What is EUDR and does it apply to you

EUDR is the nickname of REGULATION (EU) 2023/1115 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 31 May 2023 on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010. It sounds like nothing but trouble, we know, so here’s the TLDR: What it covers: The regulation applies to seven commodities and their derived products: cattle, cocoa, coffee, oil palm, rubber, soya, and wood. This includes items like beef, chocolate, furniture, and tires. The core requirements: Deforestation-free: The products must not have been produced on land that was deforested or subjected to forest degradation after December 31, 2020. This is a strict definition that includes both illegal and legal deforestation. Legally produced: The products must also comply with all relevant laws of the country of production, including those on land use, environmental protection, and human rights. Deforestation-free: The products must not have been produced on land that was deforested or subjected to forest degradation after December 31, 2020. This is a strict definition that includes both illegal and legal deforestation. Legally produced: The products must also comply with all relevant laws of the country of production, including those on land use, environmental protection, and human rights. Due diligence: Companies must perform rigorous due diligence to ensure compliance. This includes: Collecting information and data, such as the geographic coordinates of the land where the commodities were produced Conducting a risk assessment to determine if there is a risk of non-compliance. Implementing risk mitigation measures if a risk is identified. Enforcement: Non-compliance can lead to severe penalties, including fines of up to 4% of a company’s annual EU turnover, confiscation of goods, and a ban from the EU market for repeat offenders. Timeline: The new rules became applicable on December 30, 2025, for most companies, with a later date of June 30th 2026 for micro and small enterprises. If you don’t deal with any of the goods above in any way, shape or form, feel free to breathe a sigh of relief. If you are unsure whether or not you do, go to page 38 of the Regulation and take a look at the exhaustive list of commodities affected. If none of them are in your warehouse and never have been – relax, you are unaffected. If you are affected, though, strap in. Besides the actual requirements, the most difficult thing for companies to figure out is to what extent they apply to them. The Regulation makes a clear distinction between Operators and Traders and further between SMEs and non-SMEs. Traders are exactly what they sound like – resellers of EUDR-affected products that have already been placed on the EU market by a previous party. As long as traders are an SME, they are only required to keep a database of the due-diligence the previous parties have filed with the EU. If Traders are non-SMEs, then they are effectively Operators in terms of due-diligence requirements. Operators bear the majority of the bureaucratic load of the EUDR and almost all of the responsibility. An operator is the entity that first places a relevant product on the EU market or exports it from the EU. This includes: An importer bringing products from outside the EU into the EU. An EU-based company that transforms a relevant product (e.g., uses cocoa butter to make chocolate) and then places the new product on the market. An entity that harvests a relevant commodity within the EU and then makes it available on the EU market. An exporter shipping products from the EU to a non-EU country. Here is a chart to clear things up:

As much as it may seem otherwise, most companies are Traders – there is just a lot of specific cases that fall in the Operators category. However, all the unspecified ones are Traders, so if you can’t recognize your specific case on the chart, you are almost definitely a Trader. Feel free to contact our expert team on our free help line and we will guide you through the hoops of figuring out what EUDR requires you to do!

