Chocolate draws attention. Data makes the difference.

In cocoa, compliance is not simply about gathering a few documents at the right moment. It requires linking plots, suppliers, physical flows, supporting evidence, and geolocation data into one coherent system. The European Commission also reminds us that the logic of the regulation is based on three clear steps: information collection, risk assessment, and, where necessary, risk mitigation. For cocoa, this logic also translates into a strong requirement to separate compliant flows from non-compliant or unknown-origin flows.

This is precisely what makes the cocoa sector so demanding. It often relies on long, fragmented, international supply chains, with very different levels of maturity depending on the actors involved. Between field data, documentation, intermediaries, logistics operations, and regulatory expectations, the challenge is not only to collect information. It is to collect the right information, structure it properly, and then make use of it quickly.

A sector that is moving forward, but still in fragments

That said, the cocoa sector is not standing still. It is trying to organize itself. And this is probably one of the most important signals right now.

At the sector level, the World Cocoa Foundation emphasizes the need to better qualify the data used for environmental monitoring and to move toward more comparable, transparent, and robust approaches across the industry. Its message is clear: without a shared framework, common criteria, and better-quality data, stakeholders expose themselves to misinterpretation, inconsistent reporting, and real difficulties in achieving compliance.

The same logic applies on the ground. In Ghana, the European Forest Institute highlights that supply chain readiness notably depends on the rise of national traceability tools, digitalized systems, and mechanisms able to better support operators’ due diligence efforts. This clearly shows the direction the sector is taking: more structuring, more clarity, more organization.

In other words, there is a broader trend at work. The cocoa sector is moving toward greater harmonization. It is not starting from scratch, but it is still working to strengthen its benchmarks, methods, and standards.

The real issue is not only collection. It is standardization.

This is where the topic becomes strategic for companies.

Because in a complex sector, the challenge is not only the volume of information to process. It is also the heterogeneity of practices. A document submitted in a different format, incomplete geographic data, a filing logic that changes from one supplier to another, a non-uniform verification method: these gaps, often more than the regulation itself, are what slow operations down.

Standardizing processes is precisely what helps reduce this friction. It means defining a common way to collect, verify, structure, and use information. It means creating a shared operational language across procurement, compliance, quality, supply chain teams, and external partners. And above all, it means turning a set of scattered tasks into a process that is clearer, more reliable, and easier to manage.

The World Cocoa Foundation’s recent work moves exactly in this direction: more standardized data enables more comparable assessments, better-informed decisions, and more credible compliance.

In cocoa, compliance is becoming a matter of operational architecture

This is probably the most important point.

The EUDR does not simply require companies to be compliant in theory. It pushes them to demonstrate that compliance in a structured way. In cocoa, that demonstration depends directly on the ability to circulate reliable information across several levels of the supply chain, without disruption, without loss of context, and without ambiguity regarding the origin or status of flows.

From this perspective, the challenge is not only regulatory. It is also organizational. The companies making the most progress are not necessarily those accumulating the largest number of documents. They are often the ones able to implement homogeneous, repeatable, and easily understandable processes across all teams.

Where Supply Logica provides a concrete answer

This is precisely where Supply Logica becomes fully relevant.

In a sector seeking to become more structured, the goal is not to add another layer of complexity. The goal is to provide a clear framework that makes compliance usable on a day-to-day basis. Centralizing relevant information, organizing documentation more effectively, securing traceability, reducing scattered processing, and making verifications more consistent: this is the logic that turns a regulatory obligation into an operational process.

For cocoa stakeholders, the benefit is direct. The more standardized the processes are, the more fluidly teams can work. The more structured the data is, the clearer controls become. The more consistent the files are, the easier it becomes to manage compliance over time rather than suffer through it in a state of urgency.

At Easter, cocoa reminds us of one simple fact: compliance must be prepared long before the finished product

Talking about cocoa at Easter is therefore far from anecdotal. On the contrary, it is a good moment to remember that behind a highly visible product lies a much less visible chain of information, one that has now become decisive.

The cocoa sector is complex. It is trying to organize itself. A clear trend is emerging toward more standardization, more traceability, and greater rigor in the use of data. In this context, process standardization is not a matter of comfort. It is a lever for robustness.

And this is precisely where Supply Logica has a role to play.

An EUDR assessment helps turn the remaining time into an action plan that can support implementation within the required deadlines.

