{
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  "sourcesContent": ["import{jsx as e,jsxs as t}from\"react/jsx-runtime\";import{Link as a}from\"framer\";import{motion as i}from\"framer-motion\";import*as o from\"react\";export const richText=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"Oxford University Press to deploy Sourcemap's leading supply chain mapping platform to streamline shipment-level satellite deforestation analysis and accelerate critical customs clearance processes required by EUDR\"}),/*#__PURE__*/e(\"p\",{children:\"Oxford University Press (OUP), has selected Sourcemap, the leading provider of supply chain transparency and regulatory compliance software, to automate its end-to-end EU Deforestation Regulation (EUDR) compliance. In line with new requirements to map and monitor forest origins for all paper products, OUP will leverage Sourcemap's platform for real-time, shipment-level satellite deforestation analysis, validated forest mapping, and seamless digital customs declarations. Sourcemap stands out as one of the leading EUDR compliance software solutions currently live and integrated with both ERP triggers and the EU TRACES system, enabling a level of automation and speed critical for global publishers.\"}),/*#__PURE__*/e(\"p\",{children:\"OUP publishes thousands of titles each year and sells products all over the world. Sourcemap's system will process EUDR compliance for\\xa0 thousands of annual transactions, encompassing EU imports, intra-EU trades, and exports. Integration with OUP's ERP system(s) automatically initiates EUDR traceability requests tied to specific purchase orders. Sourcemap's cloud-based geo-data validation and screening engine, connected directly to the EU TRACES portal via API, enables OUP to complete mapping, deforestation certification, and customs clearance for individual shipments in under 10 minutes.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"About Sourcemap:\"})}),/*#__PURE__*/e(\"p\",{children:\"Sourcemap Inc. is the leading provider of supply chain traceability and regulatory compliance software, helping companies map their supply chains to Tier-n. With offices in New York, Chicago, and Paris, Sourcemap's platform is trusted by 250 global brands to map more than 6 million suppliers worldwide. By providing unparalleled supply chain visibility, Sourcemap enables businesses to proactively manage risk, build resilience, and efficiently comply with complex global regulations, including EUDR, CSDDD, CSRD, and Forced Labor bans across major markets.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"About Oxford University Press\u202F\\xa0\"})}),/*#__PURE__*/t(\"p\",{children:[\"Oxford University Press (OUP) is a department of the University of Oxford. It furthers the University's objective of excellence in research, scholarship, and education by publishing worldwide. \",/*#__PURE__*/e(\"br\",{}),\"It currently publishes thousands of new publications a year, has offices in around fifty countries, and employs approximately 5,000 people worldwide.\\xa0\\xa0\"]}),/*#__PURE__*/e(\"p\",{children:\"It has become familiar to millions through a diverse publishing program that includes scholarly works in all academic disciplines, bibles, music, school and college textbooks, children's books, materials for teaching English as a foreign language, business books, dictionaries and reference books, and academic journals.\\xa0\"})]});export const richText1=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"New solution automates management of complex Rules of Origin-based tariffs\"}),/*#__PURE__*/e(\"p\",{children:\"Sourcemap, the leading provider of n-tier supply chain traceability software today announced the launch of its n-Tier Tariff Mapping Solution, the first fully-automated system of record for origin tariff management. This solution is designed to help companies manage the complexities of Rules of Origin-based tariffs by providing automated, verified chain of custody data for raw materials and sub-components. n-Tier Tariff Mapping addresses critical needs for businesses dealing with complex products subject to tariffs including\\xa0 Section 232 and USMCA exemptions including cotton, steel and aluminum.\"}),/*#__PURE__*/e(\"p\",{children:\"Tariffs on imported goods vary widely based on the origins of the raw materials contained within. For example, imports containing small amounts of steel or aluminum \u201Cmelted and poured\u201D in the US are exempt from a 50% tariff on foreign-origin metals. Assessing tariffs impact and justifying the resulting calculation to customs authorities requires evidence of the chain of custody for the materials in question.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"Sourcemap's n-Tier Tariff Mapping Solution is the only offering to provide a totally automated solution, co-developed with leading companies in the solar, appliances, electronics, home improvement retail, and automotive sectors. Key features include:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Automated Multi-Tier Supply Chain Mapping:\"}),\" Traces products, sub-assemblies and raw materials to their raw material origins\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Automated Critical Data Collection:\"}),\" Collects critical data including Country of Origin, quantities and harmonized tariff codes from suppliers across all tiers.\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Verified Origin Data:\"}),\" Provides auditable evidence of raw material origin to substantiate tariff claims and ensure compliance\"]})})]}),/*#__PURE__*/e(\"p\",{children:\"Sourcemap is built on the largest trusted supplier network in the world - the only network built with verified supplier-provided data - comprising over 5 million suppliers and more than 250 major brands.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:'\u201CTo prove the origin of goods beyond a reasonable doubt, customs authorities require validated supply chain mapping data including chain-of-custody documentation for all imported products,\" said Leonardo Bonanni, CEO & Founder of Sourcemap. \"The n-Tier Tariff Mapping Solution is the first of its kind to provide fully automated and verified raw material origin data, empowering companies to confidently navigate complex tariff landscapes and potentially reduce their duty liabilities.\"'}),/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"About Sourcemap:\"}),\" Sourcemap is the leading provider of n-tier supply chain mapping and traceability software, offering unparalleled visibility into complex global supply chains. Trusted by over 250 of the world's top brands and with a network of over 5.5 million suppliers, Sourcemap empowers businesses across industries like food, apparel, retail, electronics, automotive, and manufacturing to meet comprehensive due diligence and regulatory requirements. Its automated solutions help companies comply with a wide array of global mandates, including those addressing forced labor, deforestation, digital product passports, and corporate sustainability (CSDDD). Recognized for its innovation, Sourcemap was named TIME Invention of the Year 2022 and one of Fast Company's Most Innovative Companies in 2023. Headquartered in New York with offices in Chicago and Paris, Sourcemap is transforming supply chain transparency. \"]})]});export const richText2=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Revised June 5, 2025. Executive Summary\"}),\": If companies can prove that any of the steel or aluminum in a product was melted and poured in the US, they can be exempted from a 50% tariff - increased from 25% this week -\\xa0 on over $150B in derivative products including machinery parts, household goods, industrial components, and automotive parts.\"]}),/*#__PURE__*/e(\"p\",{children:\"On February 10, 2025, President Trump made changes to the Section 232 steel and aluminum tariffs, significantly expanding the scope of derivative steel and aluminum products. These changes included:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"An increase on aluminum tariffs from 10% to 25%, eliminating all country exemptions, and terminating all existing General Approved Exemptions effective March 12, 2025;\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"expanding the scope of products covered by the tariffs to over $150B worth of imports across machinery parts, household goods, industrial components, and automotive parts;\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:'prohibiting the Commerce Secretary from considering new product exclusions from February 11, 2025 (entity-specific product exclusions to \"remain effective until their expiration date or until excluded product volume is imported, whichever occurs first\").'})})]}),/*#__PURE__*/e(\"p\",{children:\"These duties applied to imports from March 12th onward. Based on the most recent import data available, 51% of total imports of aluminum into the United States comes from Canada, with Mexico and China accounting for 22% and 21% of total aluminum derivatives, respectively.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"This week, the Trump administration announced an increase of Section 232 tariffs to 50%. Section 232 tariffs are to apply only to the steel or aluminum content of the derivative product and would not apply to derivative products processed in other countries using steel or aluminum that was \u201Cmelted and poured\u201D (steel) or \u201Csmelted and cast\u201D (aluminum) in the United States. This applies to all the listed derivative HTS codes to which the new Section 232 tariffs would otherwise apply, so businesses need to start mapping their supply chains for products in those codes to identify any U.S. product or material.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})}),/*#__PURE__*/t(\"h2\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Calculating the proper tariff amount and taking advantage of exemptions\"}),\"\\xa0\"]}),/*#__PURE__*/e(\"p\",{children:\"Tariffs may be applied differently for two similar products made of materials from different countries. For example, a chair made of 100% aluminum from China would incur the following tariffs: 25% pre-existing tariff imposed before 2025 + 50% tariff on steel from China + 25% additional reciprocal tariff on most Chinese goods. Due to the Section 232 exemptions, this aluminum chair would be exempt from the additional reciprocal tariffs imposed by the administration this past week. This results in a tariff rate of 75% for this chair. However, if any of the aluminum used in this chair was smelted and cast in the United States, it would be exempt from the 50% Section 232 tariffs. This exemption exists for both steel and aluminum regardless of where the end product is ultimately manufactured.\\xa0 This creates a strong incentive for companies to ensure they have a record of all of the sources of steel and aluminum in their products, as well as the value of steel and aluminum that is not smelted, poured or cast in the U.S. In order to qualify for this exemption, importers must collect evidence of where the aluminum and steel were melted and poured or smelted and poured - also known as chain of custody traceability.\\xa0\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"What Data is Required to Calculate Section 232 Tariffs?\\xa0\"})}),/*#__PURE__*/e(\"p\",{children:\"Now that Section 232 applies to aluminum and steel derivatives, importers seeking to be exempt from this 50% tariff need to calculate\\xa0 the value of steel and aluminum in their products and determine which portion of it was melted and poured in the US. This process involves mapping\\xa0 all of the suppliers in the value chain and\\xa0 collecting chain of custody documents such as purchase orders, contracts and bills of lading to prove that the metal was melted and poured in the US.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"With only a few months into this new administration, we still don't know how Section 232 tariffs will evolve, nor how many other materials may fall under such origin-mapped requirements.\\xa0 Companies should plan for uncertainty and start mapping their supply chains so that they can\\xa0 respond in real-time to evolving trade regulations.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:'The European Commission is also introducing a \"melted and poured\" rule as part of its steel and metals action plan to determine the origin of metal goods, with potential tariffs and other restrictions. With the ever-changing trade and tariff landscape, it\\'s a best practice to determine the source of all in-scope metals for both US and EU regulators.\\xa0'}),/*#__PURE__*/e(\"p\",{children:\"To learn more about how Sourcemap can help your company with tariff planning and customs compliance , reach out to our team of experts.\\xa0\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Tariffs and what impact can they have on demand?\\xa0\"})}),/*#__PURE__*/e(\"p\",{children:\"Tariffs are taxes imposed by a government on goods and services imported from other countries. They are typically a percentage of the price of goods. Tariffs can be used to raise government revenue, discourage consumption of imported or foreign goods and can be used as a tool for political negotiations with foreign governments.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:'Section 232 of the Trade Expansion Act of 1962 authorizes the President to impose trade restrictions\u2014such as a tariff or quota\u2014if the Secretary of Commerce determines, following an investigation, that imports of a good \"threaten to impair\" U.S. national security.'}),/*#__PURE__*/e(\"p\",{children:\"While the impact of tariffs is heavily dependent on the industries impacted, as well as the nature of the trade deficit with the foreign government(s) in question, there are several potential outcomes when tariffs are imposed. Since tariffs are calculated as a percentage of the price of goods, some producers may increase the cost of their products to offset the revenue loss. This is most common for industries where there is limited or no domestic alternative to the imported goods. For example, several US car producers have warned that since the cost of the imported materials that are necessary for the production of their cars will be significantly more expensive, the price tag for those cars may go up for consumers.Targeted industries will face lower export demand in the countries on which tariffs are imposed. As their goods have become relatively more expensive in the importing country, this can lead to lower sales and lost market share as consumers switch to relatively cheaper domestic goods. The degree of this decline depends on the price elasticity of demand and how much consumers adjust their purchases of imports in response to the higher prices caused by the tariffs. This may occur if there are few alternatives in the domestic market, or consumers have a strong brand preference.\"}),/*#__PURE__*/e(\"p\",{children:\"On the other hand, some domestic industries may benefit from the reduced foreign competition for their goods, especially industries that do not rely heavily on imported materials. Increasing the price of foreign-made goods for consumers may increase demand for domestic products in the long term. Finally, retaliatory tariffs are a fairly common response from foreign governments. Retaliatory tariffs were imposed on U.S. exports as a result of the announcement of Section 232 tariffs during the first Trump administration, some of which were suspended after negotiations. The Trump administration granted exceptions to certain countries including Canada and Mexico during this period, while the Biden administration granted a temporary tariff suspension on Ukraine.