The EU Deforestation Regulation (EUDR) aims to ensure that products consumed in the EU do not contribute to global deforestation or forest degradation. This checklist guides operators and traders through the mandatory due diligence process.
Phase 1: Scope and Applicability
- Check Product Scope: Determine if your products contain, have been fed with, or have been made using the relevant commodities: cattle, cocoa, coffee, oil palm, rubber, soya, and wood. Check the specific CN codes in Annex I of the regulation.
- Identify Your Role: Determine if you are an "Operator" (first placing on the market or exporting) or a "Trader" (buying/selling already on the market). SMEs have different timelines and simplified obligations.
Phase 2: Information Collection (Due Diligence Step 1)
Operators must collect detailed information demonstrating that the products are deforestation-free and legally produced.
- Gather Supply Chain Data: Collect the trade name, type of product, quantity, and country of production.
- Obtain Geolocation Coordinates: Collect the exact geolocation coordinates (latitude and longitude) of all plots of land where the relevant commodities were produced. For plots larger than 4 hectares, polygons are required.
- Verify Deforestation-Free Status: Ensure the commodities were produced on land that was not subject to deforestation or forest degradation after the cutoff date of 31 December 2020.
- Verify Legality: Ensure production complies with the relevant legislation of the country of production (e.g., land use rights, environmental protection, labor rights, human rights).
Phase 3: Risk Assessment (Due Diligence Step 2)
- Assess the Risk: Use the collected information to assess whether there is a risk that the products are non-compliant.
- Check Country Benchmarking: Consider the risk level assigned to the country of production by the European Commission (high, standard, or low risk). Simplified due diligence applies to low-risk countries.
- Document the Assessment: Keep a verifiable record of the risk assessment process and conclusions.
Phase 4: Risk Mitigation (Due Diligence Step 3)
- Mitigate Identified Risks: If the risk assessment reveals a non-negligible risk, take adequate and proportionate mitigation measures (e.g., requesting additional information, independent audits, capacity building).
- No Placing on Market if Risk Remains: Do not place the product on the market if the risk cannot be mitigated to a negligible level.
Phase 5: Reporting and Record Keeping
- Submit Due Diligence Statement: Before placing the product on the market, submit a Due Diligence Statement to the Information System, confirming that no or only negligible risk was found.
- Provide Reference Numbers: Pass the reference number of the Due Diligence Statement down the supply chain to subsequent operators or traders.
- Keep Records: Maintain all due diligence records and statements for at least 5 years.