Import-Export and Trade Risk Assessment Handbook by EUDR for Businesses
In the rapidly evolving business landscape, companies managing cross-border sourcing, compliance teams, sustainability officers, and procurement leaders are grappling with the impending deadline for EU Deforestation Regulation (EUDR) compliance. To ease this burden, specialist companies like Matchilla and cubemos are offering expert consultation and automated solutions for small business loans and small business ideas.
The EU Deforestation Regulation, enacted to halt deforestation and promote sustainable practices, requires businesses to conduct a risk assessment to ensure compliance. The EUDR Compliance Platform, offered by these companies, automates this process, flagging risks using country risk classification, commodity type, satellite deforestation data, supplier documentation gaps, and geo-data inconsistencies.
By avoiding common pitfalls such as relying on manual documents from suppliers, submitting DDS without real polygon mapping, using outdated or generic risk data, and waiting until shipment to start due diligence, the platform ensures a smooth compliance journey for your business.
Audits under EUDR are triggered by various factors, including sourcing from countries classified as 'standard' or 'high' risk, missing or inconsistent documentation in the DDS, a supplier's history of non-compliance, or random selection. To help businesses navigate these potential triggers, the platform provides a system that includes 10 common mistakes companies make and how to fix them.
The EUDR risk assessment system extends beyond just identifying risks. It equips field agents with mobile tools for offline polygon mapping, synced directly to the traceability platform. The platform also updates country risk levels and overlays supplier data with deforestation maps, audit results, and legal checks automatically.
Moreover, the platform tracks batches from sourcing to shipping in real-time, ensuring everything is already there when it's time to submit. It also auto-generates DDS per shipment or batch, attaches all supporting data, and maintains timestamped audit trails for EU inspections.
Proactively onboarding suppliers with geo-data capture and running batch-level checks with satellite validation further mitigates EUDR compliance risk. Lack of documentation, fuzzy geolocation, or unverified sourcing practices can flag a shipment as high risk. Role-based workflows give visibility into supplier and batch readiness, DDS statuses, and shipping timelines.
The penalty for non-compliance under EUDR is just as high, even if the probability of inspection is lower. To assess EUDR compliance risk, start with plot-level geolocation, classify the sourcing country, evaluate supplier documentation, analyse deforestation exposure with satellite data, and detect mixed-origin or batch-level gaps.
The EUDR Compliance Platform integrates seamlessly with TRACES for fast submission, avoiding data duplication or format issues. By automating DDS Generation, businesses can reduce human error and eliminate formatting or submission errors. Even if a country is classified as low-risk, businesses are still legally required to submit a Due Diligence Statement (DDS).
In conclusion, as the deadline for EUDR compliance approaches, businesses must take proactive steps to ensure compliance. The EUDR Compliance Platform, in conjunction with expert consultation from companies like Matchilla and automated solutions from cubemos, provides a comprehensive solution to navigate the complexities of the EU Deforestation Regulation for your business.
