Trader Under EUDR  

Under the EU Deforestation Regulation (EUDR), the term “Trader” has a specific legal meaning that differs from general commercial usage. Understanding this distinction is essential for companies involved in buying, selling, distributing, or storing regulated commodities within the European Union. 

This glossary entry provides a detailed explanation of the definition, obligations, differences from operators, documentation duties, risk exposure, and frequently asked questions (PAA-style) related to traders under EUDR. 

Definition of a Trader Under EUDR 

A Trader is any natural or legal person in the supply chain who makes relevant commodities or products available on the EU market after they have already been placed on the market by an Operator. 

In simpler terms: 

• An Operator places the product on the EU market for the first time. 

• A Trader buys or sells that product after it has already entered the EU market. 

Traders do not submit the initial Due Diligence Statement (DDS), but they still have compliance responsibilities. 

Key Characteristics of a Trader 

A company qualifies as a trader if it: 

• Purchases of regulated products already placed on the EU market 

• Resells or distributes them within the EU 

• Does not place the product on the market for the first time 

• Is not exporting the product outside the EU 

Examples include: 

• Commodity distributors 

• Food ingredient wholesalers 

• Retail chains 

• Intermediate processors 

• Storage and logistics companies (if making products available) 

Commodities Relevant to Traders 

EUDR applies to traders dealing with: 

• Cocoa and cocoa-derived products 

• Coffee 

• Palm oil 

• Soy 

• Cattle 

• Rubber 

• Wood 

Even if traders do not source directly from farms, they remain within scope if handling these products. 

Obligations of Traders Under EUDR 

Although traders are not required to conduct full due diligence (in most cases), they must: 

1. Collect and retain information on suppliers. 

2. Maintain records of buyers. 

3. Ensure traceability across transactions. 

4. Cooperate with competent authorities. 

5. Retain documentation for at least five years. 

Traders must be able to identify: 

• From whom they purchased the product. 

• To whom they sold it. 

This creates a continuous traceability chain. 

Documentation Requirements for Traders 

Traders must maintain: 

• Supplier name and contact details 

• Product description 

• Quantity of product 

• Reference to the DDS submitted by the operator 

• Buyer identification 

Authorities may request this documentation during inspections. 

Failure to provide traceability records can trigger penalties. 

Are Small Traders Exempt? 

Micro and small enterprises (SMEs) benefit from lighter obligations, but they are not exempt from traceability requirements. 

They must: 

• Retain supplier and buyer information 

• Provide records upon request 

However, large traders may be required to conduct full due diligence similar to operators. 

Liability of Traders 

Traders can face penalties if they: 

• Knowingly trade non-compliant goods 

• Fail to maintain required records 

• Obstruct investigations 

• Provide misleading information 

Penalties may include: 

• Fines 

• Product withdrawal 

• Reputational damage 

While operators bear primary responsibility, traders remain accountable within their role. 

When Does a Trader Become an Operator? 

A trader becomes an operator if they: 

• Import regulated goods from outside the EU 

• Manufacture products from raw materials and place them on the market for the first time 

• Export products outside the EU 

Role classification depends on transaction structure. 

Record Retention Period 

Traders must retain documentation for at least five years. 

This includes: 

• Transaction data 

• Supplier information 

• Buyer information 

• Product classification 

Record retention supports enforcement audits. 

Enforcement & Inspection 

Competent authorities may: 

• Request documentation 

• Conduct inspections 

• Cross-check DDS references 

• Verify transaction traceability 

Non-compliance may result in administrative or financial penalties. 

Role of Digital Systems for Traders 

Manual record-keeping increases risk exposure. 

Digital traceability platforms help traders: 

• Centralize supplier data 

• Link DDS references 

• Maintain audit-ready documentation 

• Ensure compliance continuity 

Automation reduces regulatory risk. 

Practical Example of a Trader Under EUDR 

Scenario: 

A cocoa importer (operator) places cocoa beans on the EU market. 
A chocolate manufacturer purchases those beans and produces chocolate bars. 

If the manufacturer resells the chocolate within the EU, they may act as: 

• Trader (if not first placer of regulated commodity) 

• Operator (if considered first placing of derived product) 

Classification depends on supply chain positioning. 

Importance of Understanding Trader Status 

Misclassification between operator and trader roles can result in: 

• Missed due diligence obligations 

• Incorrect DDS submission 

• Regulatory fines 

A clear role definition is essential.

Frequently Asked Questions (FAQ’s)