Implementation of EU Timber Trade Regulations

Marcelle Agius Agricultural Directorate - MSDEC

Background

2

Economic

It results in lost revenues and undermines the efforts of legitimate operators.

Environmental

It is associated with deforestation, climate change and loss of biodiversity.

Social

It is linked to conflicts over land and resources.

50–90% of the

wood in some

tropical countries is

suspected to come

from illegal sources

UNEP & INTERPOL, 2012

3 Zoï Environment Network, 2013

Environmental Crimes

4

2003

Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan

2005

FLEGT Regulation

2010

EU Timber Regulation (EUTR)

2015

Action Plan Review

EU Timber Regulation Timber and Timber Products (Placing on the Market) Regulations, 2015

Legal Framework

▪Regulation (EU) No 995/2010 of the European Parliament and of the Council of 20 October 2010 laying down the obligations of operators who place timber and timber products on the market.

▪Commission Implementing Regulation (EU) No 607/2012 of 6 July 2012 on the detailed rules concerning the due diligence system and the frequency of checks on monitoring organisations.

▪Commission Delegated Regulation (EU) No 363/2012 of 23 February 2012 on the procedural rules for the recognition and withdrawal of recognition of monitoring organisations.

6

Definitions

7

Legality In accordance with the laws of the country of harvest: • Legal rights to harvest; • Relevant payments including duties.

Operator

First to place timber and timber products on the EU market.

Trader

Buys or sells products already on the EU market for commercial purposes.

Product Scope

Chapter 44: Fuel wood; sawdust; solid wood; plywood, veneering sheets; fibreboard; flooring; frames; packaging cases; pallets

Chapter 47: Pulp

Chapter 48: Paper

Chapter 94: Wooden furniture; prefabricated buildings

Excluded: Waste and recycled products; packaging material; printed paper and bamboo.

Timber products covered by a FLEGT license or a CITES permit are considered compliant – Article 3

8

9

Obligations

• Placing illegally harvested timber and products derived from such timber is prohibited – Article 4(1)

• Operators are required to exercise ‘due diligence’ by using a framework of procedures which shall be maintained and regularly evaluated – Article 4(2) (3)

• Traders are required to keep information about their suppliers and customers to allow for traceability – Article 5

Due Diligence System – Article 6

Information

• Product description

• Species

• Country of harvest

• Quantity

• Supplier

• Information on compliance with applicable national legislation

Risk Assessment

• Assurance of compliance with legislation e.g. certification

• Prevalence of illegal logging of the species

• Prevalence of illegal logging in country or region

• Sanctions and armed conflicts

• Complexity of supply chain

Risk Mitigation

• Measures and procedures which are adequate and proportionate to minimize risk effectively. May include:

• Additional information from supplier

• Third party verification

10

Negligible risk Negligible risk

Place on the market Place on the market

Monitoring Organisations

▪ Legally established within the EU and recognised by the EU Commission – Delegated Regulation.

▪Maintain and evaluate a due diligence system and grant operators the right to use it.

▪Verify proper use of the system by operators.

▪Take appropriate action in the event of failure including notification of competent authorities.

9 Monitoring Organisations recognised

5 may operate in all EU Member States

Operators can either develop their own systems or use one developed by a monitoring organisation.

11

Implementation

▪ Lay down penalties which must be effective, proportionate and dissuasive – Article 19

▪Carry out checks on operators – Article 10

▪Carry out checks on monitoring organisations – Article 8(4)

▪Report to the EU Commission every 2 years – Article 20

Timber and Timber Products (Placing on the Market) Regulations, 2015

12

Checks

Compliant Non-compliance

Notice of Remedial Actions

Compliant Non-compliance

Administrative Penalty

Remediation & payment of

penalty

Court

proceedings

13

≈ 30 days Interim measure: prohibition of placing on the market

⅓ of the maximum penalty

Penalties

14

First conviction

Prohibition - Article 4(1) Due diligence system Obstruction of officers Misleading information

Min: €2,500 Max: €25,000

First conviction

Traceability Record-keeping

Min: €1,500 Max: €5,000

Second or subsequent convictions

Min: €2,500 Max: €50,000

Forfeiture of timber products; Suspension of license related to trade; Additional fine equivalent to estimated economic benefit; Imprisonment.

FLEGT Regulation Forest Law Enforcement, Governance and Trade Licensing Scheme Regulations, 2015

Legal Framework

▪Council Regulation (EC) No 2173/2005 of 20 December 2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community.

Annex I: Partner Countries and Licensing Authorities

Annex II: Timber products to which the FLEGT licensing scheme applies irrespective of partner country

Annex III: Timber products to which the FLEGT licensing scheme applies only in relation to specific partner countries

▪Commission Regulation (EC) No 1024/2008 of 17 October 2008 laying down detailed measures for the implementation of the FLEGT Regulation.

16

Voluntary Partnership Agreements (VPAs)

17

Preparation Informal dialogue on FLEGT aims and governance assessment.

Negotiation Formal bilateral negotiations including definition of legal timber, application of tracking systems and independent monitoring. Ratification.

Development Development of a legality assurance system as agreed in VPA.

Implementation

Full operation of the licensing system.

Progress in VPAs

Implementing ▪ Cameroon ▪ Central African Republic ▪ Ghana ▪ Indonesia ▪ Liberia ▪ Republic of Congo

18

Negotiating Côte d’Ivorie Democratic Republic of Congo Gabon Guyana Hondouras Laos Malaysia Thailand Vietnam

FLEGT Licensing scheme process

19

Exporter

VPA Licensing Authority

EU economic operator

Competent Authority

Customs

Consignment release

Application for a license

FLEGT License issued

Consignment export

Lodging of license

License validation

Present license when shipment arrives

FLEGT Licensing Scheme

▪Applies only to imports from partner countries (VPAs)

▪ Imports of timber products listed in Annexes II & III shall be prohibited unless covered by a FLEGT license.

▪Products covered by a CITES permit are exempt.

▪ License submitted to Competent Authority prior to its expiry.

20

Penalties

21

First conviction Min: €1,500 Max: €25,000

Second or subsequent convictions

Min: €2,500 Max: €50,000

Forfeiture of timber products; Imprisonment.

Thank you for your attention!

Timber Control Unit Agricultural Directorate

Government Farm Għammieri, Marsa

Email: eutr.msdec@gov.mt