How does the EUDR affect businesses importing commodities?
Importers, referred to under the regulation as operators or traders, must conduct thorough due diligence across their supply chains. This involves collecting required data, verifying compliance with legality and deforestation-free status, and obtaining plot-level geolocation data for production sites. They must then prepare and submit a valid Due Diligence Statement (DDS) through the official EU Information System to demonstrate compliance.
Do I need to conduct risk assessments for EUDR compliance?
Yes, businesses must assess the risk of deforestation and forest degradation within their supply chains to ensure products are sustainably sourced.
How do I manage risk assessments across multiple product batches?
Risk assessments must be performed for each batch, with robust traceability systems to manage and document assessments.
What role does geospatial data play in EUDR compliance?
Under the EUDR, geolocation data (plot-level coordinates) is a mandatory element of due diligence. Companies must provide precise geospatial information for the production plots where commodities originate to demonstrate that products are deforestation-free and legally produced.
While certifications (e.g., FSC, RSPO) can support supply-chain transparency, they cannot replace geolocation data or the mandatory Due Diligence Statement (DDS). Geospatial data is essential for authorities to verify sourcing and ensure compliance.