EUDR - What is supply chain traceability?

Article 9 and Annex II identify the information, documents, and data that operators and merchants who are not SMEs must gather and retain for a period of five years in order to prove compliance with the Regulation. Article 2 (28) lists the data pertaining to geolocation.

Operators (as well as traders who are not SMEs) are required to investigate all pertinent products supplied by each specific supplier thoroughly. As a result, they must implement a system of due diligence that involves gathering the information, data, and documents required to meet the standards outlined in Article 9 and implementing the risk assessment techniques outlined in Article 10. risk-reduction strategies mentioned in Article 11. Article 12 lists the standards for the creation and upkeep of reporting, record-keeping, and due diligence systems. Operators will need to share all relevant information with other operators and traders further down the supply chain in order to prove that due diligence was done and that no or very little risk was discovered.

When traders or operators further down the supply chain get such information, they may use it as the basis for their own due diligence. However, just because a trader or operator higher up the value chain has completed due diligence does not absolve them of their own responsibilities.

Operators and traders that are not small and medium-sized enterprises (SMEs) must guarantee the accuracy of the traceability information they provide to law enforcement agencies in the Member States by submitting a due diligence declaration to the Information System.

The information system shall be developed and run in accordance with applicable data protection laws. Furthermore, the system will be outfitted with security protocols to guarantee the confidentiality and integrity of the exchanged data.