When we have a customer returning EUDR products and we can’t link the return to the exact initial delivery (and DDS)… is there an exception allowing us to re-sell the product or do we have to scrap it?
2 Answers
Anonymous User
Hi Oliver,
Here is my take on the matter:
-
- By definition, a EUDR product made of a relevant EUDR commodity can’t be placed on the EU market without a DDS. There is no specific exemption for returns in the legislation. Thus, as soon as a returned item is replaced on the market a DDS needs to be available for the product.
- Some regulatory context:
- A similar question was placed in the FAQs asking what would happen if information can’t be gathered from a supplier. The answer to FAQ 1.27 was the following: “If an operator (or trader that is not an SME) placing a commodity on the EU market is unable to obtain the information required by the Regulation from its suppliers, they must refrain from placing the relevant products on the EU market or exporting them from the EU as that would result in a violation of the Regulation.”
- Another question in the FAQs (5.4) asked about re-importing products (even as part of a return) to which the answer was: “Where an operator (or trader that is not an SME) re-imports a product that was previously exported and places it under the customs procedure ‘release for free circulation’, the same obligations apply as if the product was placed for the first time on the EU market. When exported, the relevant product loses its customs status of ‘Union good’ and that relevant product is considered to be a new product when subsequently re-placed or re-made available on the EU market. Already existing due diligence statements can help the operator to exercise due diligence.”
- By definition, a EUDR product made of a relevant EUDR commodity can’t be placed on the EU market without a DDS. There is no specific exemption for returns in the legislation. Thus, as soon as a returned item is replaced on the market a DDS needs to be available for the product.
With all this in mind, if you can’t link a returned product to a DDS, you cannot place it on the market since you do not have the required information for the EUDR and if you decide to proceed regardless, you are violating the regulation and could be subject to penalties. Thus, you should ensure traceability on product level through, e.g. improved internal traceability and return management process with product specific identifiers, to be able to trace back returns to the original product