\\xa0\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Recent changes to steel and aluminum tariffs\"})}),/*#__PURE__*/e(\"p\",{children:\"In 2018, President Trump proclaimed a 25% tariff on steel and a 10% tariff on aluminum imports from most trading partners under Section 232. At the time, the then Commerce Secretary determined that steel and aluminum imports were threatening to impair U.S. national security by \u201Cweakening\u201D the U.S. economy. In 2020, President Trump expanded the tariffs to include certain derivatives of steel and aluminum, and the Biden administration largely maintained these tariffs while increasing tariffs on Russian aluminum imports. During both the Trump and Biden Administrations, the United States negotiated exemptions for some U.S. trading partners and granted entity-specific exclusions as well as General Approved Exclusions applicable to any importer.\"}),/*#__PURE__*/t(\"p\",{children:[\"To learn more about how Sourcemap\u2019s \",/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/blog/sourcemap-launches-n-tier-tariff-mapping-solution-to-automate-trade-compliance-and-reduce-tariff-exposure\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"n-Tier mapping solution\"})}),\" can help companies reduce their tariff exposure, reach out to our team of experts.\\xa0\"]})]});export const richText3=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Executive Summary\"})}),/*#__PURE__*/e(\"p\",{children:\"The EU has issued new guidance to help companies simplify EUDR implementation. The updated guidance has no impact on companies that have already gone live with EU TRACES for EUDR compliance, and offers slight efficiencies for companies tackling implementation today. The biggest change to implementation is that an aggregate Due Diligence Statement may now be submitted proactively for up to 1 year of future transactions and the same reference number cited for every shipment it accounts for, provided the volumes of goods are accurately accounted for. This could reduce the frequency of geo-data collection and analysis and favor a pre-screening approach, but only in the event that suppliers have already identified raw material origins. Companies still need to maintain a database of shipment-level traceability tied to originating farms and forests, and to reconcile all volumes so as to avoid an audit. The guidance reiterates a number of established processes, including the fact that legality due diligence only needs to be performed on the raw material suppliers and not intermediaries, that downstream transactions do not require re-submission of geo-data, that EU TRACES will allow companies to share detailed DDS data with their customers, and that no DDS is required for re-sale.\"}),/*#__PURE__*/e(\"h2\",{children:\"What are the EUDR guidance and FAQs?\"}),/*#__PURE__*/e(\"p\",{children:\"On April 15th, the EU Commission published updated guidance and FAQs on the forthcoming EU Deforestation Regulation, set to enter into force on December 30th, 2025. The updated guidance demonstrates an effort by the EU to simplify compliance and reporting obligations for companies. While the guidance and FAQs are not legally binding, they are intended to be used as reference materials for operators and traders who must comply with the EUDR, as they further clarify dedicated parts of the legislative text. These documents do not replace, add to or amend the provisions of the EUDR and should not be considered in isolation; they must be used in conjunction with the legislation and not as a \u2018stand-alone\u2019 reference.These guidance documents may also be used as a guide for competent authorities and enforcement bodies within the EU member states, as well as national courts in the process of implementing and enforcing the EUDR. \"}),/*#__PURE__*/e(\"h2\",{children:\"Due Diligence Statements may be submitted up to one year in advance for goods not yet on the market. \"}),/*#__PURE__*/e(\"p\",{children:\"The most notable change from this updated guidance is the inclusion of the option for operators to submit Due Diligence Statements (DDS) up to one year in advance of products being placed on the market. The quantities of the products declared in the due diligence statement must correspond to the quantities that have been subject to due diligence by the operator and are intended to be placed or made available on the EU market or exported. A discrepancy in those quantities may trigger an audit by the competent authorities, and ultimately lead to fines for non-compliance should inaccurate or deceptive record-keeping be identified.  Once the quantity of products covered by the due diligence statement has been fully placed on the market or exported, a new statement must be filed for additional quantities by the same operator. \"}),/*#__PURE__*/e(\"p\",{children:\"It's unclear how this will help to streamline operations for smallholder crops such as cocoa, coffee, rubber and palm, since the EU TRACES system limits each DDS to 25MB of data, or approximately 10,000 farms. The following is an excerpt from the EUDR FAQs, updated on April 15th. \"}),/*#__PURE__*/e(\"p\",{children:\"\u201C A single DDS can contain a maximum of 200 lines of relevant products. In each line of relevant product has the following maximum allowed limitations are defined 500 lines to record the pairs of Scientific Name(s) / Common Name(s), and 1,000 lines to record the \u2018Production place\u2019, which also contain all geolocation coordinates related to the plots of lands where the relevant product was produced in the relevant country of production. As an additional rule, a single DDS can contain 10,000 \u2018Production Place\u2019 in total.\"}),/*#__PURE__*/e(\"p\",{children:\"Companies importing large volumes will still need to submit multiple DDS to account for all of the farms used in a year of purchasing.\u201D \"}),/*#__PURE__*/e(\"p\",{children:\"Operators may still elect to submit a DDS for each shipment, as this is still acceptable under the law. This would be advisable in the case that suppliers do not have sourcing information before the year begins, and may more closely align with other customs documentation and clearance processes. \"}),/*#__PURE__*/e(\"p\",{children:\"Clarification on legality requirements: Companies do not need to evaluate intermediate suppliers, only the legal status of the area of production \"}),/*#__PURE__*/e(\"p\",{children:\"The updated guidance and FAQs include additional clarification on legality due diligence requirements under EUDR, including how operators should determine whether a law in the country of production is or is not applicable. First, the Commission makes clear importers are not required to evaluate the legality practices of intermediate suppliers,  but only of the plots of land that supply raw materials. \"}),/*#__PURE__*/e(\"p\",{children:\"The EUDR takes a flexible approach by listing a number of areas of law without specifying particular laws, as these differ from country to country and may be subject to amendments. However, only the applicable laws concerning the legal status of the area of production constitute relevant legislation pursuant to Article 2(40) of the EUDR. Companies are still required to collect documents relating to the right to use plots of land for raw material production, but only those documents required by law in each country to substantiate these rights (for example, some companies only require a business license whereas others may require a land title). \"}),/*#__PURE__*/e(\"h3\",{children:\"Confirmation that composite products and downstream transactions do not require additional geo-data submission\"}),/*#__PURE__*/e(\"p\",{children:\"Many operators place composite products - i.e. derived products made using commodities already placed on the market, referencing more than one Due Diligence Reference Number (DDR) - on the market. The updated guidance clarifies that in this scenario, information contained in existing due diligence statements may be referred to in order to complete the information to be contained in a Due Diligence Statement.\"}),/*#__PURE__*/e(\"p\",{children:\"Reference can be made in the EU TRACES system by entering the reference number (DDR) and verification number of an upstream due diligence statement when a new statement is submitted. \"}),/*#__PURE__*/e(\"h3\",{children:\"Sharing geo-data with customers via TRACES\"}),/*#__PURE__*/e(\"p\",{children:\"Operators and traders submitting due diligence statements will be able to decide whether the geolocation information contained in their statements submitted in the Information System will be accessible and visible for downstream operators via the referenced due diligence statements inside the Information System. TRACES will be equipped with security measures that will ensure the integrity and confidentiality of the information that the Information System contains.\"}),/*#__PURE__*/e(\"h3\",{children:\"No DDS required for re-sale\"}),/*#__PURE__*/e(\"p\",{children:\"Finally, products that have already been imported into the EU accompanied by a compliant DDS that are then re-sold domestically or exported without further manufacturing or product transformation will not need to submit an additional DDS prior to said sale or export.\"}),/*#__PURE__*/e(\"h3\",{children:\"Updates to EUDR Workflows\"}),/*#__PURE__*/e(\"p\",{children:\"The updated guidance has no impact on Sourcemap customers that have gone live with EU TRACES for EUDR, nor does it alter legality workflows that have already launched. Some companies launching EUDR workflows today may benefit from a pre-screening approach combined with batch-level traceability to submit aggregate DDS statements. Companies with direct sourcing relationships may also streamline legality, but only in rare cases. To find out more about how Sourcemap's workflows are continuously updated to offer the only automated, fully cloud-based EUDR solution that is live with EU TRACES, and to speak with our team of policy experts, reach out today. \"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})})]});export const richText4=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"em\",{children:\"End-to-End Workflow includes n-tier mapping, satellite analysis and customs clearance in under 10 minutes\"})}),/*#__PURE__*/e(\"p\",{children:\"PARIS, March 19, 2025 /PRNewswire/ -- Sourcemap, the leading supply chain regulatory software, is now live with EU TRACES and SAP ERP integration for EUDR customers. The fully automated Sourcemap EUDR solution maps every shipment down to the originating farms and forests, scans for deforestation using satellite imagery, and submits a Due Diligence Statement digitally to the EU TRACES platform, all within minutes. The process is triggered by an automated ERP API without any disruption of day-to-day operations.\"}),/*#__PURE__*/e(\"p\",{children:'\"Achieving instant EUDR compliance is mission-critical for importers, manufacturers, retailers and exporters. Sourcemap provides the only live ERP and EU Customs integrated solution that is capable of handling the massive quantity of data required for EUDR compliance,\" said Leonardo Bonanni, Founder and CEO of Sourcemap.\\xa0The Sourcemap EUDR solution is ISO 27001-certified and has gone live with some of Europe\\'s largest grocery, retail, electronics and food companies, encompassing thousands of sites and millions of shipments across all 44 EU member countries.'}),/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"About Sourcemap:\"}),\" Sourcemap is the leading supply chain regulatory software, trusted by over 250 brands with more than 5.5 million suppliers mapped across food, apparel, retail, electronics, automotive and manufacturing. Sourcemap provides automated solutions to meet all global supply chain due diligence requirements including US and EU forced labor regulations, the EU deforestation regulation, the Digital Product Passport and the Corporate Sustainability Due Diligence Directive or CSDDD. Based in New York, Chicago and Paris, Sourcemap has been named TIME Invention of the Year 2022 and was listed among Fast Company's Most Innovative Companies in 2023. \",/*#__PURE__*/e(a,{href:\"https://c212.net/c/link/?t=0&l=en&o=4385921-1&h=1691736117&u=https%3A%2F%2Fc212.net%2Fc%2Flink%2F%3Ft%3D0%26l%3Den%26o%3D4339128-1%26h%3D2443004890%26u%3Dhttps%253A%252F%252Fc212.net%252Fc%252Flink%252F%253Ft%253D0%2526l%253Den%2526o%253D4320473-1%2526h%253D1230705837%2526u%253Dhttp%25253A%25252F%25252Fwww.sourcemap.com%25252F%2526a%253Dwww.sourcemap.com%26a%3Dwww.sourcemap.com&a=www.sourcemap.com\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!0,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:/*#__PURE__*/e(\"strong\",{children:\"www.sourcemap.com\"})})})]})]});export const richText5=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"On February 26th, after a leaked draft of the EU omnibus legislation was circulated, the College of Commissioners adopted the much-anticipated Sustainability Simplification Omnibus package, covering the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Taxonomy. Over the last few weeks prior to this announcement there has been vocal pushback from industry stakeholders, with some calling for the EU to not risk weakening the Directive by introducing this omnibus proposal and others calling for the enforcement date to be delayed in order to give companies more time to implement their due diligence processes.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"Here are the most important takeaways from this proposal and how to interpret them, from Sourcemap\u2019s in-house policy team.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"The proposal emends CSDDD on \u201C8 main points: extending the scope of maximum harmonization, targeting due diligence, as a general rule, to direct business partners, removing the duty to terminate the business relationship as a measure of last resort, limiting the notion of \u2018stakeholder\u2019 and further restricting the stages of the due diligence process that require stakeholder engagement, extending the intervals in which companies need to regularly monitor the adequacy and effectiveness of due diligence measures, clarifying the principles regarding pecuniary penalties and removing the \u2018minimum cap\u2019 for fines, removing aspects of the civil liability clause and the rules regarding representative actions, and deleting the review clause regarding financial services.\u201D While the intent of this proposal was to harmonize requirements between CSDDD and CSRD, certain proposed changes only apply to one of the two Directives.\"}),/*#__PURE__*/e(\"h2\",{children:\"Extending the Scope of Maximum Harmonization \"}),/*#__PURE__*/e(\"p\",{children:\"In the European Union, \u201Charmonization\u201D refers to the standardization of laws throughout the member states. This facilitates compliance for companies that do business in multiple EU countries, allowing them to adopt similar approaches rather than focus on disparate country-level requirements. In the original CSDDD text, the law only required high-level harmonization, allowing member states to adopt additional requirements. However, the proposal amends Article 4 of the law by extending the harmonization requirement to all social and environmental due diligence requirements, leaving labor-related due diligence up to the member states. \"}),/*#__PURE__*/e(\"h2\",{children:\"Scope of CSRD to match CSDDD \"}),/*#__PURE__*/e(\"p\",{children:\"In a move that will significantly reduce the total number of companies subject to CSRD obligations, the omnibus proposal aims to better align the Corporate Sustainability Reporting Directive (CSRD) scope with the Corporate Sustainability Due Diligence Directive (CSDDD) scope. Both CSRD and CSDDD would apply to EU companies with more than 1,000 employees and either an annual turnover of at least EUR 50 million or a balance sheet above EUR 25 million. The threshold for foreign companies operating in the EU to more than 1,000 employees and a global annual turnover of more than EUR 450 million (up from its original EUR 150 million). Finally, the threshold for EU branches of foreign companies would increase from EUR 40 million to EUR 50 million. These changes decrease the number of companies covered by the Directive by 80%. \"}),/*#__PURE__*/e(\"h2\",{children:\"Reducing Due Diligence to Direct Suppliers Only \"}),/*#__PURE__*/e(\"p\",{children:\"Perhaps the most notable change from the original text was the proposal to limit CSDDD due diligence obligations to a company\u2019s direct suppliers / business partners rather than extend those due diligence obligations across the entire supply chain. While this reduces the due diligence burden on companies, it also significantly weakens the law by no longer holding companies accountable for any social or environmental risks imposed by their upstream suppliers. However, indirect suppliers may still fall under scope of the Directive \u201Cwhere a company has plausible information that suggests that adverse impacts at the level of the operations of an indirect business partner have arisen or may arise, it shall carry out an in-depth assessment.