How to master EUDR compliance The EUDR is a new breed of EU legislature insofar as it is able to render a business utterly incapable of continuing its operations unless all requirements are met. It is therefore critical for companies to master it before it comes into effect, or they can literally be forced to close down. Arguably, the most difficult part about this Regulation is understanding exactly it expects you to do. Actually doing it is not easy, per se, but much more fathomable. If you are still trying to understand whether or not it applies to you, please refer to our publication on that topic (link to previous blog). Once you know whether you are a Trader or an Operator, you should begin working on your due-diligence system. For SME Traders this means putting all of your suppliers of a list, figuring out which ones supply you with affected goods, and contacting them to see how far along they are. You should have them sign a declaration that their due-diligence and subsequent risk assessments are not pro-forma, that they are to only provide you with information that is, to their knowledge, truthful and full. From there on, you are required to have the numbers of their approved Due-Diligence Statements (DDSs) for every shipment you receive from them and store them for a minimum of five years in a database of your choosing. That’s it. It is not a terribly difficult thing to do and should not take much effort as long as you find a way to effectively organize these communications. In case you feel lost or have any questions about the supplier declarations or the DDS numbers – contact us and we’ll help you out. Now onto the beast that Operators and non-SME Traders have to tackle – full Due-Diligence. For Operators and non-SME Traders, the EUDR due diligence system is a robust, three-step process that must be continuously maintained and is subject to official audits. This is not a one-time check, but an ongoing system to ensure compliance. Step 1: Information Gathering (Surveys) This is the foundation of your entire due-diligence system. For every relevant product you place on the EU market or export, you must collect a wide range of information to prove it is deforestation-free and legally produced. This includes: Product and Supply Chain Details: A full description of the product, including its common and scientific names, the relevant Harmonized System (HS) code, and the quantity. Country of Production: The country where the commodity was grown or harvested. Geolocation Data: This is the most challenging requirement. You must have the precise geolocation of all plots of land where the raw materials were produced. This means: Point coordinates (latitude/longitude) for plots of land smaller than four hectares. Polygon mapping (a defined boundary) for plots of land four hectares or larger. Production Dates: The date or time range of production. Proof of Legality: You must collect verifiable information that the product was produced in accordance with all relevant laws of the country of origin, including those related to land use, environmental protection, and human rights. Step 2: Risk Assessment Once you have gathered the data, you must conduct a thorough risk assessment to determine if there is a “negligible risk” of non-compliance. This is not a simple yes/no. You must analyze the collected data in light of various factors, including: The country’s risk classification (low, standard, or high) as determined by the European Commission. The prevalence of deforestation or forest degradation in the area of production. The complexity of the supply chain. The existence of reliable third-party certifications or schemes. Any substantiated concerns about the history of non-compliance of your suppliers. If your assessment concludes that the risk is not negligible, you cannot proceed to place the product on the market without moving to the next step. Step 3: Risk Mitigation If a non-negligible risk is identified in Step 2, you must take adequate and proportionate measures to reduce that risk to a negligible level. This could involve: Requesting additional documentation or evidence from your suppliers. Hiring an independent third-party to conduct on-the-ground surveys or audits. Using satellite imagery and other monitoring tools to verify the “deforestation-free” status of the land. Terminating your relationship with a supplier if you cannot mitigate the risk. Only after these steps have been completed and you have determined that the risk is negligible can you submit the Due Diligence Statement (DDS). Submitting the Due Diligence Statement (DDS) The final step for Operators and non-SME Traders is to submit a DDS for every shipment through the EU’s TRACES system. This is a legally binding declaration that you have completed your due diligence and that the product is compliant. The DDS contains the collected information, including geolocation data, and receives a unique reference number that must be provided to customs and to downstream traders. Mastering the EUDR is an organizational undertaking. It requires a dedicated system for data collection, a rigorous process for risk assessment, and a clear plan for risk mitigation. The most successful companies will integrate these procedures into their core business operations, not just treat it as a box-ticking exercise. Hundreds of companies are already using a one-stop and totally frictionless EUDR solution to conduct their risk assessments and be ready for the looming deadline of 30 December 2025 when DDSs have to start flying over to the EU TRACES system. With n’entropy, you stay compliant and never have to leave your dashboard again. Contact our team of professionals for a free consultation and join the family today.

