EUDR Due Diligence Explanation: A Comprehensive Manual for Exporting, Importing, and Logistics Personnel within the EU
In the ever-changing regulatory landscape, businesses operating within the European Union (EU) must adhere to the EU Deforestation Regulation (EUDR). This regulation requires companies to prove that their products are deforestation-free and legally produced, a process known as due diligence.
Operators, who first place a product on the EU market or export it from the EU, carry the full legal responsibility for performing due diligence and submitting the Due Diligence Statement (DDS) through the EU's TRACES system. Traders, companies who buy and sell within the EU without significantly modifying the product, also have obligations to demonstrate compliance.
Digital platforms can significantly simplify this process. They offer features such as GPS Mapping of Farms and Plots, Supplier Linking to Upstream DDS Data, and Auto-Generated DDS with Full Audit Trails. These tools help map out the supply chain, determine who needs to submit what, and manage the DDS in a seamless manner.
The DDS includes geolocation data for the farm or plot, proof of no deforestation after December 31, 2020, legal production documents, risk assessment and mitigation steps (if applicable), and must be tied to a specific shipment. Technology platforms can automate this filing, saving hours and reducing costs.
Notifications when your obligations change based on processing or resale are also available. Role-based dashboards for Operators and Traders provide a clear overview of their responsibilities and the status of their DDS. Audit trails that show who did what, and when, ensure transparency and traceability.
The goal isn't just to avoid penalties—it's to keep trade flowing, protect buyer relationships, and future-proof your reputation in a changing regulatory world. Failure to deliver due diligence could cost businesses their market access in the EU. Reputational damage, especially for brands and retailers, can occur if a product fails a traceability audit.
Digital platforms, like the osapiens-HUB in collaboration with Adesso, esentri & osapiens solutions, the Segura supply chain mapping software, and AI-powered ESG tools such as LutinX and Simbiose.ai, facilitate the due diligence process under the EUDR. They enable automated risk assessments, detailed supplier audits, traceability with geodata, integrated ESG management, and supply chain transparency to meet EU verification requirements effectively.
In conclusion, due diligence under EUDR is mandatory, data-driven, and legally enforceable. The EU wants proof, not promises. With the right systems in place, like a tech-enabled platform for traceability and DDS management, businesses can move from risk to readiness—without slowing down their operations. A simple, digital way to validate data, generate DDS, and stay alert to risks before they hit is what's missing for most.
