EUDR
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      Guide

      EUDR Onboarding Guide

      Table of Contents

      1. Overview of Prewave's EUDR Solutions
      2. Step-by-Step Guide
      3. Inbound Module: Managing Product and Supplier Data
      4. Product Origin Request
      5. Due Diligence Process: Evaluating Inbound Products
      6. Deforestation & Legality Assessments
      7. Generating the Due Diligence Statement (DDS)

      8. Outbound Process: Tracking Products Leaving the EU Market

      9. Managing Due Diligence Statements (DDS) in the DDS Module
      10. Summary

      Welcome to the Prewave EUDR compliance onboarding guide. This detailed guide will walk you through the platform’s different modules and functionalities, helping you achieve full compliance with the European Union Deforestation Regulation (EUDR). Prewave's end-to-end solution provides flexibility and automation to help you track and manage your products and suppliers in alignment with EUDR requirements.

      Overview of Prewave’s EUDR Solution

      Prewave’s EUDR solution consists of three primary modules. 

      • Inbound Module: Tracks all incoming products into your company. 
      • Outbound Module: Monitors products exported or sold on the EU market. 
      • Due Diligence Statement (DDS) Module: Stores, manages, and generates due diligence statements, ensuring compliance with EUDR's regulatory framework. Stored for five years.

      Each module is tightly integrated with the others, creating a seamless process from product intake through due diligence and export.

      Step-by-Step Guide to Using the Prewave EUDR Solution

      Inbound Module: Managing Product and Supplier Data

      The Inbound Module is where you create, manage, and track all products entering your supply chain. This module is crucial for gathering the necessary product and supplier information, ensuring that products meet the initial criteria for compliance under EUDR.

      Steps to upload product and supplier data: 

      • Manual Input: You can manually add individual products and suppliers through the Prewave platform’s interface. For each product, details like the product name, supplier name, scientific name (e.g., for wood or rubber), HS codes, and commodity codes must be entered. This data is critical for the platform to assess risk and ensure compliance.
      • API Integration: For continuous, real-time data updates, you can integrate your existing internal systems with Prewave via API. This integration ensures that all product and supplier data is automatically updated in Prewave, providing a more automated and seamless process.

      Once product and supplier data is created, the platform categorises suppliers based on their geographic location (EU or non-EU). This categorisation is critical, as the location determines which compliance checks are required. Any missing data, such as product origin or supplier location, will be flagged for further action.

      Product Origin Request

      One key requirement of EUDR is to know the origin of each product in your supply chain. If any supplier fails to provide adequate origin details, the platform enables you to issue a Product Origin Request. This request prompts the supplier to submit the necessary details about the product’s origin and production geolocation.

      Steps to send a Product Origin Request:

      • Initiate the Request: From the Inbound Module, select the product with missing origin data and click the “Request Origins” button.
      • Add Reference Information: You will need to provide a reference number, such as a purchase order (PO) or shipment number, to link the request to the correct transaction or product batch.
      • Select Supplier Contact: Choose an existing contact from the supplier’s profile, or manually add new contact information if required. You can also send the request to multiple contacts within the supplier organisation.
      • Send the Request: Once the request is sent, the supplier will receive an email prompting them to provide the missing information. The supplier will fill in the details about the product’s geolocation and production processes, ensuring compliance with EUDR regulations.

      Once the supplier submits the requested origin data, it is automatically collected and stored in the system, allowing you to proceed with the due diligence process.

      Due Diligence Process: Evaluating Inbound Products

      After all necessary product, supplier and origin data has been added, the platform initiates the Due Diligence Process. This process is designed to ensure that each product meets the required EUDR compliance standards before being sold on the EU market.

      The Due Diligence Process begins with a Supplier Maturity Assessment, which evaluates whether a supplier’s practices meet the EUDR’s strict deforestation and legality standards.

      Steps in the Due Diligence Process:

      • Supplier Maturity Assessment: The system sends out a maturity assessment to evaluate the supplier’s compliance level. This assessment considers multiple factors, including the supplier’s historical compliance, risk factors based on their country of origin, and the likelihood of deforestation issues.
        • If the supplier passes the assessment (i.e., their maturity level is deemed satisfactory), the platform enables you to fast-track their due diligence. This means the supplier’s compliance information can be reused across multiple products and transactions, reducing the need for repeated assessments.
        • If the supplier fails the assessment, Prewave flags the products as non-compliant. This prompts the need for further actions, including deforestation and legality assessments.

