eu-deforestation-regulation

Implementation of the EUDR by a Paper Manufacturer

Implementing the EU Deforestation Regulation (EUDR) presents unique challenges for paper manufacturers, as pulp deliveries typically lack batch-level identification, warehouse management follows a first-in-first-out principle, and once pulp enters the pulper it can no longer be traced to specific deliveries. To ensure supply chain traceability and remain compliant, we apply a batch-based approach: each production period is defined as a batch, and all relevant DDS numbers for the pulps processed during that period are collected, verified, and documented. This meets the EUDR requirement to report origin data “as precisely as possible.” While this approach naturally introduces some uncertainty—since certain pulp lots may stay in storage longer than average and others may be processed immediately—it guarantees that no unverified or unassessed raw materials enter production. For pulp or wood raw materials imported from non-EU countries, we perform a documented due diligence process that includes full supply chain transparency, geolocation data for the forest plots of origin, and harvesting permits, as required by the EUDR. Even in countries classified as low-risk under the EU Benchmark 1 system, data and documentation must still be collected and archived. This approach provides a practical, auditable, and scalable solution for deforestation-free sourcing in the paper industry, enabling manufacturers to align with EUDR compliance requirements while maintaining efficient production and inventory management.

Problem Statement

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  • No batch identification: Delivery batches are not marked on the pulp bales.
  • No batch segregation in storage: Storage does not segregate by delivery batch; instead, a “first-in, first-out” principle is applied.
  • No traceability after pulping: Once pulp is fed into the pulper, it can no longer be traced back to a specific delivery.
  • Fluctuating input volumes: Non-relevant raw materials (e.g. recovered paper, fillers) are added in varying amounts.

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Practical Consequence

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Under these conditions, only a batch approach is practicable:

  • A production period X is defined, during which various pulps are processed.
  • Exact allocation to individual deliveries is not possible.
  • The EUDR allows more origins (DDS numbers) to be indicated than are actually contained in the product.
  • The information must be provided “as precisely as possible”; at least once per calendar year a DDS number must be created covering all origins used.

For paper manufacturers, using the average inventory turnover appears to be a reasonable interpretation of “as precisely as possible.”

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Uncertainties and Their Assessment

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This approach inevitably leads to certain inaccuracies:

  • Individual pulps may remain in storage longer than the average.
  • Other deliveries may be processed immediately and shipped before a new DDS number has been created.

However, what is essential is:

  • DDS numbers are collected and verified for all pulps.
  • No relevant raw materials enter production without a verified DDS number.

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Due Diligence for Imports from Non-EU Countries

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If the paper manufacturer imports raw materials into the EU:

  • Due diligence obligation: A documented due diligence process must be in place for these consignments.
  • Supply chain transparency: The supply chain must be disclosed up to the forest plot(s).
  • Geolocation data: For the “plots of land” from which the timber originates, geolocation data and harvesting permits must be available.

It is expected that pulp mills will soon provide aggregated geolocation data for timber origins. Otherwise, these would have to be collected and evidenced plot by plot.

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Consideration of the EU Country Benchmarking

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  • For countries with Benchmark 1 (low risk), no substantive risk assessment is required.
  • However, data and evidence must still be collected and retained to remain EUDR-compliant.

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Implement EUDR with supplycanvas – the easy way.

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