\u201D Additionally, companies are no longer allowed to request information outside of CSRD requirements from their direct suppliers with fewer than 500 employees. This aligns with the existing protections for SMEs in the original text. \"}),/*#__PURE__*/e(\"h2\",{children:\"Removing the Duty to Terminate Business Relationships with Non-Compliant Companies \"}),/*#__PURE__*/e(\"p\",{children:\"The original CSDDD text required companies to, as a last resort, terminate a business relationship with a supplier if the other company was violating environmental or human rights provisions under the law. This requirement was included in Article 10 of the Directive. In this proposal, this duty has now become optional and companies must instead create a \u201Cprevention action plan\u201D for any relevant adverse impacts. \u201CAs long as there is a reasonable expectation that the enhanced prevention action plan will succeed, the mere fact of continuing to engage with the business partner shall not trigger the company\u2019s liability [under the Directive].\u201D  \"}),/*#__PURE__*/e(\"h2\",{children:\"Companies Must Assess Due Diligence Measures and Monitor Their Effectiveness Every Five Years vs Every Year \"}),/*#__PURE__*/e(\"p\",{children:\"This proposal amends Article 15 to require companies to carry out risk assessments and due diligence measures every 5 years. The original text required due diligence to be conducted on an annual basis. \"}),/*#__PURE__*/e(\"h2\",{children:\"On EU-Wide Liability and Fines for Non-Compliance \"}),/*#__PURE__*/e(\"p\",{children:\"The proposal has removed EU-wide liability and now only refers to national law. Member States will decide their own rules on any group claims against companies where non-compliance results in adverse impacts to \u201Cnatural or legal persons.\u201D The following language, originally included in Article 29 of the text, has been removed: \"}),/*#__PURE__*/e(\"p\",{children:\"\u201CMember States shall ensure that a company can be held liable for damage caused to a natural or legal person, provided that:\"}),/*#__PURE__*/e(\"p\",{children:\"(a) the company intentionally or negligently failed to comply with the obligations laid down in Articles 10 and 11, when the right, prohibition or obligation listed in the Annex to this Directive is aimed at protecting the natural or legal person; and\"}),/*#__PURE__*/e(\"p\",{children:\"(b) as a result of the failure referred to in point (a), damage to the natural or legal person\u2019s legal interests that are protected under national law was caused. A company cannot be held liable if the damage was caused only by its business partners in its chain of activities.\u201D\"}),/*#__PURE__*/e(\"p\",{children:\"As such, the member states will be allowed to adopt their own national standards on civil liability, as this would no longer be a requirement as part of harmonization. \"}),/*#__PURE__*/e(\"p\",{children:\"Regarding fines for non-compliance, Article 27 required member states to impose financial penalties for non-compliance with a maximum cap that \u201Cshall not be less than 5%\u201D of the net global annual turnover for the company in question for the financial year preceding the decision to impose the fine. This proposal removes this language and replaces it with the following: \u201CThe Commission, in collaboration with the Member States, shall issue guidance to assist supervisory authorities in determining the level of penalties in accordance with this Article. Member States shall not set a maximum limit of pecuniary penalties in their national law transposing this Directive that would prevent supervisory authorities from imposing penalties in accordance with the principles and factors set out in paragraphs 1 and 2.\u201D \"}),/*#__PURE__*/e(\"p\",{children:\"As this change would remove any EU-wide standard for fines, technically member states can issue fines that are higher or lower than 5%. It is anticipated that this ambiguity will lead to further debate amongst the Commission, Council and Parliament. \"}),/*#__PURE__*/e(\"h2\",{children:\"Updated Language for Climate Transition Plans \"}),/*#__PURE__*/e(\"p\",{children:\"The proposal updates the language in Article 22 regarding a company\u2019s climate transition plan, now stating that a company must \u201Cput into effect\u201D climate transition plans in place of the previous language requiring them to \u201Cadopt\u201D climate transition plans. This change was primarily made to align the language in CSDDD with what is reflected in the CSRD text. \"}),/*#__PURE__*/e(\"h2\",{children:\"Implementation Timeline \"}),/*#__PURE__*/e(\"p\",{children:\"The Commission proposes a \u201Cstop the clock\u201D for companies that have not yet reported on CSRD, delaying the implementation of sustainability reporting for CSRD by two years. Application of CSDDD would also be deferred to 2028 to allow for companies to have sufficient time to implement due diligence procedures.   \"}),/*#__PURE__*/e(\"h2\",{children:\"On the EU Taxonomy\"}),/*#__PURE__*/e(\"p\",{children:\"Finally, the proposal makes the EU Taxonomy optional for 85% of companies. Only very large companies with more than 1,000 employees and a global annual turnover of EUR 450 million would be required to report annually on the Taxonomy. All other companies have the option to report, but it would be optional. \"}),/*#__PURE__*/e(\"h2\",{children:\"What\u2019s Next? \"}),/*#__PURE__*/e(\"p\",{children:\"Now that the omnibus proposal has officially been introduced, trilogue negotiations would resume for CSDDD and CSRD. The Commission\u2019s deadline to issue compliance guidelines for CSDDD has been advanced from its original 2027 deadline up to 2026. While the Commission still plans to release sector-specific guidelines for CSDDD, according to this proposal the guidelines for CSRD will be generalized. No timeline has yet been articulated for when CSRD guidelines will be published. \"}),/*#__PURE__*/e(\"p\",{children:\"For more information about CSDDD, CSRD, or other EU due diligence requirements that might impact your business - and to learn how Sourcemap can help - reach out to our team of experts. \"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})})]});export const richText6=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"In 2025, supply chain mapping is no longer a question of if but how. Companies understand the importance of mapping to meet the strictest due diligence regulations, mitigate operational risks, and build consumer trust.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"However, not all supply chain mapping approaches are created equal. At the heart of an effective strategy lies one critical factor: the quality and verifiability of your data. Supplier-attested and verified data \u2014 rather than AI-generated estimates \u2014 is essential for navigating today\u2019s regulatory and market demands. Here\u2019s why.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Supply chain maps are required for compliance with global human rights and environmental standards\"})}),/*#__PURE__*/e(\"p\",{children:\"Global regulations like the EU Forced Labor Regulation, EU Corporate Sustainability Due Diligence Directive (CSDDD), and the U.S. Forced Labor Prevention Act set high expectations for supply chain transparency. These laws mandate that companies map their supply chains and provide verifiable proof of compliance. For instance, to comply with the U.S. Forced Labor Prevention Act, importers must present chain of custody documents, such as transportation and payment records, within 30 days of a shipment detention or seizure.\"}),/*#__PURE__*/e(\"p\",{children:\"The quality of your supply chain map determines whether you can confidently respond to these regulatory challenges. Relying on AI-only mapping tools to fill in gaps with assumptions or outdated data simply won\u2019t hold up under scrutiny.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"The problems with AI-only supply chain mapping solutions\"})}),/*#__PURE__*/e(\"p\",{children:\"AI-driven supply chain mapping tools often promise rapid results by filling data gaps with predictive algorithms. While AI can be an invaluable tool for risk monitoring and identifying trends, it lacks the direct validation that comes with supplier-attested data.\"}),/*#__PURE__*/e(\"p\",{children:\"For example, AI-generated maps may struggle to distinguish between active and inactive supplier relationships or miss updates in supply chain structures. It may also fill gaps with publicly available data instead of verified data. When regulatory authorities demand chain of custody evidence, these inaccuracies can result in noncompliance, penalties, or worse.\"}),/*#__PURE__*/e(\"p\",{children:\"To strike the right balance, companies should adopt a hybrid approach that leverages AI for monitoring and supplier-provided data for validation.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"The benefits of supplier-attested supply chain data\"})}),/*#__PURE__*/e(\"p\",{children:\"Supplier-verified data is essential for building a transparent, compliant, and risk-resilient supply chain. Combining the power of AI with the accuracy of supplier-attested data provides concrete, verifiable evidence of supply chain relationships.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"Companies start by identifying their direct suppliers, who then disclose their own, creating a cascading chain of transparency down to the source. AI-powered tools can then validate suppliers against global watchlists and databases that list entities linked to violations.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"Integrating supplier-attested data with AI-driven monitoring delivers full supply chain visibility in weeks.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Best practices for supplier-verified mapping\"})}),/*#__PURE__*/e(\"p\",{children:\"Follow these best practices to ensure your mapping efforts meet both regulatory and operational needs:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Engage your suppliers early:\"}),\" Build strong relationships with suppliers and communicate the importance of their role in providing accurate and timely data.\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Implement a centralized portal:\"}),\" Use tools that streamline data collection, allowing suppliers to upload information in a standardized format. A centralized system eliminates duplication and improves efficiency.\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Pressure-test supplier preparedness:\"}),\" Simulate customs detention scenarios to evaluate whether your suppliers can provide the necessary documentation within required timeframes.\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Monitor continuously:\"}),\" Continuous mapping and monitoring allow you to identify changes in dynamic supply chains in real time, mitigating risks as they arise.\"]})})]})]});export const richText7=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"As part of trade enforcement measures imposed by the Trump administration, the U.S. has officially closed the so-called \u201Cde minimis loophole\u201D for goods entering its borders. This long-standing trade provision dating back to 1938 previously allowed low-value goods to be shipped directly to American consumers without incurring import duties, customs declarations, or extensive inspections. The loophole became particularly apparent after the U.S. implemented the Forced Labor Prevention Act of 2022, as direct-to-consumer goods were exempted from customs scrutiny as well as the rebuttable presumption  that the law established.\"}),/*#__PURE__*/e(\"p\",{children:\"Prior administrations also made efforts to address the de minimis loophole. Under President Obama, the de minimis threshold was raised from $200 to $800. Former President Biden announced in September 2024 that the White House would prioritize addressing the loophole moving forward, leading to the U.S. Customs and Border Protection introducing a Notice of Intended Rule-Making called the Entry of Low-Value Shipments.\"}),/*#__PURE__*/e(\"p\",{children:\"Over the weekend, President Trump signed executive orders imposing 25% tariffs on goods from Canada and Mexico, and a 10% tariff on goods from China. (Both Mexico and Canada's respective governments negotiated to delay tariffs by 30 days, while China's tariffs went into effect this week.) All three tariffs halt the de minimis trade exemption for goods from those countries.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"What this means for forced labor enforcement\\xa0\"})}),/*#__PURE__*/e(\"p\",{children:\"The closing of the de minimis loophole will have a significant impact on the number of goods subject to detention or seizure under the Forced Labor Prevention Act. Since 2022, nearly $3.7B worth of goods have been detained. Detentions are expected to increase now that low value goods from China, Mexico and Canada will be subject to the rebuttable presumption, and businesses operating primarily in the DTC space are scrambling to establish the strict supply chain due diligence measures that many companies put in place in 2022.\\xa0\"}),/*#__PURE__*/t(\"p\",{children:[\"Fortunately, there is a precedent for successful implementation of these due diligence measures across industries, with a proactive approach that enables companies to take mitigation efforts before they receive a costly detention. To learn more about how Sourcemap can help your company \",/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/solutions/mock-detention\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"prepare for strict U.S. customs enforcement measures\"})}),\", reach out to our team of experts or \",/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/company/request-a-demo\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"request a demo\"})}),\".\\xa0\"]})]});export const richText8=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"The new US administration has begun to impose trade policies - in the form of tariffs -\\xa0 that have already started to upend global supply chains. To prepare, companies need to start examining their global exposure across all the levers. The companies with the most data - and the most supply chain visibility - will be the ones to turn the new supply chain chaos into profit. This is a developing story.