Dejan Jasnic · Co-founder & Compliance Lead, Trusty · 20+ years anti-fraud & compliance · ACFE Swiss Chapter Board
The requirements for EUDR due diligence are more strict than before, with new standards for businesses trading deforestation-linked commodities such as timber, beef, cocoa, coffee, palm oil, soy, and rubber.
One of the most crucial (and misunderstood) obligations is submitting a EUDR due diligence statement (DDS) before placing products on the EU market. But many businesses make the mistake of thinking that collecting supplier data is enough. It’s not.
Here’s what you need to know about the legal risks and best practices for proper risk assessment under the EUDR.
From data to risk: What EUDR due diligence really requires
Articles 4(1) and 4(4)(b) require that companies prove a product carries no or only negligible risk before entering the EU market. This involves three steps:
- Information gathering: Product details, origin, documentation, permits, geolocation (per Article 9).
- Risk assessment: Systematic analysis (Article 10) to detect deforestation, illegality, or contamination risks.
- Risk mitigation: If risk is more than negligible, take “adequate procedures and measures” (Article 11) to reduce it to zero or negligible.
Only once these steps are completed and the product is deemed compliant can a DDS be submitted and a reference number obtained for legal sale in the EU.
What are the legal consequences of skipping EUDR risk assessment?
Failing to carry out the risk assessment required by Article 10 before submitting a DDS is a breach of the EUDR, unless simplified due diligence under Article 13 applies.
Article 25 mandates that EU Member States impose effective, proportionate, and dissuasive penalties, which may include:
- Fines with a maximum of at least 4% of total annual Union-wide turnover (increased as necessary for repeated infringements).
- Confiscation of goods or profits obtained through non-compliance.
- Temporary exclusion, for up to 12 months, from public procurement and from access to public funding.
- Temporary bans on placing, making available or exporting the products, in case of serious or repeated infringements.
- A temporary prohibition on using simplified due diligence, in case of serious or repeated infringements.
EUDR due diligence best practices for risk evaluation
To comply and avoid costly penalties, we recommend the following:
- Create an internal risk evaluation workflow aligned with Article 10, using digital tools.
- Ensure compliance with all applicable national and international laws.
- Use third-party audits or certifications for complex chains.
- Record risk levels, data sources, and technical justification in detail.
- Submit the DDS only when risk is demonstrably zero or negligible.
- Keep DDS records updated, with at least an annual review.
How Trusty helps you get it right
Trusty’s EUDR compliance platform provides:
- End-to-end geolocation and supply chain mapping.
- Automated risk scoring and documentation.
- Structured mitigation pathways and reporting tools.
- DDS generation in TRACES format with direct submission.
- Full audit trail for authorities and inspectors.
Unlike manual spreadsheets or disjointed systems, Trusty helps you prove compliance from start to finish, efficiently, transparently, and in real time.
Bottom line: EUDR due diligence is not just about gathering data. It’s about proving your product does not contribute to deforestation by conducting a thorough, documented risk assessment.
Frequently asked questions
Information gathering under Article 9 (product details, origin, documentation, permits and geolocation), risk assessment under Article 10, and risk mitigation under Article 11 until the risk is zero or negligible.
No. Submitting a DDS without having carried out the Article 10 risk assessment breaches the EUDR, unless simplified due diligence under Article 13 applies. Only once the three steps are completed and the product is deemed compliant can the statement be submitted and a reference number obtained.
Under Article 25, Member States must impose effective, proportionate and dissuasive penalties, which may include fines with a maximum of at least 4 percent of total annual Union-wide turnover, confiscation of goods or revenues, temporary exclusion for up to 12 months from public procurement and public funding and, in case of serious or repeated infringements, temporary bans on placing, making available or exporting the products and a prohibition on using simplified due diligence.
The risk levels, the data sources and the technical justification in detail, with the DDS records reviewed at least annually.
Related reading: why the due diligence statement is the easy part, how the EUDR country risk classification works, why one geolocation point is not enough for cattle, and EUDR Passport, which walks each product through the three steps.
Need software for EUDR due diligence? EUDR Passport is free to set up, free for your suppliers, and costs €90 per product profile per year with unlimited DDS.
30 DECEMBER 2026
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