When importing EUDR products, geolocation data is required to create a DDS.
However, if a supplier in a third country produces an EUDR product using raw materials from the EU, the non-EU supplier receives a DDS reference number from the EU upstream supplier, but no geolocation data. How should the non-EU supplier deal with this if the EU upstream supplier is unwilling or unable to provide the geolocation data? How can these products still be imported back into the EU?
Is it sufficient to refer to the previous reference number? Is this also possible if the HS code changes from one EUDR product to another EUDR product during production in the third country?
As a non-SME and, in this case, an importer, is it sufficient to refer to the previous DDS reference number?
1 Answer
Anonymous User
Hi Victoria,
The FAQ’s say this about re-importing goods:
“If the re-importer is a non-SME, already existing due diligence statements can help ascertain that due diligence was exercised upstream in accordance with Art. 4(9) EUDR. The non-SME re-importer needs to submit a DDS prior to re-importing and needs to provide the reference number received for its DDS when releasing products for free circulation…” (EUDR FAQ 4th Iteration)
In short: As the operator, you can’t unfortunately rely on a reference-only DD statement for reimports if the data viewing possibility in the EU information system is not ‘enabled’ by the submitter of that DD statement (detailed on page 21Â Para. 9b. here). In other words, you can reference an upstream DD statement to fulfil due diligence obligations, but only where you can access the underlying information to confirm and “ascertain” that due diligence was properly exercised — especially if the HS code changes during processing abroad.
This may seem a little silly considering the information that you require is available in the system for the authorities to see already, but as a so called ‘downstream operator’ the law requires you to verify that due diligence has been undertaken on these items, which of course is much more complicated if you are unable to access the data!
But there are a few things that can still be done to try solve this:
1. This sounds like a case of an EU supplier not wanting to share information outside of the EU. Under EUDR Article 4 (7) “Operators shall communicate to operators and to traders further down the supply chain of the relevant products they placed on the market or exported all information necessary to demonstrate that due diligence was exercised…”. Suppliers should at least, share information with you as an EU-based downstream operator. Even if they don’t wish to make the data visible in the EU system, you could certainly request it directly: I’d suggest trying to collect the information outside the system and integrate their responses directly into your own DD statement e.g., by sending a standardised geo‑data capture template (aligned to Annex II)
2. You could engage the EU-based suppliers jointly with your direct supplier
- Request EU upstream suppliers to re‑upload their DD statements with geolocation visible to downstream operators in the Information System. Ensure to request both DD reference and verification numbers; lacking verification codes limits data access
- You and your supplier have a strong mandate to mention that their refusal blocks re‑import and EU market access, and could subsequently affect the business relationship
- You can also remind the EU-based supplier that if they themselves are unable to obtain the adequate geo-data their product is not compliant for export
3. To avoid this situation with other suppliers…
- Insert obligations in contracts requiring suppliers (EU and non-EU) to provide full DDS data, including geolocation, or risk suspension of business, if you have not already done so
- Something we have seen regularly with clients is setting up “Supplier Compliance Confirmations”: A short but binding communication to hold suppliers accountable for their delivery of information and EUDR compliance
- This is also something to suggest to your direct supplier too, even allowing them to recycle you own compliance confirmation
You are certainly not alone facing this issue — with potential legislation changes on the horizon too it will be interesting to see how the EU reflects such challenges.
I hope this (albeit rather long response — apologies) answers your question! Please do reach out if you’d like to chat further, I’d be happy to clarify in more detail!
All the best!