\"}),/*#__PURE__*/e(\"h1\",{children:\"Tariffs\"}),/*#__PURE__*/e(\"p\",{children:\"The US already collects $75B in tariffs annually, with that number expected to more than double under the new US administration. The prior round of Trump tariffs, most of which remained in place during the Biden administration, resulted in rapid and sustained inflation, first with business-to-business trade and ultimately with higher consumer prices. Many companies attempted to move manufacturing of certain goods out of China to other parts of the world. Additional tariffs announced this week by the administration, particularly those levied against Canada and Mexico, may dismantle the existing USMCA agreement between all three countries, further complicating attempts to nearshore manufacturing previously concentrated in China back to North America.\"}),/*#__PURE__*/e(\"p\",{children:\"It's these business-to-business tariffs that are the hardest for companies to anticipate because many lack detailed information on exactly where second- and third-tier suppliers are sourcing targeted raw materials. This is especially true when tariffs only target certain raw materials that find their way into all types of industries, such as the aluminum tariffs that made themselves felt across the electronics, automotive, construction and renewables industries. Companies need to compile an end-to-end map of their global supply chain down to the raw materials and subcomponents that they rely on to bring goods to market. Supply chain mapping provides essential information to inform decisions about nearshoring, or to decide which supply chains should be diversified so that alternative vendors can be tapped in the event of an effective boycott driven by sudden and severe tariffs.\"}),/*#__PURE__*/e(\"h1\",{children:\"Taxes on foreign income\"}),/*#__PURE__*/e(\"p\",{children:\"Corporate taxation saw a major overhaul during the previous Trump administration, resulting in companies favoring the US for some manufacturing activities. The Inflation Reduction Act and CHIPs act also drove an acceleration in high-tech manufacturing locating in the US.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"More recently, the IRS has pursued very large penalties on companies that are alleged to have attributed too much income to non-US operations, including high-profile wins against Airbnb ($1.9B in taxes and penalties) and active legislation against Amgen ($10B) and Microsoft ($30B). This means that supply chains with a number of physical and financial transfers originally designed to minimize tax burden may not only increase taxes; they may also attract increased enforcement. Companies need to evaluate their own exposure and their suppliers\u2019 exposure to so-called \u2018transfer pricing\u2019 to avoid surprises as the new tax administration establishes its priorities - especially to ensure that non-US income declarations are properly documented.\"}),/*#__PURE__*/e(\"h1\",{children:\"Customs regulations\"}),/*#__PURE__*/e(\"p\",{children:\"Since the first Trump administration, the US has accelerated enforcement of bans against certain products and regions associated with forced labor, with more than $3.6B of imports seized by US Customs and Border Protection (CBP) on suspicion of forced labor since 2020. When our CEO was asked to testify by US Senator Mike Crapo (R-ID) before the US Senate Finance Committee, it was clear that the measure benefited from bipartisan support, whether due to the moral imperative of preventing forced labor worldwide or because of the competitive disadvantage posed for responsible US businesses.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"It should be noted that US CBP is conducting a pilot for its new customs portal technology that would allow for digital transmission of supply chain data in order to expedite enforcement and clearance of the forced labor ban, among other regulations. The EU is pursuing a similar strategy with its enforcement of the 2025 Deforestation Regulation (so-called EUDR), pointing to a near future in which companies will need to submit a digital supply chain map of every supplier used in order for a shipment to clear customs.\"}),/*#__PURE__*/e(\"h1\",{children:\"How to Prepare\"}),/*#__PURE__*/e(\"p\",{children:\"The long term effects and unintended consequences of tariffs can be difficult to predict, but there are certain steps companies can take to prepare. Companies that have full visibility into their upstream supply chain will be better positioned to identify their risk exposure to tariffs and import bans. Collection of evidentiary data in the form of chain of custody documentation has never been more important, and enhanced data collection processes should become standard due diligence for all companies. Luckily, there is an established precedent for this level of data collection that has been tried and tested across industries.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"Sourcemap can help you prepare for what\u2019s coming. To learn more, reach out to our team of industry and policy experts.\\xa0\"})]});export const richText9=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/t(\"p\",{children:[\"On Monday, CBP announced the release of a Notice of Proposed Rulemaking called the \",/*#__PURE__*/e(a,{href:\"https://www.cbp.gov/newsroom/national-media-release/cbp-issues-notice-proposed-rulemaking-enhance-enforcement-low-value\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"Entry of Low-Value Shipments (ELVS)\"})}),\". The ELVS rule will boost CBP\u2019s ability to intercept illegal packages that fall into the so-called \u2018de minimis loophole\u2019, a loophole that has historically allowed packages valued at less than $800 USD to circumvent enhanced customs scrutiny and avoid detentions under the US Forced Labor Prevention Act. According to CBP, more than 4 million de minimis packages enter the country daily, and current information requirements allow importers to provide minimal data on these shipments compared to mandated data requirements for non-deminimis cargo. This loophole allows issues such as forced labor, counterfeiting, and other illegal practices that may impact the products inside these packages to go largely unchecked.\\xa0\"]}),/*#__PURE__*/e(\"p\",{children:\"The ELVS rule will create a fully electronic process for importers to file entry data before a shipment\u2019s arrival at a U.S. port of entry or border, easing the burden on CBP officers who are processing the cargo. It will allow them to better target potential problem shipments and focus on accurately identifying and halting those that violate the law.\\xa0\"}),/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(a,{href:\"https://www.whitehouse.gov/briefing-room/statements-releases/2024/09/13/fact-sheet-biden-harris-administration-announces-new-actions-to-protect-american-consumers-workers-and-businesses-by-cracking-down-on-de-minimis-shipments-with-unsafe-unfairly-traded-products/\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"Late last year,\"})}),\" the Biden-Harris administration announced their intent to address the de minimis loophole and have been rushing to accomplish this in the waning days of the administration. According to CBP, \u201CThe proposed rule is part of a larger effort to address vulnerabilities and prevent bad actors from exploiting this growing segment of international trade to smuggle dangerous goods into the United States. It will allow CBP to target high-risk shipments more effectively, including those containing counterfeit goods, synthetic opioids such as fentanyl, or the precursors and pill press parts used to make that deadly drug. Additionally, it will revise the current process for entering low-value shipments to require additional data elements that would assist CBP in verifying eligibility for duty- and tax-free entry by creating a fully electronic process for filers to transmit entry data prior to a shipment\u2019s arrival. This data will reduce the burden for CBP officers who process these large volumes of shipments, leading to more accurate targeting. As a result, CBP resources will be better focused on accurately identifying and interdicting violative shipments.\u201D\\xa0\"]}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"What does this mean for your business?\\xa0\"})}),/*#__PURE__*/e(\"p\",{children:\"The U.S. is taking substantial steps to close the de minimis loophole and increase due diligence requirements for low-value shipments. Certain business structures, such as direct-to-consumer businesses, will be particularly impacted by this change and will need to adopt strict due diligence practices to meet the existing standard established by the US Forced Labor Prevention Act.\\xa0\"}),/*#__PURE__*/t(\"p\",{children:[\"Luckily, there are tried and true methods to ensure compliance with strict forced labor due diligence requirements, built to meet CBP\u2019s standards. Sourcemap\u2019s tools ensure you stay compliant, protect your brand, and build a resilient, ethical supply chain. We offer a\",/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/solutions/forced-labor-due-diligence\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\" comprehensive suite of solutions to help you navigate forced labor regulations\"})}),\" and safeguard your supply chain:\"]}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/technology/supply-chain-mapping\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"Supply chain mapping\"})}),\" and\",/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/technology/supplier-engagement\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\" supplier discovery\"})}),\": Gain visibility into every supplier in your network, from raw materials to finished goods.\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/technology/supplier-watchlist-monitoring\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"Supplier Watchlist Monitoring\"})}),\": Stay ahead of risks with real-time alerts on suppliers flagged for forced labor violations or risks.\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/technology/transaction-traceability\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"Chain of custody document collection\"})}),\": Simplify the documentation process with secure, centralized storage of records for every purchase order.\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/solutions/mock-detention\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"Mock detention workflows\"})}),\": Prepare for inspections and detentions by testing your documentation readiness.\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/e(\"p\",{children:\"On-demand reporting: Generate the necessary reports instantly to satisfy customs and regulatory inquiries.\"})})]}),/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/technology/supply-chain-mapping?utm_source=google&utm_medium=cpc&utm_campaign=WFX-Supply-Chain-Mapping&utm_term=supply%20chain%20mapping%20software&utm_campaign=WFX-Supply-Chain-Mapping&utm_source=adwords&utm_medium=ppc&hsa_acc=2015392227&hsa_cam=21092660375&hsa_grp=160340916192&hsa_ad=693274566892&hsa_src=g&hsa_tgt=kwd-4623925708&hsa_kw=supply%20chain%20mapping%20software&hsa_mt=p&hsa_net=adwords&hsa_ver=3&gad_source=1&gclid=Cj0KCQiA0--6BhCBARIsADYqyL_3_5uGaZCYF3eTfxqMLGova88d1OIVklDTkG3Y5BUPYsY2Kxjbb2gaAhubEALw_wcB\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"Contact us today\"})}),\" to learn more\"]})]});export const richText10=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"As we kick off 2025, supply chain visibility has never been more important to the success of your business. Let\u2019s review the top supply chain concerns for 2025 and how to address them.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Supply chain concern #1: Rising production costs\"})}),/*#__PURE__*/e(\"p\",{children:\"Inflation and proposed tariffs by the incoming administration may lead to increased production costs for certain goods. While not all of these costs are avoidable, it is imperative that companies map their upstream supply chains to identify their potential exposure to tariffs, and to identify possible cost-saving opportunities.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"Companies can mitigate some economic uncertainties by implementing diverse cost-management strategies such as negotiating with suppliers, joining group purchasing organizations, and enhancing demand forecasting. These steps can provide an extra layer of financial stability and flexibility in the face of economic fluctuations.\"}),/*#__PURE__*/e(\"p\",{children:\"Additionally, companies should use supply chain mapping software to build out an audit trail of their suppliers, beyond just their direct suppliers. With this data, companies can track critical product flows and quickly identify single points of failure, including sole-sourced materials and logistics bottlenecks, or bad actor risks, so you can shore up these weaknesses. These tools can also identify potential compliance issues before they lead to costly fines or disrupt your business.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Supply chain concern #2: Shortages and bottlenecks\"})}),/*#__PURE__*/e(\"p\",{children:\"Another pressing issue is the struggle to attract and retain skilled workers. A staggering 80% of respondents reported that they were having trouble finding and keeping supply chain-focused employees. More than half (56%) of US businesses said they were short-staffed. Almost a third (30%) said shortages are hampering their ability to accomplish procurement tasks.\"}),/*#__PURE__*/e(\"p\",{children:\"This talent shortage affects various aspects of supply chain operations. Respondents noted that data analytics and IT management were two of the hardest roles to attract and retain talent for.\"}),/*#__PURE__*/e(\"p\",{children:\"How to address it: Amplify the impact of your staff with powerful supply chain compliance software, which allows you to onboard, train, and map suppliers quickly and easily, saving time and resources. Leading platforms also help you analyze risk and corroborate compliance status, reducing the workload on your internal teams. Some providers also have in-house teams who oversee every stage of the supplier experience, including onboarding and support, with global language expertise to extend your impact even further.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Supply chain concern #3: Cybersecurity threats\"})}),/*#__PURE__*/e(\"p\",{children:\"Cybersecurity remains a critical concern for supply chain leaders in 2025. As supply chains become increasingly digital, the risk of cyber threats grows.\"}),/*#__PURE__*/e(\"p\",{children:\"How to address it: Strengthen your cybersecurity infrastructure to protect your supply chain from potential threats and ensure business continuity. Implement routine employee training sessions to keep staff up to date on cyber threats and conduct regular risk assessments on your tech stack. Future-proof your business by choosing secure, enterprise-grade software solutions instead of piecemeal applications to handle every aspect of supply chain management, including resilience, compliance, sustainability, and more.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Supply chain concern #4: Opaque supply chains risk non-compliance with regulatory requirements\"})}),/*#__PURE__*/t(\"p\",{children:[\"Supply chain visibility is critically important for meeting regulatory requirements and mitigating risks that may arise deep within the supply chain. According to\",/*#__PURE__*/e(a,{href:\"https://kpmg.com/us/en/articles/2024/supply-chain-trends-2024.html\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\" research from KPMG\"})}),\", only 43% of organizations have visibility into Tier 1 supplier performance.\"]}),/*#__PURE__*/e(\"p\",{children:\"Many organizations already recognize technological investment as a key strategy for enhancing supply chain resilience. Over 30% of surveyed leaders plan to adopt new supply chain management software in 2024; 56% of US respondents said they plan to allocate 6% or more of their company\u2019s 2024 budget to supply chain technology spend.