Proposal for a Regulation of the European Parliament and of the Council laying down the obligations of operators who place timber and timber products on the market {SEC(2008) 2615} {SEC(2008) 2616}
Date: 2008-10-17
Institutions: European Commission
Subjects: exploitation of resources, international trade, pulp and paper industry, sustainable development, trading operation, wood industry

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 17.10.2008 
COM(2008) 644 final 

2008/0198 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

laying down the obligations of operators who place timber and timber products on the 
market 

{SEC(2008) 2615} 
{SEC(2008) 2616} 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

The  main  objective  of  this  proposal  is  to  complement  and  underpin  the  EU's  current  policy 
framework and support the international fight against illegal logging and its related trade. 

•  General context 

Illegal  logging  takes  place  when  timber  is  harvested,  processed  or  traded  in  violation  of 
national laws applicable in the country of harvest. The reasons are many but they start with 
the high demand for timber and the weak rules to prevent trade in illegally harvested timber. 
Illegal  logging  is  part  of  a  larger  problem  that  includes  issues  of  forest  governance,  law 
enforcement and corruption.  

Its clandestine nature makes its scale and value difficult to estimate but evidence suggests that 
it is a substantial and growing problem. In many countries, illegal logging is similar in size or 
even  higher  than  legal  logging  activities.  In  Europe  it  is  also  present  although  not  at 
significant rates. 

Illegal  logging  is  a  major  contributor  to  global  deforestation  which  causes  enormous 
environmental  damage.  Deforestation  is  responsible  for  approximately  20%  of  global 
emissions  of  greenhouse  gasses  (more  than  the  total  global  emissions  from  the  transport 
sector) and is a major cause for global losses of biodiversity. 

In  addition,  illegal  logging  undercuts  the  competitiveness  of  legitimate  forest  industry 
operations  in  exporting  and  importing  countries  and  costs  governments'  significant  revenue 
losses.  It  undermines  the  rule  of  law  and  the  principles  of  democratic  governance,  hinders 
sustainable  development  in  many  developing  countries  and  can  fund  armed  conflict.  The 
social impact of illegal logging is less well recognised. However, serious human rights abuses 
have been documented. 

The European Union continues to initiate and support initiatives at the national, regional and 
international  level  to  raise  commitment  and  strengthen  work  to  address  illegal  logging  and 
associated trade. The European Commission and many Member States are actively involved 
in many such initiatives, such as the regional FLEG processes. It also engages in bilateral and 
multilateral discussions with third countries both in multilateral fora such as the UN Forum on 
Forests and the International Tropical Timber Organisation and in bilateral talks with major 
timber-consuming countries such as the US, China, Russia and Japan, to discuss the problem. 
The  Commission  also  uses  the  opportunity  of  ongoing  negotiations  for  Partnership  and  Co-
operation  Agreements  as  well  as  for  Free  Trade  Agreements  to  raise  the  issue  of  the 
conservation and sustainable management of Forests, including illegal logging and associated 
trade. 

In  its  2003  Communication  to  the  European  Parliament  and  the  Council,  the  European 
Commission  proposed  an  EU  Action  Plan  for  Forest  Law  Enforcement,  Governance  and 

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Trade (FLEGT)1 to address the problem of illegal logging and its related trade. This initiative 
closely  reflected  the  commitment  made  by  Commissioner  Nielson  in  2002  at  the  World 
Summit  on  Sustainable  Development  and  the  momentum  built  up  in  the  regional  processes 
organised by the World Bank, notably the high level meeting on Forest Law Enforcement and 
Governance (FLEG) held in Bali in 2001. 

The EU FLEGT Action Plan set out a package of measures including, inter alia, support for 
timber-producing countries, efforts to develop multilateral collaboration to combat the trade 
in illegally harvested timber, private sector initiatives as well as measures to avoid investment 
in activities which encourage illegal logging and conflict timber. 

A  central  element  of  the  EU  FLEGT  Action  Plan  was  the  proposal  for  a  FLEGT  licensing 
scheme,  under  which  exports  of  timber  to  the  EU  from  participating  countries  would  be 
covered by a (FLEGT) licence attesting that the timber has been harvested in conformity with 
relevant  national  legislation.  The  Council  adopted  the  FLEGT  Regulation2  in  2005 
establishing the legal framework for the imports into the EU of timber originating in partner 
countries and authorised the Commission to launch negotiations with producing countries and 
regional  organisations  which  expressed  an  interest  in  entering  in  Voluntary  Partnership 
Agreements (FLEGT VPAs) with the EU.  

Up  to  October  2008,  five  countries  –  Malaysia,  Indonesia,  Cameroon,  Congo  (Brazzaville) 
and Ghana – have started negotiating such an agreement with the EU and there are informal 
consultations  with  a  number  of  other  producing countries  which  have  expressed  an  interest. 
The first such agreement was initialled with Ghana in September. However, the timeframe as 
regards  the  implementation  of  any  VPAs  and  the  risk  of  circumvention  and  laundering  risk 
make VPAs alone insufficient to address the problem of illegal logging. 

In  the  FLEGT  Action  Plan  the  Commission  also  recognised  that  some  important  timber-
producing  countries  may  choose  not  to  enter  into  FLEGT  VPAs  with  the  EU  and  therefore 
that,  in  the  absence  or  slow  pace  of  multilateral  progress,  the  EU  should  adopt  additional 
measures to fight illegal logging at the global level, including legislation to prevent imports of 
illegally harvested timber into the EU. The Commission took the commitment to review such 
options and the European Parliament and the Council have since recalled that commitment in 
formal resolutions3 and conclusions4.  

In  the  intervening  period,  extensive  work  has  been  undertaken  by  Member  States,  the 
Commission,  think-tanks  and  NGOs  to  identify  the  best  way  forward.  Taking  the  results  of 
this  comprehensive  work  into  account,  at  the  end  of  2006  the  Commission  launched  an 
assessment of a number of additional measures. The findings of this process are summarised 
in a public report from the Commission.  

Taking into account the results of the assessment performed the Commission believes that the 
EU  policy  to  fight  illegal  logging  and  its  associated  trade  needs  to  be  reinforced.  In  the 
absence  of  a  harmonised  approach,  several  Member  States  have  indicated  that  they  would 
take  national  measures.  However,  experience  has  shown  that  action  at  national  level  could 
create a barrier to the free circulation of goods and a distortion of competition in the internal 

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COM 251, 21.5.2003. 
OJ L 347, 30.12.2005, p. 1. 
Council document 7014/04. 
Council conclusions 268/2003, p. 1. 

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market. The Commission thus believes that Community action is necessary. It is proposed that 
this should be done through a Regulation determining the obligations of operators who place 
timber and timber products on the Community market.  

The  proposed  Regulation  does  not  preclude  Community  action  to  combat  deforestation  and 
biodiversity  loss  through  other  measures,  such  as,  for  example,  the  establishment  of 
sustainability criteria for biomass. 

•  Existing provisions in the area of the proposal 

Existing provisions are fully explained in the previous section. 

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•  Consistency with the other policies and objectives of the Union 

Climate Change  policy: There  has been  in recent years an increasing  awareness of the vital 
role  that  forests  plays  in  the  global  carbon  cycle,  storing  roughly  half  the  world's  terrestrial 
carbon. In particular, there is now an ever-increasing consensus that unless the deforestation 
challenge is addressed, it will simply not be possible to limit global warming to 2°C above the 
pre-industrial temperature; nor will it be possible to reap the benefits of EU efforts to combat 
climate change.  