An EUDR assessment is the first concrete step towards serious compliance. It helps identify which products are actually in scope, map supply chains, qualify exposed suppliers, assess the quality of available data, and measure a company’s real ability to demonstrate compliance. This work is all the more important as the EUDR Information System has already been launched, and the Commission has made EUDR guidance and implementation resources available.

The postponement does not completely remove the operational complexity

In practice, EUDR compliance is not just about gathering a few documents. It often requires reviewing how flows are organised, how supplier data is collected, the quality of traceability, documentary consistency, and the ability to link a product to an origin, a batch, and sometimes precise geolocation coordinates. Analyses of the simplifications adopted at the end of 2025 and the 2026 legal analysis clearly show that, even if certain obligations have been eased for some actors, companies still need to structure their data, processes, and internal governance.

In 2026, the real risk is believing there is still “time”

The one-year postponement should be seen as a window for preparation, not as a reason to delay the work. It should give companies time to strengthen internal processes, analyse supply chain risks, train suppliers, and refine their control mechanisms. In other words, the additional time only has value if it is used to prepare compliance seriously. This is also the direction highlighted by recent 2026 analyses from Mayer Brown and Verdantix.

A more stable framework, but still a few developments to watch

This year, the regulatory framework is clearer than it was before, but it is not completely fixed in all of its practical details. According to Verdantix and Mayer Brown, the simplification review expected by 30 April 2026 should not reopen the core text of the regulation, but could involve targeted adjustments, notably through Annex I, the guidance, the FAQ, or certain implementation-related elements.

To learn more about how Supply Logica can support your EUDR compliance journey, contact our team today.

The risk is not theoretical. It is immediate. Even before thinking about future deadlines, there is one unavoidable reality: the EUTR is already fully in force. In the event of an inspection, this is the framework against which your company will be assessed.

EUTR Is Not on Hold: Controls Are Still Ongoing

Thinking that the current regulation is somehow “sleeping” while waiting for the next one is a common mistake. The EUTR already imposes strict rules to prevent illegally harvested timber from being placed on the European market.

Whether you are a large group or a micro-enterprise, if you are an Operator (the first party placing the product on the EU market), you have a legal obligation to maintain an active, documented, and demonstrable Due Diligence System. This is not optional. It is a condition for market access.

The Transition to EUDR: A Point Worth Anticipating

It is true that the regulatory landscape will evolve: the EUTR will be replaced by the EUDR on 30 December 2026.

But beware of the timing trap: because the timber sector is already regulated under the EUTR, small companies in this sector will not benefit from the grace period until June 2027 that applies to other sectors. If you are under EUTR today, you will move into the new system as early as December 2026. This is one more reason to make sure your EUTR process is already robust now: it is the only way to prepare for this transition with confidence.

Your Scope Is Probably Broader Than You Think

Another frequent blind spot is assuming that the EUTR only concerns logs or raw wood. In practice, the regulation covers a wide range of derived products, identified through their customs codes (HS/CN codes): fuel wood, sawn timber, panels, furniture, and a large share of paper and cardboard products.

As long as you have not validated your HS/CN codes, you do not really know how far the EUTR affects your business. This is the starting point of any serious compliance approach.

What EUTR Actually Requires

An invoice is not enough. A supplier’s statement made in good faith is not enough either. The regulation imposes three levels of obligation:

Access to information — You must know the precise origin of the timber (country and region of harvest), the species used, and have documents proving the legality of the harvest. A concrete example: a shipment of furniture imported from Southeast Asia may require tracing the documentation all the way back to the forest certificate at source.

Risk assessment — You must actively assess the risk of illegality: the level of corruption in the country of origin, the complexity of the supply chain, and the certifications available.

Risk mitigation — If the risk is not negligible, you must request additional evidence before placing the products on the market.

A critical point: you may delegate the collection of information to a service provider, but the legal responsibility remains entirely yours.

Another common mistake is believing that you can shield yourself behind your supplier. In clear terms: you may delegate information gathering, but the legal responsibility still remains yours.

Anticipating Now: Compliance Is a Process, Not a Box to Tick

One principle sums it all up: data must be collected upstream, never on the day of an inspection. Rebuilding complex documentary chains and harmonising product codes is not about “putting a file together” — it is about setting up a durable process.

This is exactly where most companies get blocked: suppliers contacted too late, missing documents, inconsistencies between shipments. If your EUTR compliance currently relies on scattered Excel files, the end-of-2026 transition will simply become unmanageable.

What Supply Logica Brings in Practical Terms

An effective EUTR system is, above all, an industrialised Due Diligence System built on reliable, traceable, and reusable data. That is exactly what we help you build: centralisation of product and supplier information, structured collection of traceability elements, simplified risk assessment, and operational monitoring so you are ready at any time in the event of an audit.

