The new European legislative regulation EUDR (EU Deforestation Regulation ) is coming into force, and with it comes a frequent question - what do I have to comply with and how can we manage it so as not to lose our long-standing customers unnecessarily?
At first glance, it may seem to many managers that this will mean increased administration, finding new software, integration and more people and time. However, if you already communicate with customers and suppliers today via electronic data interchange (EDI ), the solution is closer than it seems - for example, inORiON EDI, you only need to add two pieces of information , which will travel through business documents like all other data.
Why EUDR is not just about “compliance”, but about business sustainability
The EUDR is not just another legislative chapter in commodity trade. Companies will now have to be able to clearly demonstrate the origin of selected commodities and prove that they did not originate in areas where deforestation occurred after 2020. This applies to each individual shipment or batch. This is a change that will determine whether a specific product can even enter the European market.
The regulation also carries an economic incentive . If a company fails to provide information on origin, the consignment is not allowed on the market. It may be detained or even destroyed. And in extreme cases, the regulator can impose a fine of at least 4% of annual turnover on economic operators in the EU and temporarily exclude them from public procurement processes and/or access to public funding .
At the same time, today's customers — especially large chains and producers — require so-called product passports , i.e. a digital set of complete information about a product across its entire life cycle – from origin to recycling.
For suppliers, this means only one thing: anyone who is unable to provide data reliably will cease to be competitive.
ORiON EDI: Incorporating EUDR requirements into regular EDI documents
EUDR compliance technology solutions are easiest to implement wheredigital data exchange already exists.
InORiON EDI, this does not change the way of working or the flow of information. It just expands the information in documents that already routinely travel between partners. Specifically, these are two mandatory items that will be added directly to the ORDRSP and DESADV messages within the EDI messages:
- DDR — due diligence identifier
- VAT — due diligence verification code
This data becomes part of business documents, such as order confirmations and shipping notices. The principle of automated data transfer directly between ERP systems remains intact — without manual rewriting or auxiliary tables.
The result is clear, traceable and fully auditable information about origin that meets the requirements of control authorities and trading partners.
Demonstrable information that will accelerate business
Where data is shared in a standardized manner and directly between systems, there is a clear advantage. Companies have control over who provided what data , when, and for which product. It can be retrieved from the system and documented for a specific shipment.
This means:
- easier management of relevant batches,
- immediate availability of documents for possible inspection,
- and zero risk of errors associated with manual transcription.
The EUDR can thus function not only as an obligation, but also as an opportunity to standardize the management of provenance data.
What about companies that have not yet implemented EDI?
Right now is the best time to take a step towards digitizing communication with partners. Not because of the legislation itself, but because digital data is becoming a common part of business processes.
The introduction of EDI will bring:
- immediate acceleration of the flow of information between companies,
- better supply and inventory management,
- less error rate and less manual work,
- and easy fulfillment of future obligations that may increase.
Companies that embark on the path of digitalization now will be prepared not only for EUDR, but also for other regulations and customer requirements.
The EUDR is approaching. It is wisest to prepare in time
ORiON EDI already supports data exchange between thousands of companies in the Czech Republic and abroad. On the same platform, you can now automatically cover the requirements of the EUDR . The entry into force of the regulation is still being postponed, but it certainly pays to be prepared in advance.
- Without purchasing new software.
- Without interfering with proven processes.
- Without slowing down business.
Would you like to find out more in detail how ORiON EDI can specifically help in your relationships with customers and suppliers? Contact us and we will be happy to discuss not only EUDR issues with you.
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