Navigating the Green Labyrinth: EUDR’s Place in EU Sustainability Legislation The European Green Deal is more than a policy—it’s a paradigm shift. With a binding target to be the world’s first climate-neutral continent by 2050, the EU is systematically reshaping its economy and regulatory landscape. It doesn’t really matter how one feels about it – the wheels are in motion and change is undoubtedly coming. For businesses, this means a flood of new legislation that is interconnected, demanding, and, at times, dizzying. While many companies are grappling with the Corporate Sustainability Reporting Directive (CSRD) and the Carbon Border Adjustment Mechanism (CBAM), the EU Deforestation Regulation (EUDR) has emerged as a particularly sharp point of compliance risk. The EUDR is not an isolated piece of legislation. It is a key pillar of the EU’s “Fit for 55” legislative package, a comprehensive set of measures designed to reduce the bloc’s net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. In this larger context, the EUDR has a distinct and critical role: to sever the link between the products consumed in the EU and the global deforestation that drives climate change and biodiversity loss. While other regulations focus on carbon emissions from industrial processes (ETS) or the carbon content of imported goods (CBAM), the EUDR targets the environmental impact of land use. It recognizes a fundamental truth: a significant portion of the world’s deforestation is driven by the production of commodities like soy, palm oil, and beef. By regulating these specific products, the EU is directly addressing a major, often hidden, source of its environmental footprint. This targeted approach makes the EUDR a uniquely powerful and complex piece of the sustainability puzzle. It goes beyond mere reporting. It requires a fundamental shift in how companies manage their supply chains. The days of accepting a supplier’s word are over. With EUDR, a company must: Go Beyond Paperwork: It’s not enough to simply collect a sustainability certificate. You must have verifiable, on-the-ground proof. Trace to the Source: The requirement for precise geolocation coordinates—down to the specific plot of land—is a game-changer. It demands a level of traceability that was previously a “nice to have,” but is now non-negotiable. Embrace Continuous Monitoring: The deforestation-free requirement is not a snapshot in time. You must be able to prove that the land has remained deforestation-free since December 31, 2020. This necessitates ongoing monitoring of your supply base. For many companies, this level of scrutiny is uncharted territory. It requires new systems, new data streams, and new ways of working with suppliers. The challenge is immense, but so are the stakes. Non-compliance can lead to massive fines, reputational damage, and a complete loss of market access. Companies we work with often find themselves at a crossroad – should they hire to solve the problem, or should they digitalize? To each their own I guess, but the truth is that the demands EUDR’s grow exponentially with company size and very quickly get too complex and data-intensive for manual spreadsheets or generic enterprise software. At n’entropy, we built our software precisely for this challenge. We understand that EUDR is not just another regulation—it’s a critical component of the EU’s sustainability ambition that requires a new kind of solution. With us you can easily: Automate Data Collection: A platform that makes it easy for your suppliers, from small farmers to large producers, to upload and verify geolocation data. Perform Intelligent Risk Assessments: Software that goes beyond country-level risk, using geospatial data and AI to flag potential deforestation events on specific plots of land. Generate Audit-Ready Reports: A one-stop shop for storing due diligence data and automatically generating the Due Diligence Statements (DDSs) needed for submission to the EU’s TRACES system. With n’entropy, you can transform a compliance burden into a competitive advantage, proving to your customers and regulators that your commitment to a sustainable future is not just rhetoric, but a verifiable fact. Don’t get lost in the green labyrinth. Let n’entropy be your guide. Key mistakes to look out for when tackling EUDR requirements It goes without saying, but new things are really scary in business and especially so when they are mandatory. And that’s okay. Fear is what keeps us alert and up to date on what’s new. In this case, EUDR. If you’ve heard about it, but don’t have the slightest idea what it actually is, we have a 1-minute TLDR on just that – go check it out (hyperlinked to article 1). Now that we are all on the same page, it’s time to discuss the pitfalls you are inevitably going to face if you try to tackle EUDR with no preparation whatsoever. Or, God forbid, let AI chatbots do it for you – they really aren’t as good at it as we all wish they were. Here are the top 5 mistakes we’ve seen companies make.

1. Relying on Outdated or Insufficient Data Mistake: Assuming that existing data is good enough. The Pitfall: The EUDR’s geolocation requirement is unprecedented. Vague country of origin data or even batch-level traceability will not cut it. You must have precise, plot-level coordinates (single points or polygons) for every production site. Many companies assume that their suppliers, especially smallholders, have this data readily available. The reality is often far from it, and a “just-in-time” request will lead to an operational bottleneck. How to Avoid It: Proactively work with all your suppliers—large or small—to capture and verify geolocation data. This is a multi-month process that requires clear communication and often a technological solution to streamline data collection.
2. Over-Reliance on Certifications Mistake: Believing that a third-party certification (like FSC or RSPO) makes you automatically compliant. The Pitfall: While certifications are valuable and can support your risk assessment, they do not replace due diligence. The EUDR has specific, non-negotiable requirements, such as the December 31, 2020, cut-off date and plot-level traceability, that many certifications do not fully cover. Relying solely on a certificate is a fast track to a rejected Due Diligence Statement (DDS). How to Avoid It: Use certifications as one piece of evidence, but always cross-reference the data provided by your suppliers with the EUDR’s specific requirements. Ensure you have the underlying geolocation data and proof of legality to back up any claims.
