Illegal logging law coming soon

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Wednesday, 28 March 2012 00:00

The final detailed form of the Australian Government's Illegal Logging Prohibition legislation is still under debate, but the broad requirements are now clear. Very substantial penalties—up to five years jail and/or confiscation of timber—will apply to those who are found to have imported illegally harvested timber products or processed illegally harvested Australian logs.

The new law will compel importers and domestic processors to follow a set due diligence process to demonstrate that they have done the utmost to minimise the risk that their timber has been illegally harvested. In addition, importers will be required to make a binding declaration at the border that they have undertaken the required due diligence. Companies that fail to do so will face a range of stiff fines.

The specific due diligence requirements remain unclear. The legislation still under discussion lays out requirements in broad terms; future regulations will provide the details.

Of particular interest to our industry is the protection offered by a number of certification schemes. Product certification to Australian Forestry Standards, other PEFC recognised schemes or FSC is expected to comply with the due diligence requirements. Schemes such as the Indonesian SVLK system (Timber Legality Assurance System), are very likely to be acceptable as well. However, until the regulations are passed, this remains uncertain.

TDA is working to ensure that the requirements of the regulations are fair, credible and achievable at lowest cost to our industry. With funding from the timber industry and Forest and Wood Products Australia, TDA has begun a "Due Diligence Guidance" project to survey a wide range of timber companies (small and large) on their current practices. Once this is established, TDA will work closely with industry to set a minimum benchmark for due diligence. We hope to see industry suggestions incorporated into the regulations.

While the commencement date is currently unknown, the legislation is expected to pass into law in late 2012. The bottom line for timber suppliers and importers: start reviewing your supply chains now. If any high risk sources or products are identified, work with your suppliers to use appropriate certifications or other means to mitigate risk.

TDA is developing a website to keep industry informed and to publish guidance resulting from this FWPA sponsored project: www.illegallogging.com.au

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