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EUDR Due Diligence

EU Deforestation Regulation (EUDR) on Odoo

The EU Deforestation Regulation (EUDR) forbids the placing on the EU market of products linked to deforestation after 31 December 2020. Cattle, cocoa, coffee, palm oil, rubber, soya, wood and many derived products are in scope. Every operator and trader must collect geolocation data per producing plot, demonstrate due diligence, and submit Due Diligence Statements via the EU's Information System. Odoo embeds the entire EUDR workflow into the supply chain you already run.

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What it is

The EU Deforestation Regulation (Regulation EU 2023/1115), in force from 30 December 2025 for large operators and 30 June 2026 for SMEs, prohibits the placing on the EU market of seven commodities and their derived products if they are linked to deforestation after 31 December 2020 or produced in violation of producer-country laws. Operators (those placing on the market for the first time) must conduct due diligence: collect plot-level geolocation, verify deforestation-free status, ensure legal compliance in the country of production, document risk assessment, and submit a Due Diligence Statement (DDS) via the EU Information System before placement. Traders (those distributing further) must verify upstream DDS references and contribute their own where required.

Why it matters

EUDR non-compliance carries serious penalties: at minimum 4% of EU-wide annual turnover for the entity, prohibition on placement, public censure, confiscation of products, and confiscation of revenues from the non-compliant placement. For operators in scope, the cost of late EUDR readiness can be operational halt — shipments held at port, supplier relationships disrupted, customer commitments missed. Beyond compliance: EUDR is the leading edge of a broader EU mandatory due diligence trajectory (CSDDD — Corporate Sustainability Due Diligence Directive — extends this approach to broader supply chain issues). Building EUDR capability now sets up for CSDDD later.

Features

  • Plot-level geolocation registry

    Every production plot (for cattle, cocoa, coffee, palm oil, rubber, soya, wood, derived products) recorded with GeoJSON-format coordinates per EU specification. Multi-polygon plots supported for complex supplier networks.

  • Commodity scope detection

    Automatic flagging of in-scope SKUs based on HS code (Combined Nomenclature). Derived products traced through bills of material to the in-scope raw commodity. Out-of-scope products tagged to avoid unnecessary due diligence.

  • Supplier due diligence workflow

    Supplier onboarding extended with EUDR-specific questionnaires: production location, deforestation status, legal compliance, traceability evidence. Document upload (satellite imagery, certifications, legal permits) attached to supplier master.

  • Risk assessment scoring

    Country risk classification (per EU's published country risk tiering — low, standard, high). Producer-level risk overlays. Risk-adjusted due diligence depth — high-risk countries require enhanced verification.

  • Due Diligence Statement (DDS) generation

    DDS generated per shipment with all required EUDR fields — operator details, product description, HS code, quantity, country of production, geolocation, supplier chain, risk assessment summary. Format matches EU Information System specification.

  • EU Information System integration

    Direct API integration with the EU's TRACES NT / Information System for DDS submission. Submission status (pending, accepted, rejected) tracked inline. DDS reference numbers attached to shipments for downstream traders.

  • Trader workflow (downstream DDS chain)

    For businesses placing already-traded products on the market, the workflow captures and verifies the upstream DDS reference, evaluates risk, and chains the new DDS. Compliant operator-vs-trader handling per EUDR scope.

  • Mixed-batch handling

    Where commodities are batched from multiple plots (typical for coffee, cocoa, palm oil), the geolocation registry tracks every contributing plot. Mass-balance documentation aligned with EUDR requirements.

  • Audit trail for competent authorities

    All due diligence evidence linked to the DDS. Member-state competent authorities can request the full trail; Odoo retrieves source documents on demand. Audit-ready from day one.

  • Year-on-year due diligence renewal

    EUDR requires due diligence to be 'current' — typically renewed annually per supplier and plot. Renewal workflow tracks dates, surfaces expiring evidence, prompts re-collection.

How it works

  1. Scope assessment

    Confirm which of your products and supply chains are in scope per EUDR's Annex I commodity list. Map operator-vs-trader role per product line. Output: written scope document + EUDR readiness gap analysis.

  2. Supplier data collection campaign

    Reach out to in-scope suppliers for plot-level geolocation, deforestation evidence, legal compliance documentation. The largest sub-project for EUDR readiness — typically takes 2–3 months for businesses with 50+ suppliers.

  3. Odoo configuration

    Product master extended with EUDR scope flag. Supplier master extended with EUDR data fields. Plot-level geolocation registry configured. Risk assessment workflow built. EU Information System API connection established.

  4. Pilot DDS submissions

    First DDS submissions on representative shipments. Validation through EU Information System sandbox. Iterations against feedback before live use.

  5. Production go-live

    EUDR enforcement date (30 December 2025 for large operators; 30 June 2026 for SMEs) is the hard deadline. Live DDS submissions from that date onwards. First 30 days monitoring on every submission with our consultant on call.

  6. Annual renewal cycle

    Per-supplier due diligence renewal — typically annual. Workflow surfaces expiring evidence ahead of expiry; supplier re-engagement automated where possible.

