FLEGTTimber pass 0 f h d i Financed by the European Union
Logging Transport Transformation Export The EU Timber Regulation (EUTR) The EU Timber Regulation (EUTR) aims to entirelyTimber legality Traceability FLEGT licenses eliminate illegal timber from the European market byAll legal requirements on The supply chain is monitored to exclude timber of EU-bound shipments setting up a new culture of control and responsabilityeconomic, environmental illegal, unknown or untrustworthy origin. checked "as legal" in the private sector.and social aspects of the Thus allowing to track timber products from the point recieve FLEGT Facing a prohibition to place illegal timber on theproducer country that of harvest to the point of export. It also deals with licenses. market, operators – importers and European loggers –must be met. imported timber products and mixing of legally verified If they are bound must exercise due diligence, meaning they must timber with other sources of timber. Existing private elswhere, they are certification schemes can be taken into account. traded without a make sure timber and timber products are legal license*. together with their supply chain. This regulation applies from 3 March 2013.ChecksChecks allow to verify that requirements for legality and for traceability are met. They can beundertaken by the administration of the producer country, by a market player, by a third party orby an association of those various players. Any private certification scheme used (OLB, TLTV, FSC,PEFC, etc.) can, if it is recognized by the producer country’s Government, provide for simplifiedchecks of certified companies.Any operator of a VPA signatory producer country who would place timber shipments on themarket found to be illegal would be sanctioned by the administration of that country regardless *Note: In the EU, customs shall syste- matically reject timber coming from aof the destination of those shipments (local, regional or international markets). VPA country without a FLEGT license.Independant auditThe independant audit gives assurance to all involved parties that the legality assurance system (LAS) works. To that end, a complaintmecanism will be set up and missions to verify the four pillars of the LAS (legality, traceability, checks and FLEGT licenses) carried out.
The European Union fights The EU Timber Regulation (EUTR)illegal timber The EU Timber Regulation (EUTR) aims to entirely eliminate illegal timber from the European market byIn May 2003, the European Commission (EC) setting up a new culture of control and responsabilitypublished its FLEGT Action Plan – Forest law in the private sector.enforcement, governance and trade. Facing a prohibition to place illegal timber on theIts aim is to combat illegal logging and its market, operators – importers and European loggers –associated trade. must exercise due diligence, meaning they mustAmong the seven folds of this European action make sure timber and timber products are legalplan, two stand out. together with their supply chain. This regulation applies from 3 March 2013. The voluntary partnership agreement (VPA) Consultation with all stakeholders of the timber sector in willing producer countries materialises by signing a FLEGT voluntary partnership agreement (VPA). It guarantees that any timber product listed in the agreement meets the bulk of legal requirements and regulations in force in the producer country. To meet this objective, the VPA implies setting up national measures for transparency, governance, timber sector reforms, etc. The VPA relies on its legality assurance system (LAS) which includes export authorizations. Since the requirements of an agreement are agreed on at the national level, they must be met by all forest operators of the signatory country.
State of play on voluntary partnership agreements (VPA) FLEGT progress worldwide Member States of the European Union driving the FLEGT Action Plan Countries taking part currently developing the VPAs Countries taking part currently negociating VPAs Countries taking part currently pre-negociating VPAs 2000 km FLEGT progress in Africa 2014 2012 2014 2012Six countries are currently developing the systems agreed under More advanced VPA countriesa voluntary partnership agreement (VPA) and four countries are (agreement ratified): Ghana 2012negociating to that end with the EU. Advanced VPA countries (agreement initialed or signed): Congo, Cameroon, Central African Republic and LiberiaBesides, FLEGT information missions have been carried out in 15 VPA process ongoing (negociationcountries in Africa, Asia and central and latin America that have ongoing): DRC, Gabonexpressed an interest for a VPA. VPA Pre-negociation phase: Ivory Coast, Sierra Leone. 2012 First licenses issued The process of establishing 500 km Voluntary Partnership AgreementsBuilding Bilateral Agreement System Implementationa consensus negociations ratification developmentin the country • Negociations with the EC • VPA initialed • Tracking systems • FLEGT licenses issued• Informing stakeholders on the text of the VPA and its • VPA signed and ratified in improved/created • Checking systems• Creating a structure for Annexes the producer country and • FLEGT licensing functioningdiscussions • Negociations among the EU system set up • Timber controlled at• Debatting andsystems in country analyzing stakeholder groups in the • Independant auditor the EU borders selected • Negociations withinlegality, trackingthe country... stakeholder groups • Joint Committee meetings
The EU timber regulation (EUTR) Terms to rememberThree obligations placed on the private sector Legal timber is timber that has been harvestedThe EUTR aims to fight illegal timber trade by acting in accordance with the laws of the harvestingon the European demand for timber products. country.This regulation : A placer on the market is a natural or legal per- 1 prohibits placing on the market of illegal timber and son that sells timber or timber products for the timber products in Europe, first time on the EU market, named operator in 2 sets a requirement to exercise due diligence for Euro- the EUTR. pean placers on the market, 3 imposes identification of their supplier(s) and buyer(s) (exclu- A trader (in the EUTR) is a natural or legal person ding individuals) on all traders who sells or buys timber and timber products, already placed on the marketA worldwide coverageThe regulation applies regardless of timber origin, EUor non-EU, to the bulk of timber and timber productsexcluding recycled materials, rattan and bamboo as Specific authorizationswell as printed materials. Products accompanied by a CITES permit or a FLEGT license are considered legal: they are already sub- Entry into force ject to specific control procedures in the producer countries and when being imported into the EU. The EU timber regulation (EUTR) applies from 3 March 2013. Thus, European importers are encouraged to buy tim- ber accompanied by a FLEGT license. More detailed rules are currently being set up at the European level and will be available *The Convention on international trade in endangered species from June 2012. of wild fauna and flora (CITES), signed in Washington the 3rd of March 1973 has entered into force on the 1st July 1975.
Due diligence: making sure timberand timer products are legal The due diligence systemOperators - importers and European loggers – are re- Implementing due diligence follows three basic steps.quired to make sure timber and timber products arelegal by a due diligence system. 1 Gathering information: Any European operator must gather information on theWho exercises due diligence ? species, the place of harvest and on the legality of the product.Operators can set up this system on an individualbasis or with the help of a monitoring organization: 2 Riskanalysisofillegality:body that sets up a due diligence system and verifies Based on this information, he must analyse the risk of illegality.its proper use by operators (criteria and proceduresfor recognition laid down at the European level). Possible risks «Conventional» products No risk or negligible risks I carry out risk 1. CITES permits analysis… (see slips) or FLEGT licenses Placing on the market OK Towards a new culture for exercising care 2. Products with a certifcate of legality or of sustainable The EUTR does not aim to check every single piece of forest management compatible with the EUTR timber and does not add new customs inspections Placing on the market YES BUT remain alert at the border. It aims more at developing a new common culture for exercising care before any purchase of timber or timber products. 3 Implementing risk mitigation measures To secure commercial activities, operators have to After risk analysis the operator must take appropriate mea- work beforehand with their suppliers to increase sures to avoid illegal timber. transparency and durably ensure trustworthy purchases. Checks and sanctions Each Member State of the European Union will carry out appropriate checks of European operators ac- companied by dissuasive sanctions that may include, inter alia: fines, seizures, suspensions of activity… If checked, operators will have to demonstrate that they exercise due diligence properly. They must provide access to informations on their products and account for risk management of illegality.
