EU Deforestation Regulation Compliance is a specialized advisory and operational support service designed to help companies meet the requirements of the European Union’s new rules aimed at eliminating deforestation-linked products from the EU market. Under the EU Deforestation Regulation (EUDR), which came into effect in 2023 and will be fully applicable from late 2024, businesses placing certain commodities—such as soy, beef, palm oil, coffee, cocoa, rubber, and their derived products—on the EU market must demonstrate that these goods are both deforestation-free and produced in compliance with the relevant laws of their country of origin.

Our service provides end-to-end guidance and practical tools to ensure businesses can confidently achieve compliance while maintaining smooth supply chain operations. This includes:

• Regulatory Readiness Assessments – Evaluating current sourcing, traceability, and due diligence processes to identify gaps with EUDR requirements.

• Supply Chain Mapping & Traceability Solutions – Gathering and verifying geolocation data of production plots, and integrating digital traceability platforms to monitor risk and document compliance.

• Risk Assessment & Mitigation Planning – Applying the EU’s risk-based due diligence framework to identify high-risk suppliers, regions, or commodities, and recommending targeted mitigation measures.

• Policy & Procedure Development – Drafting or updating corporate due diligence policies, supplier codes of conduct, and record-keeping procedures to meet EUDR documentation standards.

• Training & Capacity Building – Delivering workshops and training sessions for procurement teams, compliance officers, and suppliers to ensure everyone in the chain understands the new legal obligations.

• Ongoing Compliance Monitoring – Implementing systems for continuous monitoring of deforestation risks, keeping records for the required five-year retention period, and preparing for potential audits by EU authorities.

By engaging with EU Deforestation Regulation Compliance, companies not only avoid costly penalties and trade disruptions but also enhance their ESG credentials, strengthen supplier relationships, and contribute to global sustainability goals. This service blends deep regulatory expertise, robust technology solutions, and practical industry knowledge—ensuring that compliance is not a last-minute scramble but an integrated part of responsible business practice.

Der EU Deforestation Regulation (EUDR) is designed to prevent any products connected to deforestation or forest degradation from being placed on, or exported from, the European Union market. For businesses involved in the trade of cocoa, coffee, soy, palm oil, cattle, wood, and rubber, one of the most crucial compliance obligations is carrying out a deforestation analysis.

This process begins with the collection of polygon and geolocation coordinates for every plot of land where the regulated commodities have been cultivated. Based on this data, operators are required to confirm that no production took place on land that was subject to deforestation after the cutoff date of 31 December 2020.

Before goods can be introduced into the EU market, operators must submit and obtain approval for a Due Diligence Statement. This submission, which is processed through the EU Information System, will only be accepted if the following conditions are met:

• All mandatory fields are completed, including details such as the HS code, net mass of goods, and polygon data.

• Polygon data is provided in the precise format stipulated by the EU’s guidelines and API specifications.

• The deforestation analysis confirms that there has been no deforestation or forest degradation on or after 31 December 2020.

If any polygons fail to meet compliance requirements, the Due Diligence Statement will be rejected, thereby preventing the shipment from entering the EU market. Consequently, deforestation analysis must be an ongoing activity, not only for businesses sourcing from multiple farms but also for those sourcing consistently from the same locations, and it is especially critical for supply chains that are frequently changing.

Due Diligence Statement Requirements

Every Due Diligence Statement must include the following elements:

• Operator information – the operator’s name, address, ISO country code, and a specification of whether the activity is an import, export, or domestic placement.

• Product information – the HS code, a detailed description of the product including trade and scientific names (where applicable), and the quantity, expressed in net mass, volume, or number of units.

• Geolocation information – the geographic coordinates for all plots of land where the commodities were produced. If the product includes commodities from multiple plots, the coordinates for each must be listed.

The statement must be signed, certifying compliance with Article 3(a) (deforestation-free status) and Article 3(b) (production in accordance with the laws of the country of origin).

Legality Risk Assessment

Although deforestation analysis is a mandatory prerequisite for each and every Due Diligence Statement, legality verification is generally assessed during audits rather than at the point of market entry. The EU recommends that operators take a broad approach to legality, using tools such as Transparency International’s Corruption Perceptions Index (CPI) to gauge potential risks and determine where additional evidence should be gathered.

Areas of legal compliance to be assessed may include:

• Land use rights

• Environmental protection requirements and forest management rules

• Rights of third parties and human rights obligations, including Free, Prior, and Informed Consent (FPIC)

• Labor rights

• Tax, anti-corruption, trade, and customs regulations

Acceptable evidence may include official government permits, judicial rulings, environmental audit reports, impact assessments, management plans, and verification from independent third parties. For suppliers deemed high-risk, on-site audits are strongly advised.

Deforestation vs. Legality – Understanding the Distinction

• Deforestation analysis – Must be carried out for all shipments before goods are placed on the market.

• Legality assessment – Conducted at least annually, with evidence presented during audits or through reporting under other EU legislation such as CSRD or CSDDD.

Summary

To ensure compliance with the EUDR:

1. Establish robust processes for polygon data collection and deforestation analysis without delay.

2. Integrate legality checks into your overall due diligence system.

3. Conduct annual reviews of compliance processes and retain all relevant records for at least five years.

By prioritizing accurate deforestation risk assessments and maintaining well-documented legality records, operators can maintain uninterrupted access to the EU market while supporting broader sustainability objectives.