EU Releases Updated EUDR FAQs

On December 11th, the EU published updated FAQs on the implementation of the EU Deforestation Regulation. The Commission answered several frequently asked questions concerning definitions, traceability, due diligence processes, timeline of implementation and more. Here’s what you need to know:

Due Diligence Reporting:

The Commission confirmed their intention of developing a database based on the EU SWE-C framework that would produce Due Diligence Statement reference numbers and allow Customs authorities to track them in real time. The Commission noted that:

• Cancellation or amendment of submitted Due Diligence Statements  will be possible within 72 hours after the due diligence reference number has been provided by the system.

• Operators exporting in-scope products must collect the Due Diligence Statement reference numbers of all relevant commodities and assure their adherence to the regulation. Unless the Due Diligence Statement has already been used in a custom declaration, mentioned in another Due Diligence Statement, or if the product has already been placed on the market or exported.

• Reference numbers and relevant documentation due diligence processes must be retained for 5 years

The Commission also confirmed that operators further down the supply chain (those that transform in-scope commodities) who are submitting a Due Diligence Statement may reference a due diligence process that was carried out earlier in the supply chain, instead of conducting their own assessment. 

Finally, the Commission stated that operators in scope may publish their EUDR public disclosure report on their due diligence systems in accordance with the Corporate Sustainability Reporting Directive (CSRD). That means that under CSRD, companies will also be expected to publish an annual report on their website that outlines the Due Diligence  systems they have in place to prove that they are compliant with the EUDR. 

Farm Level Data Collection and Legality

The Commission confirmed that farmers must still collect the geolocation of their plots of land regardless of the absence of a land registry, IDs or titles over their land. Co-ops / collectives can represent their farmers in the DD process and may not need to provide the individual farmer names. Instead, they may designate the next operator or trader in the supply chain to act as its ‘authorized representative’. 

The Commission reaffirmed that operators are responsible for verifying that legal documentation shows adherence to “relevant legislation” (National laws and secondary law), jurisprudence, as well as international law. The documents need to be verifiable and reliable’ and must take into account the risk of corruption in the country of production.

EU Observatory and Deforestation Maps

On December 8th, 2023, the EU launched the EU observatory on deforestation and forest degradation. The Observatory is a publicly available overview of the world’s forest cover and associated drivers of tree cover loss. 

Use of the EU Observatory data sets alone does not guarantee compliance with the EUDR. The EU Commission has stated that the maps may be used for risk assessment, but that companies are still obliged to carry out more robust due diligence - including mapping their end to end supply chains and conducting deforestation analysis using additional datasets.

How to Prepare

EUDR Due Diligence Statements: Sourcemap’s Deforestation Solution collects all the relevant data points in the proper format to make submitting Due Diligence Statements as easy as possible. This includes geolocation data, legality documents, DDS reference numbers, and prior upstream due diligence processes.

Legality: Sourcemap has developed its own Legality SAQ that will help gather the legal documentation demonstrating farm-level adherence to relevant national laws, secondary laws, jurisprudence, as well as international law.

CSRD Reporting: Due diligence conducted via Sourcemap’s deforestation solution can be reported as part of your EUDR public disclosure requirement within the CSRD.

In 2024, the EU Commission is expected to publish additional guidelines covering specific aspects of the EUDR, including the definition of “agricultural use”, which will address issues related to agroforestry and agricultural land, certification, legality, and other aspects that are of interest to EUDR stakeholders. These guidelines are planned to be published before the EUDR goes into enforcement in December. Note that the Commission does not plan to release commodity-specific guidance.

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