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Reference Numbers and Verification Numbers- The Building Blocks of EUDR
How do these data points affect EUDR compliance? Find out here
The European Union Deforestation Regulation (EUDR) introduces stringent due diligence obligations for operators and traders dealing in commodities linked to deforestation. At the core of this system lies a key enabler: the reference number. These unique identifiers serve as the backbone for traceability, transparency, and compliance across global supply chains.
For professionals in supply chain management, procurement, and compliance, understanding how reference numbers function is critical to meeting EUDR obligations efficiently and effectively.
What Are Reference Numbers?
Reference numbers are unique alphanumeric identifiers assigned to each due diligence statement submitted under the EUDR framework. These numbers serve as traceable records that link specific shipments or consignments of regulated commodities, such as coffee, timber, soy, cocoa, palm oil, and cattle, to verified due diligence data.
In practical terms, a reference number acts as a compliance passport. It allows downstream stakeholders, including traders and importers, to demonstrate that the goods they are handling have been assessed for deforestation risks and meet the EUDR’s legal requirements. Without a valid reference number, operators will not be permitted to place relevant products on the EU market.
What Are Verification Numbers?
In addition to reference numbers (RNs), the EUDR framework may utilise verification numbers (VNs) to confirm that specific stakeholders in the supply chain, like traders and downstream operators, have appropriately referenced the original due diligence statements.
While RNs are tied to the origin and initial due diligence submission, VNs can serve as evidence that subsequent actors have acknowledged and relied on those RNs without altering or duplicating data.
For instance, a trader purchasing timber with an existing RN does not need to re-enter all the due diligence data. Instead, by referencing the prior RN, they receive a VN and a new RN that can be shared further downstream. The VN confirms their reliance on the validated data and affirms their compliance obligations. This system reduces administrative burden, prevents duplication, and enhances data consistency across the supply chain.
Data Requirements for EUDR
To obtain a reference number, operators that put products on the EU market for the first time must first submit a due diligence statement via the EU’s centralised Information System. This statement must include:
- Geolocation data: Accurate location coordinates for all plots of land where the commodities were produced.
- Commodity details: Type, volume, and origin of the product.
- Supply chain information: Names and contact details of all suppliers and intermediaries.
- Deforestation risk assessment: Evidence that the product was not produced on land subject to deforestation or forest degradation after December 31, 2020.
- Mitigation measures (if applicable): Documentation of actions taken to address any identified risks.
Each due diligence statement is reviewed and validated before a reference number is generated. This ensures that only compliant goods are associated with a valid identifier, reinforcing the EUDR’s integrity.
Comparing Reference Numbers and Verification Numbers
In the case of timber, proper use of RNs and VNs is critical due to the complexity of forest product supply chains. Logs may pass through multiple processors, exporters, and distributors before reaching the EU market. Here’s how the process typically works:
- Initial Operator: A forest concession or sawmill submits a due diligence statement, including geolocation of harvest plots, species, volume, and legality documents, to obtain an RN.
- Traders/Importers: EU-based timber importers and wholesalers reference the original RN. They will obtain a VN to document their reliance on the upstream data and demonstrate alignment with EUDR requirements.
- Downstream Actors: Furniture makers, construction firms, or retailers can refer to the RN/VN in their own documentation, facilitating end-to-end traceability.
How Do Reference Numbers Work in EUDR?
Once issued, the reference number must accompany the commodity throughout its journey into and within the EU market. Here’s how it functions in practice:
- Submission: The operator submits a due diligence statement for a shipment of, for example, green coffee beans, including all required data.
- Issuance: The EU system generates a unique reference number and verification number tied to that specific shipment.
- Transmission: The RN/VN is updated and passed along the supply chain, included in commercial documentation, customs declarations, and digital platforms.
- Verification: Authorities and business partners use the reference number and verification number to authenticate compliance, trace origins, and audit supply chains.
- Liability tracking: The number provides a direct link to the party responsible for legal accountability in the event of non-compliance.
Reference numbers are non-transferable and must be shipment-specific. Reuse or misrepresentation of a number constitutes a breach of the regulation and may result in penalties or exclusion from the market.
Reference Numbers for Mixed-Origin and Bulk Traded Products
The EUDR recognises the complexities involved in handling commodities that are aggregated from multiple origins or processed in bulk, such as cocoa or palm oil. In these cases, traceability becomes more challenging, yet reference numbers remain a critical requirement.
For such mixed-origin products, operators must still ensure that each batch or shipment can be traced back to compliant sources. This means compiling geolocation and supply chain data for every contributing origin and submitting a consolidated due diligence statement. The resulting reference number reflects the combined verification of all constituent sources, enabling continued compliance.
However, operators must maintain robust internal traceability systems to manage this complexity. Where segregation of compliant and non-compliant product is not possible, the entire batch may be deemed non-compliant. This underlines the importance of rigorous supplier engagement and data collection processes.
Conclusion
As the EUDR reshapes global commodity trade, reference and verification numbers form the backbone of its traceability and enforcement mechanisms. For businesses operating within the affected sectors, understanding and implementing these identifiers is not merely a compliance task—it’s a strategic imperative.
Investing in the right digital infrastructure, supplier relationships, and data management processes will be essential to ensure that every shipment is traceable, every partner is accountable, and every step in the supply chain meets the EUDR’s high bar for sustainability.
Ready to begin your journey? Email us at pim@eraofwe.com to find out how we can accelerate your EUDR preparation.
About the author
Join me in discovering the wonderful world of coffee! As a writer, coffee is my fuel and newfound passion. I love writing about new coffees, sustainability, and coffee culture around the world. I'm always discovering new things about coffee and the industry, which I share with the great community here at Era Of We.