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EUDR Downstream Operators: Definition, Role and Obligations

Downstream operators handle products made from inputs that already carry a Due Diligence Statement. Their obligations are lighter than those of operators — but the details matter, especially for non-SMEs.

New EUDR guidlines clarify and change the role of "Downstream Operators":

Downstream operators are natural or legal persons who place on the EU market or export a relevant product that has been manufactured using other relevant input products — provided those inputs are already covered by a Due Diligence Statement (DDS) or a simplified declaration. Typically, this involves products falling under a new HS code that have been manufactured from components or raw materials carrying an existing DDS reference.

Downstream operators and traders may only place, make available or export relevant products on the market if they hold the information required — in particular the identity of their suppliers and corporate clients, and, where the supplier is an operator, the reference numbers of the Due Diligence Statements or the Declaration Identifiers of the products. They are not required to carry out their own due diligence, submit their own DDS, or verify whether due diligence has been exercised upstream. They are, however, obliged to collect and retain the information referred to in Article 5(3) and to provide it to the competent authorities upon request.

There is, however, an important caveat: downstream operators and traders that are not SMEs must also register in the EUDR information system before placing, making available or exporting relevant products for the first time. If they become aware of new relevant information or substantiated concerns, they are obliged to inform the competent authorities without delay. In such cases, non-SMEs are additionally required to verify that due diligence has been exercised and that only a negligible risk has been identified.

Approval of the updated content of a draft Commission Notice on the Guidance Document for Regulation (EU) 2023/1115 on Deforestation-Free Products

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