The Regulation establishes a three‑level risk‑assessment system for evaluating countries or regions. Accordingly, Member States and third countries, or parts thereof, shall be classified into one of the following risk categories:

• High‑risk: countries or regions assessed as presenting a high risk that relevant commodities produced there are not compliant with Article 3;

• Low‑risk: countries or regions assessed as providing sufficient assurance that non‑compliance with Article 3(a) is only exceptional;

• Standard‑risk: countries or regions not classified as high‑ or low‑risk.

The EU will publish this list within 18 months after the Regulation enters into force.

Operators must identify whether forest types present as of December 31, 2020 were primary or naturally regenerating forests (the definition of "forest degradation" applies to both types). They must then assess forestry activities related to timber harvesting and any planned post‑harvest activities.

Where applicable, the existence, compliance with, and effective enforcement of laws protecting the rights of indigenous peoples must be assessed.

Forests provide livelihoods and income for approximately one‑third of the global population, and their destruction severely impacts the most vulnerable, including indigenous peoples and local communities who depend heavily on forest ecosystems. The Commission should fully recognize the role and rights of indigenous peoples and local communities in forest protection, taking into account the principle of Free, Prior and Informed Consent (FPIC).

When assessing the risk of non‑compliance of relevant commodities and products intended for the market or export, human rights violations linked to deforestation or forest degradation – including the rights of indigenous peoples, local communities, and customary land‑tenure holders – must be taken into account.

Given that the rights of indigenous peoples must be respected within the EU framework, any well‑founded claims they raise should be considered seriously and treated with the utmost gravity.

Given that the EUDR requires products to be deforestation‑free, it is essential to assess the country of origin and the severity of its deforestation issues. Operators must ensure that products imported into or exported from the EU are not linked to deforestation. This must be verified through product origin information, including geolocation data of the plots where the commodities were grown.

For example, the level of corruption, the prevalence of document and data falsification, weak law enforcement, violations of international human rights, armed conflicts, or sanctions imposed by the United Nations Security Council or the European Council.

A particular challenge lies in linking the relevant product to the land on which it was produced.

Non‑SME operators and traders must ensure the traceability information they provide to competent authorities is accurate, regardless of supply‑chain length or complexity. Traceability information may be aggregated step‑by‑step along the supply chain. For example, a bulk shipment of soy sourced from hundreds of plots across multiple countries must be accompanied by a due‑diligence statement containing all relevant countries of origin and the geolocation of each plot.

Geolocation traceability is mandatory without exception. Operators must also assess the complexity of the relevant supply chain, the risk of circumvention, and the risk of mixing with products of unknown origin or from high‑risk or standard‑risk countries or regions.