Illegal  logging  is  one  of  the  most  important  direct  drivers  of  deforestation  and  it  also 
undermines forest governance and sustainable forest management which are essential for the 
effectiveness  of  measures  in  the  forestry  sector  that  should  be  set  up  under  the  post-2012 
International Climate Agreement.  

The  low  cost  timber  products  that  illegal  logging  generates  also  hurt  European  timber 
operators  and  the  workers  they  employ.  This  proposal  aims  at  combating  this  problem  and 
level the playing field for industry and workers.  

The  aim  of  this  proposal  is  in  line  with  the  Commission's  strategic  objectives  and  better 
regulation principles notably to provide effective and efficient measures, ensure a high level 
of  legal  certainty  across  the  EU,  enable  operators  to  be  more  dynamic  without  increasing 
significantly the burden and thus help to strengthen the Community's credibility in the eyes of 
its citizens.  

The proposal, in line with the FLEGT Action Plan, focuses only on the question of legality, 
and does not address sustainability. However, in many countries forest legislation is based on 
the premise of sustainable forest management and therefore legality is not totally distinct from 
sustainability In addition, given that this proposal aims at encouraging better law enforcement 
and governance it would represent a major step along the road to sustainability particularly in 
countries  affected  by  illegal  logging.  The  objectives  of  this  proposal  have  been  considered 
within the context of the Sustainable Development strategy agreed by the European Council 
in June 2006 and the Strategic European Energy Review presented by the Commission to the 
European Council in January 2007. The proposal and any implementing measures should be 
consistent with these objectives.  

2. 

CONSULTATION  WITH 
ASSESSMENT  

INTERESTED  PARTIES  AND 

IMPACT 

A  broad  consultation  process  was  held  between  December  2006  and  June  2008  which 
included  a  web-based  public  consultation  and  numerous  meetings  with  stakeholders.  In 
addition  the  Commission  carried  out  an  impact  assessment  of  the  proposed  policy  options 
which led to the publication of a report.  

Initially four options were considered:  

Option  1:  Expanded  coverage  of  the  bilateral  approach  through  FLEGT  Voluntary 
Partnership Agreements.  

Under this option, the Community would give priority to reinforce the implementation of the 
VPA  approach.  This  approach  however,  would  have  a  significant  impact  only  if  all  major 

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producing,  transit  and  processing  countries  would  enter  into  FLEGT  VPAs  or  if  this  would 
evolve into a multilateral initiative. The former is widely considered to be an impossible task 
while the latter appears highly unlikely. 

Option 2: Voluntary measures by the private sector further developed 

Under  this  option,  the  Community  would  encourage  the  strengthening  of  private  sector 
measures such as codes of conduct and forest certification schemes by e.g. recognising them 
in  the  FLEGT  VPAs,  making  membership  in  the  federations  mandatory  and  by  supporting 
measures such as financial or regulatory incentives. 

Codes of conduct have been introduced by timber trade federations and bodies who develop 
and  advice  their  members  on  responsible  purchasing  policies.  Private  certification  schemes 
have  been  set  up  to  set  forest  management  standards  and  accredit  forests,  products  and  or 
managers  against  those  standards.  Although  these  initiatives  have  merits  including  their 
flexibility, powerful motivation and good cost/efficiency balance, their voluntary nature, lack 
of policing over implementation and lack of sanctions for non-compliance challenged over the 
years their credibility and sustainability. 

Option 3: Border measures to prevent the importation of illegally harvested timber 

This option would consist in declaring illegal under Community law the importation of timber 
products  stemming  from  illegal  logging  and  making  imports  of  timber  into  the  Community 
conditional  upon  proving  legality.  The  prohibition  and  the  requirement  would  apply  to  all 
countries regardless of the level of risk on trading illegally harvested timber. The compliance 
check  would  take  place  at  the  EU  border,  on  the  basis  of  documentation  ascertaining  the 
legality of the timber.  

Under this option, the Community would rely on  the  assumption that illegal logging occurs 
only outside the EU and therefore trade measures would have a predominant role to play in 
the  combat  against  illegal  logging.  The  option  presents  difficulties  in  terms  of  WTO-
compatibility (discriminatory treatment of timber operators) and its proportionality. 

Option 4: Prohibition on the placing on the EU market of illegally harvested timber 

Under this option it would be illegal to place on the EU market illegally harvested timber or 
products derived from such timber. The option would apply both to imported forest products 
and to those produced in the EU.  

Two alternative approaches could be followed: 

Option 4A: Legislation which prohibits the trading and possession of timber and timber 
products harvested in breach of the laws of the country of origin. 

This  option  would  prohibit  the  placing  of  illegally  harvested  timber  on  the  EU  market.  The 
responsibility to prove illegality would lie with the enforcement agencies and operators would 
be requested to demonstrate compliance only when challenged.  

The  focus  of  this  option  would  effectively  be  on  high-risk  cases  and  it  would  thus  provide 
operators with an incentive to source timber with adequate guarantees regarding its legality. 
However, it  would have  significant difficulties in its implementation because demonstrating 
the underlying illegality would be a difficult task as timber products have complicated supply 
chains, stretching through several countries and operators and would involve European courts 

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adjudicating  on  infractions  having  taken  place  in  third  countries  and  in  the  context  of  the 
legislation of those countries. In addition it would not provide the legal certainty necessary for 
the proper functioning of the market.  

This option is similar to the provisions of the Illegal logging amendment to the US Lacey Act, 
approved  on  2  June  2008  which  extends  protection  to  plants  and  trees  illegally  harvested 
outside of the US.  

Option  4B:  Legislation  which  requires  that  only  legally  harvested  timber  and  timber 
products be placed on the market. 

Under this option the marketing of timber and timber products in the Community would be 
made  conditional  upon  the  operator  proving  legality.  For  enforcement  purposes,  such  proof 
would require presentation of written documentation covering every single shipment and as a 
consequence  the  option  would  risk  creating  a  burdensome,  expensive  and  trade-disruptive 
system.  

To a certain extent this option would rely on an approach similar to the one described under 
option  3;  operators  would  be  required  to  provide  documentary  evidence  of  the  legality  of 
every  shipment  of  timber  and  timber  products  they  make  available  on  the  EU  market, 
regardless  of  the  origin.  Such  evidence  would  have  to  be  provided  either  on  request  or 
systematically  and  for  enforcement  purposes  it  should  take  the  form  of  documentation 
proving legality.  

The conclusion from the assessment of the four different options set out above was that there 
were significant drawbacks to each of them that could limit their effectiveness. The specific 
nature of illegal logging requires a new approach that takes into account the structure of the 
entire  timber  sector,  which  aims  at  a  systematic  change  of  behaviour  in  operators  and 
customers  and  which  focuses  on  promoting  sector-specific  systems  that  can  prevent  illegal 
timber and timber products entering the Community market. With these objectives in mind, a 
new option emerged. 

Option  5:  Legislation  which  requires  due  diligence  by  all  operators  who  place  timber 
and timber products on the Community market 

This option requires operators to exercise due diligence to ascertain to their best ability that 
the timber and timber products they place on the Community market were legally harvested. It 
relies  on  the  principle  that  an  efficient  strategy  should  support  the  development  of  robust 
systems designed to eliminate illegally harvested timber from the Community market.  

