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Legislation Details
The Illegal Logging Prohibition Bill 2011 was introduced to the Australian Parliament on 23 November 2011 with debate on the Bill to take place during the autumn session of Parliament scheduled for February and March 2012.
The prohibition for illegally logged timber and processing of illegally logged domestic raw logs will commence the day after the Bill enters into force, along with associated forfeiture, monitoring, investigation and enforcement provisions.
Once the legislation enters into force, importers of regulated timber products and processors will have two-years to comply with the due diligence requirements. During this time, the government will undertake further consultation to ensure industry is able to put the proper systems in place to meet the requirements.
Legislation details
The Bill will regulate timber products at two key points of entry onto the Australian timber market – at the border, for imported timber products, and at timber processing plants where domestically sourced raw logs are processed for the first time.
This initiative aligns with international initiatives, including measures developed by the United States and European Union, and further strengthens Australia’s leadership position in the Asia–Pacific region in promoting trade in legally harvested timber products.
The Bill will restrict the importation and sale of illegally logged timber in Australia in a number of ways:
- importing timber products containing illegally logged timber will be prohibited
- processing domestically grown raw logs that have been illegally logged will be prohibited
- importers of regulated timber products and processors of raw logs will be required to fulfil due diligence requirements
- the establishment of a comprehensive monitoring and investigation powers will help enforce the requirements of the Bill.
This legislation will be supported by continued bilateral cooperation with Asia—Pacific countries and multilateral engagement on forestry through existing forums.
Time to comply
Once the legislation enters into force, the government will consult with industry on the regulations underpinning the legislation, including the due diligence requirements. Due diligence will involve a three step process:
- Identifying and gathering information to enable the risk of procuring illegally logged timber to be accessed
- Assessing and identifying the risk of timber being illegally logged based on this information and
- Mitigating this risk depending on the level identified, where it has not been identified as negligible.
Industry will have two years from commencement of the Bill to establish and implement due diligence systems in accordance with the legislation before penalties apply. The due diligence requirements will provide industry with the flexibility to develop the most cost effective approach to complying with the legislation.
A declaration of compliance for imported timber products
The legislation also require importers to demonstrate compliance with the due diligence requirements of the Bill before they complete a customs import declaration at the border.
Domestic processors of raw logs will also be required to demonstrate their compliance with the due diligence requirements.
Legislative Instruments
In addition to the due diligence requirements, the Bill establishes a framework for the development of the operational detail which will be developed in consultation with industry and key stakeholders.
The key provisions to be addressed include:
- defining imported timber products for regulation
- defining due diligence requirements to minimise the risk of importers or domestic processors sourcing illegally logged timber products
- prescribing declaration requirements and
- establishing requirements for auditing and publishing information.
Penalties
Importers and processors suspected of importing or processing illegally logged timber products would be investigated and prosecuted if they intentionally, knowingly or recklessly import or process illegally logged timber products.
A maximum penalty of five years imprisonment or 500 penalty units, equivalent to $55 000 for an individual and $275 000 for a Corporation or body corporate, or both, applies under this offence.
Criminal offences will apply to importers and processors who do not comply with the due diligence requirements of the Bill. There is a maximum penalty of 300 penalty units, equivalent to a fine of $33,000 for an individual and $165 000 for a corporation or body corporate.
The Bill allows for the establishment of a comprehensive monitoring and enforcement regime, including the appointment of inspectors who have the power to monitor and investigate compliance with the Act.
Review
A review will be undertaken five years after the Bill is enacted. This will ensure ongoing improvement of the operational aspects and effectiveness of the legislative framework.
More information
23 Nov 2011