Small and micro enterprise
Q: What companies are considered small and micro under the EUDR?
A: According to the EU's Accounting Directive, a company is considered a micro or small enterprise if it meets at least two of the following three criteria:
- Less than 50 employees
- Net turnover of less than €10,000,000
- Balance sheet total of less than €5,000,000
Q: What specific obligations are waived for micro and small primary operators?
A: To simplify your process, if you qualify as a micro or small primary operator in a low‑risk country or region, you are not required to submit a DDS for each placement/export; instead, you may make a one‑time simplified declaration. Core due‑diligence duties remain, but documentation and update requirements are streamlined:
- Per‑consignment DDS filings: Risk assessment and record‑keeping are performed through the one‑time simplified declaration and maintained on a proportionate basis.
- Certain detailed reporting and record-keeping obligations that larger operators must maintain.
Q: Who can use the one-time simplified declaration and how is it submitted?
A: If you qualify as a micro or small primary operator in a low‑risk country or region, the EUDR provides a one‑time simplified declaration option. In general:
- Submit a one-time simplified declaration: Use the information system (Article 33) to register before placing products on the market or exporting them.
- Obtain a declaration identifier: Once your one-time declaration is submitted, use the system’s reference in your subsequent EUDR filings/records as applicable.
- Update as needed: While the declaration is a one-time requirement, you should update it if there are major changes to your business information.
Q: What information do I need to provide in the declaration?
A: Annex III sets out the specific declaration requirements. However, if this information is already available in an existing Union or Member State database, you may not be required to submit it again — provided the Member State links that data to the central system.
Q: Are there different rules for geolocation data for small operators?
A: Yes. Instead of providing precise geographic coordinates (latitude and longitude) for every plot of land as required in Article 9:
- You may provide the postal address of all plots of land.
- Alternatively, you can provide the postal address of the establishment where the relevant commodities were produced.
Q: Are samples or products made from recycled materials in scope of the EUDR?
A: The scope of the EUDR can differ for these types of products:
- Samples: The Commission has proposed excluding negligible‑value/quantity samples used only to obtain orders — and items used solely for testing — from the EUDR’s scope (pending adoption).
- Recycled materials: Products made 100% from recycled materials (end-of-lifecycle waste) are not within the scope of the EUDR. However, if any virgin material is added, the product then falls within the scope, and the virgin material must have an attached Due Diligence Statement (DDS).
Q: Do existing certifications like FSC mean automatic EUDR compliance?
A: No, certifications such as FSC, SFI or PEFC do not automatically mean compliance with the EUDR. However, these certifications can support your efforts around the EUDR — for instance, by being part of your Due Diligence System, demonstrating supply chain involvement and mitigating risks associated with local laws or supply chain complexity.
Q: We're exporting an EUDR product. What are our obligations?
A: Under the current simplifications, there are now two scenarios:
- Downstream operators exporting products already covered by an operator’s DDS do not submit a new DDS for export.
- First operators must submit a DDS via the Union information system before placing on the EU market or exporting and use the DDS reference where customs formalities require it.
Q: We're re-importing a good that was previously in the EU. How does this affect us?
A: Due to the simplification around exports requiring EUDR numbers, there’s no clear guideline around this process. The European Commission has indicated that it will publish guidance to address re-imports.
Q: Where can I get more information?
A: For more details on the EUDR, please refer to the official EU Commission website. For specific questions on Avery Dennison products and our compliance efforts, please contact your Avery Dennison representative.
Note: This FAQ provides general information on the EUDR. It does not constitute legal advice.