Emily Unwin FLA Washington May 2013 0

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The EU Timber Regulation

Forest Legality Alliance

Washington D.C.

7 & 8 May 2013

Emily Unwin


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Overview EU Timber Regulation key provisions

Details:

Monitoring organisations Certificates

Product scope

Implementation across the EU Enforcement possible approaches and

implications


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EUTR Key Provisions

Operators are prohibited from placing illegallyharvested timber on the EU market

Operators must:

maintain a due diligence system and exercise due diligence as to the risk that timber is

harvested illegally

Operators and traders must keep records of

their suppliers and buyers

Operators = those that first place timber on the EU market


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Monitoring organisations

Role:

Provide approved EUTR due diligence systems(DDS) to operators

Check that operators use the DDS properly

Must be formally recognised by the EuropeanCommission

NOT responsible for exercisingdue diligence

No MOs yet recognised


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Certificates

VPA/CITES certificate/permit = recognised legal

Voluntary certification schemes = possible toolsfor due diligence:

A means to gain access to information abouttimber/increase credibility of information

Operators must assess their relevance & credibility againstthe EUTRs requirements and keep records of this

assessment

Operators will always retain legal liability for compliance


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Product scope

Applies to timber/products listed in Annex,including:

Fuel wood, wood chips, builders joinery, rough

wood, sawn wood, plywood, particle board,wooden frames, veneered panels,

Does not cover all timber/products, e.g:

Printed paper, products made fromrecycled/waste timber


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EU Implementation

Each Member State must

implement the EUTR and

designate a competent authority, responsiblefor enforcement within its jurisdiction

Range of enforcement tools: DNAtesting/spot checks/linking with customs data

Administrative Cooperative of competentauthorities


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Penalties

Germany Illegal timber/no due diligence: seize timber; order company to

return timber to country of origin/sell timber and retain proceeds

Administrative offences, e.g. failure to maintain a DDS: fines of up

to EUR 50,000 Criminal sanctions: up to 1 year prison/unlimited fines

UK

Illegal timber/no due diligence: seize timber. Government sale of

timber and retention of proceeds

Breach of duty to exercise due diligence/maintain records: notice ofremedial actions. Fine of up to 5,000 and/or up to 6 months prison

Breach of prohibition/DD/maintaining records: up to 2 years in

prison/unlimited fine


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Penalties overview

Suspicion of illegal timber: government seizure Proven illegal timber: order to return timber to

country of origin; government sells and retainsproceeds

Breach of: prohibition/exercise of DD/maintain DDsystem/obligation to maintain records:

Negligent/less severe: up to 6 months in prison; fines up

to EUR50,000; notice of remedial actions Intentional/more severe: prison of 1-2 years; fines (up to

unlimited); prohibit right to trade/transport


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Practical operation

False 1-stop solutions EUTR compliant certificates/warranties

Contractual conditions demanded by operators,

that timber is EUTR compliantImpact on non-EU timber suppliers

Regulatory (EUTR)

Contractual

Practical


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Future enforcement steps

Likely impetus? Substantiated concerns from third parties or checks

by competent authority

Focus? Operator:

failing to use relevant information in the exercise ofdue diligence (increased recognition of risk)

making illegally harvested timber/products availablefor sale in the EU


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Thank you

Emily Unwin

Lawyer, ClientEarth

[email protected]

Emily Unwin FLA Washington May 2013 0

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