Did you know that the cost of non-compliance with the European Union Deforestation Regulation (EUDR) can far exceed the expense of updating your business tools and processes? While adapting to new regulations might seem like a daunting task, especially for businesses in the wood industry, compliance is not just an option—it’s a necessity if you want to stay competitive.
For companies operating within the EU market, ensuring that their supply chains are deforestation-free is now mandatory. The repercussions of failing to comply are severe. Member States are required to establish stringent regulations and penalties for violations, which can have far-reaching consequences.
Here’s what’s at stake for non-compliant businesses:
Fines: Up to 4% of your total annual turnover across the EU, with progressively higher penalties for repeat violations. These fines are designed to remove any economic advantage gained from non-compliance.
Confiscation of Products: Any products linked to deforestation could be seized, leading to disruptions in your supply chain and significant financial losses.
Seizure of Revenue: Any revenue generated from transactions involving non-compliant products may be confiscated, further impacting your financial standing.
Suspension from Public Procurement: A temporary suspension of up to 12 months from participating in public procurement processes, as well as restrictions on accessing public funding, grants, and concessions.
Market Restrictions or Bans: A temporary prohibition on placing, selling, or exporting non-compliant products within the EU market, especially for serious or repeated violations.
Reputational Damage: Failing to meet EUDR requirements could severely harm your company’s reputation, leading to lost business opportunities and a decline in brand value.
Given these significant risks, it’s clear that compliance with the EUDR is not just about avoiding penalties but also about protecting your business’s future.
If you’re concerned about the costs of compliance, don’t worry—preparing for EUDR doesn’t have to mean investing in costly new software. Our TIMBERplus EUDR system offers affordable solutions tailored specifically for the wood industry, helping businesses of all sizes navigate these new regulations.
Make the right decision today by starting your journey toward EUDR compliance. Not only will this help you stay competitive. It will also bring you one step closer to achieving your business goals.