EUDR · 2023/111530.12.2026 — 55 days
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EUDR and renting out furniture or equipment: does it count?

Renting out wood, rubber or leather items is not placing or making available on the EU market under the Commission's FAQ. Buying the stock to rent still is.

7 min read5 primary sources
On this page
  1. 01The Commission has answered this directly
  2. 02What this means in practice for a hire business
  3. 03Where rental businesses do pick up obligations
  4. 04Why leasing with an option to buy is different
  5. 05Deadlines, if you do turn out to be in scope
  6. 06What to check before relying on the rental exemption

No. Renting out a relevant product — office furniture, event equipment, tool hire, anything made from wood, rubber or leather — is not placing it or making it available on the EU market, under the European Commission's own implementation FAQ. What does trigger the Regulation is the rental company's purchase of that stock in the first place, which is an ordinary acquisition from whoever supplies it, and is where due diligence has to happen.

The Commission has answered this directly

This is not an inference from the general rules. FAQ 2.15 of the Commission's implementation FAQ asks the question in almost these words — "Does the Regulation cover the renting out of relevant products?" — and answers it without qualification: "If a relevant product is rented out, or provided under a similar contractual arrangement, the product is not considered to be placed or made available on the market."

The reasoning sits on the definition of "supply" that runs through the whole Regulation. Under Article 2(14) and the Commission's FAQ 2.10, a supply presupposes an agreement, written or verbal, for the transfer of ownership or some other property right in the product. A rental agreement is deliberately not that: the customer gets use of the item for a period, and it comes back. No ownership moves, so no supply happens, so neither "placing on the market" (Article 2(16)) nor "making available on the market" (Article 2(18)) is triggered — both definitions in the EUDR are built on that same underlying transfer.

The Commission's own worked example in FAQ 2.15 maps onto an equipment or furniture hire business almost exactly: a company buys wooden furniture from a manufacturer who has already run due diligence and filed a due diligence statement for it, then rents that furniture out within the EU, with the furniture coming back for the next hire after each rental period. "P is not subject to the obligations of the EUDR, as it is only renting out the furniture, and is not transferring ownership or another property right."

What this means in practice for a hire business

Activity Transfers ownership? In scope?
Buying furniture or equipment stock from a manufacturer or importer, to put into the hire fleet Yes, to the rental company Yes — this is the supply that carries the due diligence obligation
Renting that stock out to customers, one hire after another No No
Taking returned stock back into the fleet after a hire ends No No
Selling off a used item from the fleet at the end of its working life Yes, to the buyer Depends — see below
Repairing a hired item with new wood, rubber or leather components Yes, for the new material added Yes, for the repair material

The practical consequence is that a rental or leasing business is very rarely an operator or trader in its own right for the stock it hires out. The obligation sits one step back in the chain, with whoever sold the item to the rental company. If that seller is an EU manufacturer or importer placing the item on the market for the first time, they are the operator, and they are the one who needs geolocation data, a risk assessment and a due diligence statement in TRACES before the item is released for free circulation or otherwise placed on the market. What due diligence statements require and how to file them in TRACES covers that process for whoever sits in that position.

A rental company that only ever buys finished stock from EU suppliers who have already done this work has, in the Commission's own framing, no EUDR due diligence obligation for the hiring activity itself. That is worth checking rather than assuming, because it depends on where the stock actually comes from — see the next section.

Where rental businesses do pick up obligations

Three situations pull a hire company back into scope, and none of them is the renting out itself:

Importing stock directly. If the rental company itself imports furniture, tools or equipment from outside the EU — rather than buying it from an EU supplier who has already cleared customs and filed a DDS — it is the one releasing the goods for free circulation, and FAQ 2.10 is explicit that release for free circulation in the course of a commercial activity is treated as placing on the market regardless of whether a conventional sale has happened. The rental business becomes the operator for that stock, with full geolocation and due diligence obligations, exactly as any other importer would be.

Selling off retired stock. Once a hire fleet item reaches the end of its useful life and the rental company sells it on — to a reseller, a staff member, or the public — that sale is a supply in the ordinary sense: ownership transfers for the first time from the rental company to a buyer. Whether this creates a fresh obligation depends on whether the item was already covered by due diligence when the rental company first bought it, and on whether it still meets the Regulation's own waste exemption test. EUDR and recycled content: wood, rubber and leather sets out that test — the short version is that a used item does not automatically qualify as exempt waste just because it is second-hand; the Commission's FAQ on second-hand products notes that exemption applies only where the product has genuinely completed its lifecycle and would otherwise be discarded, and that further detail was still being worked through in a draft delegated act as of this year. Treat an end-of-fleet sale of a still-usable item as an ordinary supply unless you can show it meets that waste test.

Repairing hired stock with new material. If a rental company repairs a wooden chair, a leather sofa or a rubber-matted gym item using newly bought timber, leather or rubber components, that new material is itself a fresh relevant product entering the business, and due diligence applies to it — the rental company is an operator or downstream operator for the repair material specifically, not for the item as a whole. This mirrors how the Commission treats repaired pallets under the packaging rules.

