Deforestation regulation information flow

The EU Deforestation Regulation (EUDR) aims to minimise the Union’s contribution to global deforestation and forest degradation. It sets strict requirements to prove the origin of a product or raw material. In addition, it requires a batch-specific due diligence (DD) statement in the EU Commission’s TRACES system for placing a product or raw material on the market.

The solution proposal compiled in the development project of the Food Data Finland growth engine program offers ways for companies to meet the requirements of the Deforestation Regulation in the short term. It also takes into account the scaling of the data flow in view of other legislative requirements coming into force. In the future, it is important for Finland’s competitiveness and the cost-efficiency of companies that not every information requirement imposed by rapidly changing legislation is resolved separately. Therefore, the proposal also offers a future-proof solution based on the implementation of a standard that covers the entire supply chain.

The product master data model

The product master data model is a proposal for the format in which the master data required by the Deforestation Regulation could be shared in the chain. The data model is based on the utilisation of GS1 GDSN product data standard.

Solution proposals for sharing batch/lot information

The solution proposals focus on harmonising and automating the sharing of information, which reduces manual work, makes data transfer more efficient and improves data reliability. The proposals contain four main points:

• Automated creation of appropriate due diligence statements (DD statements) in TRACES via APIs
• Efficient transmission of reference and verification numbers from TRACES via delivery messages
• If electronic messaging is not available, adding data to pallet labels or shipping documents by using 2D codes to make them machine-readable
• Implementation of the EPCIS standard to enable the collection, management and sharing of supply chain transaction data in a standardised and flexible manner between different parties - also in view of future legal information requirements.

Implementation of development divided into three phases

Implementing the information requirements of the Deforestation Regulation requires changes to the processes, data collection and communication between trading partners throughout the food chain. The strict timetable of the Regulation and the questions that remain open for the time being mean that it is practically impossible to respond to its requirements within the given timetable. For this reason, the solution is divided into three different phases on the implementation road map.

Phase I: Minimum implementation

Describes the measures to be taken immediately to prepare the various parties to respond to the requirements set by the Regulation as comprehensively as possible. Includes, among other things, the collection of information and the development of IT capabilities.

Phase II: Harmonized data transfer

Describes the measures required from the various parties for the industry to respond effectively to the requirements of the Regulation. Consistent communication of information in the food chain and the automation of operations are central.

Phase III: Scalable solution

Describes a solution that enable companies to meet other new legal requirements in the future. Central is the flow of information needed at any given time in the food chain in digital format and the extension of unified operating models to primary production as well.

Food chain operators must act in accordance with the Deforestation Regulation. If the content of the solution proposal conflicts with the instructions of the Commission or a supervisory authority, the instructions of the authorities shall take precedence.