EUFLEGT.EFI.INTTHE FOREST LAW ENFORCEMENTGOVERNANCE AND TRADE TEAM
OF THE EUROPEAN FOREST INSTITUTE

New EU market requirements
The EU TIMBER REGULATION andFLEGT Voluntary Partnership Agreements (VPAs)
International Symposium on Legality Verified Wood, Tokyo, 11 December 2010

by Vincent van den Berk
European Forest Institute – FLEGT Asia
©European Forest Institute1

EUFLEGT.EFI.INTTHE FOREST LAW ENFORCEMENTGOVERNANCE AND TRADE TEAM
OF THE EUROPEAN FOREST INSTITUTE

EU timber market
less then 10% EU timber consumption is imported
1: China
2: US, Russia, Brazil
3: Switzerland, Norway, Canada
4: Indonesia, Malaysia
5: Chile, Vietnam
6: Cameroon, Gabon, Thailand(6)(4 – 4.6)(2 – 2.6)(1.2 – 1.6)
(1)(0.45 – 0.7)

•China, Vietnam and Thailand manufacturing hubs, sourcing through imports• Imported timber associated with all sorts of trouble• an estimated 20% of import into EU is illegal©European Forest Institute•2

EUFLEGT.EFI.INTTHE FOREST LAW ENFORCEMENT
GOVERNANCE AND TRADE TEAM
OF THE EUROPEAN FOREST INSTITUTE

EU response: FLEGT• Civil society, industry, governments pressure: stop the EU acting as amarket for illegally harvested timber• 2003 FLEGT Action Plan. Towards SFM, good governance, transparency,
halt deforestation, poverty eradication, carbon storage.

Support trade in guaranteed legal timber• 2013 all FLEGT Action Plan elements operational.
• EU Timber Regulation effective• Voluntary Partnership Agreements delivering FLEGT licensed timber©European Forest Institute3

EU Timber Regulation

EUFLEGT.EFI.INTTHE FOREST LAW ENFORCEMENT
GOVERNANCE AND TRADE TEAM
OF THE EUROPEAN FOREST INSTITUTE©European Forest Institute4

EUFLEGT.EFI.INTTHE FOREST LAW ENFORCEMENTGOVERNANCE AND TRADE TEAM
OF THE EUROPEAN FOREST INSTITUTE

EU Timber Regulation‐ main obligations ‐1. It prohibits the placing on the EU market of illegally
harvested timber and products derived from such timber;
2. It requires EU traders who place timber products on theEU market for the first time to exercise 'due diligence‘;
3. keep records of their suppliers and customers.

©European Forest Institute5

EUFLEGT.EFI.INTTHE FOREST LAW ENFORCEMENT
GOVERNANCE AND TRADE TEAM
OF THE EUROPEAN FOREST INSTITUTE

EU Timber Regulation‐ What is Due Diligence?‐
1.

Information: operator must have information describing the timber andtimber products, country of harvest, quantity, details of the supplier andinformation on compliance with national legislation.

2.

Risk assessment: operator to assess the risk of illegal timber in his supply
chain, based on the information identified above and taking into accountcriteria set out in the regulation.

3.

Risk mitigation: When there is a risk of illegal timber in the supply chain,
mitigate that risk by requiring additional information and verification fromthe supplier.

©European Forest Institute6EUFLEGT.EFI.INTTHE FOREST LAW ENFORCEMENT
GOVERNANCE AND TRADE TEAM
OF THE EUROPEAN FOREST INSTITUTE

EU Timber Regulation‐ WHAT IS LEGAL? ‐Legality is defined on the basis of the applicable legislation of the countryof harvest, covering:
Rights to harvest within legally gazetted boundaries;
Payments for harvest rights and timber, incl. duties related totimber harvesting;
Timber harvesting, incl. environmental and forest, legislation;
Third parties’ legal rights concerning use and tenure affected bytimber harvesting;Forest sector‐related trade and customs legislation.

©European Forest Institute7

EUFLEGT.EFI.INTTHE FOREST LAW ENFORCEMENT
GOVERNANCE AND TRADE TEAM
OF THE EUROPEAN FOREST INSTITUTE

EU Timber Regulation‐ Which products?‐• Almost all timber products covered, including solid wood products,flooring, plywood, pulp and paper.

