The Risk-Based Architecture of EUDR
To optimize enforcement and administrative resources, Regulation (EU) 2023/1115 establishes a three-tier country benchmarking system:
- High-Risk Countries
- Standard-Risk Countries
- Low-Risk Countries
The risk classification of the country of origin dictates whether an operator must conduct Standard Due Diligence or qualifies for Simplified Due Diligence.
1. Standard Due Diligence Regime (Three Core Pillars)
For commodities sourced from standard- or high-risk origins, operators must execute:
- Pillar 1: Information Gathering:
- Product descriptions, HS codes, net mass, and volume.
- Country of production and exact GPS coordinates for all production plots.
- Time range of production and documented proof of compliance with local laws (land tenure, environmental permits, labor rights, and indigenous FPIC).
- Pillar 2: Risk Assessment:
- Evaluation of regional deforestation prevalence and agricultural expansion.
- Prevalence of corruption, document fraud, and supply chain mixing risks.
- Pillar 3: Risk Mitigation:
- On-site independent supplier audits and satellite cross-checks prior to market placement.
2. Simplified Due Diligence Regime
Applies exclusively to commodities originating from countries or regions categorized by the European Commission as "low-risk".
- Exemptions: Operators are exempt from Step 2 (Risk Assessment) and Step 3 (Risk Mitigation).
- Mandatory Requirements: Step 1 (Information Gathering) and DDS Submission in TRACES NT remain fully mandatory prior to placing products on the market.
3. Smallholder Geolocation Rules: Polygons vs. Single Points
- Plots equal to or greater than 4 hectares (≥ 4 ha): Mandatory full polygon mapping the complete perimeter vertices in GeoJSON, Shapefile, or KML format.
- Plots under 4 hectares (< 4 ha): A single GPS point coordinate (central parcel coordinate) is legally sufficient.
- Qualifying Micro-Producers: A verified postal address is permitted where GPS mapping is technically inaccessible.