EUDR Compliance Made Simple with EDI

EUDR compliance made simple with EDI

The European Union Deforestation Regulation (EUDR) is an EU law designed to ensure that certain products placed on the EU market are deforestation-free and legally produced. The regulation was adopted in May 2023. Initially, it was set to apply from December 2024, but the start date has now been postponed twice — first to December 2025, and most recently very likely to December 2026.

The main reason for this delay lies in the European Commission’s IT system not being ready to support the required processes. In addition, many EU markets and companies have not yet completed the necessary preparations, and clear guidance from Brussels has been lacking. While large corporations have already invested heavily in compliance systems, smaller importers and retailers are often unaware of the regulation or unprepared to meet its demands.

Who is affected by EUDR?

The regulation applies to companies dealing with the following products:

• beef and leather
• cocoa
• coffee
• palm oil
• soy
• timber and wood products
• natural rubber

Once the regulation takes effect, companies must prove that these goods were not produced on land deforested after 31 December 2020. This requirement applies both to imported goods and to raw materials produced within the EU.

What does this mean in practice?

• Importers and producers must submit a Due Diligence Statement (DDS) for each shipment to the EU’s central database (TRACES).
• Suppliers and retailers must be able to link their shipments with the corresponding DDS reference number and store this information for at least five years.
• Without a DDS, EUDR-regulated goods cannot be placed on or sold in the EU market.

Currently, there is ongoing debate on whether only the first placer on the market should submit the DDS, or whether each actor in the supply chain should be required to file their own declarations — an issue that significantly impacts compliance complexity.

How does EDI help?

Telema sees a crucial role for Electronic Data Interchange (EDI) in meeting EUDR obligations. Key EDI documents such as despatch advices and invoices can carry the essential EUDR data fields:

• HS code (customs code, to determine whether a product falls under EUDR)
• DDS reference number (linking the shipment to the declaration in the EU database)

This way, all detailed origin data remains securely in the EU platform, while suppliers and retailers can easily verify and prove compliance through their already existing EDI flows.

What should affected businesses do today?

Although EUDR is now likely postponed until December 2026, companies should not ignore it. Experience from similar regulations shows that late preparation can be costly and disruptive. Instead, use the extra time to build awareness and start gradual adjustments:

• Learn the basics – make sure your team understands what EUDR is, which products are covered, and what “deforestation-free” means in practice.
• Map your supply chains – identify where regulated goods enter your operations and who your critical suppliers are.
• Evaluate your systems – check whether your ERP and EDI solutions are able to  handle the new data fields when the time comes.
• Discuss with partners – begin conversations with suppliers and buyers about how DDS numbers and HS codes will move on EDI documents along the chain once the system goes live.

By preparing early, businesses can spread out the effort, avoid last-minute surprises, and even gain a competitive edge when EUDR finally takes effect.

Telema as your partner

EUDR brings new obligations, but also an opportunity to make supply chains more transparent and digital. Telema supports its customers and partners by helping to:

• integrate required EUDR fields into EDI documents,
• ensure compliance with EU regulation,
• reduce manual work and risks in case of audits.

 If you have questions, please contact your Telema representative – let’s discuss how EUDR requirements will affect your business.