EUDR compliance. Short check of the updated version of “Frequently Asked Questions Implementation of the EU Deforestation Regulation”. The subjects

We would share the main questions & answers on the subjects of obligations arising from the EUDR compliance.

Which actors does the EUDR cover, and where can I find more information about their obligations?

The EUDR covers economic actors along supply chains of relevant products listed in Annex I of the Regulation.

There are three distinct categories of actors:

1. Operators (sometimes also referred to as “upstream operators”) are natural or legal persons placing a relevant product on the EU market, or exporting from there, for the first time, excluding downstream operators (see Art. 2(15) EUDR). For example: an importer of cocoa beans or a cattle farmer in the EU who breeds live cattle, is considered an operator. Some operators are primary producers who place on the market products which they themselves have produced, meaning they themselves have grown, harvested, obtained from or raised relevant commodities on relevant plots of land, or as regards cattle, on establishments. Such primary producers may meet the definition of “micro or small primary operator” under the Regulation (See Art. 2(15a) EUDR). They are a subcategory of operators, meaning that they are subject to the provisions for operators unless the Regulation says otherwise. The obligations of operators can be found in Art. 4 EUDR, and the simplified regime for micro or small primary operators is set out in Art. 4a EUDR.
2. Downstream operators are natural or legal persons who place on the market or export relevant products made using relevant products, all of which are covered by a due diligence statement or by a simplified declaration (see Art. 2(15b) EUDR). For example, a chocolate manufacturer who buys cocoa beans from an importer and manufactures these beans into chocolate, either destined for the EU market or for export, would be considered a downstream operator. Equally, a company which buys wood in the rough (HS 4403) from an EU forest owner and exports it to a third country would be considered a downstream operator. The obligations of downstream operators are aligned with the ones of traders and set out in Art. 5 EUDR, differing depending on whether they are SMEs or non-SMEs.
3. Traders are natural or legal persons in the supply chain other than the operator or downstream operator who make relevant products available on the EU market (see Art. 2 (17) EUDR). This could be for example a retailer selling the chocolate a chocolate manufacturer has made. For information on obligations of traders see Art. 5 EUDR.

You can find more information about the respective obligations of the different categories of actors in this document (see, among others, FAQs 3.4 and 5.1).

To what extent does a change of HS code have an impact on the designation of the company as a downstream operator or a trader?

A change in the Commodity Code (HS, CN or TARIC) of a product already placed on the market results in a company placing a derived product on the market being a downstream operator only if the change affects the digits that are listed in Annex I. For example, company A, based in the EU, imports unroasted non-decaffeinated coffee (HS Code 0901 11), which falls under HS Code 0901 as listed in Annex I. Company B, also based in the EU, subsequently roasts and sells the non-decaffeinated coffee beans (HS Code 0901 21), which remains under HS Code 0901 in Annex I. In the given example, company A would be considered an operator under the Regulation, while company B would be classified as a trader. This is because the HS code for roasted coffee starts with the same four digits as the HS code for unroasted coffee beans, and only these first four digits are listed in Annex I of the EUDR. In the case of HS 47 and 48, the same principle applies for the first two digits of these HS codes.

What does “in the course of commercial activity” mean?

Commercial activity is understood as an activity taking place in a business-related context. The combined definitions of “operator” (Art. 2(15) EUDR) and of ‘in the course of a commercial activity’ (Art. 2(19) EUDR) imply that any person other than a downstream operator, who places a relevant product on the EU market for selling (with or without transformation) or free of charge, for the purpose of processing or for distribution to commercial or non-commercial consumers, or for use in the context of its commercial activities, will be subject to the due diligence requirements and have to submit a due diligence statement or, if applicable, a simplified declaration.

What does ‘relevant legislation of the country of production’ mean?

Relevant commodities and products can only be placed on the EU market if they comply with the three requirements of Art. 3 EUDR, namely (1) they are deforestation-free (Art. 3(a)), (2) comply with the relevant legislation of the country of production (Art. 3(b)), and (3) are covered by a due diligence statement or a simplified declaration (Art.3(c)).

‘Relevant legislation’ may include, among others, national laws (including relevant secondary law) and international law as applicable in domestic law. ‘Country of production’ means the country in which a relevant commodity was produced (see Art. 2(24) EUDR). ‘Produced’ means grown, harvested, obtained from or raised on relevant plots of land or, as regards cattle, on establishments (see Art. 2(14) EUDR). Consequentially, legislation of other countries in which further steps of a manufacturing process may have taken place are not relevant for the legality requirement (for instance, soy beans harvested in country A (country of production) being manufactured into soymeal in country B prior to being placed on the EU market in country C). The Regulation provides a list of legislative areas without specifying particular legal acts, as these differ from country to country and may be subject to amendments. According to the definition, the legislation listed in Art. 2(40) letters (a) to (h) must be interpreted as being concerned with the legal status of the area of production.