Deployment timeline

EUDR readiness: 6–10 weeks for the Odoo configuration; supplier engagement runs in parallel and can take 2–3 months. Total typically 12–20 weeks from green light to production go-live. The supplier engagement is the critical path — start it early. For businesses with simpler supply chains (fewer than 20 suppliers, single-commodity), readiness is faster.

Best for

EU operators and traders in scope: businesses placing cattle, cocoa, coffee, palm oil, rubber, soya, wood, or derived products on the EU market. Particularly: food and beverage manufacturers (chocolate, coffee, palm oil derivatives in products); furniture and paper businesses (wood-based supply chains); cosmetics manufacturers (palm-oil derivatives); rubber product manufacturers; agricultural commodity traders; non-EU operators with EU sales above EUDR's de minimis threshold. Not applicable to entirely out-of-scope businesses (services, non-listed commodities).

Frequently asked questions

  • Which products are in scope of EUDR?

    Seven core commodities and their derived products: cattle (and beef, leather), cocoa (and chocolate, derived products), coffee, palm oil (and derived products in food, cosmetics, biofuels), rubber (natural and tyre-grade), soya (and derived products in food, feed), wood (timber, paper, derived furniture). EUDR's Annex I lists the full HS codes. Derived products are tagged via bill-of-material traceability to the in-scope raw commodity.

  • When does EUDR enforcement start?

    Originally December 2024; postponed by one year to 30 December 2025 for large operators and 30 June 2026 for SMEs (the European Council adopted the postponement in late 2024). The postponement gives businesses time for system readiness; the substantive requirements are unchanged.

  • What does 'deforestation-free' mean under EUDR?

    Land where the product was produced has not been subject to deforestation or forest degradation after 31 December 2020 (the cut-off date in the regulation). Producers must prove this with plot-level geolocation, satellite imagery, or other accepted evidence. The cut-off date is fixed and does not adjust with enforcement-date postponements.

  • How granular must geolocation data be?

    Plot-level: a polygon or multi-polygon per production plot. Single-point coordinates are acceptable for plots under 4 hectares. Plot boundaries must be in GeoJSON or compatible format per EU specifications. For agricultural commodities, this is the most operationally challenging requirement — collecting from smallholders requires either farmer-cooperative aggregation or supplier-side investment in geolocation tools.

  • What's the role of country risk classification?

    The EU publishes country risk tiers — low, standard, high. Sourcing from low-risk countries reduces due diligence depth required (simplified due diligence); sourcing from standard or high-risk requires full due diligence depth and additional verification. The country risk list is updated periodically; Odoo tracks current classifications.

  • What if a supplier can't or won't provide geolocation?

    Practical reality of EUDR readiness. Options: (1) replace the supplier with one that can provide compliant data; (2) work with smallholder aggregators (cooperatives) that aggregate geolocation; (3) accept that the supplier's products cannot be placed on the EU market under your DDS. We help define this supplier strategy during scope assessment.

  • How does EUDR interact with existing sustainability certifications (Rainforest Alliance, RSPO, FSC)?

    Certifications are evidence, not exemptions. They can simplify the due diligence (e.g. an RSPO-certified palm oil supplier reduces palm-oil-deforestation risk verification effort). But the operator's legal obligation under EUDR is independent of certifications — the operator must still conduct due diligence and submit the DDS. Most certifications increasingly add geolocation as a certification requirement to support EUDR readiness.

  • What's the difference between operator and trader?

    Operator: the entity placing the product on the EU market for the first time. Operators bear the primary due diligence and DDS obligation. Trader: the entity distributing the product further within the EU. Traders verify the upstream DDS reference and contribute their own where applicable (large traders specifically have substantive obligations; small traders have simplified). One business can be both operator (for some products) and trader (for others); EUDR applies per transaction.

  • What's the cost of EUDR compliance?

    Implementation cost: USD 30,000–95,000 (EUR 27,500–87,000) for single-commodity operations with under 30 suppliers. Larger multi-commodity operations (food manufacturers with broad supply chains): USD 70,000–180,000. Annual ongoing cost: 15–25% of implementation for due diligence renewal and DDS volume. Compare to potential penalty (4%+ of EU turnover for a serious breach): implementation cost is dwarfed by risk.

  • Do you submit DDS on our behalf?

    No — DDS submission is the operator's legal responsibility and is done via the operator's EU Information System account. We integrate Odoo with that account for automated submission; operational submission control stays with you. We help with submission troubleshooting, rejected DDS investigation, and process optimisation.

  • Will EUDR data work for CSDDD when that arrives?

    Yes — and that's a smart implementation strategy. The Corporate Sustainability Due Diligence Directive (CSDDD), with phased application from 2027–2029, extends mandatory due diligence to broader human rights and environmental issues across the supply chain. The supplier engagement, geolocation registry, and audit trail built for EUDR provide most of the foundation for CSDDD readiness later.

  • What's the first step?

    A 45-minute scoping call. Bring: which in-scope commodities you handle, operator vs trader role, supplier count (rough), and whether you have an existing sustainability/procurement system. We'll confirm scope and propose a discovery plan if it's the right next step.

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