FAQ.- What specific requirements does the due diligence system have?

To exercise due diligence, operators must establish and keep up to date a framework of documenting, investigating, verifying, and reporting procedures and measures (‘due diligence system’).

The aim of due diligence under the EUDR is to achieve a required outcome by evidencing consistent processes in businesses operations. It is important that an operator shall review its due diligence system at least once a year to ensure that those responsible are following the procedures that apply to them, the processes in place are effective and the required outcome is being achieved. Operators should also update the due diligence system if during the evaluation or at any other point they become aware of new developments which could influence the aims of the due diligence system, such as the effectiveness and comprehensiveness of steps or procedures within the system. Any updates to the due diligence system must be recorded and records kept for 5 years.

The evaluation can be carried out by someone within the organization of the operator (ideally

independent from those carrying out the procedures) or by an external body. It should identify any weaknesses and failures and the operator’s management should set deadlines for addressing them.

In the case of a relevant product due diligence system, the evaluation should for example check if there are documented procedures:

• For collecting and recording the information, data, and documents necessary to demonstrate compliance.
• For assessing the risk of the relevant product or any component of the relevant product containing relevant products or relevant commodities that are not deforestation-free or have not been produced in accordance with the relevant legislation of the country of production.
• Describing proposed actions to take according to the level of risk.

The evaluation should also check if those who are responsible for carrying out each step in the

procedures both understand and are implementing them, and that there are adequate controls to ensure that the procedures are effective in practice. Good practice suggests that to evidence the evaluation, the steps followed in, and outcomes of, the evaluation are documented.