EUDR: Frequently asked questions answered
The European Union Deforestation Regulation (EUDR) raises many practical questions for businesses operating within the EU. Whether you import, export, produce, or trade products like cocoa, soy, or wood, it’s important to understand if and how the regulation applies to you. This article answers the most frequently asked questions to help you navigate your responsibilities and prepare for compliance.
1. Am I subject to the EUDR?
The EUDR applies to anyone who imports, exports, produces, or trades selected commodities (such as soy, cocoa, cattle, wood, coffee, palm oil, rubber, and derived products) within the EU for commercial purposes. Both large and small businesses fall under the EUDR.
2. Am I an operator or a trader?
The EUDR distinguishes between “operators” and “traders.” You are an operator if you place products or commodities on the EU market for the first time or export them. Traders only deal in products that have already been imported or produced. Operators are subject to stricter due diligence requirements than traders.
3. When does the EUDR apply to my business?
The EUDR (European Union Deforestation Regulation) will apply to most businesses starting 30 December 2025. For micro and small enterprises established before 31 December 2020, the obligation starts later: from 30 June 2026. This extension does not apply to micro or small businesses active in the timber trade; they fall under the rules starting 30 December 2025.
4. Who conducts audits and how are they assessed?
The Netherlands Food and Consumer Product Safety Authority (NVWA) oversees compliance with the EUDR in the Netherlands. Outside the Netherlands, EUDR compliance is assessed by each country's appointed authority. During inspections, authorities will assess whether legal requirements such as the due diligence system and reporting obligations are being met. Inspections can occur without notice and include document review, traceability, and risk assessments.
5. What are the penalties?
Violations of the EUDR may lead to fines of up to 4% of the company’s EU annual turnover from the previous year. In addition to monetary penalties, authorities may seize goods, impose temporary trading bans, or exclude companies from public procurement.
6. What administrative obligations apply to small and micro businesses?
Small/micro businesses as operators:
You must conduct full due diligence before placing relevant products on the EU market or exporting them, just like larger companies. This includes collecting geolocation data (at least one GPS coordinate per plot), harvest or production dates, official documentation from the country of origin, and risk assessment reports.
You must submit a due diligence statement (DDS) to the central EU system before placing the product on the market. All required documentation (DDS, evidence, risk assessments, supplier information) must be retained for at least five years and be available for inspection upon request.
Small/micro businesses as traders:
You are not required to perform your own due diligence or submit a DDS, provided the product is already covered by an operator’s DDS. However, you must retain relevant documentation proving that the products you trade are compliant, including a reference to the operator’s DDS.
These documents must be stored for five years and be readily available during audits or inspections.
A practical and effective way to manage EUDR
All businesses (including small or micro) must be able to demonstrate compliance, even during unannounced audits (e.g., by the NVWA).
Although small and micro businesses have a later compliance deadline (30 June 2026 for existing businesses), the obligations themselves are not lighter than those for larger companies—only timelines and sometimes administrative burdens are slightly reduced.
A practical and effective way to manage EUDR compliance is by using a dedicated digital solution. Such a platform centralises your due diligence data, automates traceability checks, and keeps your documentation audit-ready—saving time while reducing the risk of errors.
Discover how our EUDR compliance platform works and see how it can streamline your path to compliance:
