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Be compliant in with the
EU Deforestation Regulation for


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Read more You'll find more information about the EU Deforestation Regulation here.




Real-Time API for EUDR -
Legislation of the Area of Production

Integrate our transaction-based, real-time EUDR Regulation API with your EUDR system to automatically fetch relevant regulation information for the area of production. With our unique business model, you only pay when you do business in the EU, and we take a percentage commission from each transaction.

This approach not only is cost-effective but also allows you to switch from fixed legislation acquisition costs to variable costs.



Kohtas Services to Comply with the EU Deforestation Regulation

EUDR Consultation Services

Hourly based
  • Initial Assessment
  • Customized Compliance Plan
  • Technical Documentation
  • Documentation Support
  • Supply Chain Analysis
  • Technical Process Plan
  • Consultation Sessions










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EUDR Regulation API -
legislation of the area of production

Transaction-based, Percentage commission from transaction value Popular
  • EUDR Regulation API Access
  • Global address/Geolocation-Based requests
  • Global regulations include: Land-use rights, Enviromental Protection, Third Parties' Rights, Labour Rights, Human Rights, Anti-corruption, FPIC, Tax, Customs and Trade regulations
  • Real-Time Data Fetching
  • Custom Integration Support
  • Detailed Legislation Reports
  • Automatic Daily Updates
  • Advanced Analytics and Insights
  • No setup, monthly or annual fees
  • Pay-as-you-go
  • 24/7 Customer Support
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Full-Service EUDR Compliance

Transaction-based, Percentage commission from transaction value
  • EUDR Regulation API Access
  • Global Address/Geolocation-Based requests
  • Global regulations include: Land-use rights, Enviromental Protection, Third Parties' Rights, Labour Rights, Human Rights, Anti-corruption, FPIC, Tax, Customs and Trade regulations
  • Satellite Image Analytics
  • Direct Submission of Due Diligence Statement to EU TRACES System
  • Full Risk Assessment and Risk Mitigation
  • End-to-end solution for EUDR Compliance
  • Customized Compliance Plan
  • No setup, monthly or annual fees
  • Transaction-Based Pricing
  • 24/7 Customer Support
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The regulation data set of legal status of the area of production

Below is an initial overview of the legal requirements relevant to the area of cocoa production in Ghana. It does not constitute a thorough evaluation of the applicable legal framework or its enforcement. A more in-depth analysis is essential to comprehensively map the relevant legal requirements across all the areas of law outlined in the EUDR and assess their implementation. This would include identifying the relevant international treaties ratified by Ghana and the degree to which they have been transposed into national law. This would enable evaluating the availability of documents, information and data that can substantiate compliance.

Example legislation of the country of production - Cocoa Ghana (by EFI. 2024)

  • Land-use rights

    In Ghana, there is no requirement to demonstrate land-use rights to cultivate cocoa, as long as it is done in an authorised area. So, although farmers often do not possess proof of land-use rights, these are not required in these areas under the national legal framework. The Land Act of 2020 regulates land ownership and tenure. It also provides for the creation of Customary Land Secretariats and land registrations. Currently, there is no comprehensive land registry and cocoa farms are not yet fully registered.

    Cocoa production is prohibited within forest reserves except in areas recognised as admitted farms. There is limited available documentation of admitted farm status. The admitted farm boundaries should be listed in the forest management plans of each forest reserve, and some have recently been digitised by RMSC. Nonetheless, this data is not shared publicly. The expansion of cocoa farms beyond admitted farm boundaries within forest reserves is a growing concern and a highly sensitive political issue, but the extent of illegal cocoa encroachment in forest reserves has yet to be publicly determined.

    The COCOBOD DRM will assess the risk of cocoa illegality specifically related to whether cocoa was produced in prohibited areas in protected areas. This information will be incorporated into the GCTS and made available to cocoa buyers. The data sharing modalities are under development. In off-reserve areas, conversion from forest to agricultural land uses is legally allowed, but the felling of economic trees requires permission from the Forestry Commission (Timber Resources Management Act of 1998, Act 547).

  • Environmental protection

    Environmental impact assessment

    The Environmental Assessment Regulations, L.I. 1652 of 1999 amended in 2002, require that all developmental activities likely to impact adversely on the environment be subject to environmental assessment. The requirement applies to agricultural activities that either involve the clearing of land: greater than 40 hectares in area; or in an environmentally sensitive area. Smallholder cocoa farmers would therefore not be required to carry out an environmental impact assessment unless their activities are carried out in an environmentally sensitive area.

