Competent Authorities Under the EUDR: The Backbone of Deforestation-Free Trade Compliance 

Competent Authorities under the EUDR are the designated national enforcement bodies responsible for ensuring compliance with the EU Deforestation Regulation (EUDR). They monitor operators, verify Due Diligence Statements (DDS), and conduct risk-based inspections to confirm that commodities like soy, palm oil, rubber, and wood are deforestation-free and legally produced. Competent Authorities also collaborate across EU Member States through a central information system, exchange risk data, and impose penalties for non-compliance. Their oversight forms the backbone of deforestation-free trade compliance, ensuring transparency, accountability, and sustainable sourcing across global supply chains. 

The EU Deforestation Regulation (EUDR), formally known as Regulation (EU) 2023/1115, marks a major shift in global trade and sustainability. Its core objective is to ensure that products such as soy, palm oil, coffee, cocoa, rubber, and wood and their derivatives entering or leaving the EU market are deforestation-free and legally produced. In essence, the regulation transforms environmental responsibility into a legal trade obligation. 

However, policy alone cannot guarantee impact. The success of the EUDR depends on strong, consistent enforcement across all EU Member States. Without it, illegal or high-risk commodities could continue flowing into the market, undermining both climate goals and fair trade principles. This is where Competent Authorities (CAs) come in. 

Competent Authorities act as the enforcement engine of the EUDR, tasked with verifying compliance, auditing companies’ Due Diligence Statements (DDS), and ensuring that traceability data from farm or plantation to final product is accurate and complete. They bridge the gap between regulation and real-world accountability, ensuring that sustainability claims are backed by verifiable evidence. 

In short, while the EUDR sets the rules, Competent Authorities make them real, safeguarding the EU market’s integrity and driving the transition toward transparent, deforestation-free global supply chains. 

Key Takeaways 

• The EU Deforestation Regulation (EUDR) assigns Competent Authorities (CAs) in each Member State to enforce compliance and ensure that commodities like coffee, soy, rubber, palm oil, and wood entering the EU are deforestation-free and legally produced. 

• Competent Authorities are national enforcement bodies designated under Regulation (EU) 2023/1115. They oversee how operators and traders perform due diligence, verify declarations, and enforce penalties for non-compliance. 

• CAs conduct risk-based checks, inspect documentation, validate geolocation data, and ensure the accuracy of Due Diligence Statements (DDS) submitted by operators. They coordinate with customs, environmental, and trade agencies to monitor compliance across supply chains. 

• Authorities access the EU Information System to review DDS data, focusing on farm-level geolocation, legality documentation, and risk mitigation records. Verification is carried out under defined thresholds (1%, 3%, 9%) based on commodity and operator risk level. 

• CAs use deforestation-risk maps, satellite imagery, and trade analytics to prioritize high-risk commodities or origins for example, rubber from Southeast Asia or coffee from high-deforestation regions. 

• Through the EUDR Coordination Platform, Member States and the European Commission share inspection data, harmonize risk criteria, and coordinate joint enforcement actions, ensuring a consistent regulatory framework across Europe. 

• Authorities face mounting challenges high DDS volumes, complex global supply chains, and limited enforcement resources. Harmonization, interoperability, and data-driven monitoring are critical to overcoming these gaps. 

• TraceX supports both operators and regulators by digitizing EUDR workflows, enabling automated DDS creation, blockchain-backed traceability, and AI-driven risk assessments. By integrating directly with EUDR reporting systems, TraceX ensures transparency, accuracy, and audit readiness, helping businesses and authorities achieve a seamless compliance ecosystem. 

What Are Competent Authorities Under the EUDR? 

Under EU Deforestation Regulation (EU) 2023/1115, Competent Authorities (CAs) are the official public bodies designated by each EU Member State to enforce and oversee compliance with the EU Deforestation Regulation (EUDR). Their fundamental role is to ensure that all operators and traders placing regulated commodities such as soy, coffee, cocoa, palm oil, rubber, and wood on the EU market can prove their products are deforestation-free and legally produced. 