      Deforestation & Legality Assessments

      If the Supplier Maturity Assessment raises any concerns, the platform enables additional checks, including a Deforestation Assessment and a Legality Assessment. These assessments ensure that the products meet EUDR’s strict requirements for sustainable sourcing and legality.

      • Deforestation Assessment: The Deforestation Assessment checks the risk of deforestation at the product’s origin. It evaluates geolocation data to determine whether the product comes from an area at risk of deforestation. Products from high-risk regions are flagged, and further investigation or corrective actions are required. If the assessment results in a Green Dot (indicating negligible risk), the product can move forward in the compliance process.
      • Legality Assessment: This assessment ensures that the product complies with EUDR's legality requirements, including the legal harvesting of raw materials. The platform checks the supplier’s Country Risk and Industry Risk based on external data sources, giving the product a legality score. If any high-risk factors are identified, the platform provides recommended corrective actions to bring the product into compliance.

      Once all assessments are passed, and both deforestation and legality risks are cleared, the product is deemed compliant, and the due diligence process can proceed.

      Generating the Due Diligence Statement (DDS)

      Once a product has passed all necessary compliance checks, the platform generates a Due Diligence Statement (DDS). This document certifies that the product complies with all EUDR regulations, including deforestation risk and legality standards.

      Steps to generate a DDS

      1. Compilation of Data: The platform gathers all relevant data, including product origin, supplier information, deforestation and legality assessments, and any additional compliance documentation.
      2. DDS Generation: The platform automatically generates a Due Diligence Statement for each compliant product.
      3. Submission to the EU Traces System: The DDS is submitted electronically to the EU Traces system, the regulatory portal used by EU authorities to track and verify deforestation compliance.
      4. EU Reference Number: Once submitted, the EU Traces system generates a reference number, which is then automatically retrieved and displayed in the Prewave platform. This reference number serves as proof of compliance and can be linked to internal systems via Prewave’s API integration.

      The DDS is stored in the platform’s DDS Module for future reference and can be reused for subsequent transactions involving the same supplier and product.

      Outbound Process: Tracking Products Leaving the EU Market

      The Outbound Module is used to manage and track the products leaving your company and the EU market. Outbound products are directly linked to the corresponding inbound products, ensuring that due diligence information is transferred accurately.

      Steps in the Outbound Process

      1. Add Outbound Products: You can upload outbound products manually, through an Excel template, or via API. The platform allows you to input all necessary product details, such as destination, compliance status, and any associated inbound product data.
      2. Mapping Outbound to Inbound Products: The platform requires you to map each outbound product to its respective inbound product(s). This mapping ensures that the due diligence information for the inbound products is carried over and linked to the outbound products.
      3. Generating Outbound DDS: Once the inbound products linked to an outbound product are compliant, you can generate a Due Diligence Statement (DDS) for the outbound product. This ensures that all products leaving the EU are fully compliant with EUDR regulations.

      Managing Due Diligence Statements (DDS) in the DDS Module

      The Due Diligence Statement (DDS) Module is a central repository where all generated DDS are stored, tracked, and managed. This module is critical for ensuring ongoing compliance with EUDR regulations and allows for easy retrieval and reuse of DDS for different products and suppliers.

      Key Features of the DDS Module

      • Storing DDS: All due diligence statements generated in Prewave are stored for a minimum of five years, as required by EUDR regulations. This ensures you maintain comprehensive compliance records for regulatory audits or inspections.
      • Filters and Sorting: The DDS Module offers extensive filtering and sorting options, allowing you to easily locate specific statements based on products, suppliers, risk levels, or other criteria.
      • Generate new DDS if needed.
      • Reusing DDS: Once a supplier’s due diligence is approved, their DDS can be reused for multiple products, reducing the need for repeated assessments and documentation efforts.

      Summary

      Prewave’s EUDR compliance solution provides a comprehensive, automated platform for managing your supply chain’s compliance with the European Union Deforestation Regulation. By leveraging the Inbound, Outbound, and DDS modules, you can confidently track and manage your products, suppliers, and compliance efforts, ensuring that your supply chain meets the highest standards of sustainability, legality, and transparency.

      For any further assistance or inquiries, please contact our support team, who will be happy to guide you through the platform and ensure that your company stays compliant with all regulatory requirements.