Fighting illegal logging in othercountries around the worldUSA, Lacey Act, since 2008The Lacey Act, an American law protecting natural ressourceshas been amended in 2008 to prohibit possessing and tradingof illegal timber. A customs declaration form has to be filledindicating the species, the quantity and the harvesting countryof imported timber and timber products.http://www.aphis.usda.gov/plant_health/lacey_act/Switzerland, forest law, since 2010It is compulsory to declare the origin and the type of timberoffered for sale in Switzerland since October 2010. Theimplementation of this requirement will strech to end 2011and only applies to logs and round wood as well as to certainproducts made of solid wood.Australia, Illegal Logging Prohibition Bill,being discussedA law aiming at fighting illegal logging is being discussed inAustralia since end-2010. Very close to the EUTR, it would pro-bably require importers to analyse the risk of illegality prior toany placing on the market.http://www.daff.gov.au/forestry/international/illegal-logging Usefull Websites • The European Commission has a series of briefing : notes on the FLEGT Action Plan http://ec.europa.eu/europeaid/index_en.htm • The EuropeanFLEGT Action Plan: www.euflegt.efi.int forest institute (EFI) has a dedicated Website for the • The ATIBT has a dedicated web space for the FLEGT Action Plan: www.atibt.org
Slip n°1 : Exercise due diligence What is certified wood? As a whole, "certification allows to give assurance that a product, a service or a procedure has been made-ren- dered-carried out according to agreed standards". Sustainable forest management (SFM) certificates NO Certification for SFM is twofold, giving the firm’s clients the guarantee that: 1. its products originate from forests under sustai- nable forest managment according to a standar- NO dized system of « forest management » (FM); 2. they can be tracked from source thanks to the «Risk evaluation needed (see slip n°2) Chain of Custody » (CoC).FLEGT license Please note: Main certifying schemes for SFM (FSC,EU-bound shipments meeting the requirements of the PEFC...) have readily available information on certifiedlegality assurance system (LAS) agreed upon under the firms and products on their Website.voluntary partnership agreement (VPA) with the producercountry are accompanied by a FLEGT license. Legality certificates Legality certificates attest that loggers meet theCITES permit legal requirements of the producing country.The Convention on international trade in endange- These legality certificates are generally a first stepred species of wild fauna and flora (CITES), signed in towards SFM certification.Washington in 1973 and into force since 1975, esta- In the Congo Bassin, the three main systems areblishes three lists (called Appendices I, II and III) of fauna SGS (TLTV), BUREAU VERITAS (OLB) and to a lesserand flora species with various degree of protection. extent SMARTWOOD (VLO).To import products made of CITES listed species forwhich trade is permitted you are required to hold aCITES import permit.Please note: This permit is only delivered upon showingthe original CITES export permit issued in the producercountry.Besides, trade in species listed in Appendice I (or A) isstrictly forbidden.Timber pass - Slip n°1 : Exercise due diligence - September 2011 Timber pass - Slip n°1 : Exercise due diligence - September 2011
Slip n°2: Manage the risk of illegality Which mitigation measures?If the initial evaluation (see slip n°1) of the product’sdocumentation indicates a non-negligeable risk, youmust : 1. carry out an evaluation of the risk of illegality; 2. take mitigation measures for this risk . •Risk evaluation • Watch over UNSC or EUC sanctions on timber trade Is the country under sanctions? • YES Watch over the supply chain NO Are some companies involved in illegal practices? YES Watch over illegal timber trade (harvesting country, species) NO Is there a link with illegal • timber trade? YES NO • Reconstructing the supply chain Is the supply chain Are they unidentified • more complex steps in the supply chain? than needed? YES YESNO Examining documents on legality NO • Are all documents Are the major documents made available by the made available? supplier? NO NOYES Watch over the country corruption level (CPI ) YES Is the CPI Index Is the CPI Index over 3? over 2? NO NO • YES YES Low risk Medium risk High risk •Please note : Since 1995, the NGO TransparencyInternational publishes each year an index on corruption’s •perception (CPI) in various countries. This NGO envisagesto publish a specific index for the forest sector.Timber pass - Slip n°2 : Manage the risk of illegality - September 2011 Timber pass - Slip n°2 : Manage the risk of illegality - September 2011