EUDR Due Diligence Statement

Definition

The EUDR Due Diligence Statement (DDS) is a mandatory declaration required under the European Union Deforestation Regulation (EUDR). It confirms that an operator has completed the required due diligence process and has determined that the commodities or products being placed on, made available within, or exported from the European Union market comply with EUDR requirements.

The Due Diligence Statement serves as a formal assurance that products are sourced from deforestation-free supply chains, comply with applicable laws in the country of production, and present no more than a negligible risk of non-compliance. It is a critical component of the EUDR framework and plays a central role in promoting transparency, accountability, and sustainable sourcing practices.

Full Form of DDS

DDS stands for Due Diligence Statement.

Under the EUDR, operators are required to submit a Due Diligence Statement before regulated commodities or products can enter or leave the European Union market. The statement demonstrates that the business has fulfilled its due diligence obligations and assessed potential risks associated with deforestation and legal compliance.

Purpose of the EUDR Due Diligence Statement

The primary purpose of the Due Diligence Statement is to provide evidence that a company has carried out the necessary checks to ensure compliance with the European Union Deforestation Regulation. The DDS strengthens regulatory oversight by requiring businesses to formally declare that their products meet all applicable requirements.

The Due Diligence Statement helps to:

• Prevent products linked to deforestation from entering the EU market.
• Improve supply chain transparency.
• Support sustainable sourcing practices.
• Strengthen environmental accountability.
• Facilitate regulatory monitoring and enforcement.
• Promote responsible international trade.

By requiring formal declarations of compliance, the regulation encourages businesses to establish stronger traceability and risk management processes.

Who Must Submit a Due Diligence Statement?

The obligation to submit a Due Diligence Statement primarily applies to operators placing covered commodities and products on the European Union market or exporting them from the EU.

Organizations that may be required to submit a DDS include:

• Importers
• Exporters
• Manufacturers
• Processors
• Commodity traders
• Brand owners
• Businesses introducing regulated products into the EU market

Companies outside the European Union may also be indirectly affected if they supply products to operators responsible for EUDR compliance.

Commodities Covered Under the EUDR

The Due Diligence Statement requirement applies to products derived from commodities covered by the European Union Deforestation Regulation.

These commodities include:

• Cattle
• Cocoa
• Coffee
• Palm Oil
• Rubber
• Soy
• Wood

The regulation also applies to numerous derived products such as chocolate, leather goods, furniture, paper products, printed materials, and certain rubber-based products.

Information Required for a Due Diligence Statement

Before submitting a DDS, businesses must collect and verify detailed information about their products and supply chains.

This information may include:

Product Information

Details regarding the product, commodity type, quantity, and classification.

Supplier Information

Information about producers, suppliers, and supply chain partners involved in production and distribution.

Country of Production

Identification of the country where the regulated commodity was produced.

Geolocation Data

Geographic coordinates identifying the plots of land where covered commodities were produced.

Risk Assessment Results

Documentation showing the evaluation of potential risks related to deforestation, forest degradation, and legal compliance.

Risk Mitigation Measures

Evidence of actions taken to address identified risks before products are placed on the market.

Due Diligence Process Before Submission

A Due Diligence Statement can only be submitted after the completion of the EUDR due diligence process.

The process generally includes three key stages:

Information Collection

Businesses gather supply chain data, product details, supplier information, and geolocation coordinates.

Risk Assessment

Organizations evaluate whether products are associated with deforestation, forest degradation, or legal non-compliance.

Risk Mitigation

If risks are identified, companies must implement appropriate mitigation measures before proceeding with market placement.

Once these activities have been completed and compliance has been confirmed, the Due Diligence Statement can be submitted.

Importance of Geolocation Data

One of the most significant requirements supporting the Due Diligence Statement is the collection of geolocation information. Businesses must provide geographic coordinates showing where regulated commodities were produced.

Geolocation data supports:

• Supply chain traceability.
• Verification of sourcing locations.
• Deforestation risk assessments.
• Regulatory compliance checks.
• Environmental monitoring initiatives.

Many organizations use Geographic Information Systems (GIS), satellite monitoring technologies, and digital traceability platforms to manage this information efficiently.

Benefits of an Effective DDS Process

Implementing a robust Due Diligence Statement process offers several benefits for businesses.

These include:

• Improved regulatory compliance.
• Enhanced supply chain transparency.
• Reduced environmental and legal risks.
• Greater stakeholder confidence.
• Stronger sustainability performance.
• Better audit readiness.
• Continued access to European Union markets.

Organizations that establish effective compliance systems are better positioned to manage evolving sustainability regulations.

Common Challenges

Businesses may encounter several challenges when preparing and submitting Due Diligence Statements.

Common challenges include:

• Collecting reliable supplier data.
• Obtaining accurate geolocation coordinates.
• Managing complex supply chains.
• Conducting comprehensive risk assessments.
• Maintaining supporting documentation.
• Coordinating compliance activities across multiple regions.

To address these challenges, many companies are investing in compliance software, traceability systems, and supplier engagement programs.

Frequently Asked Questions

What is the full form of DDS?

DDS stands for Due Diligence Statement.

What is an EUDR Due Diligence Statement?

It is a mandatory declaration confirming that a business has completed the required due diligence process and determined that its products comply with EUDR requirements.

Who must submit a Due Diligence Statement?

Operators placing regulated products on the EU market or exporting them from the European Union are generally required to submit a DDS.

Why is geolocation data required?

Geolocation data helps verify production locations and supports assessments related to deforestation-free sourcing and compliance.

Is the Due Diligence Statement mandatory under the EUDR?

Yes. The DDS is a core compliance requirement under the European Union Deforestation Regulation.

Conclusion

The EUDR Due Diligence Statement is a fundamental element of compliance with the European Union Deforestation Regulation. By requiring businesses to document supply chain information, assess risks, verify sourcing locations, and formally declare compliance, the DDS promotes greater transparency and accountability across global commodity supply chains. Organizations that implement strong due diligence processes and maintain accurate compliance records will be better prepared to meet regulatory requirements and support sustainable sourcing practices.