilian export supply chains. Carrying out this analysis early may be critical to preserving contracts and continued access to the European market.