What is the EU Timber Regulation?

The EU Timber Regulation (EUTR) came into force in 2013 prohibiting the placing of illegally harvested timber in the European market. The regulation is a major part of the EU’s effort to reduce deforestation and protect at risk tree species by removing the demand from the EU market.

Who does it affect?

actorsThe regulation classifies two types of businesses responsible for complying with the EUTR, affecting those based both within and outside the European Union.

Operators:

Any person or business who first places timber on the market. Operator’s must maintain records of any traders that you supply timber to and implement a due diligence system.

Traders:

Any person or business who sells or buys timber or timber products that have already been placed on the EU market. As a trader you must maintain and keep records for at least ten years of 1) those who supplied the timber product to you 2) those you have supplied the timber products to.

How to comply with the EU Timber Regulation

It is the responsibility of businesses who trade timber and timber based products into the EU to ensure their products are legal by implementing a due diligence system.

The due diligence system is made up of three core principles: Information gathering, risk assessment and risk mitigation.

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The regulation does not prescribe a specific method of implementation. Operators are able to use existing systems or those of a third party monitoring organisation. For more advice refer to government guidance in individual EU member states. The EUTR is enforced at a member state level.

EUTR Compliance Management

The ability to gather accurate information from your supply chain is essential to the compliance process, but a major challenge for those with complex global supply chains.

RADIX Tree is our solution to this challenge, providing businesses with an efficient data management platform to connect with your supply chain partners, and they to connect with their own.

Information Gathering On RADIX Tree

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The platform works like a social network, suppliers and clients are invited to connect online to build a supply chain network. Your suppliers share due diligence information with you – such as species, country of harvest, volume and certificate number. Data is encrypted and stored securely.datashared2

warningsystemRisk Assessment Using RADIX Tree

With all the due diligence data in one place, it can now be assessed by the user or by a monitoring organisation and other third parties. The verification system alerts users to potential risk of non-compliance – for example if a supplier fails to declare the species of the raw material – allowing for prompt action.

Two of the core requirements of compliance – information gathering and risk assessment – are all facilitated through RADIX Tree.

A Complete Due Diligence Solution

nepconalerts2Global Traceability and the monitoring organisation NEPCon offer a joint service combining RADIX Tree with NEPCon’s LegalSource expertise. Companies are setup with an account tailored to validate supplier data to the requirements of the EUTR. A dedicated LegalSource expert is assigned to monitor the data for risk and if required can initiate actions to mitigate risk.

Interested in our EUTR compliance solutions? Read our case study – Creating an EUTR due diligence solution for the BHB, Germany’s DIY, Construction and Garden Products Trade Association

Contact us to discuss the right solution for your business.


Note: How will Brexit Affect the EUTR in the UK?

Until March 2019 all EU laws and regulations remain in force in the UK. The due diligence requirements of the EUTR are highly likely to be maintained and enforced in Britain following the EU exit negotiations.

The EUTR in the UK is enacted through the Timber and Timber Products (Placing on the Market) Regulation of 2013. As part of the Brexit process this will be repealed, reviewed and replaced with an equivalent British law. It is expected the same environmental standards will apply in order to maintain commonality with single market rules and a commitment to stopping the sale of illegal timber. “The UK has been among the leaders in implementing the EUTR, and all available information from the government, national NGOs, and the UK Timber Trade Federation suggests that the country remains fully committed to it.Forest Trends’ Jade Saunders and Kerstin Canby.

For further information download the Forest Trends information brief here.