EU TRACES 

TRACES (Trade Control and Expert System) is the European Union’s official digital platform used to submit Due Diligence Statements (DDS) and manage regulatory declarations under the EU Deforestation Regulation (EUDR). 

What Is EU TRACES? 

TRACES is the central digital gateway through which EUDR compliance is formally declared to EU authorities. It is operated by the European Commission and is designed to provide competent authorities with a standardized, auditable view of regulatory declarations across the EU. 

Under EUDR, TRACES is not simply a reporting tool it is the legal interface between operators and the EU market. A product that is not linked to a valid TRACES DDS reference is considered non-compliant, regardless of whether due diligence was performed internally. 

TRACES’ Role in EUDR 

TRACES plays a mandatory and exclusive role in the EUDR framework. All Due Diligence Statements must be submitted through TRACES before a regulated product is placed on or exported from the EU market. 

Key implications: 

• TRACES is the only valid submission channel for DDS 

• There are no alternative portals, uploads, or exemptions 

• A valid TRACES reference number is required for compliance 

Without a TRACES DDS reference: 

• Products cannot legally enter or exit the EU market 

• Customs clearance may be delayed or blocked 

• Operators remain fully exposed to enforcement action 

In practice, TRACES is the point at which compliance becomes visible and enforceable for authorities. 

What TRACES Does Under EUDR 

TRACES performs several critical but limited functions: 

• Validates data structure 
  Ensures that mandatory DDS fields are completed and formatted correctly. 

• Generates DDS reference numbers 
  Creates a unique identifier linking a shipment or product to its due diligence declaration. 

• Enables authority access 
  Allows competent authorities to review, audit, and inspect submitted DDS data. 

TRACES ensures consistency and accessibility but it does not evaluate the substance of the data submitted. 

What TRACES Does Not Do 

A common source of confusion is assuming that TRACES performs compliance checks. It does not. 

TRACES does not: 

• Assess deforestation or forest degradation risk 

• Validate satellite imagery or geospatial accuracy 

• Verify supplier declarations or legal compliance 

• Judge whether risk mitigation is sufficient 

All responsibility for data accuracy, risk assessment, and compliance remains with the operator. TRACES is a submission and access system, not a compliance engine. 

Why Manual TRACES Use Fails at Scale 

Many companies initially attempt to manage TRACES manually, often through spreadsheets, emails, and copy-paste workflows. While this may work for a small number of shipments, it fails quickly at scale. 

Manual TRACES workflows: 

• Increase error rates, especially in geolocation and product codes 

• Delay submissions, risking late or invalid DDS 

• Break under high volume, particularly with multiple suppliers and origins 

• Create audit risk, due to inconsistent records and missing links 

As enforcement intensifies, these weaknesses become operational and legal liabilities. 

TRACES and Timing: A Critical Compliance Risk 

EUDR requires DDS submission before products are placed on the EU market. In practice, this creates a tight dependency between: 

• Supplier data readiness 

• Due diligence completion 

• Shipment scheduling 

Manual TRACES processes often push DDS submission to the last possible moment, increasing the likelihood of: 

• Late submissions 

• Shipment delays 

• Emergency data fixes that compromise accuracy 

This makes TRACES timing one of the most common compliance failure points. 

Automation and Integration with TRACES 

To address scale and timing challenges, leading operators integrate TRACES into their existing systems using APIs and automated workflows. 

Integrated TRACES workflows enable companies to: 

• Pull supplier and shipment data directly from ERP systems 

• Validate required fields before submission 

• Submit DDS earlier in the logistics process 

• Maintain consistent, auditable records 

Automation does not remove legal responsibility but it significantly reduces operational risk. 

TRACES in Audits and Enforcement 

During inspections, competent authorities may: 

• Request DDS reference numbers 

• Cross-check TRACES submissions against shipments 

• Review historical DDS data over multiple years 

Because TRACES acts as the official system of record, inconsistencies between internal records and TRACES submissions are a red flag during audits. 

Companies that treat TRACES as an afterthought often struggle to respond to inspections efficiently. 

Common TRACES Misconceptions 

• “If it’s in TRACES, it’s compliant.” 

• “TRACES checks deforestation risk for us.” 

• “We can fix DDS later if needed.” 

• “Small volumes don’t need TRACES.” 

TRACES only confirms that a declaration was submitted not that it is correct. 

Practical Implications for Operators 

For operators, TRACES should be treated as: 

• The final compliance checkpoint, not the starting point 

• A system that reflects upstream data quality 

• A permanent record visible to authorities 

Successful EUDR compliance requires aligning internal processes so that TRACES submission is smooth, early, and accurate. 

Frequently Asked Questions (FAQ’s)