Könnyűipari ismeretek | Faipar » The Effect of the EU Timber Regulation on Non EU Timber Industry

Source: http://www.doksinet The Effect of the EU Timber Regulation on NonEU Timber Industry 1 Background Since the 3rd of March 2013, the EU Timber Regulation (EUTR) has created obligations for those first placing timber and timber products on the EU market (‘operators’): prohibiting them from placing illegally logged timber and timber products on the EU market and demanding that they actively assess the risk that this timber has been logged illegally. To do so, operators must have access to information indicating that timber was logged legally, and be sufficiently sure that their suppliers complied with relevant national laws. Therefore, while operators feel the most immediate effect of the EUTR, the EUTR is likely to also affect other companies involved in the timber supply chain, where timber and timber products are ultimately sold in the EU. The main effect on industry in non-EU timber producing countries is likely to derive from the operators’ need to obtain access to

credible information on timber or timber products. Operators are likely to ask their suppliers for various documents or other information that they cannot easily obtain by themselves. In order to facilitate trade relations with EU operators, nonEU timber industry may wish to proactively compile this information and be ready to share it with buyers. This paper is intended to serve as an aid to non-EU industry regarding the kind of information and documents they should consider sharing in order to build or maintain workable and mutually profitable trade relations. 2 What Information is Important? The EUTR establishes various types of information that operators must pay attention to. The detail of information sought by operators will depend on the circumstances of each case, including the country and type of timber concerned. However, as a general rule, the more specific the information made available by non-EU industry is, the more likely it is going to be sufficient for the operators

in the context of the EUTR. 1 Source: http://www.doksinet The following information is needed by operators and so may be requested from suppliers based outside the EU:  the trade name and type of product, the common name of tree species and in some cases, its full scientific name Often this information will already be known to the operator but suppliers or harvesting companies may be asked to provide (official) documents that specify the trade name and type of the product and tree species. If timber producers are using general descriptions, such as ‘mixed tropical hardwoods’, they may be asked to provide more precise information. Where the common name of a species is ambiguous, operators may ask for the scientific name. When trading timber products consisting of different types of species, such as plywood, an operator will need to know all possible species that are used to produce the plywood.  country of harvest, and in some cases, the sub-national region and the

concession of harvest The country of harvest of timber may not always be apparent, especially where timber passes through several stages of processing in different countries before being exported to the EU. In these cases, an operator may ask their supplier to provide information on where the timber derives from. In addition, industry in the country of harvest may be asked by operators for details of the sub-national region or concession of harvest. If the risk of illegal harvesting varies between sub-national regions or concessions, the EUTR asks operators to have more specific information about where timber is from. Therefore, to avoid unnecessary delays and enhance trust, timber producers based in countries where the rates of illegal logging vary, should consider how to provide EU buyers with the most detailed information possible regarding the origin of timber.  quantity of timber or timber products Operators will need the quantity of timber or timber products, expressed in

volume, weight or number of units. This information should be available from trading documents used by industry in the country of harvest and in the EU.  documents or other information indicating compliance of timber and timber products with the legislation of the country of harvest This is the most complex aspect of the requirement that operators gain access to information concerning their supply of timber. There is no generally applicable list of necessary information or documents. Instead, the precise information needed will depend on the laws and practices in the country of harvest and timber producers may be asked for 2 Source: http://www.doksinet different documents depending on the type of timber, the location of harvest and other relevant circumstances. Timber producers may be asked for documents or pieces of information from the following categories: Legal right to  evidence of the legal authority to harvest such as documentation of ownership rights or right to use

land, concession license or felling permit harvest timber by the respective local authority (e.g in Cameroon: approval for the forestry profession granted by the Prime Minister, permit issued on the basis of the Law No 94/01 of January 20, 1994 on the forests, wildlife and fisheries (Forestry Code))  documents showing that the timber has been harvested in authorised (not protected) areas such as maps with markings of precise origin of timber, officially approved harvest plans, audit reports  official records proving that fees for harvest rights and taxes as well as Payments for charges have been paid harvest rights  evidence that other legislation governing timber harvesting has been Timber complied with such as proof of environmental impact assessments, harvesting, incl. transport permits or processing certificates or licenses are valid. environmental and forest legislation Rights of third  evidence of compliance with third parties’ legal rights e.g local communities

rights concerning use of land which are affected by the parties timber harvesting, such as social responsibility agreements, reports and tenure and rights claim and conflicts Trade and  evidence that timber has been declared properly and customs duties have been paid; evidenced by e.g customs declaration form, official receipt for customs appropriate tariffs, export tax receipts, documents issued by customs authority such as export or import licenses 3 Credibility of Information Operators must consider whether the information they have access to is credible and can be the basis for a reliable assessment of the risk that timber has been logged illegally. The credibility may be enhanced in a number of ways including the following, which should also be taken into account by non-EU industry:    clear and concise documentation, stemming from a variety of different sources rather than one individual origin information is exchanged in the course of a long-term trade

relationship independent verification such as third party certification exists, which may back up or complement information made available by non-EU industry. 3 Source: http://www.doksinet 4 False Solutions Since the entry into force of the EUTR, different attempts to facilitate compliance with the EUTR have emerged. These must be assessed critically by both EU operators and non-EU industry Some certificates, which state that timber is “EUTR compliant” or “FLEGT approved”, have been made available. These certificates have no official recognition within the EUTR regime and cannot relieve operators from their obligation to exercise due diligence. Thus, non-EU timber producers should understand that “EUTR compliant” timber is not a possible or accurate claim. Operators may seek to impose contractual clauses on their suppliers stating that timber/timber products are EUTR compliant and also providing for sanctions against the supplier, if the operator is convicted in the EU

for violation of its duties under the EUTR. However, such contractual clauses are not a sufficient way for an operator to comply with the EUTR and should be recognised as a mechanism of limited use by all parties. 5 Summary Operators need to access all the different types of information set out above, so must know about species, country of harvest, quantity and legality of the timber. Therefore it is in the best interests of any entity in the supply chain of timber, especially of companies in the country of harvest, to be ready to provide these types of information. For more information, please contact: Emily Unwin Lawyer t +32 2 808 43 19 e eunwin@clientearth.org Elisa Grabbe Lawyer/Juriste t +32 2 808 43 21 e egrabbe@clientearth.org www.clientearthorg 4