The European Commission has revised the scope of the EU Deforestation Regulation (EUDR), removing leather, cattle hides and skins, along with selected downstream products such as retreaded tyre casings and certain vulcanized rubber articles, from the list of regulated products. However, natural rubber (HS 4001) remains fully covered under the regulation, meaning companies trading natural rubber and many rubber-based products must continue to demonstrate that their supply chains are deforestation-free and fully traceable. The updated regulation is scheduled to apply from 30 December 2026 for most businesses, while newly added products such as soluble coffee and selected palm oil derivatives will come under the regulation from 30 December 2027.

The revision has significant implications for the global rubber industry. While the exclusion of leather is expected to reduce compliance costs for parts of the fashion sector, the continued inclusion of natural rubber reinforces the EU's focus on improving sustainability and supply chain transparency in rubber sourcing. According to the European Commission's assessment, removing leather from the regulation could forgo annual environmental benefits estimated at Euro 979 million to Euro 1.96 billion, even though hides were estimated to account for up to 17% of EUDR-linked deforestation. For rubber exporters, particularly those supplying the European market, the regulation is expected to accelerate investments in digital traceability systems, geolocation mapping, and sustainable sourcing practices, making compliance a key competitive advantage in international trade.