EUDR and Certifications: What FSC and PEFC Actually Cover

Why This Regulation Changes Things

The EU Deforestation Regulation shifts accountability throughout supply chains. Previously, only forest operators faced scrutiny. Now every supplier in the chain must verify legal and deforestation-free sourcing. Suppliers can no longer claim ignorance without consequence.

The solution: companies must now share geolocation data and conduct due diligence assessments at each supply chain stage.

For Which Products?

EUDR covers five primary commodity groups and their derivatives:

• Cocoa
• Timber
• Coffee
• Rubber
• Their derivatives (with limitations)

Example distinctions: chocolate falls under the regulation, but cookies do not. Wooden furniture is covered; packaging materials typically are not.

Exceptions for SMEs

• SMEs sourcing from EU suppliers only must submit supplier due diligence statement numbers
• They are not required to independently verify information , but must have a due diligence system in place
• SME Traders only share relevant information downstream and are exempt from submitting statements (unless exporting)
• All must maintain five-year records

How EUDR Compliance Works: Three Pillars

1. Due Diligence System

Annual risk assessments for all supplier-product combinations. This is a process, not a one-time document.

2. Due Diligence Statement

A formal submission containing geolocation data, risk assessment, and compliance declaration , filed for each batch.

3. Information Sharing

Downstream transmission of geolocation and statement numbers so every link in the chain can demonstrate where material came from.

What Happens With Non-Compliant Batches?

Companies discovering non-compliant products must notify authorities and withdraw them from sale. The regulation imposes fines of up to 4% of revenue for companies failing proper due diligence. Penalties vary by company size and the quality of due diligence efforts demonstrated.