EUTR Due Diligence Systems
As outlined in our overview of the EU Timber Regulation, how to comply with the EUTR is dependent on whether a business is an operator or a trader.
Operators – businesses who first place timber or timber products on the EU market. They must implement a due diligence system to assess any risk that their product contains illegally sourced timber. Operators include importers of timber products and EU based foresters.
Traders – businesses trading in timber or timber products already placed on the EU market. They must keep records of their timber purchases and sales for five years.
A due diligence system requires three core elements:
- Information – Businesses must gather information from their supply chain on their products.
This must include product description (wood species, country of harvest, volume), details of the suppliers and other compliance documents such as certification or other 3rd party schemes.
- Risk Assessment – Analysis and evaluation of the information gathered against relevant criteria including: assurance of compliance with legislation, prevalence of illegal harvesting of the tree species and practices in the country of harvest and accounting for the complexity of the supply chain.
- Risk Mitigation – If there is evidence of non-negligible risk then businesses must respond proportionately to the risks identified. This may include requesting additional information or documents from suppliers, 3rd party verification, working with suppliers to change or changing suppliers altogether.
Implementing a Due Diligence System
So, it is fairly simple what is required by the EUTR, however, the EU prefers not to offer guidance on how a business implements this. It is understood businesses will be operating under very different circumstances, so how they gather and assess data from their supply chain will differ. For a company with many suppliers, manually collecting data on all their products is impractical and service providers can streamline this process with technology, like RADIX Tree, which enables efficient information gathering, with tools and services to support risk assessment.
RADIX Tree is an online platform that businesses of all size can utilise for their due diligence requirements. RADIX Tree enables you to connect with your supply chain partners – much like a social network – to share and collect vital sustainability information on your products, using our dedicated EUTR template.
EUTR Guidance and Supplier Training
Looking for further guidance on the EUTR? Global Traceability provide free training sessions to all RADIX Tree users including supplier training in Chinese, German, French and English.
It is essential that your suppliers outside the EU also understand what is required for you to be compliant with the EUTR. For RADIX Tree users, we help bring your suppliers to “fit for the EUTR” level. Our 90 minute online training covers the fundamental aspects which supplier need to know about EUTR.
You can read more about how RADIX Tree supports your due diligence process here.
Got a question for Global Traceability on the EUTR? Drop us a note below.