    Pesticide and fertilisers

    Their use is regulated by Environmental Protection Agency Act, 1994 (Act 490), the Pesticide Control and Management Act, 1996(Act 528) and the Plant and Fertiliser Act 2010 (Act 803).

    Water

    Its use is regulated by the Water Resources Commission Act, 1996 (Act 522) and the Water Use Regulations, 2001 (L.I. 1692). These texts outline the procedures to apply for and grant authorisation by the Commission to use water, including for agricultural water use.

    Farmers will likely lack explicit proof of compliance with environmental norms, such as a certificate from an environmental inspectorate. Consequently, it falls upon the operator when exercising due diligence to assess whether this legal aspect poses any risk of noncompliance.

  • Third parties’ rights

    Public participation in environmental regulation involves the Environmental Protection Agency overseeing environmental impact assessments in response to public concerns about proposed large-scale projects. Further, Ghana’s National Land Policy emphasises community involvement in land management for sustainable urban and rural development. And the Lands Commission has developed draft guidelines for large-scale land transactions, aligning with international texts like the FAO Voluntary Guidelines.

    However, regulations pertaining to public consultation for large-scale projects would not apply to small-scale cocoa farming activities, which constitute over 90% of Ghana’s cocoa farming.

  • Labour rights

    The Labour Act, 2003 (Act 651) contains provisions on the maximum working hours, overtime work, paid leave for pregnant and nursing mothers, and safety at work. For a discussion of the legal framework regarding child labour, see the section below on human rights.

    Not all requirements applying to permanent workers apply to seasonal workers. Most labour relations among smallholder farmers are likely to be informal. Consequently, it falls upon the operator when exercising due diligence to assess whether this legal aspect poses any risk of non-compliance.

  • Human rights

    Child labour

    Ghana is a party to the International Labour Organization (ILO) Convention on the Worst Forms of Child Labour (No. 182). The Children’s Act of Ghana, 1998 (Art. 560), states that a child of 13 years may be engaged in light work, which is not hazardous and does not affect the child’s attendance at school or capacity to benefit from schoolwork. The Act also allows a child of 15 years to be fully employed if not hazardous.

    Ghana has also enacted specific legislation to address child labour issues in the cocoa sector. The Cocoa Industry (Child Labour) (Amendment) Act, 2009 (Act 879) outlines measures to combat child labour, including provisions for monitoring and enforcement. Further, in collaboration with international organisations and stakeholders, Ghana developed a National Plan of Action to eliminate the worst forms of child labour in the cocoa sector. The Plan outlines strategies, interventions, and timelines for addressing child labour issues.

    Finally, the Hazardous Child Labour Regulations, 2017 (LI 2263), enacted under the Labour Act, define and prohibit hazardous work for children. They provide guidelines for determining what constitutes hazardous work and outline measures for identifying and eliminating such work in various sectors, including cocoa farming. The government of Ghana has issued a National Action Plan and developed a National Child Labour Monitoring System. Ghana has been working with international organisations, including ILO and the United Nations Children’s Fund to address child labour in the cocoa sector. A number of prevention, remediation and mitigation activities are also implemented through voluntary certification schemes, NGO programmes and corporate sustainability initiatives, to address child labour in the cocoa sector.

    The COCOBOD is developing a Cocoa Sector Child Labour Monitoring System, which will be linked to the National Child Labour Monitoring System for the reporting and referral of cases. It will also be linked to the Ghana Cocoa Traceability System, and will provide information on the risk of non-compliance with national laws related to child labour.

    Other human rights

    Ghana is a Party to the Convention on the Elimination of All Forms of Discrimination against Women, the International Convention on the Elimination of All Forms of Racial Discrimination, the International Covenant on Economic, Social and Cultural Rights, the International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families and Conventions on Minimum Age (Convention No. 138) (minimum age specified: 15 years) and on the Worst Forms of child Labour (Convention, No. 182).

  • Anti-corruption

    Ghana ratified both the Convention against Corruption and the African Union Convention on Preventing and Combating Corruption in 2007. There is no singular piece of legislation to tackle corruption, but the criminal code criminalises corruption in the form of active and passive bribery, extortion, wilful exploitation of public office, use of public office for private gain and bribery of foreign public officials.

