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© Michel Roggo / WWF-Canon 1 New laws, new challenges EUTR for VPA countries A. Schulmeister & Emily Unwin 05.10.2012 Chant Source: European Space Agency.

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Presentation on theme: "© Michel Roggo / WWF-Canon 1 New laws, new challenges EUTR for VPA countries A. Schulmeister & Emily Unwin 05.10.2012 Chant Source: European Space Agency."— Presentation transcript:

1 © Michel Roggo / WWF-Canon 1 New laws, new challenges EUTR for VPA countries A. Schulmeister & Emily Unwin Chant Source: European Space Agency

2 The EUTR a bit in detail What happens? What is expected? EU timber regulation

3 The EU timber regulation What is the current status? The law will be applied from the 3 March 2013 The European Commission has developed implementing measures to specify certain aspects of the law, especially on due diligence but as well on monitoring organizations The EC is developing guidance on other issues for companies such as “placing on the market”, compliance with applicable legislation etc. which is supposed to be ready latest by December 2012 EU timber regulation

4 Content of the EU timber regulation Prohibition and traceability Operators that first place timber or timber products on the EU Market, are prohibited to place illegal timber or timber products on the EU market (importers, forest owners) and have to exercise due diligence by using a Due Diligence System Traders that work further down the supply chain have to keep records of their suppliers and customers (one up, one down, includes retailers, if they do not directly import) EU timber regulation

5 Content of the EU timber regulation Due Diligence The key elements of the due diligence system are: access to information, risk assessment, risk mitigation (if the risk is not negligible) Operators can set up their own system, use the system of an accredited monitoring organization or use another existing system (e.g. certification scheme) to fulfill the due diligence requirement [if it fulfills the requirements] The operators remains responsible, if illegal timber is found in his supply chain EU timber regulation

6 Content of the EU timber regulation Monitoring organizations & certification systems Monitoring organisations, who are accredited by the Commission according to certain criteria, can provide due diligence systems to operators [ apply can: trade federation, legality verification, certification etc.] Certification systems, legality verification systems or equivalent can be used by companies to comply with due diligence All providers of due diligence systems will be controlled by the EU Member States (rather less than more frequent) EU timber regulation

7 Content of the EU timber regulation Due Diligence II Information provision: Trade name, type of product and common name of tree species [scientific name, if the common name is not clear] Country of harvest, sub-national region [if risk of illegal logging is higher in that region], concession of harvest [certainly for round wood and sawn wood if risk between concession varies] Quantity (in volume, weight or number of units) Name and address of supplier and the trader supplied to EU timber regulation

8 Content of the EU timber regulation Due Diligence III Applicable legislation: Provided of information showing compliance with: Right to harvest in legally gazetted boundaries Payments for harvesting rights and timber Harvesting, incl. environmental and forest law, incl.forest management and biodiversity conservation, where directly related to timber harvesting Third parties legal rights concerning use and tenure Trade and customs EU timber regulation

9 Content of the EU timber regulation Due Diligence IV Risk assessment & mitigation Operators needs to check: Harvested timber complies with the applicable legislation Illegal harvesting or practices incl. armed conflict occur in the country of harvest/sub-region Are sanctions imposed by the UN Security Council or the EU Council To analyze the complexity of the supply chain If after the risk assessment a higher risk is identified, the operator needs to undertake risk mitigation measures EU timber regulation

10 The EUTR and VPAs How does it work? EU timber regulation

11 Content of the EU timber regulation Role of VPA countries Products accompanied by a FLEGT or CITES license will automatically be considered as being legal but: Only if a VPA implements a FLEGT Licensing scheme, otherwise the company falls under the EUTR requirements The licenses cover only those products named in the VPA agreement, all other fall under the EUTR requirements FLEGT licenses will be checked by customs at import (shipment based), whether the documents are correct EU timber regulation

12 Interaction with VPA’s Timber with a valid VPA license: Automatically recognized as legal under the EUTR This reduces risk for EUTR operators: no need to take steps to show timber is legally harvested If the EUTR is strongly enforced it will help create demand for VPA licensed timber EU timber regulation

13 Interaction with VPA’s If the EUTR is not strongly enforced, industry demand for VPA licensed timber may diminish EU timber regulation

14 Development of Consumer Market Laws re illegal logging What else is out there? EU timber regulation

15 Consumer market laws Timeline US Lacey Act amended EU Timber Regulation adopted ( Swiss Ordinance adopted) Australian Illegal Logging Prohibition Bill passed by lower house. If the EUTR is not strongly enforced, industry demand for VPA licensed timber may diminish EU timber regulation

16 Consumer market laws US Lacey Act I Amended in 2008 to include timber Prohibits trade in illegally sourced forest products - Focus is legality in country of harvest - The product must be traded in the USA Import declarations are needed in some cases: - Scientific species name, country of harvest, volume & value Must exercise ‘due care’: -Reasonable steps to reduce risk of trading illegal goods Similar to EUTR ‘due diligence’ obligation EU timber regulation

17 Consumer market laws US Lacey Act II Third Party verification - not required -or accepted- as proof of legality First enforcement case (against Gibson’s Guitars) settled in August 2012 –Civil society had raised concerns about legality –Failure to seek information to check legality contributed to finding of fault –Penalty of over $600,000 including forfeit of illegally imported wood –Improvements to compliance systems required EU timber regulation

18 Consumer market laws Australian Illegal Logging Bill Passed by House of Representatives in August 2012 Not yet law - still must be passed by Senate Key provisions: –Prohibits import of illegally logged timber –Prohibit processing of illegally logged domestic timber –Due diligence as to risk of illegality must be exercised EU timber regulation

19 Consumer market laws Key overlaps of international laws Focus on legality in country of harvest Information about timber is required Regulated Party must: –take active steps to assess risk of illegality (due care / due diligence) –request relevant information about the timber, its source and legality –maintain records of information EU timber regulation

20 Consumer market laws Impacts for Timber Producers Timber producers are not themselves regulated unless selling directly on EU/US/Australian markets Buyers may ask timber producers for information about the timber – and evidence of legal harvest: –Species & location of timber harvest –Proof of legal right to harvest and transport permits –Proof of legal incorporation and compliance with customs laws Civil society may present information indicating illegal logging to buyers & public authorities in EU/ US/Australia EU timber regulation

21 Thank you © 2010, WWF. All photographs used in this presentation are copyright protected and courtesy of the WWF-Canon Global Photo Network and the respective photographers.


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