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deforestation compliance

EU DR made simple

Full EU DR compliance with our end-to-end software solution

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Raw Materials

Who falls under the scope of the EU Deforestation Regulation?

Companies involved in importing, selling in the EU, or exporting one or more of the targeted raw materials or their specified derivatives.

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FAQ Questions

Frequently Asked Questions

01

The EU Deforestation Regulation (EUDR) is a landmark law designed to prevent products linked to deforestation or forest degradation from being sold in or exported from the EU. Its goal is to reduce the EU’s contribution to global deforestation, curb biodiversity loss, and lower greenhouse gas emissions by ensuring that key commodities are produced sustainably and legally.

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The EUDR currently applies to seven major commodities: soy, cattle, palm oil, wood, cocoa, coffee, and rubber, along with many of their derived products such as leather, chocolate, tires, and furniture. This list may expand in the future following EU reviews.

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Any company placing the covered commodities or products on the EU market—or exporting them from the EU—is subject to the regulation. This includes producers, importers, exporters, and traders, regardless of whether they are based inside or outside the EU.

04

To comply with the EUDR, companies must ensure that their products:

  • Are deforestation-free (i.e., not produced on land subject to deforestation after December 31, 2020)

  • Have been produced in accordance with the laws of the country of origin

  • Are covered by a due diligence statement submitted before entering the EU market or being exported

Operators must implement a robust due diligence system, including risk assessments, risk mitigation where necessary, and annual reporting.

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Companies must:

  • Collect data on the product’s origin, including geo-localisation coordinates (latitude and longitude) of the land used and the time of production

  • Assess the risk of deforestation or legal non-compliance in their supply chain

  • Take steps to mitigate any identified risks

  • Submit a due diligence statement confirming compliance before the product is placed on the market or exported

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National authorities can impose severe penalties, including:

  • Fines of up to 4% of annual EU turnover

  • Confiscation of goods or related profits

  • Exclusion from public procurement and funding

  • Temporary bans on placing, supplying, or exporting products

  • Loss of eligibility for simplified due diligence procedures

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