Brexit and the EUTR

The latest news, reports and statements on Brexit and how this will effect EUTR enforcement in the UK and Europe.

canopy-leaves_thin

UK Government advice on the effect of a no-deal Brexit

(Updated 19th December 2018)

“When the UK leaves the EU, EU law will no longer apply. We will implement our own UK timber regulation and UK FLEGT regulation, which will have the same requirements as the EUTR and EU FLEGT regulations”

Placing timber on the UK market

“In a ‘no deal’ scenario, businesses importing timber from the EU and EEA and placing it on the UK market would have to exercise due diligence to demonstrate that they are importing legally harvested timber.

This is what businesses currently have to do when they import timber from the rest of the world.

Exporting timber to the EU and EEA

To continue to comply with the EUTR, EU and EEA businesses would be required to apply due diligence to imports from the UK. As a result, it is likely that UK-based exporters would need to provide relevant documentation about the source and legality of their timber exports to EU and EEA-based importers to enable their customers to meet their due diligence obligations under the EUTR.

These due diligence systems would vary business by business. The documents UK businesses should provide will need to allow EU importers of UK products to fulfil the due diligence requirements of the EUTR given above. EU and EEA businesses importing timber from the UK that is covered by a CITES import permit will not need to conduct due diligence”

Read the full guidance.


UK Government provides Memo on the UK’s EUTR replacement

Any changes to the EUTR’s product scope will be replicated in UK version of the regulation.

‘The following matters will be addressed in that later instrument…Amending the annexes that refer to the product scope of the EU timber regulation’

Read the full memo


Analysis

TTF: No-deal Brexit papers releases – Here’s what it means for the timber trade

TTF: Theresa May’s Withdrawal Deal would provide transition period to prevent trade cliff edge after Brexit – But unlikely to pass. November 2018.

UK Committed to EUTR standards post-Brexit:

“When the UK leaves the EU, the Withdrawal Bill will make sure the whole body of European environmental law continues to have effect in UK law. That [includes] two regulations that the UK timber sector played a great role in shaping: the European Union Timber Regulation and the Forest Law Environment Governance and Trade Regulation,” she said. “We are committed to supporting sustainable and legal timber and forest industries and recognise the value of the EUTR and the EU FLEGT initiative in assuring this.” Therese Coffey parliamentary under-secretary of state at DEFRA.

Forest Trends analysis of the impact of Brexit on wood imports:

“A weakened British Pound coupled with a UK-wide recession could reduce the demand for all goods, but it’s difficult to predict how Brexit will affect the demand specifically for wood imports. It is safe to say that the impacts of a devalued pound are already being felt by exporters of forest products to the UK. However, the likelihood of a recession is less well-understood. The UK was the fastest-growing among all advanced economies in 2016 according to the IMF, and forecasts for 2017 have been revised upward since the Brexit vote. It should be noted, however, that the UK has not yet left the single market, and it is therefore impossible to predict how the change will impact on its economy.

Should Brexit lead to a recession, the timing of a possible impact on wood importers would depend on a number of factors. For example, since the UK plans to leave the single market, it is likely to import less from EU furniture-manufacturing centers in Poland and Romania – opening the door for non-EU manufacturers to become more competitive in the UK market. However, it should be noted that the UK aim of negotiating an Agreement of tariff-free trade with the EU — as well as a Customs Agreement, which would likely necessitate equivalent import tariffs for trade with non-EU countries — makes such a shift less certain.” First published January 2017.