(6)

Non-SME downstream operators and traders have a significant influence on supply chains and play an important role in ensuring that supply chains are deforestation-free. They should, therefore, still be required to register in the information system. At the same time, all downstream operators or traders, whether or not they are SMEs, should continue to ensure full traceability by collecting and passing on reference numbers of due diligence statements and declaration identifiers assigned to micro and small producers.

(6)

Non-SME downstream operators and traders have a significant influence on supply chains and play an important role in ensuring that supply chains are deforestation-free. They should, therefore, still be required to register in the information system. At the same time, first downstream operators or traders, whether or not they are SMEs, should continue to ensure full traceability by collecting reference numbers of due diligence statements and declaration identifiers assigned to micro and small producers. This obligation to collect and keep reference numbers should only apply to the first down-stream operator and should not apply to all others down-stream operators further down in the supply chain.

(7)

All operators, regardless of their size, placing relevant products on the market or exporting them fall under the scope of Regulation (EU) 2023/1115. This places an administrative burden on micro and small producers who place on the market or export their own products. In order to address the concerns related to micro- and small-sized operators producing and placing on the market their own products and to further reduce the load of the information system, it is necessary to introduce a new sub-category of operators to whom the obligation to submit a due diligence statement should not apply. This new subcategory, called ‘micro and small primary operators’, should cover natural persons or micro- or small-sized enterprises established in a country classified as low risk in accordance with Article 29 of this Regulation placing relevant products on the market or exporting them which they themselves produce, meaning that they grow, harvest, obtain from or raise the relevant commodities contained in relevant products themselves. Both operators established within and outside of the Union should be covered by the definition of micro and small primary operator.

(7)

All operators, regardless of their size, placing relevant products on the market or exporting them fall under the scope of Regulation (EU) 2023/1115. This places an administrative burden on micro and small producers who place on the market or export their own products. In order to address the concerns related to micro- and small-sized operators producing and placing on the market their own products and to further reduce the load of the information system, it is necessary to introduce a new sub-category of operators to whom the obligation to submit a due diligence statement should not apply. This new subcategory, called ‘micro and small primary operators’, should cover natural persons or micro- or small-sized enterprises established in a country classified as low risk in accordance with Article 29 of this Regulation placing relevant products on the market or exporting them which they themselves produce in that country , meaning that they grow, harvest, obtain from or raise the relevant commodities contained in relevant products themselves. Both operators established within and outside of the Union should be covered by the definition of micro and small primary operator.

(8a)

Furthermore, as part of the simplification efforts, the administrative burden resulting from the obligations for micro and small primary operators to submit a one-time simplified declaration under Article 4a and to collect information under Article 9(1) should be reduced by allowing them to replace the geolocation of plots of land by the postal address of the plots of land or of the establishment from where the relevant commodities that the relevant product contains, or has been made using, were produced, provided that the postal address clearly corresponds to the geographic location of the plots or establishment concerned. This gives micro and small primary operators the free choice of providing either the geolocation of the plots of land or the postal address of the plots of land or of respective establishment.

(11)

To provide legal clarity that all micro, small and medium-sized undertakings, irrespective of their legal form, can benefit from the simplified provisions for micro small and medium-sized enterprises in Regulation (EU) 2023/1115, the definition of micro, small and medium-sized enterprises should be amended to clarify that the legal form should not be relevant for whether a natural or legal person meets the definition. The same should be clarified for micro and small primary operators.

(11)

To provide legal clarity that all micro, small and medium-sized undertakings, irrespective of their legal form, can benefit from the simplified provisions for micro small and medium-sized enterprises in Regulation (EU) 2023/1115, the definition of micro, small and medium-sized enterprises should be amended to clarify that the legal form should not be relevant for whether a natural or legal person meets the definition. The same should be clarified for micro and small primary operators. Moreover, the definition of micro and small primary operators should include operators who exceed the limits of at least two of the three criteria set out in Article 3(1) and (2), first subparagraph, of Directive 2013/34/EU but who can demonstrate that the parts of their balance sheet total, net turnover and average number of employees during the financial year which relate to their activities covered by this Regulation do not exceed the limits of at least two of three of those criteria.

