After more than a year of dedicated effort, Yongguan New Materials has successfully obtained compliance certification for the European Union Deforestation Regulation (EUDR) from SGS, a leading international certification body, along with a Due Diligence Report (EUDR-DDS).

This certification covers products including Masking Tape, Cleaning Tape, Mesh Paper Tape, Adhesive (Paper) Sticker, Degradable Kraft Tape, and Self-adhesive Labels, manufactured across three production bases: Shanghai Yongguan, Jiangxi Yongguan, and Shanghai Yongguan Branch. This achievement reflects the company’s commitment to sustainable and green development and underscores its robust supply chain management. It also provides strong support for Yongguan’s further expansion into international markets.

1. Building Compliance from the Ground Up

The EUDR requires companies to establish a comprehensive traceability management system, encompassing data collection, risk assessment, compliance verification, and risk mitigation, with each step forming a complete and interconnected chain.

To ensure effective implementation, Yongguan established an EUDR task force in July 2024, with Lu Shiqi serving as team leader, and Chen Jiuxiang and Hong Yan as deputy leaders. The team developed a detailed project plan and held regular meetings to monitor progress.

Director Chen of the Quality Inspection Department took the lead in engaging with major certification bodies to gain in-depth knowledge of the certification process, requirements, and core aspects of the EUDR. She also organized specialized training sessions to enhance internal understanding of the regulation, laying a solid theoretical foundation for the project.

2. Overcoming Challenges: Data Collection and System Development

Through training and further research, the team identified three key areas of focus for the EUDR project:

• Supplier Information Collection and Management

• Suppliers were required to provide documentation such as logging permits, FSC certifications, business licenses, GeoJSON files for geographical coordinates, zero-deforestation proof (e.g., deforestation policies, human rights policies), and procurement documents (invoices, bills of lading, packing lists).

• Internal EUDR Management System Development

• The company implemented strict supplier screening to ensure all materials used in EUDR-order production complied with the EU’s “zero deforestation” standards. During production, specialized EUDR production codes were used, and an ERP system with a first-in-first-out (FIFO) approach was employed to monitor material usage in real time, ensuring full traceability. Documentation such as an EUDR management manual, procedure documents, product group lists, and supply chain flowcharts were also developed.

• Risk Assessment and Audit

• A third-party certification body was engaged to review the company’s compliance and issue internationally recognized certifications and reports.

The procurement team, led by Director Hong and Manager Huang, conducted multiple rounds of evaluations to identify two suppliers meeting EUDR standards. Collecting and verifying supplier documentation required persistent effort, with Director Chen organizing regular reviews with the procurement and sales teams to ensure compliance.

For internal system development, Director Chen drafted the EUDR management manual and procedure documents based on templates provided by consultants, completed risk assessment forms, and mapped the supply chain. Manager Huang finalized the list of qualified suppliers, while the sales team provided EUDR order contracts.

Through collaborative effort, the team established a dedicated EUDR order management system, mimicking the FSC order management process with specialized codes and controls. A simulated EUDR order was placed by Sales Representative Wang Meiyu to validate the internal workflow.

3. Securing the “Green Pass” for the EU Market

After months of meticulous preparation, SGS conducted its audit of Yongguan New Materials on July 31–August 1, 2025, making Yongguan one of the first companies to undergo EUDR compliance certification.

During the audit, SGS representatives thoroughly reviewed the company’s management documents, supplier materials, EUDR order records, and on-site production processes. The audit confirmed that Yongguan has a comprehensive EUDR control system in place, ensuring that its paper-based tapes comply with the EU’s zero-deforestation requirements from raw material sourcing to production.

The combined implementation of the EU Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR) is driving global supply chains toward greener and more sustainable practices. While these regulations pose higher compliance requirements, they also create new market opportunities for companies that proactively meet these standards.

Yongguan’s successful EUDR compliance audit marks a significant milestone in its sustainable and low-carbon management journey. It not only serves as a “golden key” to the EU market but also strengthens the trust of international clients.

Yongguan is demonstrating its commitment and responsibility in building a green supply chain, proving itself as a reliable global partner.