EUDR Compliance: Who Submits the Due Diligence Statement?

The European Union Deforestation Regulation (EUDR) is reshaping global supply chains bymandating strict oversight of commodities linked to deforestation. At the heart of this regulationlies the Due Diligence Statement (DDS)—a gateway to proving your commitment to sustainablesourcing while securing access to the EU market. The question is: who submits it, and how canyour business stay ahead in this rapidly evolving regulatory landscape?

EUDR introduces a clear distinction between operators and traders, and understanding this iscrucial for compliance. Operators, the trailblazers of the supply chain, are the first to placeregulated products on the EU market. They are tasked with collecting precise geolocation datafor raw materials, conducting advanced risk assessments to verify compliance, and submittingthe DDS to the EU Single Window System before their products reach European soil.

Traders, on the other hand, navigate a different path. These businesses handle regulated productswithin the EU but aren’t the first to introduce them to the market. While they are exempt fromsubmitting a DDS, traders must ensure that the products they deal with have undergone rigorousdue diligence and maintain detailed records for verification.

Let’s explore this through the lens of Hershey’s, a global leader in chocolate manufacturing. IfHershey’s imports raw cocoa beans or semi-processed products like cocoa butter directly fromregions such as Ghana or Ivory Coast, the company steps into the role of an operator. This meansdeploying advanced tools to track geolocation data, analyzing deforestation risks with precisiontechnology, and filing the DDS to confirm compliance.

However, if Hershey’s sources cocoa or chocolate from an EU-based supplier that has alreadycompleted the due diligence process, the company’s role shifts to that of a trader. In this case,Hershey’s would rely on the supplier’s DDS, maintaining robust documentation to demonstratecompliance without the need for direct submission.

Suppliers exporting raw materials directly to Europe often take on the operator’s role, leveragingsophisticated systems to manage DDS submission. This division of responsibility simplifiescompliance for EU-based companies, allowing them to focus on operations while maintainingadherence to EUDR standards.

This interplay between operators and traders emphasizes the importance of real-time data,precision analytics, and technology-driven solutions to streamline compliance. Missteps inidentifying your role could lead to penalties, restricted market access, or damage to your brand’sreputation.

Enter EarthSyntra, your strategic partner in mastering EUDR compliance. With advancedgeospatial tools, AI-powered risk assessments, and seamless DDS submission processes,EarthSyntra transforms complex regulatory challenges into manageable solutions. Whetheryou’re an operator or a trader, our technology integrates into your workflow, ensuring you meetevery requirement with confidence.

The clock is ticking on EUDR deadlines. Take control of your compliance journey now to secureyour access to EU markets and strengthen your role as a leader in sustainable trade. Together,let’s redefine what’s possible for businesses navigating the future of global sustainability