If you work in the US timber industry, you’ve probably heard whispers about a new European regulation that could change how you do business. The EU Deforestation Regulation—known as EUDR—is real, it’s coming, and it affects American timber companies that export to or supply European markets.
Here’s what you need to know.
What is the EU Deforestation Regulation (EUDR)?
The EUDR is a European Union law that prohibits the import and sale of products linked to deforestation. It was adopted in June 2023 and applies to seven commodity categories: cattle, cocoa, coffee, oil palm, rubber, soya, and wood.
Yes, wood. That includes timber, lumber, pulp, paper, printed products, and a range of wood-derived goods.
The regulation requires companies placing these products on the EU market—or exporting them from the EU—to prove that the products:
- Were not produced on land deforested after December 31, 2020
- Were produced in compliance with the laws of the country of origin
- Are covered by a due diligence statement with geolocation data for the land where the commodity was produced
Enforcement begins December 30, 2026 for large operators. Small and medium enterprises get an additional six months.
Who Does EUDR Affect in the US Timber Industry?
If your timber never leaves North America, EUDR may not directly apply to you—yet. But the regulation has a wider reach than many realize:
Direct Impact
- US timber companies exporting to Europe — If you sell lumber, pulp, or wood products to EU buyers, you’ll need to provide chain of custody documentation and geolocation data.
- Sawmills and manufacturers supplying EU customers — Your European buyers will require due diligence statements, and they’ll pass compliance requirements upstream to you.
Indirect Impact
- Timber dealers and loggers — Even if you don’t export directly, your mill customers may start requiring geolocation data and harvest documentation to satisfy their own EU compliance needs.
- Landowners and TIMOs — Expect requests for GPS coordinates of harvest areas and documentation proving legal harvest practices.
- The entire supply chain — EUDR’s traceability requirements will likely become standard practice across the industry, regardless of whether a specific load ends up in Europe.
What Does EUDR Compliance Require?
The core requirements boil down to three things:
1. Geolocation Data
Every product must be traceable to the specific plot of land where it was produced. For timber, this means GPS coordinates of the harvest area. If the harvest area exceeds four hectares, polygon geolocation (not just a single point) is required.
2. Chain of Custody Documentation
Companies must demonstrate an unbroken chain of custody from forest to final product. This includes:
- Harvest site identification and coordinates
- Species identification
- Volume and weight data
- Transport and processing records
- Supplier and buyer information at each step
3. Due Diligence System
Operators must implement a three-step due diligence process:
- Information gathering — Collect all required data about the product and its origin.
- Risk assessment — Evaluate whether there is any risk that the product is linked to deforestation or illegal activity.
- Risk mitigation — If risks are identified, take steps to reduce them to a negligible level before placing the product on the market.
How US Timber Companies Can Prepare
December 30, 2026 sounds far away, but building compliant systems takes time. Here’s what to do now:
Audit Your Supply Chain
Map where your timber comes from. Can you trace every load back to a specific tract? Do you have GPS coordinates for your harvest areas? If you’re relying on paper tickets and verbal agreements, you have a gap to close.
Digitize Your Records
EUDR compliance is fundamentally a data problem. You need digital, searchable, verifiable records linking every product to its origin. Spreadsheets won’t cut it at scale.
Invest in Forestry Software with Chain of Custody
This is where purpose-built forestry technology becomes essential. A system like TRACT—the only pure software company in forestry—tracks every load from stump to scale with GPS data, digital tickets, and automated chain of custody documentation.
TRACT’s load tracking captures geolocation at harvest, ties loads to specific tracts and landowners, and maintains a digital record through every step of the supply chain. This is exactly the kind of documentation EUDR demands.
A University of Georgia study (Miller et al., 2024) found that forestry companies using integrated software saved 43 hours per week in administrative time. When EUDR adds new documentation requirements on top of your existing workload, that efficiency isn’t optional—it’s survival.
Talk to Your Buyers
If you supply European markets, start conversations now about what documentation your buyers will require. Getting ahead of the timeline prevents scrambling later.
EUDR and the Future of Forestry Traceability
Whether or not EUDR directly applies to your operation today, the direction is clear: the global timber industry is moving toward full traceability. Similar regulations are under discussion in the UK, Australia, and other markets.
Companies that build traceability into their operations now won’t just be EUDR-compliant—they’ll be positioned for whatever comes next.
Start Building Your Chain of Custody Today
TRACT helps forestry companies — from including large institutional timberland owners — maintain digital chain of custody records from harvest to delivery. With load tracking, GPS data capture, AI ticket scanning, and automated documentation, TRACT makes EUDR readiness a byproduct of your normal workflow—not an extra burden.
Request a demo at gettract.com to see how TRACT can prepare your operation for EUDR and beyond.