3. Underestimating the “Risk Assessment” Step Mistake: Thinking that collecting data is the same as conducting a risk assessment. The Pitfall: The EUDR requires a formal, documented risk assessment (Article 10) to determine if there is a “negligible risk” of non-compliance. This is not just a box to tick. You must analyze the data you’ve collected in the context of the country’s risk level, the prevalence of deforestation in the area, and the complexity of your supply chain. Simply having geolocation data is not enough if a satellite image shows recent deforestation on that very plot. How to Avoid It: Integrate your data collection with a robust risk assessment methodology. Use a system that let‘s you cross-reference geolocation data with satellite imagery and other risk indicators to provide real-time alerts.
4. Mismanaging Supply Chain Complexity Mistake: Assuming your supply chain is transparent. The Pitfall: Many companies have multi-tiered, complex supply chains with intermediaries and aggregators. The EUDR holds you responsible for every link in that chain. A single non-compliant plot of land can render an entire shipment non-compliant, especially with commodities that are often mixed, such as soy or coffee. How to Avoid It: Get an end-to-end view of your supply chain, from the final supplier back to the farm or forest plot. Establish clear contractual terms with all direct suppliers, requiring them to provide the necessary data and cooperation.
5. Siloed and Manual Processes Mistake: Attempting to manage EUDR compliance with spreadsheets and emails. The Pitfall: EUDR is a data-intensive, ongoing process. Managing it manually across different departments—procurement, sustainability, and legal—creates fragmentation, data errors, and a high risk of missed deadlines. A single audit request for a specific shipment could take weeks to fulfill, leaving you vulnerable to penalties. How to Avoid It: Implement a centralized solution. A platform that acts as a one-stop shop for data collection, risk assessment, and DDS generation can bridge the gap between teams and ensure all data is audit-ready and easily accessible. At n’entropy, we’ve seen these mistakes firsthand and designed our software to prevent them. Our platform provides the seamless, integrated solution you need to go beyond simple compliance and build a truly resilient and sustainable supply chain. With n’entropy, you can avoid these pitfalls, streamline your operations, and turn EUDR from a regulatory burden into a source of competitive advantage.

Making the Most Out of the Nuisance That Is EUDR Let’s be honest. For anyone managing a global supply chain, the EU Deforestation Regulation (EUDR) feels like a monumental nuisance. It’s a logistical challenge, a data nightmare, and a costly new item on the compliance checklist. It demands granular information—down to the exact plot of land—for commodities that have historically been opaque and difficult to trace. But what if we reframe this? What if we see this “nuisance” not as a dead-end, but as a strategic pivot point? The very things that make EUDR a pain point are the same things that will empower your business to thrive in a more transparent and sustainable global economy. Here’s how to make the most of the nuisance that is EUDR:

1. The Nuisance of Transparency Becomes a Shield Against Risk The EUDR’s most burdensome requirement is its demand for precise geolocation data for every plot of land where your products were produced. This is a massive undertaking, especially for complex supply chains with smallholders. This “nuisance” of having to map every tier of your supply chain is actually a powerful tool for risk mitigation. Before EUDR: You might have sourced from a country known to be high-risk, but lacked the data to know if your specific supplier was engaged in deforestation. With EUDR: The process of gathering and verifying geolocation data forces you to identify and address these risks head-on. You can pinpoint suppliers in at-risk areas and proactively work with them to ensure compliance or, if necessary, find a new sourcing partner. This shields your brand from future supply chain disruptions and reputational damage.
2. The Nuisance of Data Collection Becomes an Engine for Efficiency Manually collecting, verifying, and storing geolocation data for thousands of suppliers is a monumental administrative burden. This is the ultimate “nuisance” that can grind operations to a halt. However, the solution to this problem—implementing a centralized, digital system—unlocks major operational benefits. Before EUDR: Your supply chain data was likely scattered across spreadsheets, emails, and various departmental silos. With EUDR: To comply efficiently, you must build a single source of truth for all your sourcing data. This centralized system allows you to manage suppliers, track due diligence, and generate reports with unprecedented speed and accuracy. The upfront “nuisance” of building this system results in long-term operational efficiencies that pay for themselves.
