Timber trade legality experience from Australia
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1 Timber trade legality experience from Australia John Halkett General Manager Australian Timber Importers Federation Inc. IWPA World of Wood Annual Convention March Las Vegas, NV
2 IWPA World of Wood Annual Convention Global Wood Products Legality Assurance Systems Like mother s milk...
3 IWPA World of Wood Annual Convention Global Wood Products Legality Assurance Systems Imported timber products have got to be good for you!
4 IWPA World of Wood Annual Convention Global Wood Products Legality Assurance Systems Why?
5 IWPA World of Wood Annual Convention Global Wood Products Legality Assurance Systems Imported timber products Stimulate innovation in timber product development, building applications and market expansion Make timber products either not manufactured domestically or not available in the quantities or specifications demanded available for residential and commercial building
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8 IWPA World of Wood Annual Convention Global Wood Products Legality Assurance Systems Imported timber products Grow the size of the market for all timber products Assist in improving domestic wood processing international competitiveness Provide substantial employment in building and construction industries that would not exist with imported timber products
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12 Australia s total import trade in wood-based products (1) Department of Agriculture, Fisheries and Forestry Illegal Logging Prohibition Act 2012 Illegal Logging Prohibition Amendment Regulation 2013 July
13 Australia s total import trade in wood-based products (2) Department of Agriculture, Fisheries and Forestry Illegal Logging Prohibition Act 2012 Illegal Logging Prohibition Amendment Regulation 2013 July
14 Quarterly hardwood timber imports by source Quarterly imports of wood panels and engineered wood products by source
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17 Why did the Australian Government need to illegal logging legislation? In the absence of direct intervention, illegal timber products will continue to be imported into Australia. Illegally logged timber imports compete directly and undercut the commercial performance of timber that has been legally harvested. Government action will complement the global approach of the US, EU, UK and others.
18 Australian legislation outline Legislation: Illegal Logging Prohibition Act 2012 (immediate high level prohibition) Illegal Logging Prohibition Amendment Regulation 2013 (effective from November 2014) Information gathering Due Diligence process Customs declaration
19 Illegal Logging Prohibition Act 2012 Criminal prosecution if importers knowingly, intentionally or recklessly import products containing illegally logged timber. Civil offences for not complying with due diligence requirements and the requirement to provide a declaration at the time of import. Due diligence and risk mitigation processes necessary. Monitoring, investigation and enforcement powers including civil penalty orders and an infringement notice scheme.
20 Illegal Logging Prohibition Amendment Regulation 2013 (effective from November 2014) Regulation mandates the need to: 1. Obtain information prescribed for imported regulated timber products. 2. Carry out due diligence and risk mitigation to satisfy yourself as an importer that regulated timber products are not, as far as can be reasonably and practicably be determined, processed from illegally harvested logs. 3. Make a declaration to Customs about compliance with due diligence requirements when imports are cleared from the port of entry.
21 Illegal Logging Prohibition Act 2012 Industry challenges Runs the risk of making timber products less competitive against other building products. The cost to Australian importers, as a percentage of the imported wholesale value of timber products likely to be in the order of %. Where elements of legality assurance systems do not exist they will need to be developed. The legislation needs to support rather than diminish the development of an effective timber importing sector.
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23 IWPA World of Wood Annual Convention Global Wood Products Legality Assurance Systems The Legality Compliance Toolkit has been prepared in plain, practical language and is intended to assist Australian timber product importers understand and comply with illegal logging legislation.
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