EU officials said the proposed changes -- including a six-month grace period for large companies -- seek to solve some underlying technical issues and lower the administrative burden for businesses covered by the rules.

They mark the latest reversal by Brussels on a landmark law banning imports of products driving deforestation that was cheered by environmentalists but assailed by key trading partners.

The law was initially meant to come into force at the end of 2024 but that deadline was pushed back by a year, and then last month the EU's executive cited IT issues to propose postponing its rollout by a further year to the end of 2026.

It partially backtracked on Tuesday, proposing to keep the end of 2025 deadline for large and medium companies, but withholding sanctions for non-compliance for six months.

Small firms would have until the end of 2026 to comply, the commission said.

The amendments, which need approval by member states and the European Parliament, also envisage a lighter compliance regime.

The law, known as EUDR, bans goods produced using land deforested after December 2020.

At-risk items include anything from coffee to cocoa, soy, timber, palm oil, cattle, printing paper and rubber .

Firms importing such merchandise to the 27-nation European Union will need to provide a statement alongside geolocation and satellite data to show the goods did not originate from deforested zones.

Under the original plan, such papers had to be submitted also by companies who then purchase, process and sell the items -- for example, sweet makers who buy cocoa to make chocolates.

- 'Good news' -

But the commission said last month that the extra layer of checks risked overloading the IT system designed to support implementation of the rules.

So on Tuesday it axed the requirement for all but first importers, something EU officials said would exempt thousands of companies from filing paperwork.

In another cut, small-hold producers in Europe and countries designated as being at low risk from deforestation will have to provide only a one-off declaration when registering on the system, the commission said.

Fern, an environmental group, welcomed the changes, after the earlier suggestion of a blanket one-year delay had brought renewed scrutiny to the EU's commitment to a greener future.

"It's good news that the European Commission has heeded the calls not to delay the EUDR for everyone -- and therefore reward the laggards who aren't ready to comply," said the group's forest campaigner Nicole Polsterer.

Adopted in 2023, the deforestation law was hailed by green groups as a major breakthrough in the fight to protect nature and combat climate change.

It has, however, faced opposition from trading partners including Brazil and the United States, and some EU capitals, who allege businesses will suffer from red tape and increased costs.

But the commission's flip-flopping over the rules has also rankled firms that have already invested large sums to comply.

Italian chocolate-maker Ferrero and Swiss food giant Nestle were among the businesses that this month warned Brussels against using its IT troubles as an excuse to "reopen, delay, or change" the law.

"Companies need to know what to prepare for, and by when," they wrote in a letter.

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