City, Country Date, 2013

Transcription

1 City, Country Date, 2013

2 Introduction to International Policies & Conventions Impacting Timber Trade

3 Timber Timber is one of the most valuable wildlife commodities in trade.

4 Illegal Logging what is it? The extraction, processing, transport and sale of timber in breach of law

5 Illegal Logging why does it matter? The World Bank Group estimates market value of global annual losses from illegal cutting of forests in public lands at over $10 billion. G8 Action Program on Forests Illegal logging robs national and subnational governments, forest owners and local communities of significant revenues and benefits, damages forest ecosystems, distorts timber markets and forest resource assessments and acts as a disincentive to sustainable forest management.

6 Many People Care about Forests and make their feelings known by protesting against governments and traders Prey Lang Network

7 Tackling the Problem - Three Approaches Governance and Supply- side Behaviour Change of Producers Demand- based Governance and forest control in producer countries Be legal, sustainable forest management, certification, etc. Responsible consumption, Public procurement, Import regulation

8 Governance and Supply- side Where is illegal timber coming from? Indonesia has progressed since this chart was prepared in 2004 WORLD BANK 2006; Data source: SENECA CREEK 2004

9 Governance and Supply- side Producing Countries Revise Strengthen Enhance - Improve Forestry policies Forestry legislation Timber trade controls Institutional capacity (human resources, equipment, mechanisms, training etc.) Enforcement Cooperate With other stakeholders (eg. with NGOs, private sector) With other countries

10 Behaviour Changes of Producers Achieving legality, assuring others that your products are legal. Be Legal Code of Practice / Guidelines Improve Harvesting Practice (Reduce Impact Logging) Join Stepwise Programmes (GFTN, TFT, Smartwood s Smartstep) Third Party Verification of Legality (eg. Verified Legal Origin (VLO) & Verified Legal Compliance (VLC)) Chain- of- Custody (CoC) Certification Certification Schemes

11 Demand based Consuming Countries Actions taken in importing markets to stop illegal timber and timber products from entering their territory: Responsible consumption Public procurement Import regulation

12 International Policies and Conventions Conven3on on Interna3onal Trade in Endangered Species of Wild Fauna and Flora (CITES) European Union Timber Regula3on (EUTR) and Voluntary Partnership Agreements (VPA) Australian Illegal Logging Prohibi3on Act (AILPA) Lacey Act Worldwide trade EU imports Australian imports USA imports

13 CITES Aims to regulate international trade in wild species of plants and animals and ensure that this does not threaten their survival. An agreement between governments (178 so far) Considered to be the only international mechanism that could regulate international trade in wild species, including timber.

14 CITES Monitoring system Requirement for sustainable harvesting CITES Requirement to follow national laws of exporting countries Enforced through national laws

15 CITES In effect since 1973 Member states (Parties) enforce CITES through national legislation. Covers around 34,000 species named in one of three lists (or Appendices). Regulations vary according to whether they appear in Appendix I, II or III.

16 CITES All imports and exports of any CITES- listed species must be registered. A permit is required for the export of any CITES- listed species (check to see if you also need an import permit). You are breaking the law if you fail to do this. CITES- listed timber species, e.g.: Ramin (Gonystylus spp. eg. Gonystylus bancanus) Thai Rosewood (Dalbergia cochinchinensis)

17 EU - FLEGT European Union Ac.on Plan FLEGT = Forest Law Enforcement, Governance & Trade. European Union response to the problem of illegal logging and trade in associated 3mber products

18 EU - FLEGT The EU is one of the most important export markets for countries where levels of legality and poor governance in the forest sector are most serious. The 28 EU countries are among the world s largest consumers of timber and timber products.

19 FLEGT Action Plan Adopted in 2003 Aims to address illegal logging and related trade Combination of supply and demand measures: FLEGT voluntary partnership agreements Due diligence or EU Timber Regulation Public procurement policies Technical and financial assistance

20 FLEGT Addressing the problem of conflict timber Support to timber exporting countries Use existing laws or adopting new legislation Action Plan Activities to promote trade in legal timber Safeguards for financing and investment Support for private sector initiatives Promoting public procurement policies

21 Forest Law Enforcement Governance & Trade Two key elements: FLEGT Action Plan Voluntary Partnership Agreements (VPA) European Union Timber Regulation (EUTR)

22 Voluntary Partnership Agreements Between the EU and timber producing countries to ensure that only legally harvested timber and timber products are imported into the EU from participating countries. These are voluntary bilateral agreements Producing Countries VPA EU Countries Legally Timber Product

23 Voluntary Partnership Agreement Increase trade in guaranteed legal timber between FLEGT partner countries and the EU Set up control and licensing systems to provide a Government- backed guarantee of legality Provide financial, technical and institutional support to improve forest governance

24 Voluntary Partnership Agreement (VPA) European Union VPA - agreement finished - System development phase VPA - agreement under negotiation

25 National/Regional Policies Importers of timber or timber products to the EU, USA or Australia must take steps to ensure that their import is legal. European Union Timber Regula3on (EUTR) Australian Illegal Logging Prohibi3on Act (AILPA) Lacey Act EU imports Australian imports USA imports They rely on their suppliers for assurance and/or proof that such timber is legal.

