What Is the European Union Deforestation Regulation (EUDR)?
The EUDR applies to a broad range of entities involved in the trade of the specified commodities and their derivatives. Operators are defined as any natural or legal person who, in the course of a commercial activity, places relevant products on the EU market or exports them. Traders are any person in the supply chain, other than the operator, who makes relevant products available on the EU market in the course of a commercial activity. The regulation applies regardless of company size or revenue, though the scope of due diligence obligations is reduced in certain respects for micro, small, and medium-sized enterprises. Under the EUDR, companies are required to implement a formal due diligence system comprising three core elements: data collection, risk assessment, and risk mitigation. Data collection requires gathering comprehensive information on the commodity, including precise geolocation data of the plots of land where it was produced. For plots larger than four hectares, polygon data defining the land perimeter is required; smaller plots may be identified with a single coordinate point. Risk assessment involves evaluating whether there is any risk that the product does not comply with the deforestation-free requirement and relevant local legislation. If any level of risk is identified, companies must implement risk mitigation measures before the product enters the EU market. Once due diligence is complete, companies must submit a due diligence statement through the EU's official Information System before placing products on the market or exporting them. They are also required to publish an annual report detailing their due diligence system and its implementation. Non-compliance carries severe financial consequences, with potential fines reaching up to 4% of a company's annual turnover within the EU, in addition to possible product seizures and exclusion from the EU market.
The EUDR applies to both operators and traders across the supply chain, each with defined due diligence responsibilities.
The EUDR applies to a broad range of entities involved in the trade of the specified commodities and their derivatives. Operators are defined as any natural or legal person who, in the course of a commercial activity, places relevant products on the EU market or exports them. Traders are any person in the supply chain, other than the operator, who makes relevant products available on the EU market in the course of a commercial activity. The regulation applies regardless of company size or revenue, though the scope of due diligence obligations is reduced in certain respects for micro, small, and medium-sized enterprises. Under the EUDR, companies are required to implement a formal due diligence system comprising three core elements: data collection, risk assessment, and risk mitigation. Data collection requires gathering comprehensive information on the commodity, including precise geolocation data of the plots of land where it was produced. For plots larger than four hectares, polygon data defining the land perimeter is required; smaller plots may be identified with a single coordinate point. Risk assessment involves evaluating whether there is any risk that the product does not comply with the deforestation-free requirement and relevant local legislation. If any level of risk is identified, companies must implement risk mitigation measures before the product enters the EU market. Once due diligence is complete, companies must submit a due diligence statement through the EU's official Information System before placing products on the market or exporting them. They are also required to publish an annual report detailing their due diligence system and its implementation. Non-compliance carries severe financial consequences, with potential fines reaching up to 4% of a company's annual turnover within the EU, in addition to possible product seizures and exclusion from the EU market.
The EUDR establishes a tiered risk classification system for countries, determining the intensity of due diligence checks required.
The EUDR establishes a three-tiered country risk benchmarking system to assess the deforestation and forest degradation risk associated with producing covered commodities in a given country or region. Risk is assessed based on several factors, including the rate of deforestation and forest degradation in a country, the rate of agricultural land expansion tied to relevant commodities, and production trends over time. Other considerations include progress on nationally determined contributions (NDCs) and the implementation of bilateral agreements between the country in question and EU member states. In May 2025, the European Commission published the Regulation's formal benchmarking classification system, assigning countries to high, standard, or low risk tiers. Companies sourcing from high-risk countries face the most rigorous due diligence requirements, while those sourcing from low-risk countries may benefit from simplified procedures. The percentage of consignments inspected at the EU border varies according to this risk classification. EU member state competent authorities are responsible for carrying out regular checks on operators and traders within their territories to verify compliance, using national risk criteria that account for commodity type, supply chain complexity, and the risk rating of the country of production.
FRDM offers a suite of tools designed to streamline every phase of EUDR due diligence — from supply chain mapping to regulatory reporting.
FRDM provides a comprehensive platform to help businesses meet the full scope of EUDR requirements. Its supply chain mapping capabilities give companies visibility into every tier of their supply chains, enabling them to identify potential deforestation risks at the source. FRDM's risk assessment tools allow companies to evaluate deforestation and legal non-compliance risks across their supplier networks, so that they can prioritize the areas requiring immediate attention. On the data side, FRDM facilitates the collection and management of necessary compliance information, including geolocation data and supplier documentation essential to the due diligence process. Its reporting capabilities enable companies to generate comprehensive due diligence statements and supporting documentation, ensuring transparency and readiness for audits by EU authorities. By streamlining these processes, FRDM helps turn what could take months of manual effort into hours of structured, automated workflow — reducing the time, cost, and operational burden of EUDR compliance while enhancing data accuracy and minimizing the risk of inadvertent non-compliance. Businesses leveraging FRDM can proactively identify and mitigate risks, maintain continuous compliance, protect brand reputation, and confidently retain access to the EU market.
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