Prof. dr Branko Glavonjić University of Belgrade Faculty of Forestry Regulation N° 995 for wood construction and especially to sawmills business

I.The main reasons for adoption of new EUTR? II. Processes that preceded the adoption of new EUTR III. Aim of the new EUTR and list of products covered by it IV. The main actors and their obligations in the process of implementation of EUTR V. Position of operators from non-EU countries in the context of the new EUTR CONTENTS

I. Main reasons for adoption of new EUTR

EU: Import of illegal harvested roundwood

26,5 – 31 million m³ of illegal harvested roundwood equivalent/annually are placed on EU timber market EU: Balance of illegal harvested timber and timber products trade

Illegal logging and trade in the World 15% - 30% of the total timber trade in the world originated from illegal logging 30 – 100 Billion US$ is the value of global trade of illegal timber 50% - 90% of the value of the global trade of illegal timber is under organized crime

Illegal logging and related large- scale deforestation has been a global problem for many decades and has resulted in extensive and negative environmental, social and economic impacts. To tackle this problem, the European Union, USA and Australia have implemented new regulations banning illegal wood products on their markets. II. Processes that preceded the adoption of new EUTR

G8 DIALOG ABOUT ILLEGAL LOGGING G8 DIALOG ABOUT ILLEGAL LOGGING FLEGT ACTION PLAN FLEGT ACTION PLAN FLEGT Regulation FLEGT Regulation FLEGT REGULATION ABOUT IMPLEMENTATION FLEGT REGULATION ABOUT IMPLEMENTATION FLEG PROCESS FLEG PROCESS TIMBER REGULATION EU TIMBER REGULATION II. Processes that preceded the adoption of new EUTR

EU FLEGT Action Plan EU FLEGT Action Plan (since 2003) EU Timber Regulation Nr. 995/ Application Reg. VO (EU) Nr. 607/2012 FLEGT-VPA (=Volontary Partnership Agreements) VO (EU) Nr. 2173/2005 Importing countries Voluntary Partnership Agreement (VPA): Bilateral agreement between EU and exporting countries, aimed at assisting to exporting countries to strengthen their monitoring and control procedures for their forestry industry to ensure that all timber and timber products are legally harvested. II. Processes that preceded the adoption of new EUTR

III. Aim of the new EUTR and list of products covered by it

Three key obligations of operators who place timber and timber products on the market are: 1. prohibition of placing of illegally harvested timber and products derived from such timber on the EU market; 2. implementation of due diligence system 3. keeping of records of their suppliers and customers. III. Aim of the new EUTR and list of products covered by it

The EUTR covers a large range of timber products including solid wood products, flooring, plywood, pulp and paper. Not included are recycled products, as well as printed papers such as books, magazines and newspapers Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms 4403 Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared 4406 Railway or tramway sleepers (cross-ties) of wood III. Aim of the new EUTR and list of products covered by it

4407 Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness exceeding 6 mm 4408 Sheets for veneering (including those obtained by slicing laminated wood), for plywood or for other similar laminated wood and other wood, sawn lengthwise, sliced or peeled, whether or not planed, sanded, spliced or end- jointed, of a thickness not exceeding 6 mm 4409 Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sanded or end-jointed III. Aim of the new EUTR and list of products covered by it

4410 Particle board, oriented strand board (OSB) and similar board (for example, waferboard) of wood or other ligneous materials, whether or not agglomerated with resins or other organic binding substances 4411 Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other organic substances 4412 Plywood, veneered panels and similar laminated wood Densified wood, in blocks, plates, strips or profile shapes III. Aim of the new EUTR and list of products covered by it

Wooden frames for paintings, photographs, mirrors or similar objects 4415 Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums of wood; pallets, box pallets and other load boards, of wood; pallet collars of wood Casks, barrels, vats, tubs and other coopers’ products and parts thereof, of wood, including staves 4418 Builders’ joinery and carpentry of wood, including cellular wood panels, assembled flooring panels, shingles and shakes III. Aim of the new EUTR and list of products covered by it

Pulp and paper of Chapters 47 and 48 of the Combined Nomenclature, with the exception of bamboo-based and recovered (waste and scrap) products , , , and Wooden furniture Prefabricated buildings III. Aim of the new EUTR and list of products covered by it

IV. The main actors and their obligations in the process of implementation of EUTR COMPETENT AUTHORITIES MONITORING ORGANISATIONS OPERATERSTRADERS

1. Competent authorities Each Member State shall designate one or more competent authorities responsible for the application of this Regulation. Main obligations: 1.Defining of the rules and instructions 2.Defining of the penalties 3.Controlling Member states are currently defining the criteria for legality as well as what will be expected from local forestry operators in terms of evidence of compliance and due diligence to be provided in case of controls. IV. The main actors and their obligations in the process of implementation of EUTR

A Monitoring organization should: (a)maintain and regularly evaluate a due diligence system and grant operators the right to use it; (b) verify the proper use of its due diligence system by such operators; (c) take appropriate action in the event of failure by an operator to properly use its due diligence system, including notification of competent authorities in the event of significant or repeated failure by the operator. 2. Monitoring organization An independent organization that develops a Due Diligence System and makes it available to operators for their compliance with EUTR. IV. The main actors and their obligations in the process of implementation of EUTR