A  major  benefit  of  that  option  is  that  it  will  tend  to  favour  sourcing  from  countries  with 
reliable forest management practices, in particular, those countries having concluded FLEGT 
VPAs with the EU, since the FLEGT licence ensures a high degree of certainty in terms of the 
legality  of  the  timber  products  concerned.  Costs  are  proportionate  to  the  need  for  the 
Community  to  improve  the  efficiency  of  its  policy  against  illegal  logging  and  the  related 
trade.  Over  time  operators  will  also  benefit  from  the  elimination  of  illegal  timber  products 
from the market.  

This  option  would  imply  that  operators  covered  by  it  apply  systems  and  procedures  to 
ascertain  to  their  best  ability  that  they  only  place  on  the  EU  market  timber  and  timber 
products that have been legally harvested. 

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•  Public Consultation 

The Commission held a web-based public consultation in early 2007. The consultation sought 
views on the need for, appropriateness and feasibility of EU policy measures to address the 
problem  of  illegal  timber  and  timber  products  being  introduced  to  the  European  market. 
Opinions were only expressed on the initial four options because option 5 was developed in 
response to the initial assessment. Although the substantive response was not large in terms of 
numbers (93 contributions) in terms of content and variety of perspectives provided it met the 
Commission’s  expectations.  The  Commission  also  received  7.161  emails  through  a  'Ban 
illegal timber' campaign launched by Greenpeace. 

Most  of  the  respondents  felt  that  the  coverage  of  the  bilateral  FLEGT  approach  was 
insufficient to address the problem of illegal logging. They also felt that further private sector 
voluntary  schemes  could  be  used  to  complement  a  robust  binding  framework.  Some 
respondents  felt  that  a  combination  of  these  approaches  might  allow  those  areas  with  the 
highest  risk  of  illegal  logging  to  be  targeted.  A  significant  proportion  of  the  respondents 
expressed  the  firm  wish  for  the  EU  to  put  an  end  to  ‘business  as  usual’  and  in  particular 
address  possible  loopholes  in  a  system  under  FLEGT  VPAs.  In  general  these  responses 
favoured a legislative approach although without clearly favouring any particular option. The 
in 
found 
of 
report 
http://www.cc.cec/dgintranet/env/i/e2/doc/pdf_docs/forests/AddlOptionsSynthFinal.pdf  

summarising 

consultation 

results 

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the 

the 

be 

•  National Studies 

In its conclusions the Council called on the Member States to provide the Commission with 
“relevant  information”  about  the  extent  to  which  it  is  possible  to  use  existing  national 
legislation to stop the trade in illegally produced and traded wood. Several MS carried out that 
analysis  in  response  to  that  request.  The  analysis  suggests  that  there  is  some  potential  to 
address illegal logging through existing legislation such as the laws on theft and trafficking of 
stolen goods, money-laundering, corruption or smuggling.  

•  Consultations with third countries 

Consultations  were  held  with  several  international  partners.  High  level  meetings  were  held 
with other major timber importers e.g. China, Japan and USA. Meetings were organised with 
countries  currently  negotiating  FLEGT  Voluntary  partnership  Agreements  with 
the 
Community (e.g. Malaysia, Indonesia, Ghana, and Cameroon) as well as certain other timber 
exporting  countries  (Russia,  Brazil)  and  countries  that  have  shown  interest  in  discussing 
VPAs with the EU.  

•  Impact Assessment Report  

The Commission has produced a report looking into the environmental, economic and social 
impacts of the different policy options within and outside the EU. This report is accessible on 
the  web  site  of  DG  Environment  within  the  European  Commission.  The  Commission 
contracted a consultancy firm to carry out a study as an input for its report.  

•  Ad hoc Consultations 

In the context of the impact assessment stakeholders were consulted in workshops or through 
interviews.  Stakeholders  were  invited  to  rank  the  additional  options  from  best  to  worst.  As 

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option 5 had not been yet developed at that time views were sought on the four then available 
options.  

When  option  5  was  developed,  the  Commission  services  held  a  number  of  meetings  with 
stakeholders to discuss the advantages and disadvantages of this approach. Option 5 received 
generally  a  positive  feedback.  One  point  of  divergence  amongst  stakeholders  was  whether 
domestically produced timber should be covered as there are few incidents of illegal logging 
within  the  EU.  The  technical  practicality  of  applying  legislative  requirements  to  composite 
products was another issue raised although the majority of stakeholders supported a uniform 
approach that would level the playing field for all players in the timber market. 

There were also concerns about the fact that option 5 does in fact not prohibit the placing on 
the  market  of  illegally  harvested  timber  and  derived  products  but  instead  requires  timber 
operators to show sufficient care in ensuring that they do not place illegally harvested timber 
on  the  market.  However  it  was  recognised  that  the  proposed  measures,  by  relying  on  the 
responsible operators have the potential to induce permanent  and implementable changes in 
the  EU  timber  market  and  are  therefore  able  to  deliver  better  solutions  to  the  challenging 
problem of illegal logging and related trade.  

3. 

ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

The proposal focuses on the first time that timber and timber products are made available on 
the  Community  market,  regardless  of  their  origin,  by  determining  the  obligations  of  those 
operators who place timber and timber products on the Community market. The proposal is 
based on the due diligence principle requiring the operators covered by it to apply a system 
(due diligence system) to minimize the risk of placing illegally harvested timber and timber 
products  on  the  Community  market.  The  due  diligence  system  includes  measures  and 
procedures which will enable operators to track the timber and timber products, to have access 
to information concerning compliance with the applicable legislation and to manage the risk 
of  placing  illegally  harvested  timber  and  timber  products  on  the  Community  market.  The 
proposed measures aim at deterring operators from placing on the Community market timber 
and  timber  products  without  having  a  reasonable  assurance  as  regards  their  legality 
contributing  therefore  to  the  global  efforts  to  fight  illegal  logging.  They  also  provide 
consumers with the certainty that by buying timber and timber products they do not contribute 
to the problem of illegal logging and associated trade.  

It  is  important  to  note  that  due  diligence  is  not  just  a  moral  duty  to  care  but  a  legal 
requirement  for  a  proactive  behavior.  It  obliges  operators  to  show  prudence,  judgment  and 
positive action in ascertaining the legality of the  timber and timber products that enter their 
supply  chain  in  order  to  minimize  the  risk  of  placing  illegally  harvested  timber  and  timber 
products on the Community market. 

Legality is defined on the basis of the legislation of the country of harvest, applicable to forest 
management, timber harvesting and timber trade.  

Timber and timber products covered by a FLEGT license or a CITES permit are considered to 
have been legally harvested.  

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Operators who should apply a due diligence system can either develop a system on their own 
or rely on a recognised due diligence system as the proposal provides for the recognition of 
due diligence systems developed by monitoring organizations. This means that, while setting 
clearly  the  principles  to  be  taken  into  account  when  applying  a  due  diligence  system,  the 
proposal  gives  operators  the  flexibility  to  choose  the  mechanisms  to  deliver  the  required 
result. 

The guiding principles of the proposed Regulation are effectiveness and clarity in terms of the 
legal  obligations.  Operators  have  the  responsibility  to  minimize  the  risk  of  placing  illegally 
harvested timber and timber products on the market through the use of a system of measures 
and procedures. The main elements of this system are set out in the proposal. Further details 
will  be  laid  down  by  way  of  implementing  measures  in  order  to  facilitate  implementation, 
notably with respect to the identification of the criteria for determining the presence of a high 
or low risk that illegally harvested timber and timber products are placed on the Community 
market.  In  laying  down  those  implementing  measures  the  following  principles  should  be 
respected: the need to avoid putting any unnecessary burden on the operators; the balance of 
costs and benefits to operators covered by this Regulation; the need to respect the necessary 
flexibility  in  the  application  of  the  implementing  measures;  the  need  to  facilitate  the 
adaptation of small operators to the requirements laid down in this Regulation. Recognizing 
that  the  effective  implementation  of  the  proposed  measures  relies  on  the  adoption  of 
complementary  measures,  its  application  will  begin  only  when  these  measures  have  been 
adopted.  

