The EU Deforestation Regulation (EUDR)[1] will become effective on 30 December 2026 and the Irish Revenue Commissioners have recently written to in-scope businesses to inform them of their obligations. There is a later application date of 30 June 2027 for micro or small businesses established before 31 December 2024.
Businesses should act now to identify affected products, determine their role in the supply chain and ensure that compliance systems are ready.
Which businesses and products are affected?
The EUDR requires relevant products placed on, made available on, or exported from the EU market to be deforestation-free. The obligations for each business depends on its role in the supply chain, including whether it first places a relevant product on the EU market or operates further downstream. The obligations will particularly affect importers of relevant goods subject to the EUDR.
The EUDR covers seven commodities associated with deforestation or forest degradation, namely, cattle, cocoa, coffee, palm oil, rubber, soy and wood, together with a range of derivative products, including beef, chocolate, furniture, fuel wood and tyre treads.
What does compliance involve?
Businesses that first place relevant products on the EU market, or export them, must be able to show that the products are:
- deforestation-free;
- produced in line with the relevant laws of the country of production; and
- covered by a due diligence statement or, where applicable, a simplified declaration.
Before relevant products are placed on the market, the applicable due diligence statement or simplified declaration must be submitted through the EUDR Information System. Due diligence involves gathering product and supply-chain information, assessing risk and taking mitigation measures where required.
Submission generates a reference number or declaration identifier. For imports and exports, this must also be provided to customs authorities in the customs declaration. Missing information can delay customs clearance.
Ireland’s proposed legislation
Although the EUDR is directly applicable in most respects, the Draft General Scheme of the Deforestation and Forest Degradation Bill 2026 (the “2026 Bill”), published on 7 August 2026, sets out Ireland’s proposed measures to give effect to the EUDR. The Bill remains subject to the legislative process and may change before enactment.
The key proposals cover enforcement, offences and penalties.
Competent authority
The Draft General Scheme would designate the Minister for Agriculture, Food and the Marine as the competent authority. It proposes enforcement powers, penalties and the appointment of authorised officers, alongside amendments to the Forestry Act 2014 to expand the Minister’s functions to include deterring deforestation.
Offences and corrective measures
The proposals include offences for breaches of EUDR obligations by operators, downstream operators, traders and authorised representatives. Obstructing authorised officers, withholding required assistance or information, and knowingly making false or misleading statements would also constitute offences. Proposed measures include product withdrawals, recalls, seizures and corrective action.
What are the consequences of non-compliance?
The Draft General Scheme proposes significant penalties:
- Certain summary offences would attract a fine of €5,000.
- Other offences would attract a €5,000 fine and/or up to six months’ imprisonment on summary conviction.
- On conviction on indictment, the proposed maximum fine would be the greater of:
- €10 million;
- 4% of aggregate EU turnover for the preceding financial year; and
- the potential economic gain from the offence.
Imprisonment of up to three years is also proposed for conviction on indictment.
Business disruption
In addition to fines on conviction on indictment, the court could order forfeiture of relevant products or transaction revenue, exclusion from public processes and public funding for up to 12 months, or a temporary prohibition on placing or making available relevant products on the market or exporting them.
Individual exposure
Directors, managers, secretaries and other officers, including those purporting to act in those roles, could also face liability for company offences. Members could be liable where they manage the company’s affairs. Liability would arise only where the offence was committed with the individual’s consent, connivance or approval, or was attributable to their wilful neglect.
What should businesses do now?
Businesses should use the remaining preparation time to:
- Identify potentially in-scope products and commodities.
- Establish their role in the supply chain and the corresponding obligations, including for e-commerce activities.
- Check whether due diligence systems and supplier information are sufficient.
- Ensure that there is a system for filing due diligence statements and to ensure that the relevant reference number generated is contained on the customs declaration for those goods.
Contact us
We are following the Bill’s progress through pre-legislative scrutiny and will provide a further update as the legislation develops. The Matheson Indirect Tax team has been assisting businesses importing and exporting goods in the EU to navigate and prepare for the changes brought about by the EUDR. If you require any assistance in this regard please contact Dara Higgins or your usual Matheson contact.
[1] Regulation (EU) 2023/1115