3. The Nuisance of Compliance Becomes a Catalyst for Brand Loyalty In a market where consumers are increasingly concerned about environmental and social impact, generic sustainability claims are no longer enough. The EUDR is a nuisance because it demands you prove your claims with hard data. Before EUDR: You could say your product was “sustainably sourced,” but you couldn’t prove it to a skeptical consumer. With EUDR: Your due diligence process—the very “nuisance” you have to undertake—provides the verifiable proof you need. You can confidently communicate to consumers that your chocolate, coffee, or furniture is truly deforestation-free, building a level of trust that competitors cannot match. This “nuisance” transforms into a powerful competitive advantage that drives sales and strengthens your brand. To leverage the added benefits of EUDR, you must not just endure the nuisance of it, but embrace it. Use it to build a more resilient supply chain, streamline your operations, and create a brand that is transparent, trustworthy, and ready for the future. We take the most challenging parts of the regulation—data collection from suppliers, automated risk assessment, and auditable reporting—and make them seamless. N’entropy is designed to handle the complexity so you can focus on the strategic benefits and finally get that fleet of new company vehicles you configured 3 years ago.

Tips & tricks for engaging suppliers Navigating the EU Deforestation Regulation (EUDR) is a team effort, and your suppliers are key players. The biggest mistake you can make is treating them like they’re just another item on a to-do list. The secret to success isn’t just demanding data; it’s about building a collaborative relationship. Here’s a breakdown of how to get them on board effectively. Demanding Data Without Context “We require your geolocation data for compliance with the EUDR. Please provide it by the deadline.” The Fix: Build a Shared Mission “Hey, we’re working on a new EU regulation that aims to stop deforestation. It’s a big deal for us and for the planet, and it affects all of us. The data we’re asking for isn’t just a compliance requirement—it’s how we prove together that our products are sourced responsibly. This shared commitment helps us build a more resilient supply chain and meet growing customer expectations, which is a win for both our businesses.” Burdening Them With Paperwork “Please submit all documentation as outlined in the 15-page EUDR guide.” The Fix: Offer a Helping Hand “We know this is a new process, and we want to make it as simple as possible. We’ve put together a simplified guide that highlights the key steps. We also have a user-friendly platform where you can easily upload the information we need. Let us know if you have any questions or if there’s anything we can do to assist.” Just Mandating Compliance “Your continued business with us is contingent on full EUDR compliance.” The Fix: Incentivize Their Collaboration.whom “We’re prioritizing our relationships with suppliers who we’ve worked well with for a long time and want to keep it that way. Moving forward, full compliance will be a key factor in our partnership evaluations, and we therefore ask you to join us on this mission so we can grow together, as a team. We’re also looking at incentives like long-term contracts for partners who are ready to take this journey with us.” The EUDR really does introduce real challenges for supply chains and we know that. You know that and so do your suppliers. Engaging them, rather than demanding from them like every other client of theirs will, is at the top of your priorities list. The good news is that these challenges can be overcome with the right tools. This is precisely the problem our platform was built to solve. n’entropy provides a dedicated, intuitive space where your suppliers can easily upload the information you need, streamlining the entire process. By automating data collection and creating a single source of truth, we help you turn a compliance headache into a seamless, collaborative effort.