Additionally, for the different fields of legislation, the meaning and purpose stipulated in Art.1(1)(a) and (b) EUDR should be taken into account. Therefore, among others, legislation with a link to the protection of forests, the reduction of greenhouse gas emissions or the protection of biodiversity is relevant.

Relevant documentation is required for the purposes of the information collection and risk assessment pursuant to Art. 9(1)(h) and 10 EUDR. Such documentation may, for example, consist of official documents from public authorities, contractual agreements, court decisions or impact assessments and audits which may have been carried out. In any case, the operator has to verify that these documents are verifiable and reliable, taking into account the risk of corruption in the country of production. Further information can be found in the Commission Notice Guidance document (C/2025/3588).

What are the obligations of downstream operators and traders?

1. a) Obligations under Art. 5(1), (2) and (3) EUDR

Downstream operators and traders are obliged to collect and keep information about their direct business partners (see Art. 5(3) EUDR). They may only place or make available relevant products or export them after having received all required information from their direct supplier(s). The information consists of the name, registered trade name or registered trade mark, the postal address, the email address and, if available, a web address of the operators, downstream operators, or the traders who have supplied the relevant products to them and of the downstream operators or traders to whom they supply. Only in the case in which their direct supplier is an (upstream) operator in the sense of Art. 2(15) EUDR, making the downstream operator or trader a so-called first downstream operator.  The Guidance is currently being updated – the new reference will be added here and below once available. or trader, will the required information also include the due diligence statement reference numbers or declaration identifiers associated to products.

The first downstream supply chain member that is supplied by an operator can infer its position of being first downstream operator or trader from receiving the DDS reference numbers / identifiers from their upstream supplier(s). The obligation to pass on the number lies with the (upstream) operator.

The first downstream operator or trader does not need to proactively ask for the reference number or declaration identifier or to investigate their position in the supply chain, unless they are in possession of information pointing to the fact that their supplier is an upstream

operator. They only have to register the number in their own records once received.

The downstream operator or trader, acting in good faith, can presume that their suppliers are not upstream operators if they do not receive reference numbers or declaration identifiers from them. Only where the first downstream operator or trader is aware that its supplier is an upstream operator and that upstream operator does not comply with its obligation to share the due diligence statement reference number or declaration identifier, shall the first downstream operator or trader refrain from placing or making available the relevant products on the EU market (Art. 5(1) EUDR).

1. b) “Collecting and keeping” information pursuant to Art. 5(3) and (4) EUDR.

Downstream operators and traders are required to collect and keep the information described in point a) for at least five years from the date of placing or making available on the market or export. This does not entail any requirement to store that information in a specific system or database. It also does not imply any requirement to systematically check the content or the validity of the reference numbers received from the supplier.

In order to comply with the “collecting and keeping” duty, it is sufficient that the downstream operator or trader is able to retrieve and compile such information within a reasonable period of time following a request from a Competent Authority or in case of substantiated concerns.

Downstream operators and traders must keep collected information for at least five years and must make such information available to Competent Authorities upon request pursuant to Art. 5(4) EUDR. They must be able to link the DDS reference numbers and declaration identifiers to incoming, but not to outgoing product flows.

1. c) Registration requirement for non-SME downstream operators and traders Non-SME downstream operators and traders are additionally required to register in the Information System, Art. 5(2) EUDR.

Do downstream operators or traders have to identify if they are the first downstream operator or trader?

Downstream operators or traders whose direct supplier is an operator have to collect and keep the reference numbers of the due diligence statements or the declaration identifiers associated with the products placed on the market by the operator (Art. 5(3)(a) EUDR). As such, these downstream operators or traders whose supplier is an operator qualify as first downstream operators or traders.

Operators (including MSPO) bear the obligation to proactively pass on their DDS/SD number to the first downstream operator or trader (Art. 4(7) EUDR). In principle, the operators (including MSPO) will self-identify to their client as such in the moment they fulfil the obligation to pass on their DDS/SD number.

The downstream operator or trader, acting in good faith, can presume that their suppliers are not upstream operators if they do not receive reference numbers or declaration identifiers from them. Only where the first downstream operator or trader is aware that its supplier is an upstream operator and that upstream operator does not comply with its obligation to share the reference number or declaration identifier, must the first downstream operator or trader refrain from placing or making available the relevant goods on the EU market (Art. 5(1) EUDR).

A downstream operator or trader is not obliged to proactively assess if their supplier is an operator, nor to request or obtain the DDS/SD number from their supplier, unless they are aware that their supplier is an operator.

Will non-SME downstream operators and non-SME traders have access, in the Information System, to geolocation information in due diligence statements or to postal address information in simplified declarations submitted by upstream operators?