\"}),/*#__PURE__*/e(\"p\",{children:\"How to address it: Don\u2019t get caught in an endless cycle of \u201Cplanning\u201D to invest in technology. By adopting advanced technologies that enhance supply chain transparency, you\u2019ll immediately enable more proactive decision-making and risk mitigation. For example, mapping tools that offer real-time supply chain visualization improve visibility so you can better meet compliance obligations.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Sourcemap helps businesses overcome these supply chain challenges\"})}),/*#__PURE__*/e(\"p\",{children:\"From uncontrollable factors like economic uncertainty to manageable challenges like supply chain transparency, these obstacles are influencing how businesses source materials across the globe. By understanding the top challenges of supply chain management and proactively implementing effective strategies to address them, businesses can navigate this dynamic landscape with confidence and agility.\"})]});export const richText11=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"2025 Update: I wrote this blog post way back in 2015. A lot has happened since then: the EU Deforestation Regulation requires the approach we pioneered in 2015 to be applied to all imports of beef, leather, wood, paper, soy, cocoa, coffee, palm oil and rubber starting on December 30, 2025. Read through to see what's changed since we started mapping supply chains to prevent deforestation.\"}),/*#__PURE__*/e(\"p\",{children:\"The sugar in your coffee, the palm oil in your shampoo, the leather in your shoes \u2013 any of these might come from plantations on recently deforested land. The sheer number of small farms around the world makes it very difficult to know if a specific product is tied to deforestation. Take leather: in Brazil alone there are over one million cattle ranches, many carved out of virgin forest, all of which supply hides to tanneries around the world via intermediaries. A convergence of new technologies is finally making it possible to know whether a product was sourced in a way that contributed to deforestation:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[\"Mobile Traceability: The first step is to find out precisely where things come from. In the past this could only be achieved using printed barcodes read by custom scanners in industrial settings. Today, smartphones and survey apps such as the free\",/*#__PURE__*/e(a,{href:\"https://opendatakit.org/\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\" Open Data Kit\"})}),\" allow anyone, anywhere to capture the location of commodities as they change hands from farmer to trader to processor, etc... Buyers and sellers can even create electronic receipts by signing with their fingers on the device's touch screen!\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[\"Enterprise Social Networks: Before the social web, companies would have found it too resource-intensive to keep track of hundreds of thousands of suppliers in their extended supply chain. Today multi-enterprise social networks like\",/*#__PURE__*/e(a,{href:\"http://www.sourcemap.com/\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\" Sourcemap\"})}),\" connect all of the companies in a supply chain - no matter how small or remote - to ensure an unbroken chain of custody from raw materials to finished goods.\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[\"Satellite Imagery: Projects like the\",/*#__PURE__*/e(a,{href:\"http://www.globalforestwatch.org/\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\" Global Forest Watch\"})}),\" measure deforestation through satellite imagery processed to highlight changes in forest cover. By combining the real-time satellite feed with a map of where products come from, it becomes possible to measure the likelihood of sustainable (or unsustainable) farming practices and more effectively target interventions on the ground.\"]})})]}),/*#__PURE__*/e(\"p\",{children:\"At Sourcemap we have integrated Open Data Kit and Global Forest Watch into the first GIS-enabled Enterprise Social Network for monitoring deforestation in supply chains. The platform is being pilot-tested in environmentally sensitive regions of northern Brazil. Want to find out more about this and our other platforms for traceability, monitoring and evaluation?\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"Since this blog post, Sourcemap has rolled out large-scale polygon mapping for cocoa, coffee, palm oil, soy, rubber, wood/paper and beef and leather across all of the in-scope regions of the EUDR. We've learned a log along the way:\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"GPS mapping data quality varies widely\\xa0\"})}),/*#__PURE__*/e(\"p\",{children:\"Depending on how long your suppliers have been mapping farms and forests, they will have varying coverage and accuracy of mapping. Now that every single shipment into the EU requires a map of all parcels of land that contributed, it's essential to have accurate and complete mapping data. We introduced an automated geo-polygon validation to eliminate hundreds of hours of back-and-forth by giving suppliers instant feedback on their mapping data so that they can quickly get back to work.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Satellite deforestation analysis is not enough\"})}),/*#__PURE__*/e(\"p\",{children:\"Despite advances in remote sensing, the accuracy of most satellite assessments of deforestation ranges from +-5% to +- 20%. Companies should nevertheless expect to discover a number of parcels of land where deforestation exceeds the margins. The only way to clear these parcels for shipments is to obtain additional evidence, usually in the form of audits, certificates, and other registrations showing that the farm was created prior to the EUDR cutoff date.\"}),/*#__PURE__*/t(\"p\",{children:[\"Companies exposed to the EU Deforestation Regulation must screen in-scope polygons against the EU\u2019s Global Forest Observatory map in addition to more robust datasets to ensure they are compliant with the deforestation regulation. In late November of 2024, the \",/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/blog/eu-publishes-updated-global-forest-observatory-map-for-eu-deforestation-regulation\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"EU published an updated version of its Global Forest Observatory Map\"})}),\". This version includes some key improvements\\xa0 including a preliminary mapping of forest types according to the EUDR definitions of \u2018naturally regenerating forest\u2019, \u2018primary forest\u2019 and \u2018planted / plantation forest\u2019. Here\u2019s what you need to know about the updated Global Forest Observatory Map:\\xa0\"]}),/*#__PURE__*/e(\"p\",{children:\"According to the Commission, the global map of forest cover was \u201Ccreated by combining available global datasets on tree cover, tree height, land cover and land use into a single harmonized globally-consistent representation of where forests existed in 2020.\u201D The workflow consists in first mapping the global maximum extent of tree cover circa the year 2020 from the combination of ESA World Cover 2020 and 2021, WRI Tropical Tree Cover 2020, UMD Global land cover and land use 2019, Global Mangrove Watch 2020 and JRC Tropical Moist Forest 2020 datasets. In a second step, a series of overlays and decision rules are applied to reduce this maximum extent of tree cover and align it with the Forest Definitions using datasets covering cropland and commodity expansion, land use change, built-up land and water.\"}),/*#__PURE__*/e(\"p\",{children:\"The Commission will publish a second technical report - which will replace the previously published technical report -\\xa0 describing the mapping approach, methodology, input layers, expert feedback, limitations and definitions in the coming months.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Plausibility\"})}),/*#__PURE__*/e(\"p\",{children:\"Significant leaps have been made in end-to-end transaction traceability, so that it's possible to account for every kilogram of raw material purchased. The EUDR requires that a running assessment be performed to ensure that the volumes of product imported are reasonably equivalent to the surface area of forest and farmland mapped.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Legality Assessment\"})}),/*#__PURE__*/e(\"p\",{children:\"Deforestation is not the only risk facing in-scope commodities for EUDR: there are endemic issues facing producers such as environmental degradation, worker health and safety, land rights, conflict and corruption. The EUDR requires an annual legality assessment to be performed on all suppliers of in-scope commodities to ensure that they have the appropriate policies in place to tackle a suite of assorted issues, together with an assurance program.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Sourcemap\u2019s approach to deforestation\"})}),/*#__PURE__*/e(\"p\",{children:\"Sourcemap is the only integrated end-to-end solution for EUDR compliance that collects, validates and screens farm and forests for deforestation within a single automated platform. Sourcemap uses the\\xa0 EU Global Forest Observatory as part of a suite of high-fidelity deforestation data, and performs screening automatically using the only cloud-based geo-data assessment service capable of screening the entire map for a shipment within minutes.\\xa0\"}),/*#__PURE__*/t(\"p\",{children:[\"To learn more about how Sourcemap can help your company comply with the EU Deforestation Regulation, or to speak with our in-house policy and GIS experts, \",/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/company/request-a-demo\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!0,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"reach out to our team.\"})})]})]});export const richText12=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"As global forced labor regulations tighten, businesses face unprecedented pressure to achieve supply chain transparency. With regulations like the U.S. Forced Labor Prevention Act, the EU\u2019s Corporate Sustainability Due Diligence Directive (CSDDD) and Forced Labor Regulation, Canada\u2019s Fighting Against Forced Labour and Child Labour in Supply Chains Act, and Mexico\u2019s Import Ban on Goods Produced with Forced Labor, companies must act now to align with international due diligence laws and protect their brands.\"}),/*#__PURE__*/t(\"p\",{children:[\"Billions of dollars are at stake if they don\u2019t. To date in 2024, U.S. Customs and Border Protection (CBP) has detained over 4,600 shipments with a value of $1.73 billion for suspected forced labor violations. Nearly 1,750 of these shipments \u2014 many of which were electronics, textiles, manufacturing, and agricultural products \u2014 were denied entry. Numerous suppliers have already been added to the Department of Homeland Security\u2019s \",/*#__PURE__*/e(a,{href:\"https://www.dhs.gov/uflpa-entity-list\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"Entity List\"})}),\" due to their involvement in or connections to forced labor practices. More businesses should be on high alert, given that earlier this year, the U.S. Forced Labor Enforcement Task Force added three high-risk industries for forced labor to its implementation plan: polyvinyl chloride (PVC), aluminum, and seafood.\"]}),/*#__PURE__*/e(\"p\",{children:\"To stay ahead of these regulations and avoid costly seizures, penalties, and reputational harm, businesses need to recognize four truths about forced labor compliance.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"1. Supply chain mapping is the foundation of compliance\"})}),/*#__PURE__*/e(\"p\",{children:\"Understanding your supply chain is no longer optional \u2014 it\u2019s a regulatory mandate that lies at the heart of compliance with forced labor laws. Businesses must be able to identify and evaluate every link in their supply chain, from raw material sources to finished goods.\"}),/*#__PURE__*/e(\"p\",{children:\"Most companies lack visibility beyond their direct (Tier 1) suppliers. This limited transparency poses significant compliance challenges, as stringent forced labor regulations prohibit goods produced, even partially, through forced labor.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"Comprehensive supply chain mapping is the first step to managing these risks effectively. Supply chain mapping involves working with your direct suppliers to identify their suppliers and document the origins of materials and the processes, cascading upstream for each stage of production. Without clear visibility throughout every tier of the supply chain, businesses risk inadvertently sourcing from suppliers linked to forced labor.\\xa0\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"2. Transaction traceability and chain of custody are critical\"})}),/*#__PURE__*/e(\"p\",{children:\"To clear customs under forced labor regulations, businesses often need to provide detailed documentation tracing the journey of goods from their point of origin to the finished product. This evidence, called chain of custody, involves maintaining a record of every transaction, transport, and transfer that occurs along the supply chain. To establish a clear chain of custody, companies must collect and retain transportation records, such as bills of lading and shipping manifests, and payment documentation.\"}),/*#__PURE__*/e(\"p\",{children:\"Maintaining a clear chain of custody ensures compliance and builds trust with regulators and customers. Companies that fail to provide adequate documentation risk delays, detentions, and even outright bans. While not all laws mandate keeping these records, they are strong verification tools for demonstrating compliance.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"3. Digital supply chain mapping is the future\\xa0\"})}),/*#__PURE__*/e(\"p\",{children:\"As regulatory trends point toward a future where digital tools dominate supply chain management, companies that embrace digital transformation today will be better positioned to meet compliance requirements tomorrow.\"}),/*#__PURE__*/e(\"p\",{children:\"The U.S. is set to launch its Automated Commercial Environment (ACE) 2.0 in 2026 for all products placed on the U.S. market, while the EU is launching its Digital Product Passport. Both initiatives aim to ensure that every product sold in regulated markets has a verified digital history, enabling easier tracking of goods and their compliance with labor laws.\"}),/*#__PURE__*/e(\"p\",{children:\"Digital supply chain mapping future-proofs businesses against the complexities of global trade regulations. These tools provide a holistic view of the supply chain, identifying gaps and risks in real time. Automation reduces the manual effort required for data collection, minimizing errors and ensuring compliance with minimal delay. And, as businesses grow, digital systems can easily adapt to handle increased complexity and data volume.\"}),/*#__PURE__*/e(\"p\",{children:\"A company that digitizes its supply chain data can quickly generate a compliance report when challenged by customs authorities, avoiding costly delays.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"4. Penalties for noncompliance are severe\"})}),/*#__PURE__*/e(\"p\",{children:\"Failure to comply with forced labor regulations can lead to substantial financial penalties, shipment seizures, and lasting reputational damage.\"}),/*#__PURE__*/e(\"p\",{children:\"Seized goods can result in financial losses due to delays, storage costs, or outright bans. Companies may be forced to store goods indefinitely at the border or withdraw goods already in the market.