Timber purchasing decisions heavily influenced by EUTR

Timber purchasing decisions heavily influenced by EUTR

Much timber trade policy discussion in the EU now focuses heavily on developments in the EU Timber Regulation (EUTR) which, given its scope covering nearly all timber products and importing companies in the EU, is having a significant effect to influence purchasing decisions, particularly in relation to tropical timber products.

The latest European Timber Trade Federation newsletter is said to includ details of the European timber trade’s views on the implementation and enforcement of EUTR.

Information on the latest EUTR developments is also provided in a regular briefing note issued by UNEPWCMC in its capacity as a consultant to the European Commission and based on information provided by the Member States Competent Authorities (CAs).

Drawing on a survey of 20 CAs in the second half of 2017, the latest UNEP-WCMC briefing provides details of EUTR compliance checks performed and penalties imposed to enforce EUTR implementation.

The respondents reported conducting checks on more than 467 domestic operators, 388 importing operators, 300 traders dealing with domestic timber, 177 traders dealing with imported timber and three monitoring organisations, over the period June-November 2017.

The report also includes a summary of the latest FLEGT/EUTR Expert Group meeting in Brussels during April where it notes that “some Member States reported substantiated concerns regarding companies placing timber from high-risk countries on the EU market, including from Myanmar and Brazil.

The conclusion of the EUTR Expert Group meeting of 20 September 2017 was reiterated and it is still not possible for operators to demonstrate compliance with EUTR due diligence obligations as regards timber imports from Myanmar”. According to WCMC-UNEP, the FLEGT/EUTR Expert Group meeting in April also included a presentation on a TAIEX mission to Ukraine which reported that “a substantial corruption risk can be found in every supply chain and is widespread throughout the country however, there was not enough public information available to convince EU operators of the risks”.

Eurostat data shows that in 2017 the EU imported EUTR regulated products with a total value of €950 million from Ukraine, which compares to €554 million in 2013 when the EUTR was first introduced, a 72% increase.

EU timber imports from Ukraine comprise a wide range of products, led by sawn hardwood and softwood and veneers, mainly destined for Poland, Germany, Romania, Hungary and Italy.

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