What to do with high-risk suppliers Realizing that one or, dread the thought, many of your suppliers are high-risk may seem like the end of the world. And frankly, it totally could be if you obsess about it rather than act on it. There is a long laundry list of options to attack the situation, but it eventually boils down to two – either go check what’s up with your guy or get a new one. What you decide is not as important as why you make said decision. Sure, I get it, changing a supplier is an absolute force majeure situation, but it doesn’t need to be as scary. It is all down to costs. If it will cost you more to go check the situation on the ground than to change the supplier (which can truly be exuberantly pricey), then go for the change. If you suspect the check will prove your high-risk rating is not mitigatable, try to assess how you ended up with this supplier and avoid making the same mistakes when choosing the new ones. So, what does it mean to “go check”? This isn’t just about sending an email. The EUDR’s due diligence requirements for high-risk suppliers are explicit and legally binding. If your supplier is in a country or region flagged for high deforestation risk, your responsibility to verify their claims skyrockets. Option 1: Enhanced Due Diligence and Mitigation This is the path of enhanced due diligence. You must implement concrete measures to reduce the identified risk to a “negligible” level. This means going far beyond a simple due diligence statement. Request More Information: Ask for proof of land tenure, permits, or other legal documents. These documents should verify that the land is legally owned and used for its stated purpose. Conduct Independent Audits: You might need to hire a third party to conduct an on-the-ground audit of the supplier’s operations. This is crucial for verifying their practices and ensuring they meet the “legally produced” standard. Leverage Technology: This is where a modern approach pays dividends. Use advanced satellite imagery and remote sensing tools to verify that the geolocation data provided by your supplier is accurate and that the land has indeed been free from deforestation since December 31, 2020. This allows for continuous monitoring without constant travel and can provide a level of verifiability that a single site visit cannot. Implement an Action Plan: Work directly with the supplier to create a time-bound plan to address any gaps. This could include helping them formalize land ownership, shift to more sustainable practices, or implement better on-site controls. This path requires a significant investment of time, money, and resources. But if the supplier is a critical part of your supply chain and the relationship is worth saving, this can be the most effective long-term solution. Option 2: Sourcing a New Supplier Sometimes, the cost of mitigation is simply too high. Whether it’s the cost of verification or the unlikelihood of a supplier being able to change their practices, a clean break may be the only sensible option. This decision is not without its own risks. It can lead to: Supply Chain Disruption: Finding a new, compliant supplier takes time and effort. You might face sourcing gaps or delays. Increased Costs: The new supplier might come at a higher price, reflecting their investment in sustainable, traceable practices. Starting from Scratch: You will have to go through the full due diligence process all over again, from initial screening to contract negotiation. The EUDR provides a clear choice: either invest in a more resilient supply chain by mitigating risks with your current partners, or make a clean break for a fresh, more compliant start. Neither path is easy, but both are essential for long-term success. This is where a purpose-built solution becomes invaluable. n’entropy was designed to provide the intelligence you need to make these critical decisions with confidence. By centralizing your data, automating risk assessments, and providing real-time satellite monitoring, our platform empowers you to quickly verify your current suppliers and seamlessly onboard new, compliant ones. We help you navigate this crossroads, so you can transform a moment of crisis into a strategic opportunity.

On-site EUDR auditing suppliers – who, how and how much When your EUDR due diligence system flags a supplier as high-risk, the clock starts ticking. A simple declaration is no longer enough and you need to prove you’ve taken serious action to mitigate that risk. For many businesses, the final, most robust step is an on-site audit. This is where the rubber meets the road. It can be a significant undertaking, but it’s a necessary one to ensure compliance and protect your business. Who Does It? While the legal responsibility for EUDR compliance rests squarely on the Operator (the company placing the product on the EU market), the actual audit work is most often delegated to specialized third-party firms. Global Auditing and Certification Bodies: This is the gold standard. Companies like SGS, Intertek, and QIMA have established global networks and decades of experience in supply chain audits. They have dedicated teams with expertise in specific commodities and local regulations. Their reports are highly credible and are designed to stand up to regulatory scrutiny. Specialist Consultancies: A number of boutique firms and consultancies also offer EUDR-specific services, often with deep expertise in particular regions or commodities. They can provide tailored solutions that might fit specific needs. Ultimately, the choice depends on your company’s resources and the complexity of your supply chain. For high-risk suppliers, outsourcing to a professional third party is almost always the most secure option. How Do You Go About It? An EUDR audit is not a simple site visit. It’s a