If you work with timber products, the right time to act is not the end of 2026. It is now. Map your flows, verify your HS/CN codes, strengthen your due diligence processes in a controlled environment, and start building today the solid foundation that will protect your business tomorrow.

To learn more about how Supply Logica can support your EUTR/EUDR compliance journey, contact our team today.

In this article, we explain what HS codes are, how they are structured within the European Union (CN, TARIC), and why identifying them correctly is a fundamental step for EUDR obligations and associated declarations.

HS codes (Harmonized System) are an international nomenclature administered by the World Customs Organization (WCO). Their purpose is to classify goods uniformly on a global scale to facilitate international trade, statistical collection, and the application of customs measures.

The Harmonized System is based on a six-digit coding system. This foundation is used by more than 200 countries to identify imported or exported products in a standardized way, regardless of language or country.

One can think of an HS code as a universal identifier: for example, the code 0901 corresponds to coffee.

2) HS, CN, TARIC: What are the differences in the European Union?

The six-digit HS code forms the international base. In the European Union, this base is supplemented by variations that add further levels of precision.

The CN Code (8 digits): The Combined Nomenclature (CN) is the European Union’s nomenclature. It adds two digits to the HS code to further specify product classification.

The TARIC Code (up to 10 digits): The TARIC can go up to ten digits. It is used to integrate specific regulatory requirements and EU measures (duties, restrictions, suspensions, controls, etc.) when a finer level of detail is required.

In summary:

– HS: 6 digits (International base)
– CN: 8 digits (European precision)
– TARIC: Up to 10 digits (European precision for regulatory purposes)

3) A Vital Point: Companies do not “choose” their code freely

It is important to avoid a common but inaccurate phrasing: a company does not “choose” its HS code in the sense that it can set it freely.

The code is determined by the nomenclature and the applicable classification rules (nature of the product, composition, function, degree of processing, etc.). The company’s role is to identify the code applicable to its product and then use it consistently in its master data, documents, and declarations.

In case of uncertainty or complex situations, it is possible to secure the classification via a dedicated administrative decision (Binding Tariff Information – BTI), in order to reduce the risk of error and misinterpretation.

4) Why are these codes decisive for the EUDR?

With the EUDR, the question is no longer just “how to declare a product,” but first and foremost: “Is my product subject to the regulation?”

The answer largely depends on customs classification: HS/CN codes are used to determine if a commodity falls within the scope of the regulation, in accordance with the list of relevant products in Annex I (wood, cocoa, coffee, soy, etc.).

In other words, EUDR compliance often begins with a structural step: correctly identifying the applicable code, as it dictates the scope, obligations, and the consistency of all downstream processes.

5) HS/CN Codes and Declarations via TRACES

Within EUDR processes, operators must enter product information into European systems, notably via TRACES, depending on the use case and the level of precision required.

The HS/CN code is one of the elements that allows for standardized identification of the goods, ensures a consistent interpretation of declarations, and aligns the product with applicable requirements.

6) Common Errors and Compliance Impacts

Imprecise or inconsistent classification is not merely an administrative detail; it can lead to compliance gaps, delays, or documentary inconsistencies.

Common errors include:

– Using a code that is too generic when a CN level is required.
– Confusing raw materials with processed products (different classifications and potentially different obligations).
– Reusing an unverified historical classification.
– Treating the subject as purely “customs-related” without measuring the impact on EUDR compliance and traceability.

Need help confirming your HS/CN code for EUDR?
Contact our team to validate your classification and secure your compliance steps.

The concept of due diligence is gradually establishing itself as a cornerstone of the transition toward more responsible supply chains. Still unclear for some, it is nevertheless becoming unavoidable with the entry into force of regulations such as the European Union Deforestation Regulation (EUDR) or the EU Timber Regulation (EUTR). But what does this due diligence obligation actually cover? And what must companies put in place to comply with it?

Due diligence refers to all the measures a company must take to identify, prevent, mitigate, and report on the negative impacts of its activities, particularly on human rights, the environment, or corruption. It is not an obligation of result, but an obligation of means: companies must be able to demonstrate that they have implemented appropriate processes to monitor their suppliers, trace their products, and avoid major risks within their supply chains.

