• Recent EU due diligence updates require companies sourcing soy, beef/leather, palm oil, cocoa, coffee, wood, and rubber to prove that their supply chains are deforestation-free. ‍
• Under these due diligence updates, companies and suppliers of these affected commodities must trace products down to the source to prove compliance. ‍
• To achieve truly sustainable sourcing and audit-proof compliance, companies and suppliers should consider implementing supply chain traceability initiatives.

As due diligence regulations rise, it can be difficult to remain compliant to protect and grow your international export business. From staying up to date with these moving-target regulations to finding a solution that can give you the data you need to prove compliance, exporting goods in the modern business world has never been more difficult.

In this piece, we’ll cover what these regulations mean for exporters, steps you can take to protect your business, potential partners and solutions to support your efforts, and ways to stay up-to-date with the latest compliance requirements.

What does the EU deforestation-free regulation mean for me as an exporter?

If you export soy, beef, palm oil, coffee, cocoa, wood, rubber or other product derivatives such as leather, then the EU deforestation-free regulations apply to you. Meaning, you will need to conduct due diligence on your supply chains to ensure they are not contributing to deforestation.

As an exporter, proving your compliance will require you to have data about the origin of the products you export - down to the plot of land - to demonstrate that your commodities have been produced in accordance with EU standards. Failure to comply with the regulations could result in additional audits, penalties, and damage to your sourcing reputation with your clients.

What steps can I take to protect my business and ensure compliance?

1. Map your supply chain down to the source (farm/farmer) to ensure complete visibility. Proving your compliance will require visibility all the way down to your commodity farm. Most enterprise suppliers have visibility into the manufacturer or processor they purchase from. However, few have the deep visibility required to protect their operations from deforestation penalties in the coming years.

2. Ensure you can track the source-level, geolocated coordinates of origin required to prove your compliance. Knowledge is king, but only if it’s backed by reliable data! Once you've gained visibility of your entire supply chain, ensure you are capturing the data you need at the source level to prove compliance. This tactic will require the exact geolocated coordinates of the farm, in addition to any decarbonization metrics to prove that the farming isn’t contributing to deforestation. Traceability solutions - such as BanQu’s solutions - can make capturing and reporting on this data much simpler.

3. Partner with a traceability and implementation expert to support you with your sourcing compliance journey. Achieving sourcing compliance is no small feat, so choosing an experienced partner that can help you from supply chain mapping to traceability implementation to data/reporting will make your sourcing compliance journey as efficient and beneficial as possible.  

Choose a few traceability partners - such as BanQu’s experienced compliance team - and evaluate them by the criteria below to assess if they’re the right fit for your business and goals.  

Are there solutions to help streamline my compliance efforts?

Supply traceability is the first major step to achieving sourcing sustainability and compliance. However, getting started can be a major hurdle. Choosing a trustworthy traceability partner to help you implement the right strategy - and software - and gain reliable data is key.

As you evaluate the perfect traceability partner for your international exporting business, ensure this partner can provide you with:

1. Visibility down to the geolocated farm/plot location. Mapping your supply chain down to the source is not without its challenges. Finding a partner that can help you gain visibility down to the exact geolocation/origins of your commodity is crucial to kickstarting your compliance journey and audit-proofing your business.

2. Data capture along the entire chain of custody from seed to byproduct. In order to move beyond unreliable high-level shipping data and spot audits, the ability to capture supply chain data along the entire chain of custody is key to proving decarbonization and sustainability efforts. This data capture must also include tracking the commodity source from the plot of land to the byproduct and every step in between, even when there’s a transformation. Finding a traceability partner that can help you achieve this granularity will help you ensure compliance.

3. Real-time reporting on regenerative agriculture and decarbonization. Last, but certainly not least, partner with an expert team that can provide you with real-time data and reporting on climate measures throughout your entire supply chain. The real-time piece will ensure your numbers are as up-to-date (and compliant!) as possible, and it allows you to remain agile in quickly solving any supply chain disruptions, co-op or manufacturing issues, or egregious carbon emissions.

International Exporter Compliance Conclusion

BanQu is an end-to-end supply chain compliance software that helps brands and suppliers around the world track their sustainability and ensure compliance. With real-time data down to the source, BanQu can help soy, beef/leather, palm oil, cocoa, coffee, wood, and rubber suppliers and brands track carbon offsets, gain end-to-end visibility, prove sustainability, and achieve audit-proof EUDR compliance. Schedule a discovery call with the BanQu team to see how they can help you achieve your sustainable sourcing goals and compliance!

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