EUDR is European Regulation on Deforestation-Free Regulation, which entered into force on 29 June 2023 by the European Union No 2023/1115 EUDR. The regulation mandates that any operators or traders to demonstrate the products do not originate from deforested land, or have contributed to forest degradation entering or leaving EU market.

The regulation applies to cattle, cocoa, coffee, rubber, soy, palm oil, timber and derivatives (leather, chocolates, tyres, or furniture).

Cocoa	Coffee	Soy	Rubber
Cattle	Timber	Palm Oil	Derivatives

The new rules aim to:

• Avoid the product buy, use, and consume are contributed to deforestation and forest degradation in the EU and globally
• Reduce carbon emissions from consumption and production of the relevant commodities
• Address all deforestation due to agricultural expansion to produce the commodities

The regulation will apply from 30 December 2025, and all the operators and traders must be carried out the due diligence (another 6 months for small and medium enterprise). There are three components in due diligence: information collection (traceability), risk assessment (obligation) and risk mitigation.

To response to regulation, we have developed traceability system called PTS – Product Tracing System. The system enables us to digitalize the approach from source to end user, and provide the information related to geolocation data.

The flow of the system:

1 User ID and Password	2 Log in to PTS	3 Enter Delivery ID #
4 Click on Product Unit ID #	5 Click on Pulp Unit ID #	6 Showing Mill and link to the map

We are also working closely with our raw material suppliers to ensure they are aware of their roles and responsibilities on EUDR compliance and prepare accordingly. In addition, we also closely monitoring PEFC and FSC progress on their development on EUDR alignment.

We will continue to update our progress and commitment to EUDR and to our best ability to work towards compliance under the EUDR. Should you have any questions or queries please contact info_paper@app.com.cn.