(12a)

Ahead of the general review of Regulation (EU) 2023/1115 to be carried out by 30 June 2030, in the interest of simplification for operators and traders, the Commission should carry out a simplification review of Regulation (EU) 2023/1115 and should present a report by 30 April 2026. The report should evaluate the administrative burden and impact of this Regulation, in particular for micro and small operators. Furthermore, in the report, the Commission should indicate possible ways to address the identified issues, including through technical guidelines, improvements to the IT-system, delegated or implementing acts in accordance with the delegated powers provided for in the Regulation and, where appropriate, accompany the report with a legislative proposal.

(12b)

The date of application of the provisions of Regulation (EU) 2023/1115 that lay down obligations on operators, traders and competent authorities, listed in Article 38(2) of that Regulation, should be postponed by 12 months. This is necessary in order to allow third countries, Member States, operators and traders to be fully prepared, including, to allow those operators and traders to establish the necessary due diligence systems covering all relevant commodities and products, so as to be in a position to fully comply with their obligations.

(13)

In order to provide operators that are micro or small undertakings within the meaning of Article 3(1) or (2), first subparagraph, of Directive 2013/34/EU, with adequate time for the implementation of the proposed amendments, the corresponding dates of application of the provisions of Regulation (EU) 2023/1115 that lay down obligations on operators, traders and competent authorities, listed in Article 38(2) of that Regulation, should be set to 30 December 2026 for micro and small operators.

(15)

Where a competent authority becomes or is made aware of non-compliance with Regulation (EU) 2023/1115 prior to the entry into application of Articles 16 to 19, Article 22 and Article 24, it may issue warnings to operators, downstream operators and traders, accompanied by recommendations to achieve compliance.

(16)

In the light of the postponement of the date from which for micro and small operators are required to comply with Regulation (EU) 2023/1115, the dates in other related provisions, namely the repeal of Regulation (EU) No 995/2010 of the European Parliament and of the Council8, the transitional provisions and the provisions on the deferred application of Regulation (EU) 2023/1115 to micro-undertakings or small undertakings, should be adjusted accordingly. In order to provide sufficient time to align technical developments of the electronic interface based on the European Union Single Window Environment for Customs, the date by which the electronic interface is in place should be adjusted accordingly.

(16)

In the light of the postponement by 12 month of the date of application set out in Article 38(2) of Regulation (EU) 2023/1115, the dates in other related provisions, namely the repeal of Regulation (EU) No 995/2010 of the European Parliament and of the Council, the provisions on the deferred application of Regulation (EU) 2023/1115 to natural persons , micro-undertakings or small undertakings, should be adjusted accordingly. In order to provide sufficient time to align technical developments of the electronic interface based on the European Union Single Window Environment for Customs, the date by which the electronic interface is in place should be adjusted accordingly.

(20)

In view of the urgency to adopt targeted simplifications as well as to delay the entry into application of Regulation (EU) 2023/1115, it is considered to be appropriate to invoke the exception to the eight-week period provided for in Article 4 of Protocol No 1 on the role of national Parliaments in the European Union, annexed to the Treaty on European Union, to the Treaty on the Functioning of the European Union and to the Treaty establishing the European Atomic Energy Community.

(15a)

‘micro and small primary operator’ means an operator who is a natural person or a micro- or small-sized undertaking, as defined in Article 3(1) and (2), first subparagraph, of Directive 2013/34/EU of the European Parliament and of the Council*, irrespective of its legal form, established in a country classified as low risk in accordance with Article 29 of this Regulation, and who, in the course of a commercial activity, places on the market or exports relevant products that this operator itself has grown, harvested, obtained from or raised on relevant plots of land, or, as regards cattle, on establishments;

(15a)

‘micro and small primary operator’ means an operator who is a natural person or a micro- or small-sized undertaking, as defined in Article 3(1) and (2), first subparagraph, of Directive 2013/34/EU of the European Parliament and of the Council*, irrespective of its legal form, established in a country classified as low risk in accordance with Article 29 of this Regulation, and who, in the course of a commercial activity, places on the market or exports relevant products that this operator itself has grown, harvested, obtained from or raised on relevant plots of land, or, as regards cattle, on establishments, located in that country; this includes operators who exceed the limits of at least two of the three criteria set out in Article 3(1) and (2), first subparagraph, of Directive 2013/34/EU but who can demonstrate that the parts of their balance sheet total, net turnover and average number of employees during the financial year which relate to their activities covered by this Regulation do not exceed the limits of at least two of three of those criteria;