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"Moreover, companies can face significant fines for importing goods tainted by forced labor. In the U.S., each violation can cost tens of thousands of dollars. In the EU, penalties can reach 4% of a company\u2019s annual global revenue.\"}),/*#__PURE__*/e(\"p\",{children:\"Brands that fail to ensure transparency risk being associated with unethical labor practices, which can erode customer trust and investor confidence. They may face boycotts or exclusion from ethical investment portfolios. Stakeholders, including investors and consumers, may also file lawsuits if a company is found to have violated forced labor laws.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"How Sourcemap can help\"})}),/*#__PURE__*/t(\"p\",{children:[\"With intensifying regulations and enforcement, businesses must prioritize supply chain transparency. Sourcemap\u2019s tools ensure you stay compliant, protect your brand, and build a resilient, ethical supply chain. We offer a \",/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/solutions/forced-labor-due-diligence\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"comprehensive suite of solutions to help you navigate forced labor regulations\"})}),\" and safeguard your supply chain:\"]}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/technology/supply-chain-mapping\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:/*#__PURE__*/e(\"strong\",{children:\"Supply chain mapping\"})})}),/*#__PURE__*/e(\"strong\",{children:\" and \"}),/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/technology/supplier-engagement\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:/*#__PURE__*/e(\"strong\",{children:\"supplier discovery\"})})}),\": Gain visibility into every supplier in your network, from raw materials to finished goods.\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/technology/supplier-watchlist-monitoring\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:/*#__PURE__*/e(\"strong\",{children:\"Supplier Watchlist Monitoring\"})})}),\": Stay ahead of risks with real-time alerts on suppliers flagged for forced labor violations or risks.\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/technology/transaction-traceability\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:/*#__PURE__*/e(\"strong\",{children:\"Chain of custody document collection\"})})}),\": Simplify the documentation process with secure, centralized storage of records for every purchase order.\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/solutions/mock-detention\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:/*#__PURE__*/e(\"strong\",{children:\"Mock detention workflows\"})})}),\": Prepare for inspections and detentions by testing your documentation readiness.\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"11px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"On-demand reporting\"}),\": Generate the necessary reports instantly to satisfy customs and regulatory inquiries.\"]})})]}),/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/technology/supply-chain-mapping?utm_source=google&utm_medium=cpc&utm_campaign=WFX-Supply-Chain-Mapping&utm_term=supply%20chain%20mapping%20software&utm_campaign=WFX-Supply-Chain-Mapping&utm_source=adwords&utm_medium=ppc&hsa_acc=2015392227&hsa_cam=21092660375&hsa_grp=160340916192&hsa_ad=693274566892&hsa_src=g&hsa_tgt=kwd-4623925708&hsa_kw=supply%20chain%20mapping%20software&hsa_mt=p&hsa_net=adwords&hsa_ver=3&gad_source=1&gclid=Cj0KCQiA0--6BhCBARIsADYqyL_3_5uGaZCYF3eTfxqMLGova88d1OIVklDTkG3Y5BUPYsY2Kxjbb2gaAhubEALw_wcB\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"Contact us today\"})}),\" to discuss how Sourcemap can turn the path to compliance into a competitive advantage for your business.\"]})]});export const richText13=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"NEW YORK, December 6, 2024 - ECOM Agroindustrial Corp Ltd., one of the world\u2019s leading traders of agricultural commodities,\\xa0 is partnering with supply chain mapping leader Sourcemap for compliance with the EU Deforestation Regulation (EUDR). The EUDR requires an increase in data collection and management throughout commodity supply chains. This includes digital maps of all farms used to supply coffee and cocoa with proof the products were produced without deforestation. This partnership supports the compliance and traceability of ECOM\u2019s indirect cocoa and coffee supply chains through Sourcemap's award-winning supply chain regulatory software, enabling ECOM to track and receive farm level data in order to monitor for deforestation using advanced satellite imagery. Sourcemap\u2019s solution forms a key component of ECOM\u2019s comprehensive framework for EUDR compliance, supporting the mapping and traceability of indirect supply chains while integrating with ECOM\u2019s own deforestation monitoring tools to ensure rigorous oversight and accuracy. Sourcemap's AI automation ensures EU-bound shipments can be verified deforestation-free, and ECOM can share the verifiable results with customers and regulators through an automated digital interface.\"}),/*#__PURE__*/e(\"p\",{children:'\"ECOM\u2019s choice of Sourcemap\u2019s automated EUDR solution for their indirect supply chain underscores their commitment to excellence in cocoa and coffee sourcing\" explained Leonardo Bonanni, Founder and CEO of Sourcemap.\\xa0'}),/*#__PURE__*/e(\"p\",{children:'\"Growing our partnership with Sourcemap allows us to strengthen our EUDR compliance framework and customer offerings by integrating our supplier due diligence and EUDR data collection to the Sourcemap platform, complementing our existing direct supply chains solution\" explained Alain Poncelet, CEO of ECOM.'}),/*#__PURE__*/e(\"p\",{children:\"About ECOM: ECOM is a world-leading soft commodity services group specializing in coffee, cocoa, cotton, edible nuts and ingredients. Operating in more than 40 countries, ECOM works with thousands of farmers and local businesses as an origin-integrated company. ECOM employs more than a thousand agronomists and field staff worldwide, running innovative on-the-ground operations and sustainability programs to help customers and farming communities worldwide. Their global presence, unparalleled experience, and strong, trusted relationships allow them to create a valuable and profitable environment for farmers, suppliers, customers, shareholders, and employees.\"}),/*#__PURE__*/t(\"p\",{children:[\"About Sourcemap: Sourcemap is the leading supply chain regulatory software with more than 250 brands and 5.5 million suppliers. Sourcemap's automated EUDR solution comprises data collection, deforestation screening, supplier legality, ERP integration and automated EU reporting. Sourcemap's supply chain mapping and traceability software has been named TIME Invention of the Year 2022, and Sourcemap was selected for Fast Company's Most Innovative Companies 2023. \",/*#__PURE__*/e(a,{href:\"http://www.sourcemap.com/\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"www.sourcemap.com\"})})]})]});export const richText14=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"On December 3, the EU Council and Parliament reached a provisional agreement to delay the EU Deforestation Regulation by 12 months, pushing the enforcement date to December 30th 2025.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"The provisional agreement must still be voted on during the next Parliamentary Plenary Session taking place from December 16-19 and also be accepted by the EU Council, whose last meeting is on December 20.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"According to the provisional agreement, the targeted amendment will not affect the substance of the existing EUDR requirements, which aims to minimise the EU\u2019s contribution to deforestation and forest degradation worldwide by preventing products contributing to deforestation after December 2020 to be placed on or exported from the EU market.\"}),/*#__PURE__*/e(\"p\",{children:\"Notably, the amendment to add a \u2018no-risk\u2019 country benchmark or risk classification to the EUDR was not included in the provisional agreement. However, in its place the Commission agreed to add two provisions to the regulation:\\xa0\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"The Commission committed to conducting a future assessment of simplified requirements for countries that have demonstrated effective and sustainable forest management practices.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"An \u201Cemergency break\u201D, which will allow further postponement of the Regulation should the Deforestation Registry (IS System) not be operational by December 30 2025 or if the Country Benchmark (country risk classifications) is not published 6 months before the regulations enforcement.\"})})]}),/*#__PURE__*/t(\"p\",{children:[\"To learn more about how Sourcemap can help your company comply with the EU Deforestation Regulation, or to speak with our in-house policy and GIS experts, \",/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/company/request-a-demo\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!0,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"reach out to our team\"})}),\".\"]})]});export const richText15=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"Last week, amidst continued negotiations over the EU Deforestation Regulation, the EU published an updated version of its Global Forest Observatory Map. This version includes some key improvements\\xa0 including a preliminary mapping of forest types according to the EUDR definitions of \u2018naturally regenerating forest\u2019, \u2018primary forest\u2019 and \u2018planted / plantation forest\u2019. Here\u2019s what you need to know about the updated Global Forest Observatory Map:\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"According to the Commission, the global map of forest cover was \u201Ccreated by combining available global datasets on tree cover, tree height, land cover and land use into a single harmonized globally-consistent representation of where forests existed in 2020.\u201D The workflow consists in first mapping the global maximum extent of tree cover circa the year 2020 from the combination of ESA World Cover 2020 and 2021, WRI Tropical Tree Cover 2020, UMD Global land cover and land use 2019, Global Mangrove Watch 2020 and JRC Tropical Moist Forest 2020 datasets. In a second step, a series of overlays and decision rules are applied to reduce this maximum extent of tree cover and align it with the Forest Definitions using datasets covering cropland and commodity expansion, land use change, built-up land and water.\"}),/*#__PURE__*/t(\"p\",{children:[\"The Commission will publish a second technical report - which will replace the \",/*#__PURE__*/e(a,{href:\"https://op.europa.eu/en/publication-detail/-/publication/f9baaa45-e73f-11ee-9ea8-01aa75ed71a1/language-en\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"previously published technical report\"})}),\" -\\xa0 describing the mapping approach, methodology, input layers, expert feedback, limitations and definitions in the coming months.\\xa0\"]}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Sourcemap\u2019s approach\"})}),/*#__PURE__*/e(\"p\",{children:\"Sourcemap is the only integrated end-to-end solution for EUDR compliance that collects, validates and screens farm and forests for deforestation within a single automated platform. Sourcemap uses the\\xa0 EU Global Forest Observatory as part of a suite of high-fidelity deforestation data, and performs screening automatically using the only cloud-based geo-data assessment service capable of screening the entire map for a shipment within minutes.\\xa0\"}),/*#__PURE__*/t(\"p\",{children:[\"To learn more about how Sourcemap can help your company comply with the EU Deforestation Regulation, or to speak with our in-house policy and GIS experts, \",/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/company/request-a-demo\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!0,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"reach out to our team\"})}),\".\"]})]});export const richText16=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"November 22nd - U.S Customs and Border Protection added 29 new companies to the Forced Labor Entities List, bringing the total number of entities to 107. They join a list of suppliers that CBP has identified as using forced labor and as a result, companies are banned from using these suppliers to make products bound for the US market.\"}),/*#__PURE__*/t(\"p\",{children:[\"23 of the newly listed companies make products that were not among CBP's previous \",/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/blog/us-adds-aluminum-pvc-and-seafood-as-high-priority-sectors-for-forced-labor-enforcement\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"high priority sectors\"})}),\" (tomatoes, cotton, polysilicons, PVC, aluminum, and seafood). These include several entities that mine, smelt, and produce rare earth metals, as well as producers of walnuts, red dates, raisins, various natural oils, herbs, and plant extracts.\\xa0\"]}),/*#__PURE__*/t(\"p\",{children:[\"In \",/*#__PURE__*/e(a,{href:\"https://www.cbp.gov/newsroom/stats/trade/uyghur-forced-labor-prevention-act-statistics\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"2024 alone\"})}),\", CBP detained over 4,600 shipments on suspicion of forced labor valued at $1.73B, representing 83% growth from 2022, when statistics were first published. This marks a continued trend of accelerating enforcement of forced labor laws and increased scrutiny of a widening range of suppliers and products. Besides increasing the number of listed entities by almost threefold, 2024 marked the first expansion of high priority sectors since they were introduced. The addition of new entities and sectors underscores CBP's continued commitment to identifying forced labor in supply chains regardless of industry or region.\\xa0\"]}),/*#__PURE__*/t(\"p\",{children:[\"A shipment detention or seizure by US Customs and Border Protection requires complete traceability of a shipment down to the raw material N-tier suppliers within 30 days. Sourcemap\u2019s Mock Customs Detention Solution tests your supply chain's ability to provide the detailed documentation required to meet or exceed all North American and forthcoming European forced labor regulations. Learn more \",/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/solutions/mock-detention\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!0,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"here\"})}),\" or \",/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/company/request-a-demo\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!0,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"schedule time\"})}),\" with one of our experts.\"]})]});export const richText17=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"On November 19th, the EU officially adopted the Forced Labor Regulation, banning all products made with forced labor from entering the EU market. The Regulation is set to enter into force in 3 years\"}),/*#__PURE__*/e(\"h2\",{children:\"What is the EU Forced Labor Regulation?\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"The EU Forced Labor Regulation (FLR), officially adopted by the EU on November 19, 2024, will create the legal framework for the EU to take actions targeting products made with forced labor in its markets. The FLR will forbid placing, making available, or exporting on or from the EU market any product made using forced labor.\\xa0\"}),/*#__PURE__*/t(\"p\",{children:[\"The regulation defines forced labor using the \",/*#__PURE__*/e(a,{href:\"https://www.ilo.org/global/topics/forced-labour/publications/WCMS_203832/lang--en/index.htm\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"ILO\u2019s 11 indicators of forced labor\"})}),\" and includes all forms of coerced labor, including abusive working conditions,\\xa0 excessive overtime, and debt bondage.