The most comprehensive approach can not function effectively without the commitment and 
full collaboration of all stakeholders involved in the implementation. In all aspects related to 
this proposal it is essential that stakeholders,  in particular the industry and the  civil society, 
will  be  consulted  so  as  to  determine  the  best  possible  ways  of  implementation  through  a 
structured framework of discussions and information sharing.  

•  Legal basis 

The provisions of this Regulation relate to the protection of the environment. Article 175 (1) 
of the Treaty thus provide the appropriate legal basis. 

•  Choice of instrument 

The proposed instrument is a regulation because a regulation is necessary in order to ensure 
the highest level  of  harmonization and avoid the coexistence of different standards between 
Member States.  

•  The principles of subsidiarity and proportionality 

The  Subsidiarity  principle  applies  insofar  as  the  proposal  does  not  fall  under  the  exclusive 
competence of the Community. 

Strong  evidence  suggests  that  illegal  logging  is  a  substantial  occurrence,  which  causes 
significant  environmental  damage  and  contributes  to  loss  of  biodiversity,  undermines  the 
competitiveness  of  legitimate  forest  industry  operations  while  being  closely  associated  with 
corruption, organised crime and violent conflict. The proposal aims at minimizing the risk of 
illegally  timber  and  timber  products  entering  the  Community  market  through  a  set  of 
obligations  of  operators  who  place  timber  and  timber  products  on  the  Community  market. 

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Despite the limited occurrence of illegal logging incidents within the EU and in the absence of 
Community requirements concerning the marketing of timber and timber products produced 
within  the  EU,  the  proposed  regulation  also  applies  to  operators  who  place  domestically 
produced  timber  and  timber  products  on  the  Community  market.  The  guiding  principle  has 
been  non-discrimination  to  ensure  a  comprehensive  and  integrated  approach  and  avoid 
conflict with international trade rules. At the core of the proposed Community action lies the 
establishment of common obligations of operators who place timber and timber products on 
the  Community  market.  The  risk  based  approach  allows  for  reducing  the  administrative 
burden on operators and also for a better targeting of controls to cases which present a higher 
risk.  The  proposed  harmonised  approach  would  simplify  the  requirements  for  the  operators 
and  therefore  stimulate  competitiveness,  while  consumers  would  be  better  informed  on  the 
applicable standards. The system would also provide the necessary legal certainty and clarity 
for the proper functioning of the market.  

Estimates  for  the  costs  involved  in  the  various  options  were  made  as  part  of  the  impact 
assessment. Costs to EU importers and producers under the proposed regulation are low when 
compared to other options investigated in the impact assessment. Important to note is that this 
proposal  takes  account  of  the  current  private  sector  practises  on  legality  assurance  and 
respects  existing  mechanisms.  Therefore  part  of  the  costs  have  already  been  covered  in  the 
context of existing systems  

It has been argued that measures affecting imports of timber and timber products would only 
shift  trade  to  non-discriminatory  markets.  However,  the  EU  is  a  major  player  in  the 
international arena and with such an initiative it would set the example and send a clear signal 
on  its  commitment  in  the  combat  against  illegal  logging,  loss  of  biodiversity  and  climate 
change, encouraging similar initiatives from other major consuming countries 

In light of these elements, EU action is justified and proportionate to the problem.  

4. 

BUDGETARY IMPLICATION 

The  present  proposal  entails  limited  financial  implications  for  the  Community  budget  for 
administrative purposes. 

5. 

REVIEW/REVISION/SUNSET CLAUSE 

The proposal does not include a review clause. 

6. 

SIMPLIFICATION 

The  proposal  does  not  have  a  simplification  element  as  it  does  not  touch  upon  existing 
legislation. 

7. 

REPEAL 

The proposal does not repeal existing legislation. 

EN 

11 

   EN 

 
8. 

RECASTING 

The proposal does not involve recasting. 

9. 

CORRELATION TABLE 

N/A as correlation tables are only required with respect to directives. 

10. 

EUROPEAN ECONOMIC AREA (EEA) 

The proposal concerns an EEA matter and should therefore extend to the European Economic 
Area.

EN 

12 

   EN 

 
2008/0198 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

laying down the obligations of operators who place timber and timber products on the 
market 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
175(1) thereof, 

Having regard to the proposal from the Commission5, 

Having regard to the opinion of the European Economic and Social Committee6, 

Having regard to the opinion of the Committee of the Regions7, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty8, 

Whereas 

(1) 

(2) 

(3) 

Forests  provide  a  broad  variety  of  environmental,  economic  and  social  benefits 
including timber and non-timber forest products and environmental services. 

Due to the growing demand for timber and timber products worldwide in combination 
with the institutional and governance deficiencies that are present in the forest sector 
in  a  number  of  timber-producing  countries  illegal  logging  and  the  associated  trade 
becomes of ever greater concern. 

Illegal  logging  is  a  pervasive  problem  of  major  international  concern.  It  poses  a 
significant  threat  to  forests  as  it  contributes  to  the  process  of  deforestation,  which  is 
responsible  for  about  20%  of  CO2  emissions,  threatens  biodiversity,  and  undermines 
sustainable  forest  management  and  development.  In  addition,  it  also  has  social, 
political and economic implications. 

(4) 

The  Communication  of  the  Commission  to  the  European  Parliament  and  to  the 
Council  on  an  EU  Action  Plan  for  Forest  Law  Enforcement,  Governance  and  Trade 

5 
6 
7 
8 

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 

EN 

13 

   EN 

 
                                                 
(5) 

(6) 

(7) 

(8) 

(9) 

(FLEGT) proposed a package of measures to support international efforts to tackle the 
problem of illegal logging and associated trade9.  

The Council and the European Parliament recognising the need for the Community to 
contribute  to  global  efforts  to  address  the  problem  of  illegal  logging  welcomed  that 
Communication. 

In accordance with the aim of that Communication, namely to ensure that only timber 
products  that  have  been  produced  in  accordance  with  the  national  legislation  of  the 
producing  country  enter  the  Community,  the  Community  has  been  negotiating 
Voluntary  Partnership  Agreements  (VPAs)  with  timber  producing  countries  (partner 
countries),  which  put  a  legally  binding  obligation  on  the  parties  to  implement  a 
licensing scheme and to regulate trade in timber and timber products identified in the 
Agreements. 

Given the major scale and urgency of the problem, it is necessary to actively support 
the  fight  against  illegal  logging  and  related  trade,  to  complement  and  strengthen  the 
VPA initiative and to improve synergies between policies aiming at the conservation 
of forests and the achievement of a high level of environmental protection, including 
combating climate change and biodiversity loss. 

