Roadmap for EUDR compliance
Book a demoThe EU Regulation on Deforestation-Free Products (EUDR) will enter into obligation on 30 December 2024 for medium and large-sized companies.
Time is ticking to be ready for compliance.
Here is what you need to know now.
What makes this law different?
This legislation sets mandatory due diligence standards to level the playing field. It is additional to the current adherence to existing laws of the producing country. The reversed burden of proof makes this law also unique.
Reversed burden of proof
The burden of proof is reversed, meaning that the burden of proof is for the defendant. It is essential to have accurate data to prove that no deforestation has occurred after the cut-off date before shipments are made.
Commodities covered
Cocoa, Coffee, Palm Oil, Rubber, Soy, Wood, Cattle, and their derivatives or embedded products.
Cut-off date for deforestation
31 December 2020
Penalties
Penalties for non-compliance could include fines of up to 4% of company turnover within the EU, temporary exclusion from public procurement/access to public funding, and confiscation of goods.
Your roadmap to compliance: EUDR risk management steps
Understanding and adhering to the European Union Deforestation Regulation (EUDR) requires a meticulous approach. Here's a breakdown of the three-step process:
Information collection
Article 9 outlines the collection of data (e.g. through farm mapping by a third party or licensing mapping software), documents, and information demonstrating product compliance.
This includes detailed descriptions, quantities, country of production identification, geolocation of production sites, supplier information, and proof of deforestation-free products.
Risk assessment
Article 10 mandates operators to verify and analyse collected information.
This involves assessing various factors, such as country risk levels, proximity to forests, presence of indigenous peoples, prevalence of deforestation, and supply chain complexity.
Risk mitigation
Additionally, Meridia Verify® provides custom advice on risk mitigation tailored to the risks identified in step 2.
Should the risk assessment unveil significant risks, operators must take mitigating actions as per Article 10a.
This may include providing additional information, conducting independent surveys or audits, or supporting supplier compliance through capacity building and investments.
Meridia Verify® EUDR risk profile now live!
Learn moreVerify field and physical flow data & validate EUDR compliance – in real time.
Key questions and answers about EUDR compliance
Cocoa, coffee, palm oil, rubber, soy, wood, cattle, charcoal, printed paper products, and their derivatives or embedded products.
The regulation took effect for medium and large-sized companies on June 29, 2023, with obligatory compliance starting 18 months later on December 30, 2024. Any commodity crossing the EU border post-enforcement is subject to the regulation, covering both imports and exports. The activation moratorium spans 18 months, implying that commodities such as cocoa harvested for the 2024 main crop fall under regulation.
For SMEs, compliance becomes obligatory 24 months after the regulation's initial enforcement, specifically by June 30, 2025.
The cut-off date for deforestation under the EUDR is December 31, 2020
The burden of proof is reversed, meaning that the defendant bears the burden of proof. Truthful and accurate data must prove that no deforestation occurred after the cut-off date before shipments of the relevant products are made.
Item descriptionThe EUDR legislation and the published FAQ estipulate the following key aspects for compliance:
- Data quality - Ensuring the truthfulness and precision of geolocation information is a crucial aspect of the responsibilities that operators and traders must fulfil. Providing incorrect geolocation details would constitute a breach of the obligations under the Regulation.”
Source EUDR FAQ, 02 October 2024
- Deforestation - “Adequately conclusive and verifiable information that the relevant products are deforestation-free.”
Source EUDR Article 9(1)g
- Legality - “Adequately conclusive and verifiable information that the relevant commodities have been produced in accordance with the relevant legislation of the country of production.”
Source EUDR Article 9(1)h
- Traceability - “Operators and traders that are not SMEs are required to ensure that the required information on traceability that they supply to competent authorities in the Member States is correct, regardless of the length or the complexity of their supply chains.”
Source EUDR FAQ, 22 October 2024
To achieve compliance with the EU Deforestation Regulation (EUDR), operators and traders can follow a structured three-step process:
1. Information Gathering and Data Collection: Begin by ensuring that all necessary information is obtained and conducting thorough data collection to support subsequent steps effectively.
2. Verification and Risk Assessment: Utilise Meridia Verify® to assess the quality of field data and conduct a comprehensive risk assessment. This includes evaluating variables such as country risk level, proximity to forests, presence of indigenous peoples, prevalence of deforestation, corruption levels, law enforcement, human rights violations, supply chain complexity, and risk of circumvention.
3. Risk Mitigation: Address any identified medium, high, and critical risks through appropriate risk mitigation measures, as indicated by the findings from the verification and risk assessment phase.
By diligently completing these steps, operators and traders must demonstrate that the products originate from land not deforested after December 31, 2020, ensuring compliance with the EU Deforestation Regulation.
Penalties for non-compliance with the EUDR may include fines up to 4% of company turnover within the European Union (EU), temporary exclusion from public procurement and access to public funding, and confiscation of goods.
To comply with the EUDR, operators must collect accurate and truthful information and data demonstrating product compliance, as outlined in Article 9. This includes:
- Description: Trade name, type, and, if applicable, the common and scientific names of wood species used.
- Quantity: Expressed in net mass, volume, or number of units.
- Country of production identification, including specific parts if relevant.
- Geolocation of production plots, with automatic disqualification for any associated deforestation or forest degradation.
- Details of suppliers and recipients of the products.
- Confirmation of deforestation-free status and compliance with relevant production legislation.
To conduct an EUDR risk assessment, you can utilise Meridia Verify®, Meridia's advanced data verification and compliance EUDR validation software.
Verify enables companies to swiftly and accurately assess and mitigate risks associated with agri-commodity field and physical flow data. Through its intuitive SaaS portal and API, Verify identifies erroneous, fraudulent, and non-compliant data in real time, and provides actionable resolutions for major risk contributors. Developed to meet the requirements of the European Union's Deforestation Regulation (EUDR), Verify ensures compliance with country-specific laws and industry standards. With its foundation in over a decade of field and supply chain expertise, Verify empowers companies to navigate complex regulatory landscapes effectively.
To mitigate risks for EUDR compliance, we provide tailored mitigation advice based on the risks and their respective levels identified during your field data verification with Meridia Verify®. This custom advice is designed to address specific areas of concern, ensuring that your data meets the necessary standards for compliance with EUDR regulations.