Introduction

Early and comprehensive preparation of a company for the obligations arising from the EUDR Regulation (EU) 2023/1115 allows not only avoiding sanctions, but also organizing the supply chain and building a competitive advantage.

The EUDR introduces a number of new requirements for businesses that offer products related to deforestation or forest degradation on the EU market. This regulation covers the production, import, and resale of goods containing components derived from selected raw materials. A detailed analysis of the supply chain and the development of appropriate internal procedures are crucial for effective implementation of the regulation.

Case description

The client was a furniture company selling both within and outside the EU, utilizing an extensive network of suppliers and multiple layers of intermediaries. With the entry into force of the EUDR, the company faced the challenge of implementing new obligations: identifying the roles of individual entities in the supply chain, collecting the required documentation, and preparing to submit due diligence declarations.

Solution method

We began with a comprehensive analysis of the client's business model and mapping of the entire supply chain. Our priority was to determine which components and products were already covered by DDS documentation, and in which cases new obligations would arise for the client. We developed and implemented a set of internal procedures, including obtaining and archiving documentation, implementing control mechanisms, and formulating precise contractual clauses for contracts with factories and suppliers. Transferring the obligation to inform partners about supply changes allowed for ongoing compliance monitoring of the entire process.

Effects

Thanks to the implemented procedures, the client not only achieved full operational readiness before the statutory deadline, but also streamlined supplier relationships and eliminated risks related to incomplete documentation. Early adoption of the EUDR allowed the company time to conduct tests and implement necessary improvements, avoiding last-minute actions.

Summary

This case demonstrates that regulations such as the EUDR are not merely a formality; properly implemented procedures increase transparency, legal security, and operational security for a company. A thoughtful approach to new obligations provides a competitive advantage and protects the company from future sanctions.