What is the EUDR?
The EU Deforestation Regulation (Regulation 2023/1115) requires that certain commodities imported into or exported from the EU — including wood and wood products — must be:
1. Deforestation-free — Produced on land that was not deforested after December 31, 2020
2. Legally harvested — Compliant with all applicable laws in the country of production
3. Traceable — Accompanied by due diligence statements that include geolocation coordinates of the production area
The regulation covers timber, lumber, plywood, pulp, paper, furniture, and other wood-derived products.
Who Does EUDR Affect in the US?
The EUDR applies to any company that places covered products on the EU market or exports them from the EU. For US timber companies, this means:
- Direct exporters to the EU — If you ship lumber, hardwood, pulp, or wood products to European buyers
- Indirect suppliers — If you sell to domestic companies that export to the EU, your buyers will require EUDR-compliant documentation from you
- Timber investment organizations — If your managed forests produce wood that enters EU supply chains
Even if you don’t export directly, your customers may begin requiring geolocation data and chain-of-custody documentation as they prepare for EUDR compliance.
What Does EUDR Require Specifically?
Geolocation Data
For every lot of timber, you must provide GPS coordinates of the harvest area:
- For plots under 4 hectares (~10 acres): a single GPS point is sufficient
- For plots over 4 hectares: polygon coordinates defining the harvest boundary
This means you need to record where every load of wood was harvested — not just the county or state, but specific geographic coordinates.
Due Diligence Statements
Before placing products on the EU market, operators must submit a due diligence statement to the EU Information System confirming:
- The product is deforestation-free (post-December 31, 2020 cutoff)
- The product was legally produced
- The operator has conducted risk assessment and mitigation
Chain of Custody
You must be able to trace wood products from the specific forest plot where they were harvested through every step of the supply chain to the EU buyer. This requires:
- Digital records linking each load to a harvest location
- Documentation at every transfer point (forest → log yard → mill → port → buyer)
- Records retained for 5 years
Why US Companies Face a Unique Challenge
The US has strong forest management practices — the US has more forest cover today than it did 100 years ago, and deforestation is not a significant risk. However, the EUDR does not grant automatic exemptions based on country risk classification.
The EU is required to conduct a country risk assessment and “simplification review” by April 30, 2026. The US timber industry is actively lobbying for recognition as a low-risk country, which would reduce (but not eliminate) due diligence requirements.
Regardless of the outcome, US exporters will still need:
- Geolocation data for harvest areas
- Digital chain-of-custody records
- Ability to produce due diligence documentation on demand
The Technology Gap
Most US timber companies currently lack the digital infrastructure for EUDR compliance. Common gaps include:
How Forestry Software Solves EUDR Compliance
Purpose-built forestry ERP platforms like TRACT address EUDR requirements by design:
GPS-Tagged Load Tracking
Every load entered into TRACT is associated with a specific tract, which includes geographic coordinates. When loads arrive at a mill, the system maintains the link between the delivered wood and its origin.
Digital Chain of Custody
TRACT records every transaction in the wood supply chain — from contract to load to settlement. This creates an unbroken digital trail from forest to mill that satisfies chain-of-custody requirements.
Automated Documentation
Instead of assembling compliance documents manually, TRACT can generate traceability reports showing:
- Which tracts supplied which loads
- GPS coordinates for each harvest area
- Timeline of harvesting and delivery
- All parties involved in the transaction
5-Year Digital Archive
Cloud-based systems automatically retain records for the required duration, eliminating the risk of lost paperwork or corrupted local files.
Steps US Timber Companies Should Take Now
1. Assess Your EU Exposure (Now)
Determine whether your wood products enter EU supply chains, directly or indirectly. Talk to your largest buyers about their EUDR preparation.
2. Start Recording Geolocation Data (Now)
Begin capturing GPS coordinates for every tract you harvest. Even if you don’t export to the EU today, having this data positions you for future requirements and customer demands.
3. Digitize Load Tracking (Q1-Q2 2026)
Replace paper tickets and spreadsheets with a digital system that links every load to its origin. This is the foundation of chain-of-custody compliance.
4. Implement Forestry ERP (Q2-Q3 2026)
Deploy a system like TRACT that connects contract management, load tracking, settlements, and traceability in a single platform. TRACT serves customers ranging from regional dealers to institutional timberland owners like INGKA Investments (IKEA) and BTG Pactual — and was built specifically for the operational and compliance needs of timber companies.
5. Test Your Documentation (Q3 2026)
Before the December 30, 2026, deadline, run a mock due diligence exercise. Can you produce geolocation data, chain-of-custody records, and a risk assessment for a sample shipment? If not, you have time to fix gaps.
6. Monitor the Simplification Review (Ongoing)
The EU’s mandated simplification review (due April 30, 2026) may reduce requirements for low-risk countries like the US. Stay informed through industry associations like the American Hardwood Export Council and the National Hardwood Lumber Association.
Timeline Summary
Summary
The EUDR requires US timber companies that export to the EU (or supply those who do) to provide geolocation data, digital chain of custody, and due diligence documentation for every wood product. The December 30, 2026, enforcement deadline is less than 11 months away. Companies that adopt digital forestry ERP now will be positioned for compliance; those relying on paper and spreadsheets face significant risk of losing EU market access.
Need to prepare for EUDR compliance? [Schedule a consultation with TRACT](https://gettract.com/demo) to see how GPS-tagged load tracking and digital chain of custody can position your company for the December 2026 deadline.