    The National Anti-Corruption Action Plan of 2014 aims to improve the prevention, investigation and prosecution of corruption by strengthening several state agencies and putting a premium on public awareness of corruption. However, a UN report of February 2015 underscored challenges in the government’s ability to execute its anti-corruption policies and prosecute offenders effectively. Ghana scored 43 points out of 100 on the 2022 Corruption Perceptions Index (CPI) reported by Transparency International, ranking 73 out of 180 countries. In their risk assessments under due diligence obligations of the EUDR, operators will need to consider the level of corruption in the sourcing country when selecting valid evidence of legal compliance.

  • FPIC

    Ghana is not a party to the ILO Convention 169 and free, prior, and informed consent (FPIC) is not explicitly incorporated into the legal framework. Nonetheless, it contains certain aspects of its elements. Under the Constitution, customary authorities have the right to decide on customary land matters. The Chieftaincy Act, 2008 (Act 759), emphasises that land disposition decisions by customary authorities require consent from elders and community members, aiming to benefit the entire landowning community. However, cocoa production by smallholder farmers is typically conducted on a small scale, whereas FPIC is more commonly associated with major projects that have significant impacts on communities. FPIC is therefore likely to be irrelevant to smallholders’ cocoa production.

  • Tax, trade and customs

    Trade

    The cocoa trade is extensively governed by the Ghana Cocoa Board Act of 1984. The Act mandates COCOBOD to exercise centralised control over the sale and trade of cocoa, with powers over the purchase, inspection, grading, sealing, certification, export and sale of cocoa. Only COCOBOD or persons or organisations authorised by the COCOBOD are allowed to purchase cocoa. The COCOBOD issues licences to cocoa buyers (LBCs). No person shall market or sell cocoa unless authorised by the COCOBOD. The Government sets the minimum farmgate price to be paid to farmers, at the beginning of each season.

    Cocoa produced in Ghana is graded under the Cocoa Industry (Regulation) (Consolidation) Decree, 1968 (NLCD 278).

    Customs

    COCOBOD is backed by law to sell cocoa which is not subject to any customs duty or regulations. Cocoa is thus exempted from any form of custom regulations. The scope of the legality criteria is confined to the area of production, and further assessment would be needed to understand to what extent requirements along the supply chain, including on trade and tax would apply.






Estimate of Costs for EUDR Compliance

Understanding the financial implications of complying with the EU Deforestation Regulation (EUDR) is crucial for businesses. Here’s a breakdown of the estimated costs across key categories without fines and sanctions.

Due Diligence and Audit Costs

These costs encompass conducting comprehensive supply chain audits, including geolocating production areas, verifying deforestation-free status, and ensuring compliance with the legislation of the area of production.

Percentage of Total Costs: 30-40%

Implementation of Monitoring Systems

This includes investments in technologies such as satellite imagery for supply chain traceability, and other monitoring systems to ensure compliance. These technological investments are crucial for maintaining ongoing compliance and tracking supply chain data accurately.

Percentage of Total Costs: 25-35%

Operational Adjustments

Costs related to adjusting procurement strategies, sourcing from certified suppliers, and making operational changes to align with EUDR requirements. These adjustments are necessary to ensure that all aspects of the supply chain meet the regulation's standards.

Percentage of Total Costs: 10-20%

Administrative and Personnel Costs

These costs cover the administrative overhead required to manage compliance programs, including training existing staff, hiring new compliance officers, and maintaining documentation and reporting systems.

Percentage of Total Costs: 15-25%






Embark on Your Kohtas Journey:
Simple 3-Step Onboarding Process

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  1. 1

    Define Your Goods by HS codes

    In the first step of the onboarding process, you'll need to specify the goods your enterprise offers under the EUDR by HS codes.

  2. 2

    Specify Business Locations

    In this step, you'll specify where your business operates from and where it delivers to example by GPS coordinates. This will help us identify the specific regulations based on the geographical regions involved in your operations.

  3. 3

    Provide Business Information

    Finally, you'll provide some additional business information. This includes your total sales volume in million euros, your preference for the Pay-as-You-Sell model, your commitment period for Pay-as-You-Sell, and your enterprise name. This information helps us understand your scale of operations and customize our offerings accordingly.





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