The EU Timber Regulation

Forest Legality Alliance Washington D.C. 7 & 8 May 2013 Emily Unwin

Overview
EU Timber Regulation key provisions Details:
Monitoring organisations Certificates Product scope

Implementation across the EU Enforcement possible approaches and implications

EUTR Key Provisions

Operators are prohibited from placing illegally harvested 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

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 European Commission NOT responsible for exercising due diligence

No MOs yet recognised

Certificates
VPA/CITES certificate/permit = recognised legal
Voluntary certification schemes = possible tools for due diligence:
A means to gain access to information about timber/increase credibility of information Operators must assess their relevance & credibility against the EUTRs requirements and keep records of this assessment Operators will always retain legal liability for compliance

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 from recycled/waste timber

EU Implementation
Each Member State must
implement the EUTR and

designate a competent authority, responsible for enforcement within its jurisdiction

Range of enforcement tools: DNA testing/spot checks/linking with customs data Administrative Cooperative of competent authorities

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 of remedial 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

Penalties overview
Suspicion of illegal timber: government seizure

Proven illegal timber: order to return timber to country of origin; government sells and retains proceeds
Breach of: prohibition/exercise of DD/maintain DD system/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

Practical operation
False 1-stop solutions
EUTR compliant certificates/warranties Contractual conditions demanded by operators, that timber is EUTR compliant Impact on non-EU timber suppliers

Regulatory (EUTR)
Contractual

Practical

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 of due diligence (increased recognition of risk) making illegally harvested timber/products available for sale in the EU

Thank you
Emily Unwin Lawyer, ClientEarth eunwin@clientearth.org