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Quick summary: Learn what the Due Diligence Statement (DDS) for EUDR compliance includes—from geolocation to risk assessment—and why it’s critical for AEOs seeking access to EU markets.
A Due Diligence Statement (DDS) for EUDR compliance contains verified information proving that the product is deforestation-free and legally produced. It must include geolocation data of production plots, commodity and HS codes, supplier details, risk assessment outcomes, and the steps taken to mitigate any identified risks. The DDS is submitted digitally via the EU TRACES system before products enter the EU market. According to the European Commission (2023), this process is essential to ensure traceability and transparency across global supply chains.
The DDS is not just a form—it’s a legally binding declaration submitted through the EU TRACES system, confirming that thorough due diligence has been performed. This includes supplying precise geolocation coordinates of production plots, documentation of land legality and labor rights, a detailed risk assessment, and any mitigation actions taken to ensure compliance.
Why does this matter? Because the DDS is the primary proof that a company has fulfilled its EUDR obligations. Without it, products can be denied entry to the EU, seized, or trigger penalties. In short, the DDS is your compliance checkpoint—and getting it right ensures your continued market access, brand integrity, and alignment with EU sustainability standards.
As the European Commission (2023) emphasizes, the DDS is essential for building a transparent, traceable supply chain that actively contributes to halting global deforestation.
Key Takeaways
Under the EU Deforestation Regulation (EUDR), a Due Diligence Statement (DDS) is a digital declaration proving that sourced products are deforestationfree and legally produced. A complete DDS must include plotlevel geolocation, supplier data, risk assessments, and mitigation actions, backed by a Legal Compliance Statement signed by a responsible executive, making it legally binding. Companies must retain DDS records for five years and submit them via the EU TRACES registry for verification and audits. TraceX’s Agentic AI platform simplifies this entire process—autoparsing documents, validating geolocation data, generating DDSs, and keeping them auditready—turning a complex regulatory requirement into an intelligent, seamless workflow.
A Due Diligence Statement (DDS) is a legally required declaration under the EU Deforestation Regulation (EUDR) that confirms a company has assessed and verified its supply chain to be deforestation-free and compliant with all relevant legal requirements in the country of origin. Submitted through the EU TRACES system, the DDS is mandatory for placing or exporting regulated commodities—such as cocoa, soy, palm oil, coffee, beef, and timber—on the EU market.
But the DDS is more than a compliance checkbox—it’s a digital trust contract between companies, regulators, and consumers. It contains precise geolocation coordinates of each production plot, proof of legal land use, supplier identities, and a detailed risk assessment and mitigation plan. This level of granularity transforms what was once fragmented, paper-based documentation into a verifiable, end-to-end digital audit trail.
The DDS plays a pivotal role in ensuring traceability from farm to market, creating a chain of custody that holds every stakeholder accountable. It empowers companies to detect compliance issues before they escalate, and it allows regulators to audit data in real-time—not just when something goes wrong.
In essence, the DDS becomes a live digital footprint of product origin, legality, and sustainability. For companies serious about ESG performance, it’s not just about passing an inspection—it’s about proving your supply chain is part of the solution.
As the European Commission (2023) outlines, this shift toward digital due diligence is central to the EU’s mission to eliminate deforestation from its supply chains and build a new era of climate-responsible trade.
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Get stepbystep guidance on how to file it seamlessly in the EU TRACES system.
The Legal Compliance Statement is a critical component of the Due Diligence Statement (DDS) required under the EU Deforestation Regulation (EUDR). It is the formal affirmation that a company has fully assessed its supply chain, mitigated any identified risks, and confirms that the products being placed on the EU market are both deforestation-free and legally produced.
This statement isn’t a passive legal formality—it’s an active legal and ethical commitment. By signing the Legal Compliance Statement, companies publicly declare that they’ve conducted due diligence in line with EUDR Article 9, verified geolocation data, reviewed sourcing legality (land rights, labor laws, environmental standards), and taken documented steps to mitigate any supply chain risks.
Failing to do so—or making false declarations—can trigger severe consequences:
Think of the Legal Compliance Statement as the final checkpoint in a traceability journey—not just a regulatory form, but a public signal of supply chain integrity. It tells regulators: “We’ve done the work.” It tells customers and investors: “You can trust our sourcing.”
In an era where sustainability is under the microscope, this statement becomes a trust signal, elevating compliance officers from administrative roles to guardians of brand credibility. It’s not just about legality—it’s about leadership.
As the European Commission (2023) emphasizes, the EUDR framework hinges on transparency backed by accountability. And the Legal Compliance Statement is where both converge.
