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2<br />

NEWSLETTER dEcEmbER 2012<br />

EU Timber Regulation –<br />

No Changes for <strong>MM</strong> <strong>Karton</strong> Customers<br />

The new European Union Timber Regulation No.<br />

995/2010 to ban illegal timber will go into effect<br />

on 3 March 2013. It prohibits the ‘first placing’ of<br />

illegally harvested timber and timber products on<br />

the EU market. <strong>MM</strong> <strong>Karton</strong> has long been dedicated<br />

to the objectives of this regulation.<br />

As a market leader, we set standards for the sustainable<br />

and responsible use of resources, particularly<br />

with regard to renewable raw materials.<br />

The new regulation prohibits the placing of illegally<br />

harvested timber and timber products on the<br />

EU market and requires EU traders who place timber<br />

products on the EU market for the first time to<br />

exercise due diligence.<br />

Compliance with the regulation should largely be<br />

covered by the current knowledge of our existing<br />

FSC and PEFC regulations, whereby the FSC-CW<br />

certification includes a risk assessment that can be<br />

used as a basis for the new ‘due diligence system’.<br />

The new regulation of the European Parliament<br />

and the Council of the European Union reinforces<br />

existing procedures and certification systems and<br />

aims to combat illegal logging and trade in illegally<br />

harvested timber and products derived from such<br />

timber. The regulation will also provide a legal basis<br />

for existing certification systems.<br />

Due Diligence Approach to Information<br />

and Minimising Risk<br />

Illegal logging and trade in illegal timber is a serious<br />

and increasing problem on the timber market.<br />

The PEFC and FSC chain of custody/controlled<br />

wood requirement prohibit the use of illegal timber<br />

in production. <strong>MM</strong> <strong>Karton</strong> works in accordance<br />

with the regulations set out by these standards.<br />

The new EU regulation defines criteria for the<br />

risk assessment including compliance with the<br />

applicable legislation, third party organisations<br />

as monitoring institutes, compliance with the UN<br />

Key points include:<br />

• The import of and trade with illegally harvested<br />

timber and timber products on the market is prohibited.<br />

• Traders and distributors must exercise due diligence<br />

when importing and placing timber and<br />

timber products on the market.<br />

• Traders across the entire supply chain must be<br />

able to identify the country of origin of timber and<br />

timber products.<br />

• EU Member States are legally bound to set penalties<br />

for infringements of the regulation.<br />

• The monitoring organisation responsible for ensuring<br />

compliance with the provisions has not<br />

yet been appointed.<br />

• The regulation covers round wood, firewood,<br />

chips, processed wood and paper products. It<br />

does not include printed papers and books that<br />

contain recycled materials.<br />

Mayr-Melnhof <strong>Karton</strong> and the compliance regulation<br />

The regulation and how it is to be implemented has<br />

not yet been fully defined – the possible method<br />

sanction on the import and export of timber and<br />

the supply chain as an integral part of the risk assessment<br />

system.<br />

The new regulation also calls for a procedure for<br />

assessing and minimising risk. <strong>MM</strong> <strong>Karton</strong> operates<br />

in accordance with the PEFC chain of custody,<br />

the FSC chain of custody and the FSC<br />

controlled wood requirement by using a<br />

proprietary traceability system and carrying<br />

out in-house checks.<br />

Topic<br />

of risk assessment is unknown and the monitoring<br />

organisation is yet to be determined. Nevertheless,<br />

based on current information, operators that<br />

already have rules and procedures in place that are<br />

in line with the requirements of the regulation are<br />

free to adapt existing systems.<br />

<strong>MM</strong> <strong>Karton</strong> and all of its cartonboard mills are oriented<br />

toward national and international compliance<br />

regulations. This applies to timber and timber<br />

products that are available on the market.<br />

The PEFC chain of custody, FSC chain of custody<br />

and FSC controlled wood requirements apply to<br />

the ban on illegally harvested timber and to the<br />

bans on the following:<br />

• Timber harvested in violation of traditional or civil<br />

rights.<br />

• Timber harvested in forests where high conservation<br />

values (forests with a high ecological or<br />

social value) are threatened by management activities.<br />

• Timber harvested in natural forests being converted.<br />

• Timber from forests including genetically modified<br />

trees.

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