The EUDR shifts accountability from voluntary sustainability initiatives to mandatory, state-led enforcement, and Competent Authorities are at the heart of that system. Their legal mandate extends across several key areas: 

• Monitoring and verification of operators’ Due Diligence Statements (DDS) through the EU’s centralized information system. 

• Conducting risk-based checks and physical inspections, especially for commodities or regions identified as high-risk. 

• Issuing corrective measures and penalties where non-compliance is found. 

• Collaborating with customs authorities to block non-compliant products at the border. 

Each Member State designates its own Competent Authority, ensuring localized oversight while maintaining EU-wide consistency. For example: 

• In Italy, enforcement is led by the Ministry for the Environment and Energy Security (MASE) in coordination with customs and forest agencies. 

• In Germany, the Federal Office for Agriculture and Food (BLE) is responsible for monitoring DDS and conducting risk checks. 

• In France, the Ministry of Ecological Transition (MTE) oversees compliance through its environmental inspection units. 

• In the Netherlands, the Netherlands Food and Consumer Product Safety Authority (NVWA) acts as the enforcement body, focusing on import control and verification. 

From a broader perspective, Competent Authorities represent the interface between sustainability policy and commercial practice. They translate EU environmental ambition into operational enforcement using digital data, risk analytics, and cooperation across borders to ensure fair, transparent trade. 

A unique and evolving aspect of their role is the integration of digital traceability and satellite-based monitoring into enforcement. The EUDR’s success will depend not just on inspections, but on the ability of Competent Authorities to harness technology and data sharing across Member States, creating a coordinated, intelligent compliance network that can keep pace with global supply chains. 

In short, Competent Authorities are not just regulators; they are data-driven guardians of deforestation-free trade, ensuring that sustainability commitments translate into measurable impact on the ground. 

Need help filing your EUDR Due Diligence Statement? 
Read the full blog: How to File a DDS Under the EUDR

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What are the Key Responsibilities of Competent Authorities 

Competent Authorities (CAs) are the enforcement backbone of the EU Deforestation Regulation (EUDR), responsible for turning policy intent into measurable compliance. Their mandate goes far beyond paperwork; they are the guardians of transparency, integrity, and trust across global commodity trade. Each task they perform is designed to ensure that every soy shipment, coffee bean, or timber log entering the EU has a clean, verifiable environmental footprint. 

Here’s how their key responsibilities unfold: 

1. Oversight of Operator Compliance and DDS Verification 

CAs are responsible for verifying the accuracy and completeness of Due Diligence Statements (DDS) submitted by operators. Each DDS must include details on product origin, geolocation coordinates, and legality documentation. Competent Authorities use this data to ensure operators have properly assessed deforestation and legality risks before placing goods on the EU market. 

This oversight role marks a shift from self-declared sustainability claims to data-backed compliance accountability. Companies are no longer trusted merely on certification labels they must prove traceability with evidence that withstands regulatory scrutiny. 

2. Conducting Risk-Based Checks on Operators and Traders 

CAs adopt a risk-based approach, prioritizing checks based on commodity type, country of origin, and historical compliance records. High-risk regions such as those linked to rapid deforestation face more frequent audits and physical inspections. 

The move toward risk intelligence transforms enforcement into a proactive system rather than a reactive one. With access to satellite data, digital traceability tools, and global deforestation alerts, Competent Authorities are becoming tech-enabled watchdogs, not bureaucratic gatekeepers. 

3. Inspection of Supply Chains, Documentation, and Product Consignments 

Competent Authorities have the power to inspect records, facilities, and shipments to verify the chain of custody. This includes cross-checking supplier declarations, legality documentation, and geospatial data associated with specific product consignments. If inconsistencies or red flags are found, they can suspend market access, seize goods, or impose fines. 

These inspections are no longer just administrative exercises they represent a new era of supply chain transparency, where field data, satellite imagery, and digital verification converge to trace every product back to its ecological footprint. 

