Why EUDR Guidance Matters More Than Ever

The EU Deforestation Regulation (EUDR) is reshaping supply chain compliance across industries. But as companies race to prepare, we’ve noticed a troubling trend: different interpretations of EUDR obligations.

These misinterpretations of EUDR guidance can be harmful. Businesses risk wasted resources, compliance gaps, or even enforcement penalties if they follow advice not rooted in the official EU framework.

Just last week (August 2025), the European Commission published an updated EUDR guidance document. Staying aligned with these official updates is the only way to ensure your due diligence processes are valid.

Common Misinterpretations of the EU Deforestation Regulation

From conversations with industry peers, we’ve seen recurring risks when companies rely on unofficial advice or outdated materials. Some of the most frequent misinterpretations include:

• Simplified Due Diligence seen as a shortcut: In reality, strict conditions apply — including low-risk classification, no risk of mixing, and no complex supply chain.
  
  
• Exemptions assumed under national laws: Operators cannot rely on local restrictions on data-sharing to avoid geolocation requirements.
  
  
• Product scope confusion: Only items listed in Annex I fall under the EUDR. A product containing a relevant commodity isn’t automatically covered unless its HS code is included.
  
  

Each of these mistakes stems from not consulting the official EUDR FAQs, annexes, and guidance documents.

Why Misinterpretations Are Dangerous

The consequences of misinterpreting EUDR obligations can be severe:

• Compliance gaps → missed due diligence steps may invalidate your compliance statement.
  
  
• Enforcement risk → incorrect reliance on simplified due diligence or exemptions can lead to penalties.
  
  
• Wasted resources → building systems around the wrong requirements wastes both time and money.
  
  

In short: false confidence is worse than uncertainty.

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What the Latest EUDR Guidance Adds

The July 2025 update provides more clarity on:

• How to assess supply chain complexity
  
  
• Expectations for traceability and geolocation
  
  
• Preventing mixing and circumvention risks
  
  

These details help operators and traders align with the true intent of the EUDR, not just surface-level assumptions.

How 11Foundry Helps You Stay Compliant

At 11Foundry, we’ve worked with EUDR, EUTR, and the Lacey Act — not from the outside, but from the operator side. That means we understand firsthand the practical challenges of due diligence.

Our Command Center software was built out of necessity: no existing tool covered all regulatory requirements. Today, it is the most flexible compliance solution, able to adapt quickly to any updates in EUDR guidance or benchmarking changes.

And beyond technology, our consulting support ensures that your interpretation of EUDR is aligned with the latest official documents — avoiding costly mistakes.

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Final Takeaway

Don’t risk your compliance strategy on misinterpretations. Always cross-check with:

• The EUDR legal text
  
  
• The official FAQs
  
  
• The latest guidance documents
  
  

And if you need clarity, we’re here to help.

Book a consultation or request a Command Center demo to ensure your due diligence process is fully aligned with EUDR.

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