What does this mean for companies – depending on their role in the supply chain?
The proposed changes by the European Commission affect operators and traders differently:
Upstream operators such as importers, manufacturers, or producers who first place relevant products on the EU market remain the primary entities responsible for compliance. They must continue to submit a due diligence statement (DDS) in the EU information system for every product or batch they place on the market. The quality of their supplier data, geolocation information, and risk assessments therefore remain key compliance factors.
→ The proposal does not affect their due diligence obligations, underscoring the need for robust data management systems.
Traders and downstream operators – including resellers, processors, and retailers – would be exempt from submitting their own DDS. However, they must still ensure that all products they trade are covered by a valid DDS, meaning they need to retain reference numbers and supporting documentation to prove EUDR compliance at any time.
→ As a result, their effort shifts from producing DDS documents to ensuring continuous traceability and record-keeping throughout the supply chain.
In practice, this creates a clearer division of roles: upstream operators ensure formal compliance through initial DDS submission, while traders and downstream actors maintain transparency and traceability. Both remain responsible for upholding EUDR integrity, but with distinct focus areas.