EUDR. Who is no longer required to submit a DDS and who remains subject to the obligation?

Six months after the proposed EUDR simplifications were introduced, the most common question raised in discussions with compliance directors and CFOs is straightforward. Does this still apply to us?

The answer depends on one determination, namely the classification of the entity under the new EUDR typology. This classification determines who must submit a due diligence statement (DDS) and whohas been exempted from this obligation.

Regulation (EU) 2023/1115 will apply from 30 December 2026 to medium sized and large enterprises and from 30 June 2027 to micro and small enterprises.

Three groups exempted from submitting their own DDS

Three groups have been removed from the obligation to submit their own DDS.

First, downstream operators, meaning entities that, among other activities, place on the market products manufactured from commodities already covered by an earlier DDS or simplified statement. Examplesinclude a chocolate manufacturer processing cocoa covered by its supplier’s DDS or a furniture manufacturer using wood covered by a simplified declaration.

Second, traders in the traditional sense of entities trading in a product that has already been placed on the EU market.

Third, micro and small operators, which submit a one time simplified statement instead of a full DDS.

Operators remain subject to full due diligence obligations

Full DDS obligations continue to apply to operators, meaning entities that place a product on the EU market for the first time or export it from the EU.

They are responsible for full due diligence, including plot geolocation, risk assessment and risk mitigation measures.

The penalties remain unchanged and include administrative fines amounting to at least 4% of the annual EU turnover of the operator, downstream operator or trader responsible for the infringement.

Exemption from DDS does not mean exemption from EUDR

In practice, the most common mistake is to assume that exemption from the DDS requirement means exemption from EUDR. This is not the case.

Downstream operators and traders are still required to collect and retain for five years information identifying their suppliers, DDS reference numbers or simplified declaration identifiers, as well as informationabout the entities to which they supplied the product.

Downstream operators and traders are also required to register in the EUDR information system.

Entity classification is the starting point for EUDR preparations

Classifying an entity’s position in the supply chain under the new typology, as a primary operator, downstream operator, trader, SME or non SME, is now the starting point for any meaningful EUDR implementation project.

Conclusions

Investments in full due diligence made in 2025 do not lose their value. They constitute evidence in the event of an inspection.