\\xa0\"]}),/*#__PURE__*/e(\"p\",{children:\"It is important to note that this regulation applies to all products and all companies placing products on the EU market, including online sales. It will apply to all products and their components regardless of their industry, country of origin, or stage of the supply chain.\"}),/*#__PURE__*/e(\"h2\",{children:\"Forced Labour Single Portal\"}),/*#__PURE__*/e(\"p\",{children:\"As of adopting this regulation, the EU Commission is now mandated to create a Forced Labour Single Portal that will include a database of high-risk products and regions, as well as bans on certain products and suppliers. The database will be based on research from the ILO, UN, and academic institutions, along with investigations the EU has itself conducted into cases of forced labor.\"}),/*#__PURE__*/e(\"p\",{children:\"This portal will allow  companies to identify forced labor risks the EU has already investigated or identified, but alone will not be a sufficient resource to comply with and avoid penalties from the regulation. \"}),/*#__PURE__*/e(\"h2\",{children:\"Enforcement and Investigations\"}),/*#__PURE__*/t(\"p\",{children:[\"In practice, the regulation will be enforced through a series of investigations and audits by the competent authorities.  Member States will conduct investigations into cases of suspected forced labor within their territories and the EU Commission will be responsible for conducting investigations where the risk of forced labor is located outside the EU. This will place a high burden on the Commission, as the majority of cases are expected to take place outside of the European Union. Notably, \",/*#__PURE__*/e(\"strong\",{children:\"the Commission is also given the authority to conduct field inspections on production facilities\"}),\" in exceptional cases.\"]}),/*#__PURE__*/e(\"p\",{children:\"To determine if a product or its components warrant a forced labor investigation, EU authorities have the right to determine, based on their own analysis, which companies should be investigated. The competent authorities will consider the level of risk of forced labor in a supply chain based on high risk products and regions, evidence submitted by the public and whistleblowers, as well as the severity of the abuses. They will prioritize the most severe cases, including state-imposed forced labor, the volume of products, and the share of a product made with forced labor.\"}),/*#__PURE__*/e(\"p\",{children:\"Importantly, authorities will also take into account how many resources a company has and their ability to address the forced labor. This likely means that authorities will be targeting larger companies.\"}),/*#__PURE__*/t(\"p\",{children:[\"If an investigation is triggered, \",/*#__PURE__*/e(\"strong\",{children:\"companies only have 30 days to respond to a preliminary investigation, and between 30-60 days to provide additional information if a full investigation is triggered\"}),\". Companies must provide evidence of full forced labor due diligence and demonstrate how their actions are aligned with the EU Forced Labour Guidance (To be released).\"]}),/*#__PURE__*/e(\"p\",{children:\"Authorities can also request information from other relevant stakeholders and other companies related to the product, which could include individual suppliers in a supply chain.\\xa0\"}),/*#__PURE__*/e(\"h2\",{children:\"Penalties\"}),/*#__PURE__*/e(\"p\",{children:\"If the competent authority establishes a breach of the regulation, it must then issue a decision that:\\xa0\"}),/*#__PURE__*/t(\"ol\",{style:{\"--list-style-type\":\"upper-roman\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"8.5px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/e(\"p\",{children:\"Bans the product from being sold in the EU\\xa0\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"8.5px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/e(\"p\",{children:\"orders the operator to withdraw the products from the EU market\\xa0\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"8.5px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/e(\"p\",{children:\"and orders the operator to donate, recycle or dispose of the remaining products (or, where applicable, parts of products) made with forced or child labour.\"})})]}),/*#__PURE__*/t(\"p\",{children:[\"The findings of the investigation will then be \",/*#__PURE__*/e(\"strong\",{children:\"made public on the Forced Labour Single Portal\"}),\", including information identifying the product in question, the supplier, and where relevant, the production site and supporting evidence of forced labor. \",/*#__PURE__*/e(\"strong\",{children:\"Products found to be made with forced labor\"}),\":\\xa0\"]}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"8.5px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Will be banned from import, export, or placed on the EU market\"}),\". Where only part of the product is affected, that part may be withdrawn. The removal of parts will be easier in some cases than others, and may be impossible in relation to mixed or compounded products (e.g., metal alloys or some consumable products).\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"8.5px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Must be recycled, donated, or as a last resort destroyed\"}),\". Notably the regulation does not allow these products to be exported to third countries. Although certain critical materials will be kept in storage until forced labor is removed from the supply chain.\"]})})]}),/*#__PURE__*/t(\"p\",{children:[\"Member states will determine their own penalties for businesses that are in breach of the regulation including fines up to their discretion.\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})]}),/*#__PURE__*/e(\"h2\",{children:\"What makes the EU FLR so unique?\\xa0\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"The key distinction between the FLR and other forced labor laws around the globe, including those from the U.S, Canada, and Mexico, is that the EU FLR will not permit products that are found to be in breach from being exported to third countries. This means if a shipment of products is detained, they MUST be recycled, donated, or destroyed.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"Additionally, something particularly notable about the FLR is that it is totally country, region, and product agnostic. It is a total ban of products made in part or whole with forced labor regardless of extenuating factors.\\xa0\"}),/*#__PURE__*/t(\"p\",{children:[\"However, unlike in the U.S, EU customs authorities do not have the right to detain products that are not linked to an existing forced labor investigation or decision.\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})]}),/*#__PURE__*/e(\"h2\",{children:\"Timeline and what\u2019s next\"}),/*#__PURE__*/t(\"p\",{children:[\"The EU Forced Labour regulation will go into effect 3 years after it is entered into the EU official Journal meaning it will likely be enforced starting in December 2027.\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{}),\"In the following years before the FLR\u2019s enforcement, the EU Commission will likely publish:\\xa0\"]}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"8.5px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/e(\"p\",{children:\"further delegated acts that will outline specific high risk sectors that will have additional reporting requirements\\xa0\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",style:{\"--framer-font-size\":\"8.5px\",\"--framer-text-color\":\"rgb(0, 0, 0)\",\"--framer-text-decoration\":\"none\"},children:/*#__PURE__*/e(\"p\",{children:\"And official guidance for the regulation, that among other things, will outline expected due diligence procedures,\\xa0 the interplay between the Forced Labour Regulation and CSDDD and specifics around SMEs.\"})})]}),/*#__PURE__*/e(\"h2\",{children:\"How to prepare\"}),/*#__PURE__*/e(\"p\",{children:\"The Forced Labour Regulation is intended\\xa0 to operate alongside other existing or future due diligence obligations such as the CSDDD. Taking a holistic approach to supply chain due diligence, and identifying areas of the supply chain that are particularly high risk,\\xa0 will be the best method to comply with the EU FLR.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"In the coming months, the Commission will publish additional guidelines for companies, including what information must be produced in the event of an investigation. However, companies need not wait for these guidelines to be published to begin preparing their supply chains, and assessing potential risks.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"As soon as possible, companies should begin mapping their upstream supply chains to gain visibility into every tier. They should also begin collecting proof that all suppliers have valid business licenses. It is also a best practice to cross check names and addresses of known suppliers against lists of banned or named entities associated with forced labor via Sourcemap\u2019s Supplier Watchlist Monitoring - a feature many of Sourcemap\u2019s customers utilize as an effective tool for assessing risk.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"There are other potential indicators that forced labor may be occurring at a factory or manufacturing site. These may include the inability to reconcile volumes of raw materials coming into the facility with finished goods coming out of said facility, or the inability to account for all employees on staff at a particular site. Companies may also want to take note of region-specific risks by assessing the Corruption Perception Index (CPI) score of each sourcing country in their supply chain.\"}),/*#__PURE__*/e(\"h2\",{children:\"Reach out to learn more\\xa0\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"Now is the time to start preparing, and Sourcemap\u2019s team of policy experts are here to help. For more information about how Sourcemap can help you comply with the EU Forced Labor Regulation, reach out to your Sourcemap point of contact or send us an email at info@sourcemap.com.\"})]});export const richText18=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"ol\",{children:/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"h2\",children:/*#__PURE__*/e(\"h2\",{children:\"Low risk countries don\u2019t require farm and forest mapping\"})})}),/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"FALSE:\"}),\" All EUDR risk categories, including low, standard and high risk, require farm-level mapping. Look for a bulk mapping software with error detection so that suppliers spend the least time complying.\"]}),/*#__PURE__*/e(\"ol\",{start:\"2\",children:/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"h2\",children:/*#__PURE__*/e(\"h2\",{children:\"Supplier legality assessment is attached to every shipment\"})})}),/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"FALSE:\"}),\" Supplier legality assessments are performed annually for internal responsible sourcing purposes. Individual shipments only include an attestation that risk has been evaluated prior to approving the supplier.\"]}),/*#__PURE__*/e(\"ol\",{start:\"3\",children:/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"h2\",children:/*#__PURE__*/e(\"h2\",{children:\"You can use AI or pre-existing data to conduct supplier legality assessments\"})})}),/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"FALSE:\"}),\" AI and off-the-shelf data is not suitable for EUDR or other supply chain due diligence regulations because they are based on generic, publicly-available data. Even when companies use the same suppliers, each company's supply chain is unique. EUDR, LkSG, CSDDD standards can only be met with supplier-attested, independently verified data.\"]}),/*#__PURE__*/e(\"ol\",{start:\"4\",children:/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"h2\",children:/*#__PURE__*/e(\"h2\",{children:\"You need to collect land titles for every farm and forest\\xa0\"})})}),/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"FALSE:\"}),\" Many regions of the world do not have documented land ownership. Instead, look for regionally-specific documents and proxy certifications based on the region and commodity being mapped.\"]}),/*#__PURE__*/e(\"ol\",{start:\"5\",children:/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"h2\",children:/*#__PURE__*/e(\"h2\",{children:\"The EU has certified solution providers for EUDR compliance\"})})}),/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"FALSE:\"}),\" There is no EUDR certification for solution providers. Instead, look for providers that have an established relationship with EU regulators, and for software with ISO 27001 certification for security and EU data privacy certification.\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"em\",{children:\"To learn more about how Sourcemap can help companies comply with the EU Deforestation Regulation, \"}),/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/company/request-a-demo\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!0,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:/*#__PURE__*/e(\"em\",{children:\"reach out to our team of experts\"})})}),/*#__PURE__*/e(\"em\",{children:\".\"})]})]});export const richText19=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"Today the EU Parliament voted on 9 amendments to the EU Deforestation Regulation (EUDR) accepting 8 and rejecting 1 with 378 MEPs in favor and 641 abstaining.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"Of the 8 amendments approved the top line changes are:\\xa0\"}),/*#__PURE__*/t(\"ol\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"The proposal of the Commission was approved to delay the implementation of the EUDR by 12 months, with a new enforcement date of December 30 2025.\\xa0\\xa0\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"A \u201CNo-Risk\u201D country category has been added to the list of Country Benchmarks that already include low, standard, and high risk countries. Companies sourcing from countries with a \u201Cno-risk\u201D designation would have fewer due diligence obligations compared to low, standard or high risk countries.\\xa0\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"The Commission has been given the mandate to publish new FAQs and Guidance to align with the recently approved amendments and give further details on how to comply with the regulation.\\xa0\"})})]}),/*#__PURE__*/e(\"p\",{children:\"Notably, the amendment that was rejected was set to reduce the due diligence obligations for all traders. This amendment was seen as a redline that would weaken the regulation too drastically.\\xa0\"}),/*#__PURE__*/e(\"p\",{children:\"Below is an overview of the content of the approved amendments, as well as an updated timeline as trilogue negotiations resume.\\xa0\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Timeline\"})}),/*#__PURE__*/e(\"p\",{children:\"A new trilogue negotiation will start as soon as possible to negotiate on the Parliament\u2019s approved amendments and the 12 month delay.\\xa0\"}),/*#__PURE__*/t(\"p\",{children:[\"The proposal now returns to the European Parliament's Environment Committee (ENVI), with trilogue negotiations expected to start next week. According to an article \",/*#__PURE__*/e(a,{href:\"https://www.euractiv.com/section/agriculture-food/news/eudr-parliament-backs-no-risk-group-trade-partners-accuse-eu-of-protectionism/\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"published by Euractiv\"})}),\", liberal and left-wing groups continue to urge European Commission President Ursula von der Leyen to withdraw the proposal, especially after she reportedly assured Renew\u2019s Val\\xe9rie Hayer that she would do so if amendments were passed.