EUDR Compliance: What You Actually Need to Do

The EU Deforestation Regulation (EUDR) introduces strict requirements for businesses placing covered commodities on the EU market. While the regulation is comprehensive, your actual obligations depend on your role in the supply chain.

This guide breaks down exactly what you need to collect, document, and submit to maintain EUDR compliance—whether you're an operator importing goods or a trader distributing them.

Key Principle: EUDR compliance is built on three pillars: information collection, risk assessment, and mitigation. Every requirement flows from these core obligations.

Requirements for Operators vs Traders

The EUDR distinguishes between two types of economic actors, each with different compliance obligations:

🏭 Operators

Businesses that place products on the EU market for the first time or export them from the EU.

Full Obligations:

  • ✓ Submit Due Diligence Statement (DDS) for every shipment
  • ✓ Collect comprehensive supply chain information
  • ✓ Conduct detailed risk assessment
  • ✓ Implement mitigation measures if risks identified
  • ✓ Maintain records for 5 years
  • ✓ Provide GPS coordinates of production plots

🏬 Traders

Businesses that make products available on the market after they've already entered.

Simplified Obligations:

  • ✓ Collect DDS reference number from operator
  • ✓ Record supplier and customer information
  • ✓ Maintain traceability chain
  • ✓ Keep records for 5 years
  • ✓ Verify operator has submitted valid DDS
  • ✗ No need to conduct own risk assessment

Important for SMEs: Micro and small enterprises benefit from simplified due diligence procedures for products from standard-risk countries, but the core requirements remain the same.

The Due Diligence Statement (DDS) Explained

The Due Diligence Statement is the cornerstone of EUDR compliance. Every operator must submit a DDS to the EU Information System before placing products on the market.

What the DDS Contains

Your DDS is a formal declaration that includes:

  • Operator details – Your company information and contact details
  • Product description – Commodity type, quantity, HS code
  • Country of production – Where the commodity was grown or harvested
  • Geolocation data – GPS coordinates of all production plots
  • Supplier information – Complete supply chain traceability
  • Compliance declaration – Confirmation that products are deforestation-free and legally produced
  • Risk assessment conclusion – Summary of your due diligence findings

When to Submit

The DDS must be submitted before products are placed on the EU market or exported. This means:

  • Before customs clearance for imports
  • Before first sale for EU-produced goods
  • Before export declaration for products leaving the EU

⚠️ Common Mistake

Many SMEs assume they can submit one DDS per year or per supplier. Each shipment requires its own DDS with current, verified information. Planning for this administrative burden is crucial.

DDS Reference Numbers for Traders

When you purchase products from an operator, request the DDS reference number immediately. This unique identifier proves the operator has fulfilled their due diligence obligations. Without it, you cannot demonstrate compliance.

Information You Must Collect

EUDR compliance begins with comprehensive data collection. Here's exactly what information operators must gather from their supply chain:

1. Product Information

Required:

  • Product description and commodity type (coffee, cocoa, timber, etc.)
  • Quantity (weight, volume, or pieces)
  • Harmonized System (HS) code
  • Date of production or harvest
  • Derivative products and processing steps

2. Country and Region of Production

Required:

  • Country where commodity was produced
  • Subnational region or administrative area
  • Plot identification (cadastral reference if available)
  • All countries if production spans multiple locations

3. Supplier Details

Required for each supplier:

  • Legal name and registered address
  • Tax identification or business registration number
  • Contact person and contact details
  • Copy of contract or purchase order
  • Bank account information (for verification)

4. Proof of Legal Production

Required documentation:

  • Land tenure documents or concession agreements
  • Harvest permits or forestry licenses
  • Certificates of origin
  • Third-party certifications (FSC, PEFC, Rainforest Alliance, etc.)
  • Import/export permits
  • Tax receipts proving legal sale

The European Commission implementation guidelines provide templates and examples for each document type.

GPS Coordinates & Geolocation Requirements

One of the most challenging EUDR requirements is providing precise geolocation data for all production plots. This allows authorities to verify products weren't produced on recently deforested land.

What GPS Data You Need

You must provide coordinates that identify all plots of land where the commodity was produced. The format depends on plot size:

Plot Size Rules

≤ 4 hectares
Single coordinate point (latitude/longitude) anywhere within the plot is acceptable.
> 4 hectares
Polygon coordinates required – multiple points outlining the entire plot boundary.

GPS Coordinate Format

Coordinates must be provided in decimal degrees (not degrees/minutes/seconds) using the WGS84 coordinate reference system. Example:

Latitude: -15.7801° (not -15°46'48.4")
Longitude: -47.9292° (not -47°55'45.1")

How to Obtain GPS Data

Your suppliers must provide this data. Methods include:

  • Smartphone GPS – Most modern phones can capture coordinates (use apps like GPS Test or Coordinates)
  • Handheld GPS devices – Garmin, TomTom, or agriculture-specific units
  • Satellite imagery analysis – Use tools like Google Earth Pro (free) to mark plot boundaries
  • Government cadastral data – Some countries maintain digital land registries with coordinates
  • Certification bodies – FSC and other certifiers often have GPS data on file

💡 Practical Tip

Start GPS data collection now, even if your deadline is months away. Coordinating with suppliers in remote regions takes time, and poor internet connectivity can cause delays.