(a)

the name, registered trade name or registered trade mark, the postal address, the email address and, if available, a web address of the operators, downstream operators, or the traders who have supplied the relevant products to them, as well as the reference numbers of the due diligence statements or the declaration identifiers associated to those products;

(a)

the name, registered trade name or registered trade mark, the postal address, the email address and, if available, a web address of the operators, downstream operators, or the traders who have supplied the relevant products to them, as well as the reference numbers of the due diligence statements or the declaration identifiers associated to those products only in case their supplier is an operator ;

(a)

until 30 December 2026 to timber and timber products as defined in Article 2, point (a), of Regulation (EU) No 995/2010 placed on the market by micro and small primary operators or by operators that by 31 December 2024 were established as micro-undertakings or small undertakings, within the meaning of Article 3(1) or (2), first subparagraph, of Directive 2013/34/EU, irrespective of their legal form;

(b)

until 31 December 2028 to timber and timber products as defined in Article 2, point (a), of Regulation (EU) No 995/2010 that were produced before 29 June 2023 and placed on the market from 30 December 2026 by micro and small primary operators or by operators that by 31 December 2024 were established as micro-undertakings or small undertakings within the meaning of Article 3(1) or (2), first subparagraph, of Directive 2013/34/EU, irrespective of their legal form;

(c)

until 31 December 2028 to timber and timber products as defined in Article 2, point (a), of Regulation (EU) No 995/2010 that were produced before 29 June 2023 and placed on the market from 30 December 2025.

(23a)

in Annex I, products ex 49 are deleted;

2.

Harmonised System code and free-text description of the relevant products, including the trade name, and the annual quantity of relevant products intended to be placed on the market or exported, expressed in net mass specifying a percentage estimate or deviation or, where applicable, volume or number of items. For relevant products entering or leaving the market, the quantity is to be expressed in kilograms of net mass and, where applicable, in the supplementary unit set out in Annex I to Regulation (EEC) No 2658/87 against the indicated Harmonised System code or, in all other cases, expressed in net mass specifying a percentage estimate or deviation or, where applicable, volume or number of items. A supplementary unit is applicable where it is defined consistently for all possible subheadings under the Harmonised System code referred to in the due diligence statement.

2.

Harmonised System code and free-text description of the relevant products, including the trade name, and the one-off estimated annual quantity of relevant products intended to be placed on the market or exported, expressed in net mass specifying a percentage estimate or deviation or, where applicable, volume or number of items. For relevant products entering or leaving the market, the estimated quantity is to be expressed in kilograms of net mass and, where applicable, in the supplementary unit set out in Annex I to Regulation (EEC) No 2658/87 against the indicated Harmonised System code or, in all other cases, expressed in net mass specifying a percentage estimate or deviation or, where applicable, volume or number of items. A supplementary unit is applicable where it is defined consistently for all possible subheadings under the Harmonised System code referred to in the due diligence statement.

3.

Country of production and the postal address or the geolocation of all plots of land on which the micro and small primary operator produces relevant commodities. For relevant products that contain or have been made using cattle, and for such relevant products that have been fed with relevant products, the postal address or the geolocation shall refer to all the establishments where the cattle are kept. Where the relevant products are produced on different plots of land, the postal address or the geolocation of all plots of land shall be included in accordance with Article 9(1), point (d).

3.

Country of production and the postal address or the geolocation of all plots of land , or the postal address of the establishment or of all plots of land on which the micro and small primary operator produces relevant commodities. For relevant products that contain or have been made using cattle, and for such relevant products that have been fed with relevant products, the postal address or the geolocation shall refer to all the establishments where the cattle are kept. Where the relevant products are produced on different plots of land, the postal address or the geolocation of all plots of land shall be included in accordance with Article 9(1), point (d).