The EU Deforestation Regulation and Related Laws

Food, Flavor, and Forests: Complying with Deforestation Controls

In May of 2023, the EU published Regulation (EU) 2023/1115, commonly known as the EU Deforestation Regulation, as one of the latest legal measures driven aimed at advancing sustainability and environmental protection. The law targets commodities frequently linked to global deforestation, namely, cattle, cocoa, coffee, palm oil, rubber, soybeans (soya), and wood/timber. Many of these materials play a crucial role in the food and flavor industries. In addition to cocoa and coffee, the regulation may affect soy and palm oil-derived products and wood-derived flavors/spices such as cinnamon.

Given the complexity of modern supply chains, the EU has responded to industry concerns by phasing in the enforcement of the deforestation regulation. Starting October 1st, 2026, importers of the commodities identified in the regulation, as well as products derived from them, must provide a form of limited assurance via an EU import portal, confirming that their products are aligned with EU deforestation requirements. Under the limited assurance phase, full traceability of the commodities or their derivatives is not required. Rather, a review of the currently known product supply chain should be conducted, including a risk assessment of the materials that may be contributing to deforestation. This assessment may involve identifying the country of origin of raw materials (when known) and determining whether that country presents a recognized deforestation risk.

Stricter requirements under the regulation will take effect on October 1st, 2028. After this date, firms must demonstrate reasonable assurance that their products comply with the law, with a six-month grace period granted to smaller businesses. This assurance demands in-depth supply chain reviews, including full traceability and geolocation data for invested commodities. Companies must identify high-risk products, implement policies to mitigate deforestation risks, and, if needed, seek alternative sources. Third party audits of suppliers should also be conducted to verify that supply chains meet the regulation’s standards.

Import and customs authorities within the EU will likely use Harmonized Tariff Codes (HTS) and Foreign Trade Commodity Codes, also known as Harmonized System (HS) codes, to help identify and track products of concern but may also employ other methods, including inspecting and sampling. Failure to adhere to the deforestation regulation and other food import compliance laws could result in delayed or blocked shipments, fines, or barring repeat violators from exporting goods into the EU. Criminal charges could even be brought against importers.

Conflict Minerals Regulations and Ethical Sourcing

Of course, the EU deforestation requirement is not the only major law focused on sustainability and ethical sourcing. In the United States, for example, long-standing concern over conflict minerals has driven similar regulatory action. These minerals, primarily mined from the Democratic Republic of the Congo (DRC), have been linked to the funding of armed conflict and terrorist organizations. The Congo Conflict Minerals Act of 2009 requires electronics firms to verify the sources of key metals and minerals and exclude those from the DRC. Since then, additional laws have broadened the scope to include more regions and materials. Conflict mineral concerns have also expanded into areas like basic chemical manufacturing, where such metals could be used as catalysts. The EU and other regions have adopted comparable measures, and the structure of the EU deforestation law reflects lessons learned from enforcing conflict mineral laws.

Although there are few if any food products that would fall under conflict mineral restrictions, food and beverage firms should be aware of the precedent to restrict supplies of products from certain regions. For example, since the 2022 Russian invasion of Ukraine, most goods from the Russian Federation are restricted from import to the EU or the US, including food or beverage products. Additionally, in response to Chinese actions against the Uyghur ethnic groups, there are restrictions on importing goods produced partially or fully in the Xinjiang Region of China (The Uyghur Forced Labor Prevention Act of 2021).

Forced Labor Laws and Human Rights Due Diligence in Supply Chain Compliance

Laws aimed at ending exploitation are not limited to specific cases like the Uyghur Forced Labor Prevention Act. Many countries and regions have introduced regulations requiring businesses to verify that imported goods were not produced using exploited workers. These include the Canadian Forced Labor Reporting law and the Modern Slavery Acts of the UK, Australia, and New Zealand . Some governments have gone further, such as the Netherlands with its Child Labor Due Diligence requirement. In the US, the state of California also mandates evidence that products were not produced through forced labor or human trafficking.

Any firm with global gross annual sales exceeding 100 million US dollars must comply with the California Transparency in Supply Chains Act , which underscores the increasing regulatory attention to human rights in food sourcing and other global industries. To comply with the Act, firms must publish annual reports for review. These reports must show that the firm assesses the risk of human rights violations in their supply chains, audits their supplier for compliance, establishes a protocol for addressing non-compliance, and provides employee training on forced labor and human trafficking. Only companies that can demonstrate they meet all of these requirements are permitted to sell products in California.

Even where there are no clear restrictions in place, some laws require detailed impact reports so that clear guidelines and limits can be developed. The EU Corporate Sustainability Reporting Directive (CSRD) for example, requires large firms that have business in the EU to make available annual reports on sustainability, environmental impact, and human rights, including those related to food and flavor sourcing, so the EU can assess and determine what tolerable limits they may accept.

The Urgency of Responsible Supply Chain Control

As enforcement expands, food sourcing regulations are becoming central to global trade compliance strategies. The complexity of today’s global supply chain means businesses must not only meet sustainability and human rights standards themselves but also ensure their suppliers do the same. Increasingly, countries and regions are holding businesses accountable for the practices of their entire supply network. To meet these evolving expectations, firms must implement rigorous supplier evaluation and approval programs. Without comprehensive, auditable reporting on environmental and labor practices, companies risk losing business or facing blocked sales. Now more than ever, those engaged in global trade, whether sourcing, distribution, or both, account for their global impact.