4. Collaboration with Customs and Other EU/National Agencies 

CAs coordinate with customs authorities, environmental ministries, and law enforcement to block non-compliant goods at entry points. They also exchange intelligence through the EU’s central EUDR information system, ensuring consistent enforcement across borders. 

Unique perspective: This inter-agency collaboration makes the EUDR a pan-European enforcement ecosystem, where compliance data flows seamlessly between regulators. It’s a model for how trade and environmental policy can co-evolve balancing commercial efficiency with ecological responsibility. 

In essence, Competent Authorities are evolving from national regulators into digital compliance orchestrators blending regulatory oversight with technology, data science, and cross-border collaboration. Their effectiveness will determine whether the EUDR becomes a paperwork exercise or a truly transformative step toward deforestation-free global trade. 

How Competent Authorities Verify Due Diligence Statements (DDS) 

Under the EU Deforestation Regulation (EUDR), the verification of Due Diligence Statements (DDS) is one of the most critical enforcement tasks carried out by Competent Authorities (CAs). This process ensures that all operators and traders who place regulated commodities like soy, cocoa, coffee, palm oil, rubber, or timber on the EU market are not just declaring compliance but proving it with verifiable data. 

Competent Authorities use a blend of technology, data validation, and risk-based enforcement to assess DDS accuracy. Their approach represents a new chapter in trade compliance where digital traceability meets regulatory intelligence. 

Access to the EU’s Central Information System 

All DDS submissions are centralized within the EU’s EUDR Information System, a secure digital platform managed by the European Commission. Competent Authorities have full access to this system, enabling them to: 

• Review operator-submitted DDS and supporting documents. 

• Cross-check product details with customs declarations. 

• Flag incomplete, inaccurate, or suspicious data for follow-up inspection. 

This centralized system marks a paradigm shift in regulatory transparency. It replaces fragmented national reporting systems with a unified, data-driven compliance hub, allowing authorities across Member States to coordinate in real time and eliminate regulatory blind spots. 

What Data is Verified: Geolocation, Legality, and Risk Mitigation 

When verifying a DDS, CAs don’t just check that a form has been filled; they validate every key element that proves the product’s deforestation-free and legal origin. This includes: 

• Geolocation coordinates of all plots or plantations where the commodity was produced. 

• Date of production/harvest, ensuring it occurred after December 31, 2020 (the EUDR’s deforestation cutoff date). 

• Legality documentation, including land tenure, harvesting rights, and compliance with local laws. 

• Risk mitigation measures, such as supplier audits, satellite monitoring, or certification evidence. 

The depth of verification redefines corporate due diligence from a “check-the-box” exercise to a forensic, data-backed investigation of supply chain integrity. Companies that cannot prove origin with digital evidence risk losing market access altogether. 

How Operators Can Prepare for Checks and Audits 

Operators must be audit-ready at all times. To prepare, companies should: 

• Maintain digitally linked traceability records connecting each shipment to its verified origin. 

• Store geospatial data, legality documents, and supplier communications centrally. 

• Use digital traceability platforms like TraceX to automate DDS creation, risk assessment, and documentation. 

• Develop an internal risk management protocol, ensuring immediate corrective action when red flags arise. 

The smartest companies are shifting from reactive compliance to compliance-by-design, embedding traceability, geolocation mapping, and supplier data collection directly into their sourcing workflows. This makes audits smoother, faster, and far less disruptive. 

Frequency and Thresholds of Verification (1%, 3%, 9% Rules) 

The EUDR mandates that Competent Authorities conduct checks based on risk-tier thresholds: 

• 1% of operators are dealing with low-risk countries. 

• 3% for standard-risk countries. 

• 9% for high-risk countries or commodities. 

Additionally, checks must include both desk-based and physical inspections, including possible sampling, satellite verification, and site audits. 

These verification thresholds create a dynamic enforcement model, one that rewards traceability excellence and penalizes opacity. In the long run, companies investing in digital traceability will face fewer disruptions, while laggards in data transparency will draw regulatory attention. 