26 National/Regional Policies Operating in these markets requires that you keep your suppliers happy, legal and free from risk of prosecution EU USA Australia Remember they are relying on you to assist them. If you cannot or do not, you may lose their business.

27 National/Regional Policies - Overlaps

28 National/Regional Policies - Overlaps Wood in rough, Wood sawn, chipped lengthwise, Sheets of veneer, Con3nuously shaped wood, Plywood, Wooden frames, Builders joinery, doors Par3cleboard, Fibreboard of wood, Densified wood, Casks, barrels, Mechanical wood pulp, Chemical wood pulp, soda or sulphate, Chemical pulp, Chemical wood pulp, sulphite, Mechanically and chemically recovered wood pulp, Newsprint, Uncoated wri3ng paper, Toilet 3ssue, uncoated kram paper and paperboard, Other uncoated paper/paperboard, Glazed/ translucent papers, Composite paper/paperboard, Corrugated paper/paperboard, Carbon and self- copy paper, Coated paper/ paperboard, Paper products coated/surfaced, CigareSe paper cut or not, Other than 4908 carbon paper, Envelopes, cards, Toilet, sanitary paper, Cartons, boxes made of paper, Paper books/booklets, Paper labels, Other paper, Office wooden furniture, Kitchen wooden furniture, Bedroom wooden furniture, Other wooden furniture, Furniture parts including wood, Prefabricated buildings. Seats wooden frame, other Seats wooden frame, upholstered.

29 European Union Timber Regulation (EUTR) Relatively new - 3 March EU operators must not place illegally harvested timber and timber products on the EU market. At the time of writing this is yet to be tested in court.

30 European Union Timber Regulation (EUTR) Penalties will be set by each EU Member State These must be effective, proportionate and dissuasive. They may include: Fines Proportionate to: Cost of environmental damage caused; Loss in tax; Economic detriment; and Value of the timber or timber product. Seizure Of timber or timber products Suspension Of authorisation to trade (immediate)

31 Australian Illegal Logging Prohibition Act (AILPA) New - 29 November Prohibits the import of illegally logged timber and the processing of illegally logged raw wood Act was passed in Draft Amendment issued May 2013, expected to enter into law November 2014

32 Australian Illegal Logging Prohibition Act (AILPA) Maximum penalties that may be applied are: five years imprisonment, and/or AUD$ for an individual, and/or AUD$ for a corporation or body corporate. AILPA has not yet been tested in court.

33 USA - the Lacey Act Old To combat trafficking in illegal wildlife, fish or plants. Amended in Timber added. Aims to: Prevent trade in illegally harvested timber. Prevent trade in wood products made from illegally harvested lumber.

34 USA - the Lacey Act Two major components: A ban on the trade in any plant harvested, possessed, transported, or sold in violation of the law* A requirement to declare the scientific name, value, quantity and country of harvest for some products In addition to these, it is illegal to falsify or submit falsified documents, accounts or records of any plant covered by the Act * applies to US and overseas laws and trade

35 US Lacey Act Penalties: Varies according to whether it is found that you knew you were committing an offence and the value of the illegal goods involved Felony 5 years in prison and $250,000 fine (individual) $500,000 fine (corporation) Misdemeanor 1 year in prison and $100,000 fine (individual) $200,000 fine (corporation) Tested many times

36 US Lacey Act Prosecutions Example 1 Gibson Guitar Corporation Gibson Guitar Corp., makers of some of the world s most prized guitars. Admitted to possible illegal purchases of ebony from Madagascar and agreed to pay a $300,000 penalty.

37 US Lacey Act Prosecutions Example 2 Style Craft Furniture Co. Ltd. a Chinese manufacturer of baby furniture pleaded guilty to the international smuggling of protected wood The Company was sentenced, accordingly to the terms of a plea agreement, and had to pay $40,000 fine and serve three years probation. They were also required to place advertisements in two publications; one in China and one in the USA telling industry members of their actions and the consequences.