TABLE OF CONTENTS
I. Due diligence statement
If the risk assessment shows no or only a negligible risk, a due diligence statement must be created for each product batch and uploaded to the EU information system. Via the VERSO sustainabill platform, a due diligence statement can be created as soon as no or only a negligible risk is identified and forwarded to the EU information system via an interface.
II. Reporting
Companies affected by the regulation that are not SMEs or natural persons must report publicly on their due diligence system on an annual basis. Affected companies that also fall within the scope of other EU legal acts that set out value chain due diligence requirements can fulfill their reporting obligations by including the required information in the reporting related to these other EU legal acts (e.g., CSRD report). The report can be created via the VERSO ESG Hub.
III. Sanctions
To ensure that the requirements of the EUDR are met, the competent authorities, for example the BMEL in Germany, have monitoring powers. The monitoring options include scientific and technical analyses that can determine the place of origin and freedom from deforestation of the relevant raw material and the relevant product. If there is a high risk, the competent authorities may take provisional measures to suspend the placing or making available on the Union market. According to the EUDR, this includes the following measures:
- Fines for infringements amount to at least 4% of the company's annual turnover in the EU.
- The product in question or the proceeds from a related transaction may be confiscated.
- Temporary exclusion from public tenders and access to public funds,
- The temporary prohibition to market, supply or export relevant goods or products
- Prohibition of the application of simplified due diligence
- Publication of violations of the EUDR committed by companies and established by a court of law