comprehensive process that merges legal and environmental verification. It should be a key part of your risk mitigation strategy. The auditor will follow a detailed checklist to ensure nothing is missed. They’ll perform a two-pronged check: Documentary Evidence: They will review critical documents to prove legality. This includes land titles, licenses, permits for harvesting or farming, and any documents related to land use rights and local labor laws. They will also verify that the provided geolocation data is valid and corresponds with the land documents. On-the-Ground Verification: This is the most crucial part. The auditor will physically inspect the plot of land to confirm it is indeed deforestation-free since December 31, 2020. They may use GPS coordinates to walk the boundaries of the plot and look for any physical signs of deforestation or forest degradation. They may also interview local workers or community members to ensure compliance with human rights and labor laws. The auditor’s final report will provide a clear picture of compliance and a list of any remaining risks that need to be addressed before a product can be placed on the EU market. How Much Will It Cost? This is the question on everyone’s mind, and while the exact cost is never fixed, you can plan based on regional ranges and the complexity of your supply chain. Pricing varies quite a bit depending on where the supplier is located due to factors like travel, local market rates, and operational complexity. Keep in mind, these audits are expensive endeavors, as much as we all hope they weren’t, so don’t be too alarmed by what follows. Europe: As the infrastructure is already strong in Europe, and many firms are set up to handle EUDR compliance, a typical audit here goes for between €5,000 and €15,000. South America (Brazil, Argentina, etc.): Prices here can range from €6,000 to €20,000. These regions are a middle ground in terms of cost, but can vary due to travel costs and the relative complexity of verifying environmental claims, especially in higher-risk regions like the Amazon. China: Expect a price range from €8,000 to €25,000 for China, and South-East Asia as a whole. The language barriers and the complexity of supply chains have a big effect on the surcharges for the region because auditors with the proper qualifications are simply more expensive. Let’s be honest: a surprise audit feels a bit like a trip to the dentist—costly, painful, and something you’d rather avoid. Paying thousands for a third-party audit just to prove what you already know can leave a sour taste in your mouth and a hole in your pocket. The best due diligence is the kind that renders a punitive audit not just unnecessary, but unimaginable. N’entropy gives you the power to pre-emptively manage risk, verify your supply chain with our integrated tools, and generate your compliance reports on demandon . We help you build a system so airtight, the risk is negligible from the start. That way, you’re not paying to clean up a mess—you’re investing in a clean slate.

EUDR: Internal competence and qualification needed The EUDR is more than just a new regulation; it’s a fundamental shift in how businesses must operate. It puts the burden of proof squarely on your shoulders, and to meet it, you need a different kind of internal competence. Think of it this way: this isn’t about adding more work to your team’s plate. It’s about empowering your existing experts to think properly and focus on the high-value decisions that only they can make. A New Kind of Expertise Gone are the days when a simple supplier declaration was enough. To truly navigate the EUDR, you need to combine legal knowledge with deep supply chain and even environmental competence. This translates to three core skill sets: Data Management & Analytics: This is the foundation. Your team needs to be able to handle a massive influx of data—from geolocation coordinates and production dates to land tenure documents. The competence isn’t just in collecting it, but in organizing it into a single, auditable system. Geospatial & Environmental Proficiency: This is a major skills gap for most companies. Your team needs to understand how to interpret satellite imagery and use geospatial analysis to verify that a plot of land has not been deforested. Supplier Engagement & Communication: The most challenging part of EUDR compliance happens upstream, often in remote regions. Your team needs the soft skills to educate suppliers, especially smallholders, on the importance of the regulation and how to provide the required information without making it feel like a burden. Who Needs to Be on the Team? EUDR compliance is a shared responsibility that must be owned across the organization. It’s a team sport, not just a task for one manager. Your existing teams—Procurement, Sales, Legal, and IT—are the right people for the job. They simply need the right tools. Building Your Internal Competence Recognizing this skills gap is the first step. You don’t have to hire new staff or add more work. You can empower your current employees to meet this challenge head-on. A key way to do this is by providing them with training to help them understand the nuances of the regulation and how to interpret the data properly. Once we train your team on how to approach the problem, the only piece of the puzzle is the tools they use. With n’entropy you are fully equipped to take the EUDR compliance burden off your team’s shoulders. We handle the heavy lifting of data collection, risk assessment, and geospatial verification, so your experts can focus on what they do best: strategic decision-making and strengthening your supply chain. We simplify the entire process, empowering your current team to become EUDR-competent and compliant, without adding a single task to their plate.