The  efforts  made  by  countries  which  have  concluded  FLEGT  VPAs  with  the 
Community  and  the  principles  incorporated  in  them,  in  particular  with  regard  to  the 
definition  of  legally  produced  timber,  should  be  recognised.  It  should  be  also  taken 
into account that under the FLEGT licensing scheme only timber and timber products 
harvested  in  accordance  with  the  relevant  national  legislation  are  exported  into  the 
Community.To  that  effect,  timber  products  listed  in  Annexes  II  and  III  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  Community10, 
originating  in  partner  countries  listed  in  Annex  I  to  Council  Regulation  (EC)  No 
2173/2005 should be considered to have been legally harvested provided they comply 
with that Regulation and any implementing provisions. 

Account should also be taken of the fact that the Convention on International Trade of 
Endangered Species of Fauna and Flora (CITES) places a requirement on parties to the 
Convention to only grant a CITES permit for export when a CITES-listed species has 
been  harvested,  inter  alia,  in  compliance  with  domestic  legislation  in  the  exporting 
country.  To  that  effect,  timber  products  of  species  listed  in  Annexes  A,  B  and  C  to 
Council Regulation (EC) No 338/97 of 9 December 1996 on the protection of species 
of wild fauna and flora by regulating trade therein11 should be considered to have been 
legally  harvested  provided  they  comply  with  that  Regulation  and  any  implementing 
provisions. 

(10)  Taking into account the complexity of illegal logging as regards the underlying factors 
and the impacts, the incentives for illegal behaviour should be reduced by targeting the 
behaviour of operators. 

9 
10 
11 

COM(2003)251, 21.5.2003. 
OJ L 347, 30.12.2005, p. 1 
OJ L 61, 3.3.1997, p. 1.  

EN 

14 

   EN 

 
                                                 
(11) 

In  the  absence  of  an  internationally  agreed  definition  the  legislation  of  the  country 
where the timber was harvested should be the basis to define what constitutes illegal 
logging.  

(12)  Many timber products undergo numerous processes before and after they are placed on 
the  market  for  the  first  time.  In  order  to  avoid  imposing  any  unnecessary 
administrative  burden  only  those  operators  that  place  timber  and  timber  products  on 
the market for the first time, rather than all operators involved in the distribution chain, 
should be subject to the requirements laid down in this Regulation. 

(13)  The  overall  objective  of  achieving  sustainability 

the  promotion  of 
sustainability criteria remains a priority for the Community. In light of this objective 
and  in  order  to  reduce  the  burden  on  operators  who  place  on  the  market  timber  and 
timber  products  which  are  subject  to  mandatory  sustainability  criteria  established  by 
Directive  (EC)  No  XX/XX  of  the  European  Parliament  and  of  the  Council  on  the 
promotion  of  the  use  of  energy  from  renewable  sources,  this  Regulation  should  not 
apply to such products12. 

through 

(14)  Operators  placing  timber  and  timber  products  for  the  first  time  on  the  Community 
market  should  exercise  due  diligence  through  a  system  of  measures  and  procedures 
(due diligence system) to minimise the risk of placing illegally harvested timber and 
timber products.  

(15)  The  due  diligence  system  should  provide  access  to  the  sources  and  suppliers  of  the 
timber and timber products being placed on the Community market and to information 
as regards compliance with the applicable legislation.  

(16)  The  timber  sector  is  of  major  importance  for  the  economy  of  the  Community. 
Organisations of operators  are important  elements of the sector as they represent the 
interests of the latter at a large scale and interact with a diverse range of stakeholders. 
Organisations also have the expertise and capacity to analyse relevant legislation and 
facilitate the compliance of members, provided they do not use this competence with a 
view  to  dominate  on  the  market.  In  order  to  facilitate  the  implementation  of  this 
Regulation and to contribute to the development of good practices it is appropriate to 
recognise organisations which have developed requirements for the realisation of the 
due diligence systems. A list of such recognised organisations will be made public and 
will  enable  the  recognition  of  the  monitoring  organisations  included  therein  by  all 
Member States competent authorities. 

(17)  Competent  authorities  should  monitor  that  the  operators  fulfill  the  obligations  laid 
down in this Regulation. For that purpose the competent authorities should carry out 
official checks and require operators to take corrective measures where necessary.  

(18)  Competent  authorities  should  keep  records  of  the  checks  and  make  a  summary 
publicly available in accordance with Directive 2003/4/EC of the European Parliament 
and  of  the  Council  of  23  January  2003  on  public  access  to  environmental 
information13. 

12 
13 

*note to OJ: reference to be included when the act is adopted. 
OJ L 41, 14.2.2003, p. 26. 

EN 

15 

   EN 

 
                                                 
(19)  Taking  into  account  the  international  character  of  illegal  logging  and  related  trade 
the 

competent  authorities  should  cooperate  between 
administrative authorities of third countries and/or the Commission. 

themselves  and  with 

(20)  Member  States  should  ensure  that  infringements  of  this  Regulation  are  punished  by 

effective, proportionate and dissuasive penalties.  

(21)  The measures necessary for the implementation of this Regulation should be adopted 
in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the 
procedures for the exercise of implementing powers conferred on the Commission14. 

(22) 

In  particular  the  Commission  should  be  empowered  to  adopt  detailed  rules  for  the 
application of the due diligence system and in particular criteria for assessing the risk 
of  placing  illegally  harvested  timber  and  timber  products  on  the  market,  to  establish 
criteria  for  the  recognition  of  due  diligence  systems  developed  by  monitoring 
organisations  and  to  adapt  the  list  of  timber  and  timber  products  to  which  this 
Regulation applies where technical characteristics, end uses or production processes of 
timber  or  timber  products  necessitate  such  adaptations.  Since  those  measures  are  of 
general scope and are designed to amend non-essential elements of this Regulation by 
supplementing it with new non-essential elements, they must be adopted in accordance 
with  the  regulatory  procedure  with  scrutiny  provided  for  in  Article  5a  of  Decision 
1999/468/EC. 

(23) 

In order to enable operators and competent authorities to prepare themselves in order 
to meet the requirements of this Regulation, this Regulation shall apply two years after 
its entry into force.  

(24)  Since  the  objective  of  this  Regulation,  namely  to  complement  and  underpin  the 
existing  policy  framework  and  support  the  fight  against  illegal  logging  and  related 
trade,  cannot  be  sufficiently  achieved  by  the  Member  States  and  can  therefore,  by 
reason of its scale be better achieved at Community level, the Community may adopt 
measures, in accordance with the principle of subsidiarity as set out on Article 5 of the 
Treaty. In accordance with the principle of proportionality, as set out in that Article, 
this  Regulation  does  not  go  beyond  what  is  necessary  in  order  to  achieve  those 
objectives, 

HAVE ADOPTED THIS REGULATION: 

Article 1 
Subject matter  

This Regulation lays down the obligations of operators who place timber and timber products 
on the market.  

14 

OJ L 184, 17.7.1999, p. 23. 

EN 

16 

   EN 

 
                                                 
For the purposes of this Regulation, the following definitions shall apply: 

Article 2 
Definitions 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

'timber  and  timber  products'  means  the  timber  and  timber  products  set  out  in 
the Annex with the exception of timber and timber products which are subject 
to mandatory sustainability criteria established by Directive (EC) No XX/XX; 

'placing on the market' means any supply of timber and timber products for the 
first  time on the  Community market for distribution or use in the course of a 
commercial activity whether in return for payment or free of charge; 

'operator'  means  any  natural  or  legal  person  that  places  timber  or  timber 
products on the market; 

'legally  harvested'  means  harvested  in  accordance  with  the  applicable 
legislation in the country of harvest;  

'risk  management'  means  a  set  of  measures  and  procedures  carried  out  by 
operators in order to minimise the risk of placing illegally harvested timber and 
timber products on the market;  

'applicable  legislation'  means  the  legislation  of  the  country  of  harvest 
regulating forest conservation and management and the harvesting of timber as 
well  as  legislation  on  trade  in  timber  or  timber  products  related  to  forest 
conservation and management and to the harvesting of timber; 

'country  of  harvest'  means  the  country  where  the  timber  or  the  timber 
embedded in the timber products was harvested; 

'monitoring  organisation'  means  a  legal  entity  or  a  membership-based 
association or a federation that has the legal capacity to monitor and ensure the 
application of due diligence systems by the operators certified as making use of 
such systems. 