The challenges are significant. From a legal perspective, companies can now be held responsible for damage caused by their direct—and sometimes indirect—suppliers, particularly in cases of deforestation, forced labor, or environmental violations. From an economic standpoint, a failure to carry out due diligence may result in financial penalties, market withdrawal, or even the loss of contracts in public or private tenders. Finally, from a reputational perspective, expectations from consumers, investors, and NGOs continue to grow.

To meet these obligations, companies must implement a structured due diligence policy: risk mapping, supplier selection and assessment, collection of supporting documentation, geographic traceability, contractual commitments, and corrective action plans. They must also ensure active transparency by regularly communicating on their efforts and results, for example through CSR or non-financial reporting.

Due diligence should not be seen as an administrative burden, but as a lever for transformation. It enables companies to anticipate crises, secure their supply chains, and differentiate themselves positively in a market where sustainability is becoming a strategic criterion.

When it comes to sustainability, inaction is more costly than anticipation. Due diligence is the ability to prove that action is being taken—not just promised.

Supply Logica supports companies in the practical implementation of their due diligence approach by ensuring product traceability, centralized management of compliance data, and preparation for regulatory requirements such as the EUDR or the EUTR (the EU Timber Regulation).

Would you like to structure or streamline your due diligence processes, or secure your regulatory compliance? Contact our team to discuss your needs.

From December 30, 2025, for medium and large companies, and from June 30, 2026, for small and micro-enterprises, the European Union Deforestation Regulation (EUDR – Regulation EU 2023/1115) will come fully into effect. For European importers, this entails a clear obligation: to prove that the products placed on the market are not linked to deforestation, forest degradation, or illegal practices.

This is a major challenge—logistical, legal, and technological. But it is also an opportunity to rethink sourcing strategies, strengthen transparency, and get ahead in a context where environmental requirements are becoming central. Here are the key steps to prepare effectively.

Identify the products concerned

The first step is to determine whether you are affected. If you import products containing timber, cocoa, coffee, palm oil, soy, rubber, or livestock-derived products (such as meat or leather), then yes, the EUDR applies to you. This remains true even if these raw materials are processed, blended, or integrated into other finished products such as furniture, cosmetics, or food.

It is therefore essential to conduct a precise inventory of your product portfolio, tracing back to the raw materials, to assess the regulation’s impact on your activities.

Understand the traceability requirements

At the heart of the EUDR is traceability—specifically, the ability to trace each batch back to its plot of origin. You will need to provide exact geographical coordinates proving that the area in question was not deforested or degraded after December 31, 2020. This often requires strengthening supplier relationships, demanding precise and reliable data, and ensuring that production is legal in the country of origin.

This is not always simple, especially if your supply chains are long and complex, but it is a non-negotiable requirement of the regulation.

Implement a due diligence process

The regulation requires a structured due diligence process. It is not just about collecting documents, but about being able to demonstrate that you have assessed the risks of non-compliance and taken appropriate action.

In practice, this means gathering key data on origin and volumes, analyzing potential risks (sensitive geographic areas, low-transparency suppliers, etc.), and implementing corrective measures when necessary. This work must be documented and ready to be presented in the event of an inspection.

Use the dedicated European platform

All due diligence declarations must be submitted through the European TRACES platform. This step will be mandatory before placing a product on the market. You will therefore need to ensure that your teams are trained, your information flows are well structured, and that declaration generation is seamlessly integrated into your import processes.

Each batch will require a specific declaration with its own data. This represents a major change in practice, requiring reliable digital traceability.

Anticipate inspections (and consequences)

Competent authorities in each Member State will be responsible for inspections. These will be risk-based, taking into account the type of product, the country of origin, and the company’s behavior. Non-compliance may result in severe penalties: fines, product withdrawals, or even market bans.

It is therefore strongly recommended to establish regular internal audits, formalize procedures, and involve your partners as early as possible to avoid unpleasant surprises.

Integrate EUDR compliance into CSR and procurement strategy

Compliance with the EUDR should not be seen merely as an administrative formality. It is also a lever to strengthen CSR commitments, reassure clients and partners, and build stronger, more sustainable supply chains.

Some companies are even choosing to anticipate requirements in order to position themselves as exemplary suppliers. And in a context where demand for responsible products is growing, this can become a significant competitive advantage.

A transformation to start now

EUDR compliance is not a task to postpone until the last minute. It represents a profound transformation of sourcing, traceability, and risk management practices. The earlier you prepare, the more likely you are to turn this obligation into a strategic opportunity.

To go further:

• Official text of the EUDR (Regulation EU 2023/1115)
• European Commission fact sheet

For more information on how Supply Logica can support you in your journey towards EUDR compliance, contact our team.

