Traces NT: Essential Guide to EU's Information System for the Deforestation Regulation

The European Union Deforestation Regulation (EUDR) introduces stringent due diligence requirements to ensure that commodities placed on or exported from the EU market are free from deforestation.

A critical component of this regulatory framework is TRACES New Technology (TNT), the Registry of Due Diligence Statements (DDS), which serves as the central platform for submitting compliance documentation.

The system enables affected parties to electronically generate and submit Due Diligence Statements, demonstrating that their products meet the EUDR’s deforestation-free and legality criteria.

However, while the platform plays a vital role in regulatory compliance, it does not provide automated risk assessments or supply chain verification. To meet full compliance obligations, businesses must integrate additional solutions, such as TradeAware, to enhance data validation, streamline reporting, and ensure robust risk mitigation.

This guide provides a comprehensive overview of TRACES New Technology, detailing its role within the EUDR framework, key functionalities, and limitations. Additionally, we will explore how businesses can strengthen their due diligence processes by leveraging advanced geospatial and regulatory tools.

Key Takeaways

• Traces NT is the EU’s official system for submitting Due Diligence Statements (DDS) under the EU Deforestation Regulation (EUDR).
• Operators must submit a DDS through Traces NT, confirming that their products are deforestation-free and legally sourced.
• Traders must ensure compliance by verifying that the necessary DDS has been submitted and remains valid.
• Regulatory authorities use Traces NT to review DDS, conduct risk assessments, and enforce EUDR compliance through customs verification and spot checks.
• Traces NT does not validate DDS submissions—businesses must ensure their data is accurate, complete, and backed by geolocation records.
• All DDS submissions must include operator details, product classifications, source commodity names, and geolocation data in GeoJSON format.
• The system lacks built-in risk assessment tools, requiring businesses to conduct independent verification of sourcing and deforestation risks.
• Additional solutions like TradeAware can enhance compliance by automating risk assessment, supplier verification, and data accuracy checks.

Understanding the EU Deforestation Regulation (EUDR) and the Role of Due Diligence Declarations

The European Union Deforestation Regulation is a key legislative measure aimed at reducing the EU’s contribution to global deforestation and forest degradation. As part of the European Green Deal, the regulation enforces strict due diligence requirements on companies trading in commodities linked to deforestation, such as soy, cattle, palm oil, wood, cocoa, coffee, and rubber.

Recent global deforestation reports underscore why such regulation is critical: forest loss increased by 4% globally in 2022 alone, resulting in approximately 6.6 million hectares of forests being cleared, an area roughly the size of Ireland (WWF, Forest Declaration Platform, 2023).

To comply, businesses must demonstrate that their products are deforestation-free and legally sourced by submitting a Due Diligence Statement (DDS) - a mandatory declaration backed by geolocation data, risk assessments, and supply chain verification.

By enforcing these stringent requirements, the EUDR aims to protect biodiversity, reduce carbon emissions, and promote sustainable trade, reinforcing the EU’s commitment to environmental responsibility.

Traces NT: The EU’s Registry under EUDR

Traces NT is the European Commission’s digital platform adapted to facilitate compliance with the EU Deforestation Regulation (EUDR). While not a new system, Traces NT has been repurposed to support the submission and management of Due Diligence Statements (DDS)—a core requirement for businesses placing relevant commodities on the EU market.

Functioning as the official Registry of Due Diligence Statements, Traces NT enables the submission of electronic DDS to the relevant authorities, ensuring their products meet EUDR’s deforestation-free and legality criteria. Member States’ authorities will verify submissions within the system, reinforcing regulatory oversight.

While Traces NT plays a central role in compliance, it does not independently assess risks or validate supply chains. Understanding its capabilities and limitations is essential for businesses, as additional tools may be required to ensure full EUDR adherence—a topic we explore in the next sections.

Who Needs to Use Traces NT?

As mentioned above, Traces NT is a mandatory compliance tool for key stakeholders involved in the trade of commodities covered under the EU Deforestation Regulation (EUDR). Let’s break down who needs to use Traces NT and why:

Operators

Operators are the first entities to place relevant commodities on the EU market and bear the primary responsibility for EUDR compliance. They must submit Due Diligence Statements (DDS) via Traces NT, ensuring that their products are deforestation-free, legally sourced, and fully documented with geolocation data and risk assessments. Their role is foundational in establishing supply chain traceability.

Traders

Traders make relevant commodities available on the EU market after they have been placed by operators. While they do not always need to submit new DDS, they must ensure that all products they distribute remain compliant with EUDR standards. This includes maintaining accurate records and verifying that the necessary documentation has been submitted and remains valid.