Upstream operators will be able to decide whether the geolocation or postal address information contained in their due diligence statements or simplified declarations submitted in the Information System will be accessible and visible for the non-SME downstream operators or non-SME traders who are in possession of associated reference numbers or declaration identifiers and their associated verification numbers. Checking the information contained in due diligence statements and simplified declarations is one of the means which non-SME downstream operators and non-SME traders can use to verify that due diligence has been exercised in case of substantiated concerns according to Art. 5(6) EUDR.

Are operators obliged to communicate the “verification number” of their DDS or SD to clients?

Operators must provide the due diligence statements reference numbers (or declaration identifiers in the case of a SD) associated with their relevant products to their direct clients only if the clients are (first) downstream operators or traders, Art. 4(7) EUDR. There is no obligation to pass on reference numbers or declaration identifiers to other clients, such as to final consumers or to companies that manufacture products outside of the scope of EUDR.

Under the EUDR as amended in December 2025, there is no legal obligation on operators to provide additional information which would enable downstream operators or traders to exercise due diligence on the relevant products they buy, as there are no due diligence obligations downstream (see FAQ 3.4 for more information).

There is also no legal obligation under EUDR to share verification numbers downstream, which serve as an additional security layer for the data contained in declarations. Where non-SME downstream operators and non-SME traders verify the exercise of due diligence pursuant to Art. 5(6) EUDR in case of substantiated concerns, they may request their direct supplier to share verification numbers (see FAQ 3.6.1 and FAQ 7.25 for more information).

What steps do downstream operators and traders need to take if there are indications of non-compliance, including substantiated concerns, in their supply chains?

Art. 5(5) EUDR requires all (SME and non-SME) downstream operators and traders to immediately inform Competent Authorities of the Member States in which they placed or made available on the market the relevant product as well as downstream operators and traders to whom they supplied a relevant product when they obtain or are made aware of new information, including substantiated concerns, that indicates that a relevant product that they have placed or made available on the market is at risk of not complying with the EUDR. In the case of exports, downstream operators must inform the Competent Authority of the country of production as defined in Art. 2(24) EUDR. If, in the case of export, the country of production (according to Art. 2(24) EUDR) is not known to the downstream operator or does not have a designated EUDR Competent Authority, meaning its Competent Authority cannot be contacted, the Competent Authority of the Member State of export should be contacted.

A substantiated concern exists, according to the definition of Art. 2(31) EUDR, when there is a duly reasoned claim based on objective and verifiable information regarding non-compliance with the Regulation and which could require the intervention of Competent Authorities. A substantiated concern can arise both in the sphere of public authorities and private entities. A company should be considered as being aware of information or of a substantiated concern if the information is shared with it via email or in another manner, for example during a meeting with its employees or by receiving information from the Commission, national authorities, other private entities or the media.

For non-SME downstream operators and traders, limited additional obligations apply under Article 5(6), namely that, in case of substantiated concerns, the non-SME downstream operator or trader has to verify that due diligence was exercised and that no or only a negligible risk was found. The downstream non-SME operator or trader must not continue to place or make available on the market or export the product concerned, unless the verification conducted by it, and/or the Competent Authority concludes that there is no or only a negligible risk of non-compliance.

The verification is a reactive obligation – it does not require a systematic analysis of due diligence exercised by (upstream) operators, but only one in case of there being a substantiated concern.

Verification can be done via the following means:

• Where available, the company could verify the validity and content of the reference numbers and declaration identifiers that they have received.
• Non-SME downstream operators or non-SME traders may further wish to collect and analyse information beyond what is contained in the Information System. They may, for instance, use the list of countries or parts thereof referred to in Art. 29(2) EUDR4; consult the publicly available reports based on Art. 12(3) EUDR from non-SME upstream operators; consult the results of an audit conducted based on Art. 11(2)(b) EUDR; or request, on a voluntary basis, further information from their suppliers. In that manner, they could verify that upstream operators (suppliers) have an operational and up-to-date due diligence system in place, including adequate and proportionate policies, controls, and procedures to mitigate and manage effectively the risks of non-compliance of relevant products, to ensure that due diligence is properly and regularly exercised.
• If no information leading to verification can be obtained, they may fulfil the obligation to verify that due diligence was exercised by supplying the Competent Authority with relevant information about their supply chain, including from which supplier they have received the relevant product and any further information relating to the substantiated concern they may have. Their supplier may then be informed by the Competent Authority about the substantiated concerns, resulting in the same obligations. Upon reaching the downstream operator or trader which received the relevant products from an operator (the “first downstream operator or trader”) such downstream operator or trader shall, in case they are a non-SME, verify that due diligence was exercised upstream (by the operator) by requesting the DDS or SD information and other needed information from the operator.