Under the EU Deforestation Regulation (EUDR), every Due Diligence Statement (DDS) must include a signature from a designated Responsible Person—typically a company executive or legally authorized manager. This is known as the Signatory Requirement, and it transforms the DDS from a procedural form into a legally binding declaration of compliance.
The signatory isn’t just a formality. The individual signing the DDS is legally accountable for confirming that all due diligence steps—geolocation verification, legal sourcing, risk assessment, and mitigation—have been properly completed. This person represents the company’s commitment to regulatory integrity and accepts responsibility for the accuracy of the submission.
In most organizations, this is not delegated to an admin or mid-level employee—it sits with senior leadership because the risk of non-compliance is high:
In today’s ESG-conscious market, the signature on a DDS acts as a signal of internal governance maturity. It tells regulators, buyers, and investors:
“We’ve embedded compliance into our executive decision-making.”
It elevates sustainability and legal risk from a siloed function to a board-level responsibility, integrating ethics and accountability directly into operational execution.
Just as CFOs sign off on financial statements, supply chain and sustainability leaders now sign off on traceability and legality—reflecting a broader shift where environmental compliance carries the same weight as financial compliance.
As emphasized by the European Commission (2023), this requirement ensures that companies not only perform due diligence but own the consequences of their claims—turning EUDR compliance into a test of corporate credibility, not just competence.
Under the EU Deforestation Regulation (EUDR), compliance doesn’t end once a Due Diligence Statement (DDS) is submitted—it continues with mandatory record retention and proper submission to the EU’s central registry. These steps are vital for ensuring long-term audit readiness, legal accountability, and regulatory transparency.
Companies are legally required to retain all DDS records and supporting evidence for at least five years. This includes:
This retention mandate ensures that if the European Commission or Member State authorities audit your supply chain—even years later—your business can produce a comprehensive compliance trail without gaps or guesswork.
All DDSs must be submitted electronically to the EU TRACES system, which serves as the official registry for deforestation-free declarations. This submission must happen before the product enters the EU market, and the data is used by customs officials, regulators, and risk-based enforcement tools to verify compliance.
The registry isn’t just a filing cabinet—it’s a central intelligence hub. It allows the EU to:
These requirements move compliance from a reactive process to a permanent, digital accountability system. Think of the DDS registry as your public ledger of ethical sourcing—and your five-year archive as the black box that proves you flew by the rules.
This isn’t just about meeting a deadline or passing an inspection—it’s about maintaining ongoing eligibility to access the EU market, safeguarding brand reputation, and building systems that can withstand scrutiny at any time.
In today’s data-driven regulatory climate, companies that treat retention and submission as strategic infrastructure, not clerical afterthoughts, will be best positioned to lead. As the European Commission (2023) notes, documentation isn’t optional—it’s your license to operate.
Creating a Due Diligence Statement (DDS) under the EU Deforestation Regulation (EUDR) can be complex—but TraceX EUDR Compliance Platform simplifies the entire process with an Multi agentic AI-powered platform designed for efficiency, accuracy, and scale.
One of the biggest challenges in EUDR compliance is collecting and validating vast amounts of data from diverse suppliers, especially in fragmented agri-value chains. TraceX solves this by integrating geolocation data, supply chain records, and regulatory requirements into a single unified system.
Here’s how it works:
With all inputs centralized, TraceX auto-generates the DDS—accurate, audit-ready, and formatted for submission to the EU’s registry.
Even the most prepared teams can overlook details—but TraceX reduces that risk with real-time compliance alerts.
This proactive system prevents costly errors, delays at customs, and non-compliance penalties—turning a stressful, manual process into a streamlined, digital workflow.
For Authorized Economic Operators (AEOs), the Due Diligence Statement (DDS) isn’t just a regulatory foality—it’s the core document that validates your commitment to legal, traceable, and deforestation-free trade. By accurately compiling geolocation data, verifying legal compliance, conducting risk assessments, and submitting the DDS through TRACES, you not only meet the EU Deforestation Regulation—you build credibility with regulators, partners, and consumers. The stronger your DDS, the stronger your access to EU markets.
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An AEO must include plot-level geolocation data, product and supplier details, proof of legal sourcing, a risk assessment, and mitigation steps. This ensures the shipment is deforestation-free and legally compliant.
The DDS must be submitted digitally through the EU TRACES system before the product is placed on or exported to the EU market. Without it, customs clearance may be denied.
For AEOs, the DDS demonstrates traceability, reduces inspection risks, and secures continued access to EU markets. It’s also a core requirement for maintaining trusted trader status under the EUDR framework.
