The EU Deforestation Regulation (EUDR, Regulation (EU) 2023/1115, with application postponed by Regulation (EU) 2025/2650) sets an entirely new condition for timber, coffee, rubber and four further commodity groups (cattle, cocoa, oil palm and soy, plus the derived products in the regulation’s annex) entering the EU market: the operator placing goods on the EU market must prove the products are deforestation-free, legally produced, and covered by a due diligence statement (DDS). That burden of proof travels all the way back to the production plots in Vietnam.
The three conditions and the core evidence: plot geolocation
Condition one — deforestation-free: products must be produced on land not subject to deforestation after the cut-off date of 31 December 2020 (and, for wood products, forest degradation after that date). Condition two — legal production: production must comply with the relevant law of the country of production (land-use rights, environmental protection, third-party rights, labour, tax and customs within the regulation’s scope). Condition three — a DDS: the operator submits a due diligence statement to the EU information system before placing the goods on the market, after collecting information, assessing risk and mitigating it. The central evidence of the whole system is the geolocation of every production plot: plots of 4 hectares or less use a point coordinate; plots over 4 hectares require a polygon covering the entire area — for Vietnamese coffee and rubber, where one container typically consolidates hundreds of smallholders, this is the hardest link of the chain. Under the latest simplification, only the operator first placing the goods files the DDS; downstream actors pass on the statement’s reference number, and micro/small primary producers in low-risk countries benefit from a simplified one-time declaration. Timeline: large and medium operators apply from 30 December 2026, micro and small operators from 30 June 2027.
What an FDI exporter must build — and the sanction for failing to prove
Four work blocks, in dependency order. One, map the sourcing region: collect the coordinates of every plot of the farmers and agents in the supply chain and cross-check against forest data at the 31 December 2020 cut-off to identify “clean” and at-risk plots — without this data layer, every commitment is just words. Two, segregate the flows: EUDR-compliant goods must be physically and documentarily separated from non-traceable goods, from buying point to warehouse to container; mixing disqualifies the whole batch. Three, production legality files: land documents, input invoices, plot-level purchasing logs — enough to answer traceability checks by the EU importer and competent authorities. Four, chain contracts: write the duty to supply coordinates, the post-2020 no-deforestation commitment and audit rights into contracts with buying agents and cooperatives. On sanctions: penalties are set by each EU member state within the EUDR framework — fines can reach at least 4% of EU turnover, alongside confiscation of products and revenues and exclusion from public procurement; but for a Vietnamese exporter the earlier and heavier “sanction” is commercial: without a DDS the goods cannot be placed on the EU market at all — loss of the market, not a fine. Exporters of these three commodities should start with their own sourcing regions now, rather than waiting for the importer to ask.
Frequently asked questions
What must be proven about the supply chain under the EUDR?
Three cumulative conditions: the products are deforestation-free (no deforestation of the land after 31 December 2020); they were legally produced under the law of the country of production; and a due diligence statement (DDS) has been filed by the operator into the EU system. The central evidence is the geolocation of every production plot.
Which goods require plot coordinates under the EUDR?
The seven forest-risk commodities and their derived products in the annex of Regulation (EU) 2023/1115: cattle, cocoa, coffee, oil palm, rubber, soy and wood. Plots up to 4 hectares use a point; plots over 4 hectares use a polygon covering the whole plot.
From when does the EUDR apply?
Under the postponement in Regulation (EU) 2025/2650: large and medium operators from 30 December 2026; micro and small operators from 30 June 2027. Preparation of plot data and traceability should start now, as it is the most time-consuming link.
What happens if the origin cannot be proven?
Without a valid DDS the goods cannot be placed or circulated on the EU market. Member states additionally apply penalties within the EUDR framework (fines up to at least 4% of EU turnover, confiscation, exclusion from public procurement) — for the exporter, the practical consequence is losing the market and the importer relationship.
This article has been quality-reviewed by the FLAW AI Legal Council
