After understanding the core requirements and impacts of the EU Deforestation-Free Regulation (EUDR), enterprises are in greater need of a clear practical path to integrate compliance requirements into daily operations.
The core of EUDR compliance is not "complex and unintelligible" but "accurate implementation" — as long as enterprises advance around the three key principles of "authentic data, complete traceability, and efficient collaboration", they can successfully meet regulatory requirements while balancing compliance costs and market efficiency.

The prerequisite for compliance is to "have a clear understanding of one's own operations" to avoid blind investment. Enterprises must first complete two basic tasks:
Scope Self-Inspection: Compare with the EUDR regulatory list to confirm whether the enterprise's own products and raw materials are included (covering both direct commodities and downstream derivatives).
For example, cosmetics companies using palm oil and tire manufacturers with rubber components all need to be included in compliance management.
Supply Chain Sorting: Trace the source of raw materials, mark the risk level of the country/region where suppliers are located, give priority to cooperating with suppliers that can provide land parcel coordinates and land ownership certificates, and establish a "compliant supplier whitelist".
For upstream entities such as smallholders, communicate compliance requirements in advance and reserve adaptation time.

The core of EUDR lies in "verifiable data", so enterprises must establish a data collection and management system covering the source of raw materials:
Core Data Collection: Focus on collecting accurate GIS coordinates of raw material source plots, land use right certificates, production records (such as planting/logging time), transportation documents, etc., to ensure that each batch of raw materials can be traced to specific land parcels.
Empowerment by Digital Tools: Use digital tools such as supply chain management systems and satellite monitoring platforms to realize real-time data entry, traceability and verification.
There is no need to invest heavily in building complex systems; lightweight tools can be selected to first meet the needs of "data correlation and retrievability", reducing initial investment.

The key to supply chain compliance lies in the "upstream". In particular, enterprises relying on smallholders or small traders need to effectively empower suppliers:
Compliance Training: Conduct basic EUDR training for upstream suppliers, explain practical skills such as geographic coordinate collection and document sorting, and provide simple collection tools (such as mobile positioning apps) to help them quickly master compliance requirements.
Establish a Collaboration Mechanism: Sign a "Deforestation-Free Compliance Commitment" with suppliers, clarify terms such as data provision and responsibility division, and transform the single procurement relationship into a "compliance partnership".
For suppliers that cannot meet the requirements temporarily, set a rectification schedule to avoid supply chain disruptions caused by changing suppliers.

The final link of compliance is "standardized declaration and evidence retention" to avoid customs clearance issues caused by procedural omissions:
Submit DDS on Time: Before customs clearance of goods, submit the Due Diligence Statement (DDS) through the designated EU system to ensure that the declared information is consistent with the actual data, without omissions or errors.
Long-Term Record Retention: In accordance with EUDR requirements, supply chain-related records must be retained for at least 5 years, including data collection forms, supplier agreements, DDS declaration documents, verification feedback, etc., for subsequent verification by EU competent authorities.

Faced with the complex rules and tight deadlines of EUDR, many enterprises may feel confused: not sure where to start with due diligence? Unclear how to trace the origin of commodities? Worried that cumbersome compliance processes will affect business progress?Don’t worry! SKYCO2 provides enterprises with end-to-end compliance services for the EU Zero-Deforestation Regulation (EUDR). We help you address all bottlenecks in the compliance process, assist your enterprise in seamlessly meeting EU market access requirements, and enable you to calmly navigate EUDR while firmly seizing market opportunities!If your enterprise intends to prepare for EUDR in advance, please feel free to contact us at any time, and let our professional team develop a tailor-made compliance plan for you.