Commercial Information Circular

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref. : S/F (D) to EIC 230/2/11

9 June 2023

Dear Sirs,

Commercial Information Circular No. 397/2023

European Union (EU)* : Regulation on deforestation-free products

The European Parliament and the Council of the EU have adopted Regulation (EU) 2023/1115 (the Regulation) to lay down rules on placing on the EU market as well as export from the EU of certain commodities and products associated with deforestation and forest degradation, and to repeal Regulation (EU) No. 995/2010. The Regulation was published on 9 June 2023 and is available at: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32023R1115.

2.The Regulation will apply to commodities, namely cattle, cocoa, coffee, oil palm, rubber, soya and wood, and products that contain, have been fed with or have been made using these commodities such as leather of cattle, clothing accessories (including gloves) of vulcanised rubber other than hard rubber as well as tableware and kitchenware of wood, as listed in Annex I of the Regulation. Relevant commodities and products shall not be placed or made available on the EU market or exported from the EU market, unless all the following three conditions are fulfilled, i.e. they are deforestation-free; they have been produced in accordance with the relevant legislation of the country of production; and they are covered by a due diligence statement.

3.Prior to placing relevant products on or exporting them from the EU market, operators shall exercise due diligence, including collection of information, data and documents as well as risk assessment and risk mitigation measures. The Regulation will establish a three-tier system for the assessment and classification of countries into 'high risk', 'standard risk' or 'low risk'. All countries shall be assigned to a level of risk, and the list of countries that present a low or high risk will be published by means of implementing acts no later than 30 December 2024. For relevant products from low-risk countries, operators should be allowed to exercise simplified due diligence.

4.The Regulation will enter into force on 29 June 2023. Relevant requirements shall apply from 30 December 2024. For certain operators that have been established as micro-undertakings or small undertakings, the requirements shall apply from 30 June 2025.

5.For enquiries concerning the content of this circular, please contact the undersigned at 2398 5684.

Yours faithfully,

(Miss Tracy MAK)
for Director-General of Trade and Industry

* The EU comprises of 27 member countries, namely, Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.