Seven checks.
No exceptions.

Every supplier passes the same verification sequence before listing. Every regulated order triggers a documented compliance workflow — covering EUDR for EU-bound goods and UFLPA forensic chain-of-custody for US-bound goods. No shortcuts, no adjustments per deal.

Supplier verification · live
SUP-4471 · Cottonline do Brasil
01

EUDR geo-polygons

···
02

DDS drafted & filed

···
03

CSDDD risk score

···
04

Rules of Origin

···
05

UFLPA / CBP screening

···
06

Certification audit

···
07

KYB identity

···
Running deterministic checks…
hash 0x9f3c…a7e1

Where Merco stops. Merco prepares documents and data. It is not a customs broker or legal compliance advisor. For EU-bound goods, the Article 4 due diligence decision remains with you as EU operator of record. For US-bound goods, the UFLPA rebuttable presumption obligation and CBP Form 3461 entry rests with the importer of record.

Live knowledge graph preview

Full supply chain traceability, rendered in real time.

Every verified supplier in Merco generates an n-tier knowledge graph stored in Neo4j. Raw origin nodes (Tier 4) are organic — representing the farm, forest, or livestock source. Downstream nodes are hard-edged corporate entities. Green animated edges carry the EUDR-verified material flow from origin to assembly. Buyers access the live graph after registration. The preview below is a real read-only instance of the data model buyers use to verify EUDR and UFLPA chain-of-custody.

Loading graph

4 · Raw OriginSorriso, MT-12.5442, -55.7214
3 · GinningRondonópolis, MT-16.4672, -54.6378
2 · Fabric MillFortaleza, CE-3.7172, -38.5433
1 · Final AssemblySão Paulo, SP-23.5505, -46.6333

Supplier verification methodology

Seven checks before a supplier is listed.

The criteria are fixed. They are not adjusted per deal or negotiated with suppliers. Every factory passes this sequence before their first listing appears on Merco. Click any check to expand.

Compliance Methodology (printable)

WGS84 farm-boundary coordinates submitted by the supplier and cross-referenced against satellite-confirmed deforestation analysis. Zero tolerance: any deforestation after Dec 31 2020 blocks listing.

Merco handles

Merco collects polygon coordinates from suppliers, runs the satellite deforestation check with our own algorithms, and stores the verification result against the supplier record. Polygons are rechecked at each annual review.

Your responsibility

You remain the EU operator of record. The Article 10 obligation to verify geo-data rests with you. Merco prepares and cross-references — you approve.

Regulatory frameworks

Three frameworks. Specific obligations.

EU Deforestation Regulation

In force

Regulation (EU) 2023/1115

Applies to seven commodity categories including cattle, cocoa, coffee, palm oil, soy, wood, and rubber. EU operators must file a Due Diligence Statement (DDS) before placing regulated goods on the EU market. Failure to comply risks fines of up to 4% of annual EU turnover and market access suspension.

Key obligations

  • Applies to cattle-derived leather from Argentina
  • Cotton and synthetic textiles: exempt from EUDR scope
  • DDS filed via TRACES NT portal before import
  • Geo-polygon data required for each farm in the supply chain
  • Article 4 obligation rests with the EU operator of record

What Merco does

Merco handles geo-polygon collection, satellite deforestation checks, DDS drafting, and TRACES NT filing. You review and approve each document before submission. The Article 4 due diligence decision remains yours as EU operator.

Compliance document outputs

One score. Every check shown.

The deterministic Compliance Brain re-runs on every document and resolves to a single score — with each underlying check, and a hash you can verify, visible against the supplier.

merco·compliance · brain
97
Brain score
GOLD · ClearedDeterministic · hash-anchored
Deforestation (satellite-confirmed)Clear · 0.0 ha
Certificate authenticity4 / 4 verified
Issuer registry matchBCI · GOTS · OEKO-TEX
Forced-labour exposureNo registry hits
Corporate identityCNPJ confirmed
  • One deterministic scorerecomputed on every document
  • Satellite-confirmeddeforestation · 0.0 ha
  • Certificate authenticitychecked against issuer registries

EU-Mercosur FTA · HS 61/62 apparel

Tariff phase-out schedule.

12% MFN baseline phased to 0% over 10 years from January 2026. Double-transformation Rules of Origin apply. Colombia operates separately at 0% via EU-Colombia FTA (since 2013).

'26
'27
'28
'29
'30
'31
'32
'33
'34
'35
2026NOW
10.8%

−1.2% vs MFN

2027
9.6%

−2.4% vs MFN

2028
8.4%

−3.6% vs MFN

2029
7.2%

−4.8% vs MFN

2030
6.0%

−6.0% vs MFN

2031
4.8%

−7.2% vs MFN

2032
3.6%

−8.4% vs MFN

2033
2.4%

−9.6% vs MFN

2034
1.2%

−10.8% vs MFN

2035
0%

Full elimination

Applies to apparel HS 61/62 from Brazil, Argentina, Uruguay, and Paraguay. Importers are responsible for declaring correct origin and filing EUR.1 certificates at customs. Merco calculates the applicable rate at order time.

Referenced standards

Certifications and data sources.

BCI Better CottonGOTSOEKO-TEX Standard 100AbvtexWFTO Fair TradeResponsible Wool StandardZQ MerinoWoolmarkVISEC Argentina (SENASA)ISO 9001IULTCSREACHGRSInexmodaWRAPTRACES NT (EU)Satellite deforestation dataUFLPA Entity List
Based inZurich, Switzerland
Data ownershipBuyer-owned · exportable at any time
Methodology refsEUDR Art.10 · CSDDD Art.8 · UFLPA guidance
Payment railsStripe Connect · SWIFT bank wires

Compliance Methodology Document

Share this 12-page methodology overview with your legal or compliance team. Covers all seven checks, data sources, and responsibility boundaries.

Download PDF

Frequently asked questions

Manufacturers — compliance only?

Troja is Merco's standalone workspace for EUDR plots, satellite checks, and DDS — no marketplace listing.

Explore Troja

Suppliers can apply to become verified.

LATAM manufacturers apply via a simple form. Verification includes KYB, certification audit, and EUDR geo-polygon submission.

Apply as a supplier

Ready to run your first compliant LATAM sourcing lane?

Submit a brief and receive a verified supplier shortlist with EUDR and ROO status pre-checked.

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