Article 3 
Obligations of operators 

1. 

2. 

3. 

Operators  shall  exercise  due  diligence  to  minimise  the  risk  of  placing  illegally 
harvested timber and timber products on the market. To that effect, they shall use a 
framework  of  procedures  and  measures,  hereinafter  referred  to  as  a  'due  diligence 
system'. 

Operators shall establish a due diligence system containing the elements referred to 
in  Article  4(1)  or  make  use  of  a  due  diligence  system  of  a  recognised  monitoring 
organisation referred to in Article 5(1).  

Timber  products  listed  in  Annexes  II  and  III  to  Regulation  (EC)  No2173/2005 
originating  in  partner  countries  listed  in  Annex  I  of  Regulation  (EC)  No2173/2005 

EN 

17 

   EN 

 
and  which  comply  with  that  Regulation  and  its  implementing  provisions  shall  be 
considered to have been legally harvested for the purposes of this Regulation. 

4. 

Timber  products  of  species  listed  in  Annexes  A,  B  and  C  to  Regulation  (EC)  No 
338/97 and which comply with that Regulation and its implementing provisions shall 
be considered to have been legally harvested for the purposes of this Regulation. 

Article 4 
Due diligence systems 

1. 

The due diligence system referred to in Article 3(1) shall:  

(a) 

provide  access  to  the  following  information  on  timber  and  timber  products 
placed on the market by the operator: 

(i) 

description; 

(ii) 

country of harvest; 

(iii)  volume and/or weight; 

(iv)  where  applicable,  name  and  address  of  the  operator  who  has  supplied 

timber or timber products; 

(v) 

information  on  compliance  with  the  requirements  of  the  applicable 
legislation; 

(b) 

include a risk management procedure and 

(c) 

provide for audits to ensure effective application of the due diligence system. 

2. 

The  Commission  shall  adopt  measures  for  the  implementation  of  this  Article.  The 
Commission shall, in particular, establish criteria for assessing whether there is a risk 
of illegally harvested timber and timber products being placed on the market.  

Those  measures  designed  to  amend  non-essential  elements  of  this  Regulation  by 
supplementing it shall be adopted in accordance with the regulatory procedure with 
scrutiny referred to in Article 11(2). 

Article 5 
Recognition of monitoring organisations 

1. 

Competent authorities shall recognise monitoring organisations which apply for such 
recognition, 
following 
the  monitoring  organisation  complies  with 
requirements: 

the 

if 

(a) 

it has legal personality;  

(b) 

it has established a due diligence system which contains the elements set out in 
Article 4(1); 

EN 

18 

   EN 

 
(c) 

it obliges operators it certifies to use its due diligence systems; 

(d) 

it has in place a monitoring mechanism to ensure the use of the due diligence 
systems  by  the  operators  which  it  has  certified  as  making  use  of  its  due 
diligence system; 

(e) 

it  takes  appropriate  disciplinary  measures  against  any  certified  operator  who 
fails to comply with the due diligence system of the monitoring organisation.  

2. 

The  monitoring  organisation  shall  submit  to  a  competent  authority  the  following 
information together with its application for recognition: 

(a) 

its statute; 

(b) 

the names of persons authorised to act on its behalf; 

(c) 

a detailed description of its due diligence system. 

3. 

4. 

5. 

6. 

Competent  authorities  shall  decide  whether  to  grant  recognition  to  a  monitoring 
organisation  within  three  months  of  the  submission  of  an  application  by  the 
monitoring organisation. 

They  shall  carry  out  checks  at  regular  intervals  to  ascertain  that  monitoring 
organisations comply with the requirements laid down in paragraph 1. 

A competent authority shall withdraw the recognition of a monitoring organisation if 
it  has  been  established  that  the  requirements  set  out  in  paragraph  1  are  no  longer 
fulfilled. 

Competent  authorities  shall  notify  the  Commission  within  two  months  of  any 
decision to grant, refuse or withdraw recognition to a monitoring organisation.  

The Commission shall adopt measures for the implementation of this Article.  

Those  measures  designed  to  amend  non-essential  elements  of  this  Regulation  by 
supplementing it shall be adopted in accordance with the regulatory procedure with 
scrutiny referred to in Article 11(2). 

Article 6 
List of monitoring organisations 

The  Commission  shall  publish  the  list  of  the  monitoring  organisations  recognised  by  the 
competent authorities in the Official Journal of the European Union, C series, and shall make 
it available on its website. The list shall be regularly updated. 

Article 7 
Monitoring measures 

1. 

Competent authorities  shall carry out  checks  to  verify  if  operators  comply  with  the 
requirements set out in Article 3(1) and (2) and Article 4(1). 

EN 

19 

   EN 

 
2. 

3. 

1. 

2. 

1. 

2. 

Operators  shall  offer  all  assistance  necessary  to  facilitate  the  performance  of  the 
checks referred to in paragraph 1. 

Following  the  checks  referred  to  in  paragraph  1  the  competent  authorities  may 
request the operator to take corrective measures.  

Article 8 
Records of checks 

Competent  authorities  shall  keep  records  of  the  checks  referred  to  in  Article  7(1), 
indicating  in  particular  their  nature  and  results,  including  any  corrective  measures 
requested to be taken. Records of all checks shall be kept for at least 10 years. 

A summary of the records referred to in paragraph 1 shall be made available to the 
public in accordance with Directive 2003/4/EC. 

Article 9 
Cooperation 

Competent  authorities  shall  cooperate  with  each  other  and  with  administrative 
authorities of third countries and with the Commission in order to ensure compliance 
with this Regulation. 

The  competent  authorities  shall  exchange  information  on  the  results  of  the  checks 
referred  to  in  Article  7(1)  with  the  competent  authorities  of  other  Member  State(s) 
and with the Commission. 

Article 10 
Competent authorities  

1. 

Each Member State shall designate one or more competent authorities responsible for 
the application of this Regulation.  

Member  States  shall  inform  the  Commission  of  the  names  and  addresses  of  the 
competent  authorities  by  31  December  20XX  at  the  latest.  Member  States  shall 
inform the Commission of any changes to the names or addresses of the competent 
authorities.  

2. 

The Commission shall make publicly available the list of the competent authorities. 

Article11 
Committee 

The  Commission  shall  be  assisted  by  the  Committee  on  Timber  Trade,  hereinafter 
referred to as the ‘Committee’ 

Where  reference  is  made  to  this  paragraph,  Article  5a  (1)  to  (4)  and  Article  7  of 
Decision  1999/468/EC  shall  apply,  having  regard  to  the  provisions  of  Article  8 
thereof.  

20 

   EN 

1. 

2. 

EN 

 
Article 12 
Amendments 

The  Commission  may  amend  the  list  of  timber  and  timber  products  set  out  in  the  Annex 
taking into account technical characteristics, end-uses and production processes.  