Regulatory Authorities

Competent authorities in EU Member States oversee compliance monitoring and enforcement. Using Traces NT, they review and verify Due Diligence Statements, assess risk levels, and ensure that all submissions meet EUDR standards. They also conduct spot checks, audits, and enforcement actions to prevent non-compliant products from entering the market.

EUDR Compliance Software Providers

Software solution providers play an increasingly vital role in helping businesses meet their EUDR obligations. These providers develop tools to streamline the creation, management, and submission of Due Diligence Statements (DDS) to Traces NT. By integrating with the system through APIs, they enable automated workflows, reduce manual input, and ensure data consistency across supply chains. 

Their platforms often support geolocation data processing, supplier onboarding, and risk assessment documentation—making them essential partners for operators and traders seeking to maintain compliance efficiently at scale. 

However, not all solutions are created equal. Many tools offer only partial functionality or lack the transparency and legal rigor required under EUDR. For a deeper look into how to evaluate these platforms, see our companion article about 10 key features to look for in an EUDR compliance solution.

The Role of Traces NT in EUDR Enforcement and Compliance Verification

Traces NT is a key tool for regulatory authorities to verify EU Deforestation Regulation (EUDR) compliance and take enforcement actions where necessary.

Key Enforcement Functions

• Customs Verification – Every shipment of EUDR-regulated commodities must include a valid Due Diligence Statement (DDS) reference number. Customs will block shipments missing this requirement, leading to delays and potential penalties.
• Geolocation-Based Risk Assessment – Authorities will analyze submitted geolocation data to identify high-risk sourcing areas and target them for closer inspection.
• Spot Checks and Data Requests – Officials can request proof of compliance at any time. Operators must be prepared to provide geospatial data, supplier records, and supporting documentation to back their DDS submissions.

Through these enforcement mechanisms, Traces NT strengthens regulatory oversight, ensuring that only deforestation-free, legally sourced commodities enter and exit the EU market. However, since the system does not automatically validate the accuracy of due diligence data, businesses must be proactive in maintaining verifiable records to avoid compliance risks.

Now that we’ve established the importance of Traces NT in EUDR compliance, let’s take a closer look at the essential data, features, and practical considerations businesses need to navigate it effectively:

Essential Data Needed for Traces NT Submissions

To comply with the EU Deforestation Regulation (EUDR), businesses must provide comprehensive and verifiable data when submitting Due Diligence Statements (DDS) through Traces. The required information ensures full traceability of commodities entering or leaving the EU market.

Key Information Requirements

• Operator Information – Businesses placing relevant products on the EU market must submit legal entity details, including company name and location. Certain internal movements within the EU may also require submission.
• Product Classification – Each product must be classified under its Harmonised System (HS) code, as listed in Annex 1 of the EUDR, ensuring that only regulated commodities are tracked.

• Source Commodities – For wood, the scientific and common names of the raw materials must be provided to verify the product’s origin and ensure compliance.
• Geolocation Data – The exact coordinates of production areas must be submitted in GeoJSON format, with a 25MB file limit. This capacity allows for thousands of polygons covering extensive land areas. Operators can optimize polygon representation if necessary to remain within file size constraints.

Submitting accurate and complete information through Traces NT is essential for regulatory compliance and seamless due diligence processing. Incomplete or incorrect data may lead to delays or compliance risks, emphasizing the importance of thorough documentation and validation.

EUDR compliance doesn’t stop at submitting a Due Diligence Statement. Businesses must ensure their data is accurate, risks are assessed, and suppliers are verified. TradeAware enables exactly that—transforming compliance from a checkbox exercise into a defensible, end-to-end process. Chris Bell, Senior Product Manager, Tradeaware

Key Features of Traces NT

Traces New Technology is the primary platform for businesses managing EU Deforestation Regulation (EUDR) compliance, offering essential tools for submitting and tracking Due Diligence Statements (DDS). Its key functionalities ensure efficient data handling and regulatory adherence.

Core Functions of the System

• Recording EUDR Declarations – Operators use Traces NT to submit their self-assessed compliance declarations, confirming that their products meet EUDR’s deforestation-free and legal sourcing requirements.
• Generation of DDS Reference Numbers – Every Due Diligence Statement is assigned a unique reference number, which must be included in import and export documentation to facilitate regulatory checks.
• Geolocation Data Submission – Operators provide precise commodity origin data by drawing locations on a map, manually entering coordinates, or uploading bulk GeoJSON files. The system also offers solutions to help resolve common formatting issues.
• Product Details and Classification – Traces requires users to define product type, HS codes, descriptions, weight, and volume. Operators further down the supply chain can reference existing DDS using verification numbers.
• Compliance Management Dashboard – A centralized dashboard enables operators to track, update, and manage DDS submissions, ensuring real-time visibility into regulatory processes.

