EU RD: details on companies' positioning in supply chains and their due diligence obligations
The European Union Commission has published a new document clarifying the obligations of operators and traders under the Regulation against Forest Deforestation and Degradation, according to the size of the company, their role and their position in the supply chain.
In 9 months, the European Regulation against Forest Deforestation and Degradation (RDEU) will enter into force. The products covered by this Regulation may not be imported, placed on the market or exported if they have not been the subject, upstream, of a Reasoned Diligence Declaration, i.e. an analysis accompanied by tangible evidence that these products are free from deforestation and comply with the rules in force in the country of production.
The level of obligations and responsibility under this Regulation varies according to the size of the company, its role in the supply chain and its position in the supply chain.
A new documentpublished in English by the European Commission provides a better understanding of the position of companies in the supply chain, their respective roles and obligations with regard to the Declaration of Reasoned Diligence. Three types of bonds are identified:
- Complete and submit a statement of due diligence
- Refer to the unique number of the existing upstream declaration and ensure compliance of the information
- Save and store informationThere is no requirement to submit a due diligence statement, but there is an obligation to keep references to associated due diligence statements.
The document distinguishes two main types of transactions:
- EU-based transactions with commodities produced in the EU
- EU-based transactions with commodities produced outside the EU
For each of these operations, scenarios illustrating the supply chains of the different products concerned are presented, defining the position in the chain and the respective obligations of the actors.
A summary table is also available, summarizing, depending on the type of company and its position in the supply chain, its various responsibilities, as well as its obligations with respect to due diligence, the Declaration of Reasoned Diligence, and requirements for keeping records of information, among others.