Those  measures  designed 
this  Regulation  by 
supplementing it shall be adopted in accordance with the regulatory procedure with scrutiny 
referred to in Article 11(2). 

to  amend  non-essential  elements  of 

Article 13 
Penalties 

The Member  States  shall  lay  down  the rules on penalties  applicable to  infringements  of the 
provisions  of  this  Regulation  and  shall  take  all  measures  necessary  to  ensure  that  they  are 
implemented. The penalties provided for must be effective, proportionate and dissuasive. The 
Member States shall notify those provisions to the Commission by 31 December 20XX and 
shall notify it without delay of any subsequent amendment affecting them. 

Article 14 
Reporting 

1. 

2. 

Member  States  shall  submit  to  the  Commission  by  30  April  of  every  second  year 
following the date of application of this Regulation a report on the application of this 
Regulation during the previous two years. 

On the basis of those reports the Commission shall draw up a report to be submitted 
to the European Parliament and to the Council every two years. 

Article 15 
Entry into force 

This Regulation shall enter into force on the seventh day following that of its publication in 
the Official Journal of the European Union. 

It shall apply from […]15. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

15 

Note to OJ: two years after the date of entry into force of this Regulation. 

EN 

21 

   EN 

 
                                                 
ANNEX -Timber and timber products as classified in the Combined Nomenclature set out in 
Annex I to Council Regulation (EEC) No 2658/8716, to which this Regulation applies 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

12. 

The products set out in Annexes II and III of Council Regulation (EC) 2173/2005, to 
which the FLEGT licensing scheme applies; 

Pulp  and  paper  of  Chapters  47  and  48  of  the  Combined  Nomenclature,  with  the 
exception of bamboo-based and recovered (waste and scrap) products;  

Wooden furniture of CN code 9403 30, 9403 40, 9403 50 00, 9403 60 and 9403 90 
30; 

Prefabricated buildings of CN code 9406 00 20; 

Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips 
or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, 
briquettes, pellets or similar forms of CN code 4401;  

Builders’ joinery and carpentry of wood, including cellular wood panels, assembled 
flooring  panels,  shingles and shakes,  wood  (including strips and friezes for parquet 
flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, 
V-jointed,  beaded,  moulded,  rounded  or  the  like)  along  any  of  its  edges,  ends  or 
faces, whether or not planed, sanded or end-jointed of CN code 4418; 

Particle  board,  oriented  strand  board  (OSB)  and  similar  board  of  wood  whether  or 
not agglomerated with resins or other organic binding substances of CN code 4410; 

Fibreboard of wood or other ligneous materials, whether or not bonded with resins or 
other organic substances of CN code 4411; 

Densified wood, in blocks, plates, strips or profile shapes of CN code 4413 00 00;  

Wooden  frames  for  paintings,  photographs,  mirrors  or  similar  objects  of  CN  code 
4414 00; 

Packing  cases,  boxes,  crates,  drums  and  similar  packings,  of  wood;  cable-drums  of 
wood;  pallets,  box  pallets  and  other  load  boards,  of  wood;  pallet  collars  of  wood; 
coffins of CN code 4415; 

Casks,  barrels,  vats,  tubs  and  other  coopers’  products  and  parts  thereof,  of  wood, 
including staves of CN code 4416 00 00.  

16 

Council Regulation (EEC) No 2658/87 of 23 July 1987on the tariff and statistical nomenclature and on 
the Common Customs Tariff (OJ L 256, 7.9.1987, p. 1).. 

EN 

22 

   EN 

 
                                                 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

NAME OF THE PROPOSAL: 

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  laying 
down  the  obligations  of  operators  who  place  timber  and  timber  products  on  the 
market. 

2. 

ABM / ABB FRAMEWORK 

Policy Area(s) concerned and associated Activity/Activities: 

0703 – Implementation of Environmental Policy 

3. 

BUDGET LINES 

3.1. 

Budget  lines  (operational  lines  and  related  technical  and  administrative 
assistance lines (ex- B..A lines)) including headings: 

N/A 

3.2. 

Duration of the action and of the financial impact: 

N/A 

3.3. 

Budgetary characteristics (add rows if necessary): 

Budget 
line 

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

EN 

23 

   EN 

 
 
 
 
 
 
 
 
4. 

SUMMARY OF RESOURCES 

4.1. 

Financial Resources 

4.1.1. 

Summary of commitment appropriations (CA) and payment appropriations (PA) 

EUR million (to 3 decimal places) 

Year 
2010 

Year 
2011 

Year 
2012 

Year 
2013 

Year 
2014 

Year 
2015 

Total 

Expenditure type 

Section 
no. 

Operational expenditure17 

Commitment Appropriations 
(CA) 

8.1. 

Payment 
(PA) 

Appropriations 

a 

b 

Administrative expenditure within reference amount18 

Technical  &  administrative 
assistance (NDA) 

8.2.4. 

c 

TOTAL REFERENCE AMOUNT 

Commitment 
Appropriations 

Payment Appropriations 

a+c 

b+c 

Administrative expenditure not included in reference amount19 

Human 
associated 
(NDA) 

resources 

and 
expenditure 

8.2.5. 

d 

Administrative  costs,  other 
than  human  resources  and 
not 
associated 
included 
reference 
in 
amount (NDA) 

costs, 

8.2.6. 

e 

0.334  0.334 

0.334 

0.334 

0.334 

0.334 

2.004 

0.122  0.122 

0.122 

0.122 

0.122 

0.122 

0.732 

Total indicative financial cost of intervention 

TOTAL CA including cost 
of Human Resources 

TOTAL  PA  including  cost 
of Human Resources 

a+c
+d+
e 

b+c
+d+
e 

0.456  0.456 

0.456 

0.456 

0.456 

0.456 

2.736 

0.456  0.456 

0.456 

0.456 

0.456 

0.456 

2.736 

17 
18 
19 

Expenditure that does not fall under Chapter xx 01 of the Title xx concerned. 
Expenditure within article xx 01 04 of Title xx. 
Expenditure within chapter xx 01 other than articles xx 01 04 or xx 01 05. 

EN 

24 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Co-financing details 

If  the  proposal  involves  co-financing  by  Member  States,  or  other  bodies  (please 
specify  which),  an  estimate  of  the  level  of  this  co-financing  should  be  indicated  in 
the table below (additional lines may be added if different bodies are foreseen for the 
provision of the co-financing): 

EUR million (to 3 decimal places) 

n + 1 

n + 2 

n + 3 

n + 4 

Year 
n 

n  +  5 
and 
later 

Total 

Co-financing body 

…………………… 

TOTAL  CA  including  co-
financing 

f 

a+c
+d+
e+f 

4.1.2.  Compatibility with Financial Programming 

(cid:58) 

(cid:133) 

(cid:133) 

Proposal is compatible with existing financial programming. 

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial 
perspective. 

Proposal  may  require  application  of  the  provisions  of  the  Interinstitutional 
Agreement20 (i.e. flexibility instrument or revision of the financial perspective). 

4.1.3.  Financial impact on Revenue 

(cid:58) 

(cid:133) 

Proposal has no financial implications on revenue 

Proposal has financial impact – the effect on revenue is as follows: 

Budget line 

Revenue 

EUR million (to one decimal place) 

Situation following action 

[Year 
n] 

[n+1] 

[n+2] 

[n+3] 

[n+4]  [n+5]

21

Prior to
action 
[Year n-
1] 

a) Revenue in absolute terms 

b) Change in revenue 

 ∆ 

20 
21 

See points 19 and 24 of the Interinstitutional agreement. 
Additional columns should be added if necessary i.e. if the duration of the action exceeds 6 years 

EN 

25 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
4.2. 