Special Cases

  • Multiple plots: If your commodity comes from multiple farms, you need GPS data for each plot.
  • Mixed batches: If a shipment contains products from different sources, document each source's geolocation separately.
  • Unknown origin: If you cannot obtain GPS data, you cannot place the product on the EU market under EUDR.

Risk Assessment Procedures

After collecting information, operators must conduct a risk assessment to determine if there's a risk the products contributed to deforestation or illegal production.

Risk Criteria (Article 10)

Your assessment must consider these mandatory factors:

1. Country and Region of Production

The EU will publish country risk classifications (low, standard, high) based on deforestation rates and governance quality. Higher-risk countries require enhanced due diligence.

2. Complexity of Supply Chain

More intermediaries increase risk. Direct sourcing from known producers is lower risk than purchasing through multiple traders.

3. Type of Commodity

Some commodities (palm oil, cattle, soy) are associated with higher deforestation risk than others (cocoa, coffee). Timber species may be CITES-listed.

4. Concerns about Legality

Missing permits, incomplete documentation, or known legal issues in the region elevate risk. Check for corruption indices and rule of law indicators.

5. Indigenous Peoples' Rights

Presence of indigenous communities with land claims or lack of Free, Prior, and Informed Consent (FPIC) documentation indicates higher risk.

6. Previous Non-Compliance

History of violations by the supplier, region, or commodity type suggests elevated risk.

Risk Mitigation Measures

If your assessment identifies risks, you must take mitigation actions before submitting the DDS:

  • Request additional information or documentation from suppliers
  • Conduct or commission independent audits
  • Seek third-party verification (e.g., FSC, SAN/Rainforest Alliance)
  • Use satellite imagery to verify no recent deforestation
  • Interview local stakeholders or NGOs
  • Implement enhanced monitoring protocols

If risks cannot be adequately mitigated, you cannot place the products on the EU market. This is a hard requirement—there's no "acceptable risk" threshold.

Simplified Due Diligence for SMEs

Micro and small enterprises sourcing from low-risk countries may use simplified procedures, such as relying more heavily on third-party certifications and less on custom audits. However, the basic information collection requirements remain unchanged.

Record-Keeping Requirements

Both operators and traders must maintain comprehensive records for at least 5 years from the date of placing products on the market or making them available.

What to Keep

Operators Must Retain:

  • ✓ All DDS submissions (with reference numbers)
  • ✓ Complete supply chain documentation
  • ✓ GPS coordinates and geolocation data
  • ✓ Risk assessment reports
  • ✓ Mitigation action records
  • ✓ Supplier contracts and communications
  • ✓ Certificates and permits
  • ✓ Audit reports (if conducted)

Traders Must Retain:

  • ✓ DDS reference numbers from operators
  • ✓ Supplier contact information
  • ✓ Customer records (for downstream traceability)
  • ✓ Product descriptions and quantities
  • ✓ Purchase and sales documentation
  • ✓ Proof of DDS verification

How to Organize Records

Authorities can request records at any time during inspections. Best practices:

  • Digital storage: Use cloud-based systems with backup (local paper files are risky)
  • Indexing: Organize by shipment date, supplier, or DDS reference number
  • Access controls: Limit who can edit or delete records (audit trail required)
  • Regular reviews: Quarterly checks to ensure nothing is missing
  • Retention alerts: Set calendar reminders before the 5-year expiration

🚨 Critical Warning

Failure to produce records during an inspection can result in penalties equivalent to non-compliance with the regulation itself. Don't rely on memory or informal systems.

Your Complete EUDR Compliance Checklist

Use this actionable checklist to ensure you've covered all EUDR requirements. Download a printable PDF version below.

📋 Operator Compliance Checklist

1 Information Collection

2 Risk Assessment

3 Risk Mitigation (if needed)

4 Due Diligence Statement

5 Record-Keeping

📥 Download Full Checklist

Get the complete printable EUDR compliance checklist plus GPS collection templates, risk assessment worksheets, and supplier communication templates.

🏬 Trader Simplified Checklist

How EUDR Simple Automates This Process

Managing EUDR compliance manually is time-consuming and error-prone. EUDR Simple is purpose-built for SMEs to streamline every step:

📍

GPS Collection Tools

Guide suppliers through GPS capture with mobile-friendly forms and map validation.

🔍

Automated Risk Assessment

Instant risk scoring based on country benchmarks, commodity type, and supply chain analysis.

📄

One-Click DDS Generation

Generate compliant Due Diligence Statements with all required fields pre-filled.

🗂️

5-Year Record Storage

Secure cloud storage with automatic retention management and audit-ready exports.

🔗

Supplier Collaboration

Invite suppliers to submit their data directly, reducing back-and-forth emails.

📊

Compliance Dashboard

Track progress, identify missing data, and get deadline reminders all in one place.

Ready to Simplify Your EUDR Compliance?

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Conclusion

EUDR compliance is complex, but it's achievable for SMEs who break it down into manageable steps. Focus on these priorities:

  1. Start data collection now – GPS coordinates take the longest to obtain
  2. Organize systematically – Use digital tools to avoid missing information
  3. Engage suppliers early – They need to understand their role in your compliance
  4. Document everything – Records you skip today become penalties tomorrow
  5. Automate where possible – Manual processes don't scale as your business grows

Remember: EUDR isn't just a regulatory burden—it's an opportunity to build a more transparent, sustainable supply chain that protects your market access and reputation.

Next steps: Learn about EUDR basics and covered commodities, or explore our commodity-specific compliance guides for tailored advice.

Official resources and references

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