Business advisory group, Baker Tilly has warned of “extensive” penalties for non-compliance with new EU deforestation and trade regulations, which will come into effect on December 30, 2024.
Baker Tilly has stated that particularly those in the beef and forestry sectors are set to face “significant regulatory hurdles”.
The regulation was introduced to minimise the EU’s contribution to global deforestation and forest degradation, and to reduce the EU’s contribution to greenhouse gas emissions and global biodiversity loss.
Under the new rules, products must only be placed on the EU market or exported from the EU if they follow these guidelines:
- Products are deforestation-free;
- They have been produced in accordance with the relevant legislation of the country of production;
- They are covered by a due diligence statement.
Regional chief operating officer with Baker Tilly Ireland, Vivian Nathan said that “stakes have never been higher” for Irish exporters.
He said that products, such as beef and processed beef items, for example, steaks and minced beef, along with wood products, such as building materials and furniture must be certified as “deforestation-free”.
This certification means they must not have been produced on land deforested after December 31, 2020.
Nathan said that failure to comply with the “deforestation-free” term could result in fines, confiscation of goods, and exclusion from public procurement opportunities.
“The impact on Ireland is significant due to its strong agricultural and forestry sectors. Farmers and businesses involved in beef production, wood processing, and other related industries will need to undertake rigorous due diligence to meet these new standards,” Nathan said.
“This includes gathering geolocation data and other documentation to prove compliance,” he added.
He said that penalties could “severely impact” businesses that do not take action immediately, and that it represents a “significant shift” for Irish exporters.