Compliance Processes and Evidence of Compliance (EUDR)

The EUDR imposes strict evidence obligations on companies dealing with raw materials.

The EU Deforestation Regulation (EUDR) imposes strict compliance processes and comprehensive evidence obligations for companies importing or exporting products with certain raw materials into the European market. These regulations aim to secure the origin of these goods in relation to deforestation and environmental compatibility. The EUDR affects not only large companies but also small and medium-sized enterprises, increasing the complexity of the requirements.

Companies are required to demonstrate that their products originate from areas that have not been deforested after December 31, 2020. Furthermore, traceability to the source must be ensured, and compliant production according to local laws must be proven. Evidence is usually provided through a due diligence statement, which must be submitted on the EU reporting platform prior to marketing or export.

An effective compliance process involves several steps. First, companies must collect detailed data on each shipment, including product description, country of production, and identity of suppliers. A risk assessment follows, taking into account potential risks to the environment and affected communities in the countries of origin. For identified risks, targeted risk mitigation measures must be implemented, which also need to be documented.

Central to the evidence requirements is ensuring that each batch of a product can be uniquely associated with a due diligence statement. The responsibility for the accuracy of the evidence rests with the company, even if the information comes from suppliers. Compliance with the EUDR is monitored by the member states, and violations can lead to significant sanctions. Thus, clear internal processes, employee training, and the integration of digital solutions are critical for successfully addressing the requirements of the EUDR.