EUDR Reporting and Due Diligence: What You Need to Know

What is EUDR Due Diligence?

Under the European Deforestation Regulation (EUDR), business must submit due diligence statements to authorities before entering the market. This ensures that commodities and derived products meet compliance requirements before placement on the EU market. Retroactive due diligence does not qualify.

Key Elements of EUDR Due Diligence

1. Risk Assessment and Mitigation

First, operators need to perform thorough risk assessments and take proactive risk mitigation steps. These measures help ensure compliance and minimize potential violations. Consequently, businesses can avoid penalties and improve supply chain integrity.

2. EUDR Reporting Requirements

Additionally, the due diligence process includes completing EUDR reporting obligations. Operators should document how they carried out compliance verification and what mitigation measures they implemented. Therefore, a well-documented process ensures accountability and transparency.

3. Documentation and Record-Keeping

Furthermore, operators must maintain all relevant documentation, including evidence of compliance, for at least five years from the market placement date. This requirement underscores the importance of consistent record-keeping practices.

Responsibilities of Non-SME Traders

Non-SME traders are subject to the same due diligence obligations as operators. They must ensure all compliance measures are documented and reported accurately.

Why EUDR Reporting Matters

EUDR reporting ensures transparency and accountability in supply chains. By adhering to risk evaluation requirements, businesses contribute to global sustainability goals and reduce the risk of deforestation. Furthermore, this strengthens trust with stakeholders and regulatory bodies.