With these features, TNT supports a structured approach to compliance, simplifying data submission while allowing authorities to monitor adherence to EUDR requirements. However, additional risk assessment and validation tools may still be needed to enhance supply chain transparency and due diligence accuracy.

Traces NT Limitations

While Traces NT is an essential tool for submitting Due Diligence Statements (DDS), it is not a comprehensive due diligence management system. Understanding its limitations is crucial for businesses to ensure full EU Deforestation Regulation (EUDR) compliance.

Key Limitations of Traces NT

• No Direct Supplier Data Integration – The platform does not act as a bridge between businesses and their suppliers. Operators must independently collect and verify geolocation data, sourcing details, and risk assessments without automated input from suppliers.
• No Centralized Due Diligence Storage – TNT is designed solely for DDS submissions and does not function as a data repository for broader due diligence records. Companies must maintain their own documentation for auditing and regulatory checks.
• No Automatic Verification of DDS Submissions – Traces NT does not check the accuracy of Due Diligence Statements. Operators are fully responsible for ensuring that all submitted information is correct and meets EUDR requirements.
• No Built-in Data Sharing with Clients or Partners – The system does not facilitate the transfer of compliance information between supply chain stakeholders. Businesses cannot rely on Traces NT to share due diligence reports with customers, distributors, or downstream partners.
• No Exemptions from Due Diligence Obligations – Even if a supplier has already submitted a DDS, every operator and trader must still conduct their own compliance checks and submit a separate Due Diligence Statement to meet regulatory obligations.

Traces NT in Practice

How businesses interact with it depends on the scale and complexity of their operations. For companies with occasional shipments, manually entering data into the platform may be sufficient.

However, businesses handling frequent transactions or managing complex supply chains may require API integration to automate the process.

Methods of Submitting a Due Diligence Statement (DDS)

Operators required to submit DDS can do so through two primary methods:

• Manual Submission via the User Interface – Businesses can input data directly into Traces NT’s online platform for each shipment. However, since the system does not retain past submissions, all information must be re-entered for every new shipment, including geolocation data, which must be uploaded manually.
• Automated Submission via API Integration – For businesses managing high transaction volumes, Traces NT offers an API for direct system integration. This allows for automated DDS submissions, reducing manual data entry errors. While the API supports core EUDR compliance requirements, it has functional limitations, and additional tools may still be required for comprehensive compliance management.

Regardless of the approach, operators must ensure that every Due Diligence Statement (DDS) is submitted with complete and accurate data. Achieving this accuracy can be particularly challenging due to traceability gaps, often emerging at points involving indirect suppliers or commodity aggregation.
Industry analyses indicate that companies commonly struggle to verify sourcing down to the level of individual farmers or primary producers, especially when multiple intermediaries are involved.

According to a Reuters study, approximately two-thirds of companies publicly reporting progress toward deforestation-free supply chains still lack sufficient evidence to substantiate these claims, revealing significant vulnerabilities in their due diligence processes.

Given these complexities, businesses can benefit significantly from integrating advanced digital solutions such as TradeAware, a comprehensive compliance tool providing the most accurate risk assessment by leveraging precise geospatial analytics and robust satellite imagery.

TradeAware automates due diligence workflows, enhances transparency by linking supplier data with verified geolocation inputs, and connects directly to the EU TRACES system—ensuring regulatory adherence while significantly reducing risks tied to fragmented sourcing records or incomplete documentation.

Next, let’s examine how TradeAware facilitates seamless DDS submissions and enhances due diligence efficiency.

Streamlining Due Diligence Statement Submissions with TradeAware

LiveEO's EUDR compliance solution, TradeAware, offers a comprehensive solution for managing shipments and submitting (DDS) to the EU TRACES system, facilitating seamless compliance with the EU Deforestation Regulation (EUDR).

Key Features include:

• Centralized Transaction Management: TradeAware enables the creation, updating, and linking of Purchase Orders (POs) and Sales Orders (SOs) within a single platform, ensuring all transaction data is consolidated for efficient management.
• Direct Integration with EU TRACES: The platform's direct connection to the EU TRACES system allows users to submit DDS with a single click, streamlining the compliance process and reducing the risk of errors associated with manual submissions.
• Comprehensive Supply Chain Traceability: By linking transaction data with DDS submissions, TradeAware provides end-to-end visibility of commodities from origin to final product, ensuring adherence to EUDR requirements and maintaining legal compliance.
• API Integration for High-Volume Transactions: For organizations managing large transaction volumes, TradeAware offers API integration with existing ERP or procurement systems, automating transaction processing and DDS submissions to enhance operational efficiency.