3. Obligations of operators Operators and Traders shall ensure that no timber of illegal origin or illegally derived timber products enter the European market. Operators shall exercise due diligence system when placing timber or timber products on the market. Each operator shall maintain and regularly evaluate the due diligence system which it uses, except where the operator makes use of a due diligence system established by a monitoring organization ’’. IV. The main actors and their obligations in the process of implementation of EUTR

The due diligence system contains the following elements: a) Measures and procedures providing access to information on products to be placed on the market b) Risk assessments on products to identify illegal origin of products c) Mitigation measures if the risk of importing illegal products is known as not negligible IV. The main actors and their obligations in the process of implementation of EUTR

1. description, including the trade name and type of product as well as the common name of tree species and, where applicable, its full scientific name, 2. country of harvest, and where applicable: (i) sub-national region where the timber was harvested; and (ii) concession of harvest, a) Measures and procedures providing access to information on products to be placed on the market contains: IV. The main actors and their obligations in the process of implementation of EUTR

3. quantity (expressed in volume, weight or number of units), 4. name and address of the supplier to the operator, 5.name and address of the trader to whom the timber and timber products have been supplied, 6. documents or other information indicating compliance of those timber and timber products with the applicable legislation; IV. The main actors and their obligations in the process of implementation of EUTR

1. assurance of compliance with applicable legislation, which may include certification or other third-party- verified schemes which cover compliance with applicable legislation, 2. prevalence of illegal harvesting of specific tree species, 3. prevalence of illegal harvesting or practices in the country of harvest and/or sub-national region where the timber was harvested, including consideration of the prevalence of armed conflict, b) Risk assessments on products to identify illegal origin of products contain: IV. The main actors and their obligations in the process of implementation of EUTR

4. sanctions imposed by the UN Security Council or the Council of the European Union on timber imports or exports, 5. complexity of the supply chain of timber and timber products. b) Risk assessments on products to identify illegal origin of products contain: IV. The main actors and their obligations in the process of implementation of EUTR

1. Where a non negligible level of risk is identified or when the risk level can not be determined, the operator must undertake mitigation measures to eliminate any potentially illegal timber. 2. Risk mitigation measures must be adequate and proportionate to effectively minimize any potential risk and may require additional information, documents and/or third-party verification. 3. Certification or other Third-party Verification Schemes may be taken into account in risk assessment and risk mitigation procedures in accordance with the criteria described by the EU Regulation 607/2012/EC. c) Mitigation measures if the risk of importing illegal products is known as not negligible are: IV. The main actors and their obligations in the process of implementation of EUTR

4. Obligations of Traders Traders buying or selling timber or timber products in the EU, must be able to identify following actors in the supply/value chain: 1. The operators or the traders who have supplied the timber and timber products, 2. Client to whom the timber or timber products were sold (if the identification is applicable) Traders have to keep the information at least five years and provide that information to competent authorities if they so request. IV. The main actors and their obligations in the process of implementation of EUTR

5. Penalties The penalties must be effective, proportionate to caused demage and dissuasive, comprising: (a)environmental damage, (b) the value of the timber or timber products concerned, (c) the tax losses, (d) economic detriment resulting from the infringement. (e) seizure of the timber and timber products concerned; (f) immediate suspension of authorization to trade. IV. The main actors and their obligations in the process of implementation of EUTR

V. Position of operators from non-EU countries in the context of the new EUTR Serbia doesn’t have VPA with EU – Due diligence system is still not required FOLLOWING DOCUMENTS with EU importers must contain: – General data about supplier and buyer (company name, address,...) – Type of goods (description, including the trade name and type of product as well as the common name of tree species and, where applicable, its full scientific name) – Quantity (m 3, weight, number of units)

DELIVERY NOTE from state forests – General data about goods-description, quantity – sub-national region where the timber was harvested (Serbiaforest, FU Nova Varoš) DELIVERY NOTE from private forest owners – General data about goods-description, quantity – Private property where the timber was harvested CERTIFICATION – Desirable but not sufficient condition V. Position of operators from non-EU countries in the context of the new EUTR

Example of export of roundwood to the EU State forest DELIVERY NOTE Private forest DELIVERY NOTE Roundwood spruce Certificate of legality Country of harvest (Serbia)

EXAMPLE OF EXPORT OF FURNITURE to the EU SPRUCE BEECH OAK COUNTRY OF HARVEST (Serbia) COUNTRY OF HARVEST Bosnia and Herzegovina 3 different wood species State forests „DELIVERY NOTE Private forests “DELIVERY NOTE” Country of harvest Croatia State forests „DELIVERY NOTE Private forests “DELIVERY NOTE” State forests „DELIVERY NOTE Private forests “DELIVERY NOTE”

THANK YOU FOR YOUR ATTENTION Prof.dr Branko Glavonjic University Professor Faculty of Forestry Belgrade State University Department of technology, management and design of furniture and wood products Kneza Viseslava 1, Belgrade Republic of Serbia tel fax