\\xa0\\xa0\"]}),/*#__PURE__*/e(\"p\",{children:\"The Parliament and the Council have until mid-December to reach an agreement before the regulation takes effect on December 30th. The last chance for MEPs to adopt the final text will be the plenary session taking place from December 16-19.\\xa0\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"No-risk Country Benchmark\\xa0\"})}),/*#__PURE__*/e(\"p\",{children:\"One of the approved amendments states that the EU Information System and the country Benchmark system or \u2018risk classifications\u2019 must be fully functioning six months before the new December 30 2025 enforcement deadline. Any country designated as \u2018no-risk\u2019 must meet all of the following criteria:\"}),/*#__PURE__*/e(\"p\",{children:\"(i) forest area development has remained stable or has increased compared to 1990;\"}),/*#__PURE__*/e(\"p\",{children:\"(ii) the Paris Agreement and international conventions on human rights and on preventing deforestation have been signed by those countries and parts thereof;\"}),/*#__PURE__*/e(\"p\",{children:\"(iii) regulations on preventing deforestation and forest conservation at national level are strictly implemented and enforced in full transparency and monitored.\"}),/*#__PURE__*/t(\"p\",{children:[\"Operators that place or make available on the market or export relevant commodities and relevant products produced in countries or parts thereof that present no risk in accordance with Article 29 shall fulfill the documentation requirements by making the following documents available to the competent authorities \",/*#__PURE__*/e(\"strong\",{children:\"upon request by competent authorities\"}),\":\"]}),/*#__PURE__*/e(\"p\",{children:\"(a) trade name and type of the relevant products;\"}),/*#__PURE__*/e(\"p\",{children:\"(b) the quantity of the relevant products;\"}),/*#__PURE__*/e(\"p\",{children:\"(c) the country of production and, where relevant, parts thereof;\"}),/*#__PURE__*/e(\"p\",{children:\"(d) the name, postal address and email address of any business or person from whom they have been supplied with the relevant products;\"}),/*#__PURE__*/e(\"p\",{children:\"(e) the name, postal address and email address of any business, operator or trader to whom the relevant products have been supplied;\"}),/*#__PURE__*/e(\"p\",{children:\"(f) adequately conclusive and verifiable information that the relevant products are free of forest degradation;\"}),/*#__PURE__*/e(\"p\",{children:\"(g) adequately conclusive and verifiable information that the relevant commodities have been produced in accordance with the relevant legislation of the country of production.\u2019\"}),/*#__PURE__*/e(\"p\",{children:\"Operators sourcing from no risk countries would not need to submit Due Diligence Statements to place their products on the market, and would not need to submit geolocation data or date of harvest for the associated plots of land. However, low, standard and high risk countries would maintain the same due diligence obligations as written in the original adopted text of the Regulation.\"}),/*#__PURE__*/e(\"p\",{children:\"The amendments justify the no-risk category by saying:\"}),/*#__PURE__*/e(\"blockquote\",{children:/*#__PURE__*/e(\"p\",{children:\"Introducing a \u201Cno risk\u201D category in the EUDR benchmarking system could streamline compliance for regions with strong, verified anti-deforestation measures, reducing administrative burdens for both regulators and businesses. This approach would reward countries actively protecting their forests, encourage other regions to improve their practices, and allow the EU to allocate resources more effectively toward higher-risk areas. The new category will offer an opportunity for countries to enforce stronger national deforestation laws and commit to cooperate with international climate and human rights conventions.\"})}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Enforcement\"})}),/*#__PURE__*/e(\"p\",{children:\"In addition to the required audits by competent authorities of 9% of goods originating from high risk countries, 3% of goods originating from standard risk countries and 1% of goods originating from low risk countries, each Member State would need to ensure that the annual checks carried out by its competent authorities cover at least 0.1 % of the operators placing or making available on the market or exporting relevant products from no risk countries.\\xa0\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"What this means for your business\"})}),/*#__PURE__*/e(\"p\",{children:\"Companies must continue to prepare for the EU Deforestation Regulation, and should use this 12 month delay as an opportunity to ensure that all areas of their supply chain are compliant with the law. Until the EU publishes its country risk benchmark, all countries are assumed to be standard risk, and therefore have full due diligence obligations under the law. Should the \u201Cno-risk\u201D designation be enacted into law, it will likely be highly political and controversial which countries receive such a designation. No operators should assume that their sourcing country will meet the steep requirements to be considered \u201Cno-risk\u201D.\\xa0\"}),/*#__PURE__*/t(\"p\",{children:[\"Furthermore, assuming that the delay and approved amendments are enacted into law, Member States and competent authorities would have stricter requirements to ensure that goods coming from high and standard risk countries are properly audited and checked. The delay will provide an opportunity for competent authorities to prepare to enforce the Regulation to the fullest extent of the law.\\xa0\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{}),\"Companies should utilize this time to not only pre-screen their suppliers for deforestation, but also for legality as outlined in the latest Implementation Guidance published by the Commission. To learn more about how Sourcemap can help pre-screen your supply chain for compliance with the EU Deforestation Regulation, reach out to our team of experts. \"]}),/*#__PURE__*/t(\"p\",{children:[\"To learn more about how Sourcemap can help pre-screen your supply chain for compliance with the EU Deforestation Regulation, \",/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/company/request-a-demo\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!0,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"reach out to our team of experts\"})}),\".\"]})]});export const richText20=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"As an increasing number of global regulations require companies to map and monitor their end-to-end supply chains, supply chain transparency has become the standard not only for compliance but to remain competitive in the market. While industries such as apparel & textiles and food & agriculture have an established precedent of supply chain transparency, other industries such as consumer electronics, automotive, and batteries have just begun to adopt these best practices - motivated in part by strict legislation that will go into effect in the coming years.\"}),/*#__PURE__*/e(\"p\",{children:\"The EU Batteries Regulation, which will replace the EU Batteries Directive, covers the entire battery lifecycle - from production to durability and recyclability. Companies will need to collect data related to their upstream supply chain while tracing the full lifecycle of the product. The Regulation covers five categories of batteries:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Portable batteries\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Electric vehicle (EV) batteries\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Light means of transport (LMT) batteries\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Starting, lighting and ignition (SLI) batteries\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Industrial batteries\"})})]}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Timeline\"})}),/*#__PURE__*/e(\"p\",{children:\"The Battery regulation has a phased implementation timeline. Not all battery types will be subject to the same requirements and different requirements will go into effect at different times.\"}),/*#__PURE__*/e(\"p\",{children:\"Below is a summary of the key enforcement dates that are written into the law and guaranteed:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Feb 18 2025\"}),\" - Carbon footprint declaration requirement for all batteries goes into effect\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Aug 18 2025\"}),\" - Initial due diligence requirements / supply chain transparency for all batteries goes into effect\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Feb 18th 2027\"}),\" - The Digital Battery Passport becomes mandatory for EV, industrial, and LMT batteries\"]})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"2028\"}),\" - Mandatory recycled content in batteries\"]})})]}),/*#__PURE__*/e(\"p\",{children:\"The requirements under the EU Batteries Regulation will roll out over the next several years. As of August 2024, all batteries regardless of whether they are used in a product or sold separately need to have undergone a CE conformity assessment and be CE marked. This is a self-certification process for portable and industrial batteries with a capacity of less than 2kWh. For all other batteries, a notified body which will be established once the Regulation is in full effect will conduct relevant assessments and certification.\"}),/*#__PURE__*/e(\"p\",{children:\"Depending on the battery category, various requirements must be considered to be compliant. Not every requirement is relevant for each battery category. These requirements include:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Restriction of substances (Cd/Hg/Pb) in the production of the battery\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Carbon footprint of the battery\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Recycled content in the battery\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Performance and durability of the battery across its product lifecycle\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Safety of stationary energy storage systems\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Relevant labeling and marking\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Information on the state of health and expected lifetime of batteries\"})})]}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Digital battery passports to improve supply chain transparency\"})}),/*#__PURE__*/e(\"p\",{children:\"Starting in February 2027, the Regulation will introduce requirements for digital battery passports for industrial batteries (with a capacity of more than 2kWh), electric vehicle batteries and LMT batteries, such as those used in e-bikes. The passports will be scannable via QR code, just like the requirements for the EU\u2019s forthcoming Digital Product Passport Directive.\"}),/*#__PURE__*/e(\"p\",{children:\"The goal of the passport is to increase supply chain transparency for in-scope batteries. The passport record should include, among other data, general information about the battery such as manufacturer information as well as geographical location of the manufacturing facility, along with the required data points listed above.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Supply chain due diligence for raw materials\"})}),/*#__PURE__*/e(\"p\",{children:\"The Regulation also establishes supply chain due diligence requirements for companies that first make in-scope batteries available on the EU market if the active material in those batteries contains cobalt, natural graphite, lithium or nickel. The Regulation exempts companies with an annual turnover of less than 40 million EUR and that are not part of a larger conglomerate with a consolidated annual turnover of 40 million EUR.\"}),/*#__PURE__*/e(\"p\",{children:\"To meet the supply chain due diligence requirements of the EU Batteries Regulation, companies must do the following:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Adopt an internal due diligence policy for batteries\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Establish company management systems to support due diligence policies\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Identify and assess material risks in the upstream supply chain via supply chain mapping\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Design and implement a strategy to respond to and remediate identified risks\"})})]}),/*#__PURE__*/e(\"p\",{children:\"The Regulation requires third-party verification of all due diligence policies by a notified body. This set of obligations will enter into force in August 2025.\"}),/*#__PURE__*/e(\"h2\",{children:/*#__PURE__*/e(\"strong\",{children:\"Battery lifecycle management\"})}),/*#__PURE__*/t(\"p\",{children:[\"Beginning in 2025, the Regulation establishes extended producer responsibility for companies that first make batteries available on the market in an EU member state. In layman\u2019s terms, this means that these companies are responsible for the end-of-life collection and treatment of the batteries in that member state. The EU will release targets for collection rates and recycling efficiencies that companies must adhere to. Beginning in 2027, the Regulation will also introduce targets for material recovery of cobalt, copper, lead, lithium and nickel in battery recycling and treatment facilities. Functionally, this means that the EU Batteries Regulation requires a merging of both upstream and post-consumer product lifecycle.\",/*#__PURE__*/e(a,{href:\"https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32023R1542\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\" View the full text of the Regulation here\"})}),\".\"]}),/*#__PURE__*/e(\"p\",{children:\"The EU Batteries Regulation will set a new precedent for supply chain transparency for batteries. With over 15 years of experience mapping upstream supply chain, Sourcemap can help companies meet the supply chain due diligence requirements of the Regulation, including identifying and populating relevant geographical information for the battery passport, identifying risks in the upstream supply chain, and tracking the carbon footprint of each product.\\xa0\"}),/*#__PURE__*/t(\"p\",{children:[\"To learn more about how Sourcemap can prepare your company for the EU Batteries Regulation, reach out to our\",/*#__PURE__*/e(a,{href:\"https://www.sourcemap.com/company/request-a-demo\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\" team of experts\"})}),\".\",/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{}),/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})]})]});export const richText21=/*#__PURE__*/t(o.Fragment,{children:[/*#__PURE__*/t(\"p\",{children:[\"In early October, the US Department of Homeland Security (DHS) announced the addition of \",/*#__PURE__*/e(a,{href:\"https://www.dhs.gov/news/2024/10/02/dhs-places-first-steel-and-aspartame-prc-based-companies-uflpa-entity-list\",motionChild:!0,nodeId:\"WhRspeeCO\",openInNewTab:!1,preserveParams:!1,relValues:[],scopeId:\"contentManagement\",smoothScroll:!1,children:/*#__PURE__*/e(i.a,{children:\"steel and aspartame companies\"})}),\" to its official Entities List. This comes after several months of notable additions to the Entities List, including seafood and footwear companies as well as manufacturers of critical raw materials such as aluminum, copper and magnesium.\\xa0\"]}),/*#__PURE__*/e(\"p\",{children:\"2024 has shown a marked increase in forced labor-related detentions by the Forced Labor Enforcement Task Force (FLETF) and CBP. Compared to 2023, more than double the total value of goods have been detained upon entry into the U.S. under suspicion of forced labor, bringing the total value of goods detained since 2022 to over $3.5 billion USD. 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