Competent Authorities are redefining compliance by verifying not just what companies say, but what they can prove. By combining centralized data systems, geospatial intelligence, and risk-based inspections, they are turning the EUDR into one of the world’s most technologically advanced sustainability enforcement frameworks. 

For businesses, this means one clear imperative: compliance must be digital, data-backed, and continuous because under the EUDR, transparency isn’t optional; it’s the new trade currency. 

The Risk-Based Approach: How Inspections Are Prioritized 

One of the defining strengths of the EU Deforestation Regulation (EUDR) lies in its risk-based inspection framework, which allows Competent Authorities (CAs) to focus their efforts where they matter most on the commodities, suppliers, and countries most likely linked to deforestation or illegality. This approach ensures enforcement is both data-driven and proportionate, balancing regulatory efficiency with environmental integrity. 

Criteria for Assessing High-, Medium-, and Low-Risk Commodities 

Under the EUDR, each country of production and commodity type is assigned a risk classification: high, standard (medium), or low, based on transparent, objective indicators such as: 

• Historical deforestation rates and recent land-use change data. 

• Quality and enforcement of local forest governance systems. 

• Level of corruption or illegality risk in the timber, palm oil, soy, or rubber sectors. 

• Existing sustainability or certification frameworks recognized under EU or global standards. 

The European Commission determines these classifications and publishes them in an EU-wide database. CAs then use this data to set inspection frequencies; for instance, only 1% of operators linked to low-risk regions are inspected, compared to 9% for high-risk ones. 

The Role of Satellite Data, Deforestation Risk Maps, and Trade Analytics 

Competent Authorities now have access to a powerful suite of digital monitoring tools, transforming how they detect and prioritize risk. Using satellite imagery (e.g., Copernicus, Global Forest Watch), deforestation alert systems, and AI-based trade analytics, CAs can: 

• Track deforestation patterns in real time. 

• Match import data with deforestation alerts from production zones. 

• Identify suspicious spikes in trade volumes from at-risk geographies. 

• Flag companies with inconsistent or incomplete DDS data. 

These insights help regulators conduct smart inspections targeting shipments most likely to involve deforestation or legality breaches while reducing the compliance burden for operators with proven clean records.

Example: How Italy’s Competent Authority Might Prioritize Rubber, Coffee, or Palm Oil Imports 

In Italy, the Ministry for the Environment and Energy Security (MASE), supported by customs and trade agencies, could apply this risk-based framework as follows: 

• Rubber: Given Southeast Asia’s persistent deforestation risks, imports from countries like Thailand or Indonesia may fall under “high-risk” scrutiny. CAs could prioritize tyre manufacturers and importers sourcing from these regions for more frequent checks. 

• Coffee: Imports from Central Africa or parts of Latin America, where deforestation is accelerating, would trigger mid-level inspection frequency, with attention to geolocation accuracy in DDS reports. 

• Palm Oil: As a known high-risk commodity, shipments from Indonesia and Malaysia would be closely monitored using satellite-derived land-use data and mill-to-plantation traceability checks. 

By contrast, Italian companies sourcing certified or traceable commodities from low-risk areas could experience fewer audits and faster customs clearance. 

Cooperation Between Member States and the EU Commission 

The success of the EU Deforestation Regulation (EUDR) depends not only on national enforcement but on coordinated action across the entire European Union. To achieve consistent, transparent, and effective implementation, the EUDR establishes a framework of cooperation between Member States, the European Commission, customs authorities, and environmental agencies. This collaboration ensures that enforcement is not fragmented but unified aligning data, decisions, and actions across all EU borders. 

Data Sharing Through the EUDR Coordination Platform 

At the heart of this cooperation lies the EUDR Coordination Platform, a digital infrastructure designed to connect all Competent Authorities (CAs) and the European Commission. Through this platform, Member States can: 

• Share DDS data, inspection results, and compliance reports in real time. 

• Access geolocation data, legality documentation, and risk assessments submitted by operators. 

• Flag high-risk suppliers or suspicious trade patterns across the EU market. 

The platform acts as a centralized intelligence hub ensuring that a company flagged in one Member State cannot simply divert trade through another to avoid enforcement. 