Why leasing with an option to buy is different

The exemption in FAQ 2.15 turns entirely on whether ownership transfers. A pure rental or operating lease, where the item always comes back, clearly does not transfer it. A finance lease or hire-purchase arrangement structured so that ownership (or an equivalent property right) passes to the customer at or before the end of the agreement is a different transaction economically, even if it is marketed as a "lease". The Commission's FAQ does not carve out finance leases by name, and the industry body representing European leasing firms has specifically asked the Commission to confirm that leases with no transfer of ownership are covered by the same treatment as straightforward rental — which suggests the position for finance leases, hire-purchase and other arrangements that do eventually transfer ownership has not been settled as cleanly as pure rental has. If your hire arrangements include an option, or an expectation, that the customer ends up owning the item, treat that transaction as a supply rather than relying on the rental exemption, until the Commission's guidance addresses it directly.

Deadlines, if you do turn out to be in scope

If your rental business imports stock directly, or otherwise ends up placing relevant products on the market in its own right, the same application dates apply as to any other operator:

Business size Deadline
Large or medium operator or trader 30 December 2026
Micro or small operator, product already covered by the EU Timber Regulation (most wood furniture and equipment) 30 December 2026
Micro or small operator, non-timber product (rubber, leather) 30 June 2027

The full breakdown of which date applies to which business explains how size and product history combine, and the simplifications available to micro and small operators covers the lighter-touch regime many smaller hire businesses will qualify for if they do import directly.

What to check before relying on the rental exemption

  • Confirm you are genuinely renting, not financing a sale dressed up as a lease. The exemption is about ownership not moving; an agreement that transfers ownership at the end of the term is a supply, whatever it is called.
  • Confirm where your fleet stock actually comes from. If every item is bought from an EU supplier who has already filed a due diligence statement, you have no separate obligation for the hiring itself. If any of it is imported directly by your business, that import is where your obligation starts.
  • Ask your suppliers to confirm, in writing, that they have carried out due diligence and hold a valid DDS reference for the stock you are buying — the Commission's example assumes this is true of the manufacturer supplying the rental company, and a competent authority checking your records will expect you to be able to point to it.
  • Keep a record of how retired fleet stock is disposed of. A sale of a used item is a different transaction from the original purchase, and does not automatically inherit an exemption just because the item has been through a rental cycle.

Check what the EUDR actually requires of your specific rental or equipment-hire business — the answer depends on whether you import stock directly, how your agreements are structured, and what you do with equipment once it leaves the fleet.

General information about Regulation (EU) 2023/1115 as amended, not legal advice. EUDR scope is determined by customs (CN) code — confirm your own classifications before acting on this. Checked against primary sources on .

Questions

Frequently asked

01Does renting out furniture or equipment count as placing it on the EU market under the EUDR?

No. The Commission's implementation FAQ (2.15) states directly that if a relevant product is rented out, or provided under a similar contractual arrangement, it is not considered to be placed or made available on the market, because no ownership or other property right transfers.

02Who has the due diligence obligation for furniture or equipment that is later rented out?

Whoever first placed it on the EU market — typically the manufacturer or importer who sold it to the rental company. The rental company itself has no separate obligation for the hiring activity, provided it bought the stock from a supplier who had already carried out due diligence.

03Does a rental company need to do its own due diligence if it imports equipment directly?

Yes. Releasing a relevant product for free circulation in the course of a commercial activity is treated as placing it on the market regardless of whether it involves a conventional sale. A rental company that imports stock itself is the operator for that stock and carries full due diligence obligations.

04Is selling off used equipment at the end of its rental life in scope?

Generally yes. A sale transfers ownership for the first time from the rental company to a buyer, which is an ordinary supply. It is not automatically exempt as waste or as a second-hand product unless it genuinely meets the Regulation's waste test — being produced entirely from material that has completed its lifecycle and would otherwise be discarded.

05Does repairing hired furniture or equipment with new materials create an obligation?

Yes, for the new material specifically. If a rental company repairs an item using newly bought timber, leather or rubber components, that new material is a fresh relevant product and due diligence applies to it, even though the item as a whole was already in the fleet.

06Are finance leases or hire-purchase agreements treated the same as ordinary rental?

This is not fully settled. The exemption in FAQ 2.15 applies because ownership does not transfer in a pure rental. An agreement structured so that ownership passes to the customer, even eventually, is economically closer to a sale, and the leasing industry has specifically asked the Commission to confirm equal treatment — treat such arrangements as a supply rather than assuming the rental exemption applies.

07Does the rental exemption apply to leasing companies offering pure asset finance to manufacturers?

This is unresolved. The European leasing industry's own trade body has asked the Commission for guidance confirming that lessors providing only asset finance should not be treated as traders under the EUDR, and reports that this specific confirmation was not included in the Commission's most recent guidance update.

08What deadline applies if a rental business does turn out to be in scope?

The same dates as any other operator: 30 December 2026 for large and medium businesses and for micro and small businesses on products already covered by the EU Timber Regulation (most wood items), and 30 June 2027 for micro and small businesses on non-timber products such as rubber or leather.

References

Sources

  1. [1]Regulation (EU) 2023/1115 on deforestation-free products (EUR-Lex, consolidated text)
  2. [2]Regulation (EU) 2025/2650 amending Regulation (EU) 2023/1115 as regards application dates (EUR-Lex)
  3. [3]European Commission — Frequently Asked Questions, Implementation of the EU Deforestation Regulation, Version 5 (2026): FAQ 2.15 (renting), FAQ 2.10 (supply), FAQ 2.7 (second-hand products), FAQ 3.1 (o
  4. [4]Leaseurope — Simplification of the EU Deforestation Regulation: scope and due diligence for lessors
  5. [5]Commission Delegated Regulation (EU) 2026/2102 on product scope (Official Journal, EUR-Lex)
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