AHEC Update Confusion
AHEC Update Confusion Reigns As Consultations Begin On Implementation Of New European “Illegal Timber Legislation” (ITL) The final version of the ITL was adopted by the European Council on October 11, 2010 with a “phase in” period of 27 months being set aside (until the beginning of 2013) to clarify the regulations and to give time for development of the required implementation procedures by the European Member States and traders. The time will be necessary as unfortunately there seems to be several areas of confusion and even outright contradictions within the legislation. The ITL includes a general “prohibition” against the “placing on the EU market of illegally harvested timber or timber products derived from such timber.” This is combined with a requirement that all EU importers and primary producers implement a so-called “due diligence system.” This system must include procedures to assess the risk of all wood supplies being derived from illegal sources and for risk mitigation. Mitigation actions might include provision of extra information or third party verification and are required in all instances except where risks of illegal logging are identified as “negligible.” It was clear from discussions at the recent International Timber Trade Federation meetings in Geneva that there is widespread support for the legislation amongst European trade associations. However, equally clear was the continuing level of confusion – even amongst those that have been following the process for some time - over its real implications. The situation has not been helped by changes to the wording of the legislation - introduced at the very last minute – which seem to obscure rather than clarify the obligations to be placed on wood suppliers to the EU, for example with regards to traceability. The European Commission has been mandated to further develop implementation measures and guidelines and EC officials at the meeting stated that “consultation starts now” and that they would welcome inputs from all interested parties. AHEC used the meeting, backed by follow-up correspondence with the European Commission and European trade associations, to explain the American Hardwood sector’s approach to legality verification. This combines the evidence of the 2008 Seneca Creek study that there is a negligible risk of any American Hardwood coming from an illegal source, with existing obligations on U.S. exporters to by MICHAEL SNOW Executive Director American Hardwood Export Council Reston, Va. provide documentation demonstrating products are of U.S. origin (including invoices, phytosanitary certificates and Shipper Export Declaration Forms). Nevertheless, AHEC has yet to have formal confirmation from the EC that this approach will be sufficient and AHEC still has work to do to ensure that no additional and potentially costly demands for documentation are placed on American Hardwood exporters. A concern expressed by both temperate and tropical suppliers was the apparent lack of a co-ordinated approach to due diligence in the EU as each national importing association appears to be developing a different system. As a result exporters to different European markets face the prospect of being bombarded with a huge number of complex and varying requests for information. There was a call for unified approach, particularly with respect to the process of supplier risk assessment. AHEC emphasized their leadership role in supplier risk assessment, through commissioning of the Seneca Creek study in 2008, and stressed the value of this study as a potential model for other regions seeking to demonstrate “negligible risk” to European importers. The American Hardwood Export Council (AHEC) is the leading international trade association for the U.S. Hardwood industry, representing the committed exporters among U.S. Hardwood companies and all major U.S. Hardwood product trade associations. AHEC maintains offices in Japan, Europe, Southeast Asia, China and Mexico, in addition to its Reston, Va., headquarters, to serve the needs of the global community. For additional information on the Convention as well as additional overseas activities, please contact AHEC by phone at 703/435- 2900, or by email at msnow@ahec.org. • 16 Hardwoods...A Renewable Resource
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