Joint Inspections, Harmonized Risk Criteria, and International Cooperation 

The EUDR also enables joint inspections and harmonized checks between Member States. For instance: 

• Two or more countries can conduct joint audits on multi-country supply chains or large operators trading across borders. 

• Risk assessment criteria such as deforestation alerts, governance quality, and legality risks are harmonized across the EU, ensuring uniform standards. 

• The EU collaborates with producing countries (e.g., Brazil, Indonesia, Ghana) to strengthen traceability systems, improve legality documentation, and reduce administrative duplication. 

Customs and Environmental Agencies 

Competent Authorities work hand-in-hand with customs administrations to monitor the physical entry of commodities and products into the EU market. Customs officers use the EUDR Information System to verify whether a valid DDS exists for incoming shipments before release. Meanwhile, environmental agencies provide expertise on forest-risk assessment, biodiversity impacts, and land-use monitoring. 

This tri-level cooperation ensures that: 

• Non-compliant goods can be intercepted at ports or borders. 

• Data flows seamlessly from regulatory checks to customs systems. 

• Environmental priorities are integrated into trade policy enforcement. 

What are the Challenges for Competent Authorities Under the EUDR 

While Competent Authorities (CAs) form the backbone of EUDR enforcement, their task is far from simple. The Regulation introduces a new era of data-driven due diligence and cross-border monitoring, bringing with it significant operational and systemic challenges: 

1. Volume of DDS Submissions vs. Limited Enforcement Resources 

With thousands of operators required to submit Due Diligence Statements (DDS) for each consignment, CAs face a massive influx of data.  

2. Complexity of Multi-Origin Supply Chains 

Many commodities under the EUDR, such as coffee, cocoa, soy, or rubber, are sourced through intricate, multi-tier supply networks spanning dozens of countries.  

3. Need for Harmonization and Digital Interoperability Across Member States 

While enforcement is national, the EUDR market is single meaning fragmented approaches could create uneven compliance standards. Competent Authorities must coordinate with the European Commission and each other to ensure consistent interpretation of rules, risk thresholds, and data requirements.

How Solutions from TraceX Support Operators in Achieving Compliance 

Digital platforms serve as the technological backbone of EUDR implementation, helping operators meet stringent due diligence and reporting standards with precision and efficiency. 

TraceX EUDR Platform enables companies to: 

• Digitally trace every batch or shipment of commodities from source to market, capturing data such as farm or plantation coordinates, harvest dates, supplier details, and legality documentation. 

• Consolidate supplier information from thousands of smallholders, cooperatives, or intermediaries into a single, auditable system. 

• Automate risk assessment by scoring sourcing regions for deforestation exposure, legality concerns, and supplier reliability. 

• Maintain immutable proof of origin through blockchain-based records, ensuring every transaction is verifiable and tamper-proof. 

Integration with EUDR Data Submission Systems 

TraceX and similar systems are designed to seamlessly integrate with the EU’s EUDR Information System, the official database for submitting and verifying Due Diligence Statements (DDS). 

This integration ensures: 

• Automatic generation and submission of DDS forms for each batch or consignment. 

• Direct data validation against EUDR-compliant fields such as geolocation, legality proof, and risk category. 

• Efficient document flow between suppliers, operators, and regulators, eliminating manual uploads, duplications, and delays. 

• Consistent version control of compliance records across multiple countries and product categories. 

Strengthening Trust Through Transparent Enforcement 

Competent Authorities stand at the heart of the EU Deforestation Regulation, bridging policy intent with on-the-ground accountability. Their coordinated oversight, powered by data-driven systems and risk-based inspections, ensures that every product entering the EU market meets deforestation-free and legal sourcing standards. For operators and traders, compliance is no longer just a regulatory checkbox it’s a pathway to trusted trade, resilient supply chains, and long-term sustainability. As the EUDR ecosystem evolves, collaboration between authorities, businesses, and digital platforms like TraceX will define the future of transparent, climate-aligned global commerce. 

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