By leveraging these features, businesses can effectively manage their obligations under the EUDR, ensuring that all relevant commodities are deforestation-free and legally produced.

Traces NT vs TradeAware: Direct Comparison

To better understand the differences between these platforms, let’s compare Traces NT and TradeAware side by side:

Conclusions and next steps

Ensuring full compliance with the EU Deforestation Regulation (EUDR) requires more than just submitting Due Diligence Statements (DDS) through Traces NT.

While Traces NT serves as the official platform for regulatory submissions, businesses must take proactive steps to gather, validate, and monitor their data to avoid compliance risks.

For companies managing complex supply chains, manual data entry and verification can be resource-intensive. Automating the process with TradeAware not only streamlines DDS submissions but also enhances supply chain visibility, risk assessment, and compliance tracking.

With EUDR enforcement approaching, businesses must take early action to ensure their supply chains remain compliant, transparent, and risk-free. TradeAware Lite offers a free and easy way to start gathering essential data:

• Upload Geolocations – Add all known geolocation data to the platform, ensuring a structured and centralized database.
• Request Supplier Data – Connect with suppliers and request geolocations and supporting documents with a single click.
• Check Your Risk Exposure – Assess your sourcing locations against EU-published deforestation data to identify potential adherance risks. (Upgrade to Precision Analytics for advanced risk detection.)

Frequently Asked Questions (FAQ) on Traces NT and EUDR Compliance

1. What is Traces NT, and why is it important for EUDR compliance?

Traces NT is the EU’s official platform for submitting Due Diligence Statements (DDS) under the EU Deforestation Regulation (EUDR). It ensures that products entering or leaving the EU market comply with deforestation-free and legal sourcing requirements.

2. Who needs to use Traces NT?

Operators, traders, and regulatory authorities are required to use Traces NT. Operators, as the first entities placing relevant commodities on the EU market, must submit DDS. Traders must verify that the products they handle remain compliant with EUDR requirements, though they may not always need to submit a new DDS. Regulatory authorities use Traces NT to verify compliance, review submissions, and enforce EUDR rules.

3. What commodities require DDS submission?

The EU Deforestation Regulation applies to seven key commodities: soy, cattle, palm oil, wood, cocoa, coffee, and rubber. To comply, businesses must submit a Due Diligence Statement (DDS) for any products derived from these commodities that fall under the categories listed in Annex I of the regulation. This includes raw materials as well as processed goods. Ensuring accurate classification based on the Harmonised System (HS) codes in Annex I is essential for determining whether a product requires a DDS submission.

For a full overview of the included product categories, refer to the official EUDR legal text and Annex I here.

4. How do businesses submit DDS in Traces NT?

Businesses have two primary options for submitting Due Diligence Statements (DDS) in Traces NT: manual entry and API integration. Manual submission involves filling out all shipment and geolocation details directly within the platform. For companies dealing with frequent shipments or large datasets, API integration can help reduce errors and speed up the process.

Solutions like TradeAware provide automated DDS submission capabilities via direct integration with Traces NT. TradeAware not only automates data transfer but also connects with existing ERP and procurement systems to streamline end-to-end compliance workflows—making it ideal for companies needing scale, accuracy, and regulatory alignment across operations.

5. Does Traces NT validate DDS data?

Traces NT does not verify the accuracy of DDS submissions. It is the responsibility of the operator to ensure that all submitted information, including geolocation data, supplier compliance, and regulatory adherence, is accurate and complete.

6. What happens if a shipment lacks a valid DDS?

Shipments without a valid DDS reference number will be blocked by customs, leading to potential delays, penalties, or the rejection of goods from entering or exiting the EU market.

7. What are the key limitations of Traces NT?

Traces NT does not integrate supplier data, meaning businesses must collect and verify compliance information independently. The system does not conduct risk assessments, verify geolocation accuracy, or assess deforestation risks. Additionally, Traces NT does not track evolving regulatory requirements, so businesses must monitor compliance updates separately.

8. How can businesses improve EUDR compliance?

Businesses can enhance their compliance strategy by using TradeAware, which offers automated DDS submission, supply chain traceability, and risk assessment tools. By integrating directly with Traces NT, TradeAware simplifies the due diligence process while reducing errors and improving operational efficiency.