EU Deforestation Regulation Operator, trader, and downstream roles

Start with the transaction for the relevant product listed in Annex I. If the entity places that relevant product on the EU market for the first time or exports it, it is generally acting as an operator unless the specific downstream-operator definition applies. If it places on the market or exports a relevant product made using relevant products already covered by a due diligence statement or simplified declaration, classify that activity as downstream-operator activity.

If the entity only supplies, distributes, or otherwise makes a relevant product available on the EU market and is not the operator or downstream operator for that product, classify that activity as trader activity. One legal entity can have different EUDR roles for different product flows, so the useful record is product-by-product and transaction-by-transaction.

The operator role carries the core due-diligence obligation before placing relevant products on the EU market or exporting them. Operators must exercise due diligence to prove the Article 3 conditions, submit the due diligence statement through the EUDR information system when the risk is no or negligible, and communicate DDS reference numbers or simplified-declaration identifiers further down the supply chain.

Trader and downstream roles are not a blank pass. Article 5 duties require downstream operators and traders to possess and keep supply-chain information, including supplier details and the DDS reference number or declaration identifier when the supplier is an operator. They must also keep downstream recipient details where applicable and provide the information to competent authorities on request.

They can use upstream DDS references as part of the Article 5 information file, but reliance has limits. The downstream operator or trader still needs the required supplier and downstream-recipient information, must retain it, and must provide it to competent authorities on request.

If new information indicates that a product already placed or made available may be at risk of non-compliance, downstream operators and traders must inform competent authorities and downstream recipients. For exports, the EUDR source states that downstream operators inform the competent authority of the Member State that is the country of production. Non-SME downstream operators and non-SME traders have an additional pre-transaction control: where information indicates non-compliance or substantiated concerns exist before placing, making available, or exporting, they must verify due diligence and not proceed unless verification shows no or negligible risk.

Keep records that prove why the role was chosen and how the EUDR handoff worked. Operators need the due-diligence file and due diligence statement record. The EUDR source states that operators keep due diligence statement records for five years and communicate DDS reference numbers or declaration identifiers to downstream operators and traders further down the supply chain.

Downstream operators and traders should keep the Article 5 information file for at least five years: supplier details, DDS reference numbers or declaration identifiers where the supplier is an operator, downstream recipient details, notices sent to authorities or downstream recipients, and any verification performed when risk information or substantiated concerns appeared.