Since June 29, 2023, the European Union has adopted a major legislative text to combat imported deforestation: the EU Deforestation Regulation, commonly referred to as EUDR.
This regulation aims to ban the entry of products onto the EU market if they originate from land recently deforested or have been produced illegally.

In practice, this means that companies must now prove that the products they sell have not contributed to deforestation or forest degradation since December 31, 2020. It marks a real shift in international trade, putting sustainability and transparency at the heart of the European economy.

A Strict Framework to Protect Forests

The EUDR requires companies to exercise due diligence:
They must collect precise data on the origin of raw materials, assess deforestation-related risks, and take appropriate measures to ensure supply chain compliance.

A product is considered compliant if it meets three key conditions:

1. It must not come from land deforested after December 31, 2020;
2. It must be legally produced in accordance with the laws of the country of origin;
3. Its origin must be fully traceable, down to the plot of land where it was produced.

Consumer Products in the Spotlight

The regulation does not apply to all goods, but specifically targets commodities historically linked to deforestation:
Palm oil, soy, wood, cocoa, coffee, cattle (including leather and meat products), and rubber.

This includes a wide range of everyday consumer goods: furniture, chocolate, cosmetics, processed foods, and tires.
Any product that contains or depends on one of these raw materials may fall within the scope of the EUDR.

Who Is Affected by the Regulation?

All companies, regardless of size, are affected if they place EUDR-covered products on the European market.
This includes importers, manufacturers, distributors, and exporters within the EU.

Two implementation deadlines have been set:

• December 30, 2025 for large and medium-sized companies;
• June 30, 2026 for small and micro-enterprises

A Demanding Traceability System

To ensure the regulation’s effectiveness, the EU is rolling out a centralized platform, TRACES, where each company must submit a Due Diligence Statement (DDS).

This statement must include:

• Precise geolocation data to identify production plots;
• A deforestation risk assessment.

If a company identifies a high risk, it must implement corrective measures before its products can be marketed.
The goal is clear: to ensure that European consumers no longer, even indirectly, contribute to deforestation or forest degradation.

A Global Impact

The EUDR will have far-reaching effects beyond Europe’s borders.
Many producer countries in Latin America, Africa, and Asia will need to adapt their agricultural, forestry, and trade practices if they wish to continue exporting to the EU.

This regulation also acts as a diplomatic lever, with the EU planning technical and financial support measures to assist in this transition.
However, some countries have expressed concerns, viewing the EUDR as a unilateral measure.
International dialogue will be crucial to turning this regulation into a tool for global cooperation.

A Strategic Opportunity for Businesses

Beyond the regulatory obligation, the EUDR represents a strategic opportunity.
Companies that adapt quickly will strengthen their brand image, secure access to the European market, and meet the growing demand for responsible products.

On the other hand, those that delay action risk penalties and a loss of competitiveness in the medium term.

The EUDR is not just an administrative formality. It marks a profound transformation in sourcing practices.
The sooner companies embrace this shift, the sooner they can turn it into a competitive advantage.

Tools like Supply Logica help transform this regulatory pressure into operational clarity and efficiency.

Simplify your EUDR compliance: create your DDS in our app — we’ll submit it to TRACES automatically. Contact our team.

Why EUDR Compliance Requires End-to-End Supply Chain Traceability

The European Union has implemented the EU Deforestation Regulation (EUDR) to combat imported deforestation and ensure that only products from sustainable supply chains are allowed onto the European market. For companies, this means collecting, centralizing, and sharing accurate traceability data.
In this context, Supply Logica offers a comprehensive compliance management solution designed to meet the strict requirements of the regulation.

In this article, discover how Supply Logica supports businesses in implementing the EUDR, by ensuring robust traceability, rigorous data management, and seamless compliance information transmission.

Geolocation of Plots: A Key Requirement of the EUDR

How Supply Logica Secures Plot Traceability

One of the pillars of the EUDR is the geolocation of sourcing plots. Companies must demonstrate that traded products do not originate from areas deforested after December 31, 2020.
Supply Logica enables operators to input, verify, and map the GPS coordinates of source plots, ensuring compliant and easily auditable traceability.
Through the integration of geospatial data into the platform, it becomes possible to quickly validate the eligibility of each sourcing area.

Centralizing and Tracking Product Batches

Supply Logica helps businesses structure the tracking of batches throughout the supply chain. The tool centralizes key information related to goods movements, facilitating product identification at every stage.
This approach strengthens transparency and reduces the risk of non-compliance. Reports can be generated to support verification and control procedures.

