EUDR Glossary

SME

Small and medium-sized enterprises enjoy relief under the EUDR – both in their obligations and in the timeline. For many craft and trading businesses in particular, this is the most important term in the whole regulation. Here we explain what SME means and what changes in practice.

SME · small and medium-sized enterprises

Under the EUDR, small and medium-sized enterprises receive reduced obligations. However, under Art. 38(3) the extended deadline of 30 June 2027 – only for natural persons, micro and small undertakings established as such on 31 December 2024 – only applies to products not already covered by the old Timber Regulation (EUTR). For timber – roundwood, sawn timber, panels, furniture – the 30 December 2026 therefore applies regardless of company size.

The EUDR does not want to overburden smaller businesses and therefore grants them more time and leaner obligations – but does not exempt them entirely.

What does SME mean under the EUDR?

SME stands for small and medium-sized enterprises. Classification as an SME is based on the usual EU thresholds for headcount and turnover or balance-sheet total. The regulation ties into this definition in order to relieve smaller businesses compared with large companies. You should check whether your business qualifies as an SME based on your specific figures.

What deadlines apply?

Company sizeEUDR applies from
Large companies30 December 2026
SMEs – timber products30 December 2026
SMEs – newly covered products30 June 2027

SMEs therefore have around half a year longer to prepare. This time can be used to set up suppliers, data flows and processes at a measured pace.

What relief is available?

Besides the later deadline, the relief mainly concerns the role of trader:

Important: however, an SME that is an operator – such as a small sawmill or a forest owner making a direct sale – must still carry out due diligence and submit a statement.

Tip: First clarify two questions: Are we an SME? And are we an operator or only a trader? Only the combination of both answers shows how extensive your obligations are. The article EU simplifications of the EUDR covers the latest developments on relief measures.

Relationship to other obligations

For SMEs too, the goal of due diligence remains to demonstrate a negligible risk. Where an own statement is required, the same requirements apply to geolocation data and submission via TRACES NT. The timber trade page shows how the obligations play out in trading.

More than EUDR – a compass for all supply-chain obligations

Compliance Compass also supports you with further frameworks. Take a look at the full offering.

EUDR Timber EUDR Agrar ↗ LkSG CSRD more
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EUDR for small businesses

Exactly as much effort as needed.

Compliance Compass is made for SMEs too: simple data capture, managing reference numbers and – where needed – submitting the statement. See it for yourself in a short demo.