EU Deforestation Regulation (EUDR) Compliance

You are supported from start to finish with CSG. We help you with:

• Goods classification
• EUDR due diligence
• Paperwork rules and guidance
• Import customs clearance 
• Automatic sharing of EUDR information with partners and customers
• Post-clearance checks and audit support.

The EU Deforestation Regulation applies to all businesses:

• Importing
• Exporting
• Manufacturing
• Reselling

any commodities which are mentioned as part of the scope of the regulation.

If you are an SME not directly importing or exporting, then you have a smaller list of obligations surrounding the EUDR. For example, you will need to work with the main importer/exporter to obtain references for paperwork.

For the latest guidance, please get in touch with one of CSG’s compliance team.

One of the main concepts of EUDR is precise supply chain mapping. You must be able to show exactly where the commodities in your shipment have originated from, not only by country or region, but by the exact plot of land in coordinates. This land must not have been deforested after 2020. 

In addition to conditions on forest degradation, EUDR requires that suppliers adhere to standards regarding welfare, biodiversity protection, anti-corruption, and other rights set out in the UN Declaration on the Rights of Indigenous People and any local laws guiding them.

Additionally, the EU Deforestation Regulation requires that any deforestation complies with the legal standards for the country of origin. This part of the EUDR cites a report from the Forest Policy Trade and Finance Initiative, which estimated that only around 30% of commercial deforestation was legal between 2013 and 2019.

Although your suppliers must produce and deliver information according to the EU Deforestation Regulation’s standards, you are ultimately responsible for putting your goods on the EU market.

Therefore, you must carry out your due diligence on suppliers, store all information as proof and provide a statement of EUDR compliance to your national authority for each batch of goods.

Your due diligence should include:

• Collecting detailed information which confirms your products are compliant.
• A risk assessment for each product.
• Risk mitigation, including independent surveys and working with suppliers on improvements.

Provided your purchase is EUDR compliant, you must present a statement of due diligence for each shipment. The reference number generated must then be present on all paperwork and passed on to buyers down the chain. This is the same in reverse when exporting goods out of the EU.

If your supplier cannot meet the requirements for EUDR, then you will need to source an alternative that does.

You can expect compliance checks from the national authority for your member state, who may inspect you without warning and require immediate remedial action if you are found to be non-compliant.

If you are exporting purchased or manufactured EUDR products, you will need to set up a similar due diligence system as importers do so that you can confirm the timber used is EUDR compliant.

If you are the producer of the timber, then you will need to be able to provide all of the detailed information that your buyers and their partners require. This includes the coordinates of the timber used, confirmation that the land wasn’t deforested since 2020, and risk management processes in place.

If you are unable to provide this information, then you need to change suppliers or take remedial action in order to export your products.

The EU Deforestation Regulation considers trade within the EU as well. If your organisation is an SME, you will need to collect information on your suppliers, and make sure that you receive the details of the due diligence statement made by them. 

If you are selling to another company, you will need to pass on the statement ID. 

Large trader companies who complete many purchases and sales of EUDR goods will need to implement a due diligence system the same as direct importers and exporters do.

Customs Support Group provides Europe-wise CustomsTech solutions, which can automate and collate data to minimise the risk of noncompliance or error. 

Both the EUDR and the Carbon Border Adjustment Mechanism (CBAM) are part of the EU’s Green Deal, but are standalone measures.

The CBAM requires the purchase of CBAM credits on selected carbon-intensive products, but the EUDR doesn’t require this – only that you stop deforestation in your supply chain. 

As with the EUDR, CBAM requires due diligence with your suppliers and can be made easier with the help of digitalisation. Get in touch to find out more.