Illegal Logging Questions and Answers

What is the Australian Government’s new policy on combating illegal logging?

The government’s new policy on illegal logging will:

• restrict the importation of illegally–logged timber products into Australia
• require suppliers to undertake a due diligence procedure to verify the legality of the timber they source
• implement a trade description for legally verified timber products and specify the circumstances under which it can be used.

A trade description for legally verified timber products will give consumers an assurance of the legal origins of the timber products they purchase and will enable industry to publicly demonstrate their environmental credentials.

The policy is multi–faceted and will be implemented through co–regulation, continued bilateral cooperation with other countries in the region and multilateral engagement on forestry though existing forums.

The policy delivers on the government’s 2010 election commitment to restrict the sale of illegally logged wood in Australia by introducing legislation that would make it an offence to import any timber products into Australia that have not been legally harvested.

What are the benefits of the Australian Government’s new policy?

A restriction on the importation of illegally logged timber products into Australia and a due diligence requirement for sourcing legally harvested timber will:

• promote global trade in legally–logged timber products
• stop unfair competition in Australia between legally–harvested and illegal–harvested timber, and create a level playing field for domestic timber producers
• encourage investment in the Australian timber industry, enhance business profitability and increase employment in the sector
• provide greater certainty for businesses and consumers that timber products sold in Australia are from legal sources
• contribute to an increase in legal timber production by a larger proportion of overseas timber producers
• help reduce deforestation, forest degradation and the harmful environmental, social and economic impacts of illegal logging
• contribute to a global approach to combating illegal logging by taking action that is complementary to that being adopted by the European Union and the United States.

What are the regulatory elements of the new policy?

There are three regulatory elements to the government’s new illegal logging policy:

1. Restrictions will be placed on the importation of illegally logged timber products into Australia. Offences and penalties will be established under legislation.
2. There will be a requirement for timber suppliers who place timber onto the Australian market at the first point of entry to undertake due diligence requirements that:
   
   1. assess the risk of sourcing illegal timber
   2. implement legality verification procedures commensurate with the risk identified
   3. disclose the species, country of harvest and any certification of timber in accordance with the legislation.
3. A trade description for legally verified timber products will be introduced that will give consumers an assurance of the legal origins of the timber products they buy. This trade description will also enable industry to publicly demonstrate their environmental credentials.

Who is affected by this new policy?

• Timber suppliers who place timber on the market at the first point of entry, that is timber importers and domestic wood processing mill operators.

Will timber retailers be affected?

• Timber suppliers further along the supply chain, such as timber merchants, wholesalers and retailers, will not be required to directly verify the legal origins of the timber they purchase. However, there will be a requirement for these operators to maintain accurate and up–to–date records of their transactions of legally–sourced timber products.

What timber products will be covered by the new policy?

• The policy will apply to solid timber, manufactured and processed wood products, such as sawn timber, wood panels, composite products, veneer, wooden furniture and pulp and paper.

When will the legislation come into effect?

• The restriction on the import of illegally logged timber into Australia will come into upon commencement of the new legislation.
• Australian timber importers and domestic processing mills will be given two years from commencement to establish their due diligence systems in accordance with the legislation.

Has industry been consulted during the development of the new policy?

• There has been extensive consultation with industry during the development of the regulation impact statement, which assessed the costs and benefits of different policy options.
• The Department of Agriculture, Fisheries and Forestry met with peak industry bodies and industry representatives in the development of this policy.
• The government will continue to consult with industry as key aspects of the policy are developed.

How will the due diligence element of the policy be implemented?

• The due diligence requirements of the legislation are to be established in industry codes of conduct (codes) for relevant product sectors.
• Codes are to be developed by industry and accredited by the Minister for Agriculture, Fisheries and Forestry.
• Australian timber importers and domestic timber mills who first place timber onto the Australian market, will be required to become signatories to a relevant code of conduct.
• Operators who place timber products onto the Australian market for the first time who are not an accredited signatory to a code of conduct will face penalties under the legislation.
• Code signatories will be required to:
• 1. have their due diligence systems verified as compliant with a Commonwealth approved code of conduct before they can place timber products on the Australian market,
  2. undertake an independent audit of compliance of their timber purchases with a relevant code of conduct on an annual basis, and
  3. provide an annual compliance report to a relevant code administration authority.
• The code administration authorities will be required to administer codes of conduct in accordance with the legislation and to report on signatories’ compliance performance to the Australian Government.
• Relevant Australian Government departments and agencies will monitor and enforce compliance with the legislation.

How will the government inform stakeholders of the new requirements?

An outreach program will inform both domestic and overseas stakeholders of the government’s new legislation and its requirements. Information will be made available to raise awareness and understanding through targeted promotional and instructional material. Information will address a range of issues including:

• the restriction on the import and sale of illegally logged timber products in Australia
• the due diligence requirements for placing timber products on the Australian market at the first point of entry, including code of conduct requirements
• conditions of use for the new trade description
• the timeframes for implementing the new policy.

Where can I find out more?

• To find out more about the policy announcement and its implementation, please visit illegal logging, or email.