EUROPEAN COMMISSION Brussels, 30.11.2018 COM(2018) 778 final REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the exercise of the power to adopt delegated acts conferred on the Commission pursuant to 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 (FLEGT Regulation)



REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL On the exercise of the power to adopt delegated acts conferred on the Commission pursuant to Council Regulation (EC) 2173/2005 of 20 December 2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community (FLEGT Regulation) 1.INTRODUCTION In 2005, the European Union (EU) adopted 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 (hereinafter the FLEGT Regulation), as part of the implementation of the 2003 EU Action Plan on Forest Law Enforcement, Governance and Trade (FLEGT). The FLEGT Regulation lays down rules for the implementation of the FLEGT licensing scheme by setting out requirements for imports into the EU of timber products originating in FLEGT partner countries and covered by a FLEGT licence. The conditions for issuing of FLEGT licences are set out in bilateral FLEGT Voluntary Partnership Agreements (VPAs) between the EU and partner countries. To date 6 VPAs have been concluded with: Cameroon, the Central African Republic, Ghana, Indonesia, Liberia and the Republic of the Congo. Negotiations have been recently concluded with Vietnam and Honduras, while they are ongoing with 7 additional partner countries, notably Côte d'Ivoire, the Democratic Republic of the Congo, Gabon, Guyana, Laos, Malaysia and Thailand. A period of time is generally required after conclusion of a FLEGT Agreement for the partner country to finalise practical arrangements for full operation of the FLEGT licensing scheme. The FLEGT licensing scheme became operational for the first time on 15 November 2016 with the start of the FLEGT licensing from Indonesia. Indonesia is the only VPA country up to present that issues FLEGT Licences. The FLEGT VPA between the EU and Indonesia entered into force on 1 May 2014 . In line with Articles 10(1) and 10(3) of the FLEGT Regulation, as amended by Regulation (EU) No 657/2014 of the European Parliament and of the Council of 15 May 2014 amending Council Regulation (EC) No 2173/2005 as regards the delegated and implementing powers to be conferred on the Commission, the decision to start the operation of the FLEGT licensing scheme in Indonesia involved the amendment, through a Commission Delegated Regulation , of Annexes I and III to the FLEGT Regulation. With this amendment Indonesia and its Licensing Information Unit (LIU) were included in the list of "Partner countries and their designated licensing authorities" contained in Annex I. In addition, the list of products covered by the FLEGT licensing scheme in Indonesia were included in Annex III "Timber products to which the FLEGT licensing scheme applies only in relation to the corresponding partner countries". 2.LEGAL BASIS