Due Diligence System 

What is a Due Diligence Statement (DDS) in the context of EU deforestation regulation? 

A Due Diligence Statement (DDS) is a mandatory document that importers must submit before placing commodities on the EU market. It confirms that the products are legally produced, deforestation-free, and comply with EU regulations. 

Why is the DDS important for the EU deforestation regulation? 

The DDS is crucial as it ensures traceability and compliance with the regulation. It helps prevent illegally produced and deforestation-linked commodities from entering the EU market, promoting environmental protection and sustainable trade practices. 

What information must be included in a DDS? 

A DDS must include geolocation data of the production area, confirmation of compliance with EU regulations, and details of the supply chain. It should also provide evidence that the commodities were produced legally and without deforestation after December 31, 2020. 

Who is responsible for submitting the DDS? 

The importer is responsible for submitting the DDS before placing commodities on the EU market. Additionally, large producers and retailers within the EU must check and submit their own DDS, ensuring due diligence has been exercised upstream in the supply chain. 

What happens if a DDS is not submitted or is found non-compliant? 

If a DDS is not submitted or is non-compliant, the commodities cannot be placed on the EU market. Non-compliance can lead to legal consequences, including fines and penalties, and can damage the reputation of the businesses involved.