Automatic DDS Generation

TRACES is the EU’s official platform for recording Due Diligence Statements (DDS).
Supply Logica automates the generation of these declarations by compiling all necessary data: geolocation coordinates, volumes, batch IDs, and supplier information.
APIs have been developed to interface with the TRACES platform, allowing simplified and compliant data transmission.
Each DDS includes a unique identifier that facilitates submission in accordance with the European information system’s requirements.

Organizing Supporting Documents

EUDR compliance also requires being able to demonstrate due diligence in the event of inspections.
Supply Logica ensures the centralized storage and organization of all supporting documents: geolocation proof, audits, supplier records, DDS, and more.
A structured history is available for each product, simplifying interactions with competent authorities.
To better understand the regulatory requirements, the European Commission’s FAQ can also serve as a useful reference.

Secure Sharing of Compliance Data

Controlled Access for Authorities and Partners

Supply Logica offers secure methods for sharing compliance data, including protected links that provide controlled access to relevant information for partners or authorities.
This ensures reliable transmission of information to clients, partners, or regulatory bodies, in line with EUDR’s transparency requirements.

A Solution Designed for Compliance

Why Supply Logica is the Right Tool

With its comprehensive coverage of traceability, reporting, and documentation management needs, Supply Logica stands out as a key tool for meeting new regulatory obligations.

To learn more about how Supply Logica can support your EUDR compliance journey, contact our team today.

Three Risk Levels for Assessing Compliance

Each country is now classified into one of three risk levels: low, standard, or high. This classification determines the intensity of checks required under due diligence. The higher the risk level, the more robust the evidence operators must provide regarding traceability, geographical origin, and environmental and social compliance.

Countries classified as low risk include all EU Member States, as well as other major economies such as the United States, China, Australia, Canada, and Vietnam. For these countries, evidence requirements are streamlined, as the risk of imported deforestation and systemic social issues is considered low.

Conversely, countries like Russia, Belarus, Myanmar, and North Korea are classified as high risk. In these cases, due diligence is deemed impossible or severely hindered due to the lack of reliable data, conflicts, or international sanctions.

Between these extremes, many countries essential to global supply chains are classified as standard risk. This includes Brazil, Indonesia, Malaysia, Argentina, Colombia, Mexico, Côte d’Ivoire, Nigeria, and Ghana. These countries account for a significant share of global production of raw materials covered by the EUDR.

A Two-Step Methodology

The classification is based on a rigorous methodology outlined in Article 29(3) of the regulation. It begins with a quantitative assessment using three key indicators: deforestation rate (based on FAO FRA 2020 data), expansion of agricultural land for the targeted commodities (according to FAOSTAT), and changes in their production.

A country is classified as low risk if it meets at least one of the following criteria: no net forest loss between 2015 and 2020, an annual deforestation rate below 0.2% and less than 70,000 hectares per year, or a loss of less than 1,000 hectares per year (for small countries). A fourth scenario applies to countries without agricultural expansion or increased production of the covered commodities.

When results are near the thresholds between risk levels, a qualitative assessment is added. This considers four dimensions: public policies, traceability mechanisms, governance, and participation in international agreements. Each criterion is scored from 1 to 5, and a country can be reclassified as low risk if the average score reaches or exceeds 3 out of 5.

Finally, any country subject to United Nations or European Union sanctions prohibiting the import or export of the relevant products is automatically classified as high risk, as due diligence is considered inapplicable.

A New Risk Map for Exporters

The May 22 benchmark redefines the global trade map towards the European Union. For companies, this means reassessing the structure of their supply chains based on each country’s classification.

Engaging with a country classified as standard or high risk requires enhanced traceability, thorough audits, and rigorous environmental and social documentation. These obligations can increase compliance costs, extend market access timelines, and strain relationships with certain suppliers.

Conversely, supply chains based in low-risk countries will benefit from simplified procedures, offering a competitive advantage amid increasing regulatory pressures.

Supply Logica Helps You Anticipate the Benchmark’s Effects

At Supply Logica, we assist companies in analyzing their exposure to country risks, geographically mapping their raw materials, centralizing compliance documents, and automating declarations in TRACES. Our solution enables compliance with the EUDR’s differentiated requirements based on country classification while enhancing the resilience and transparency of supply chains.

Supply Logica supports companies in implementing sustainable supply chains by ensuring product traceability, centralizing compliance data, and automatically generating due diligence declarations.

To discover how our solution can enhance traceability within your organization, contact our team.