•Not included: recycled products, rattan, bamboo, printed papers
such as books, magazines and newspapers.
•The product scope to be amended if necessary.
The Regulation applies to both imported and domestically
produced timber and timber products.
©European Forest Institute8

EUFLEGT.EFI.INTTHE FOREST LAW ENFORCEMENT
GOVERNANCE AND TRADE TEAM
OF THE EUROPEAN FOREST INSTITUTE

EU Timber Regulation‐ Implementation ‐• Regulation entered into force November 2010
• Regulation applicable/operational after 27 months,i.e. 3 march 2013
•More detailed rules on the "due diligencesystem“ June 2012 (EU Implementing Regulation).
©European Forest Institute9EUFLEGT.EFI.INTTHE FOREST LAW ENFORCEMENT
GOVERNANCE AND TRADE TEAM
OF THE EUROPEAN FOREST INSTITUTE

EU Timber Regulation‐ Implementation ‐• EU Member States designate competent authorities thatcoordinate enforcement of the Regulation.
• Each EU Member State determines type & range of penalties incase of non-compliance with the Regulation.
• The Regulation provides for "monitoring organizations" to berecognised by the European Commission; providing EUoperators with operational due diligence systems. Operators
can develop their own system or use one developed by amonitoring organisation.
©European Forest Institute10

EUFLEGT.EFI.INTTHE FOREST LAW ENFORCEMENT
GOVERNANCE AND TRADE TEAM
OF THE EUROPEAN FOREST INSTITUTE

EU Timber Regulation and VPAs,
mutually reinforcing• FLEGT‐licensed timber products (and CITES certifiedtimber) are considered to have been legally harvested.
• Countries with VPAs export FLEGT licensed timber into

the EU without importers needing to make further legalitychecks (“Green Lane”)©European Forest Institute11

EUFLEGT.EFI.INTTHE FOREST LAW ENFORCEMENT
GOVERNANCE AND TRADE TEAM
OF THE EUROPEAN FOREST INSTITUTE

Key elements of a VPA• Legality Definition• Timber Legality Assurance System (TLAS) that verifies
compliance with legal definition• Licensing of verified legal timber• Independent 3rd Party Monitoring of the system
EU requirements set out in briefing notes
Multi‐stakeholder process: ensure credibility nationally andinternationally©European Forest Institute12Legality definition based on Principles ofSustainability
Environmental
Requirements

ENVIRONMENT

Forest Management
requirements

Trade and Export

Worker health, safety, andlabor, requirements;

ECONOMIC

Taxes, registration, fee
requirements

SOCIAL

Customary and access rightrequirements

EUFLEGT.EFI.INTTHE FOREST LAW ENFORCEMENT
GOVERNANCE AND TRADE TEAM
OF THE EUROPEAN FOREST INSTITUTE

Legality definition in a VPA• Based on existing regulations/legislation, covering the 5legality areas (= similar to the EU Timber Regulation)• Makes clear and visible what is legal timber• Identifies what will be routinely verified to demonstratetimber is legal• Based on a consultative process with stakeholders
preparation of LD dialogue to define priorities.

©European Forest Institute14

Progress on FLEGT VPAs

FLEGT licenses (not yet)
System development
Formal negotiations
Moving to negotiations
Preparation, in‐country consensus building
Introduction to VPAs

Vietnam

Malaysia

Liberia

Indonesia

C.A.R.

Ghana
CongoCameroon
Gabon

DRC

EUFLEGT.EFI.INTTHE FOREST LAW ENFORCEMENTGOVERNANCE AND TRADE TEAM
OF THE EUROPEAN FOREST INSTITUTE

Contact Us
EUROPEAN FOREST INSTITUTE
FLEGT Asia Regional Officec/o Embassy of Finland
5th Floor, Wisma Chinese Chamber
258, Jalan Ampang
50450 Kuala Lumpur, Malaysia
Telephone: +603‐42511886
Facsimile: +603‐42511245
http://ec.europa.eu/environment/forests/flegt.htm
http://ec.europa.eu/environment/cites/home_en.htm
http://ec.europa.eu/environment/forests/illegal_logging.htm©European Forest Institute16