Human Resources FTE (including officials, temporary and external staff) – see 
detail under point 8.2.1. 

Annual requirements 

Year n 

n + 1 

n + 2 

n + 3 

n + 4 

n + 5 
and 
later 

Total  number  of  human 
resources 

5. 

CHARACTERISTICS AND OBJECTIVES 

5.1. 

Need to be met in the short or long term 

… 

5.2. 

Value-added  of  Community  involvement  and  coherence  of  the  proposal  with 
other financial instruments and possible synergy 

… 

5.3. 

Objectives, expected results and related indicators of the proposal in the context 
of the ABM framework 

… 

5.4.  Method of Implementation (indicative) 

(cid:58)  Centralised Management 

(cid:133) 

(cid:133) 

directly by the Commission 

indirectly by delegation to: 

(cid:133) 

executive Agencies 

(cid:133) 

bodies set up by the Communities as referred to in art. 185 of the 
Financial Regulation 

(cid:133) 

national public-sector bodies/bodies with public-service mission 

(cid:133) 

Shared or decentralised management 

(cid:133)  with Member states 

(cid:133)  with Third countries 

(cid:133) 

Joint management with international organisations (please specify) 

Relevant comments: 

EN 

26 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
6. 

MONITORING AND EVALUATION 

6.1.  Monitoring system 

… 

6.2. 

Evaluation 

6.2.1.  Ex-ante evaluation 

… 

6.2.2.  Measures taken  following  an intermediate/ex-post evaluation (lessons learned from 

similar experiences in the past) 

… 

6.2.3.  Terms and frequency of future evaluation 

… 

7. 

ANTI-FRAUD MEASURES  

… 

EN 

27 

   EN 

 
8. 

DETAILS OF RESOURCES 

8.1. 

Objectives of the proposal in terms of their financial cost 

Commitment appropriations in EUR million (to 3 decimal places) 

Type of output 

Av. 
cost 

Year n 

Year n+1 

Year n+2 

Year n+3 

Year n+4 

Year n+5 and 
later 

TOTAL 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

of 

(Headings 
Objectives, 
and 
actions 
outputs should be 
provided) 

OPERATIONAL 
OBJECTIVE  No.1 
22……… 

Action 
1………………. 

- Output 1 

- Output 2 

Action 
2………………. 

- Output 1 

Sub-total 
Objective 1 

OPERATIONAL 
OBJECTIVE  No.2 
1……… 

Action 

22 

As described under Section 5.3 

EN 

28 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
1………………. 

- Output 1 

Sub-total 
Objective 2 

OPERATIONAL 
OBJECTIVE  No.n 
1 

Sub-total 
Objective n 

TOTAL COST 

EN 

29 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.2. 

Administrative Expenditure 

8.2.1.  Number and type of human resources 

Types of post 

Staff to be assigned to management of the action using existing and/or 
additional resources (number of posts/FTEs) 

Year 2010  Year 2011  Year 2012  Year 2013  Year 2014   Year 2015 

1 

0.5 

1 

0.5 

1 

0.5 

1 

0.5 

1 

0.5 

Officials or 
temporary 
staff23 (XX 01 
01) 

A*/AD 

1 

B*, 
C*/AST 

0.5 

Staff  financed24  by  art. 
XX 01 02 

Other  staff25  financed by 
art. XX 01 04/05 

TOTAL 

1.5 

1.5 

1.5 

1.5 

1.5 

1.5 

8.2.2.  Description of tasks deriving from the action 

Tasks include drafting of implementing provisions and managing meetings. 

8.2.3. 

Sources of human resources (statutory) 

(cid:133) 

(cid:133) 

(cid:133) 

(cid:58) 

(cid:133) 

Posts currently allocated to the management of the programme to be replaced 
or extended 

Posts pre-allocated within the APS/PDB exercise for year n 

Posts to be requested in the next APS/PDB procedure 

Posts  to  be  redeployed  using  existing  resources  within  the  managing  service 
(internal redeployment) 

Posts required for year n although not foreseen in the APS/PDB exercise of the 
year in question 

23 
24 
25 

Cost of which is NOT covered by the reference amount 
Cost of which is NOT covered by the reference amount 
Cost of which is included within the reference amount 

EN 

30 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
8.2.4.  Other  Administrative  expenditure  included  in  reference  amount  (XX  01  04/05  – 

Expenditure on administrative management) 

Budget line 

(number and heading) 

EUR million (to 3 decimal places) 

Year 
n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5  

and 
later 

TOTAL 

Technical 

1 
and 
assistance (including related staff costs) 

administrative 

Executive agencies26 

Other 

technical 

and 

administrative 

assistance 

- intra muros  

- extra muros 

Total  Technical  and  administrative 
assistance 

8.2.5.  Financial cost of human resources and associated costs not included in the reference 

amount 

Type of human resources 

Year 
2010 

Year 
2011 

Year 
2012 

Year 
2013 

Year 
2014  

Year 
2015  

EUR million (to 3 decimal places) 

0.234 

0.234 

0.234 

0.234 

0.234 

0.234 

Officials  and  temporary  staff 
(XX 01 01) 

Staff  financed  by  Art  XX  01 
02  (auxiliary,  END,  contract 
staff, etc.) 

(specify budget line) 

cost 

Total 
of  Human 
Resources  and  associated 
costs 
in  reference 
amount) 

(NOT 

0.234 

0.234 

0.234 

0.234 

0.234 

0.234 

Calculation– Officials and Temporary agents 

26 

Reference should be made to the specific legislative financial statement for the Executive Agency(ies) 
concerned. 

EN 

31 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
The standard salary for 1 official or temporary staff as foreseen in Point 8.2.1 is 0,117M€. 

Calculation– Staff financed under art. XX 01 02 

N/A 

8.2.6. Other administrative expenditure not included in reference amount 

EUR million (to 3 decimal places)

Year 
2010 

Year 
2011 

Year 
2012 

Year 
2013 

Year 
2014  

Year 
2015  

TOTAL 

XX 01 02 11 01 – Missions 

0.002 

0.002 

0.002 

0.002 

0.002 

0.002 

0.012 

XX 01 02 11 02 – Meetings & Conferences 

XX 01 02 11 03 – Committees27  

0.120 

0.120 

0.120 

0.120 

0.120 

0.120 

0.72 

XX 01 02 11 04 – Studies & consultations 

XX 01 02 11 05 - Information systems 

2 

Total 

Other  Management 

0.122 

0.122 

0.122 

0.122 

0.122 

0.122 

0.732 

Expenditure (XX 01 02 11) 

3  Other 

expenditure 

administrative 
including reference to budget line) 

nature 

of 

an 
(specify 

expenditure, 
than  human  resources  and 
in 

Total  Administrative 
other 
associated  costs  (NOT 
reference amount) 

included 

0.122 

0.122 

0.122 

0.122 

0.122 

0.122 

0.732 

Calculation - Other administrative expenditure not included in reference amount 

From 2010 2 missions per year at cost of EUR 1.000 per mission. 

Meetings of the Regulatory Committee established under the Regulation (unit cost:30.000 € 
per meeting) 4 times a year. 

27 

Specify the type of committee and the group to which it belongs. 

EN 

32 

   EN