1. How do I know if my timber or timber products come under the scope of the Timber Regulation?
The Timber Regulation (EUTR 995/2010) applies to the timber and timber products specifically referred to in the Annex to the Regulation (Article 2(1a)). Thus, the Regulation is solely applied to the timber and timber products that are classified in the Annex in accordance with the Combined Nomenclature.
The customs heading of the product is entered on the customs declaration in connection with the import clearance. This heading determines whether the product comes under the scope of the Timber Regulation. Finnish Customs is the competent authority in matters concerning customs headings. Contact the Customs Information Service for more information on whether your product belongs to the product groups listed in the Annex to the Timber Regulation.
Under Article 14 of the Timber Regulation, the Commission may amend and supplement the list of timber and timber products set out in the Annex.
2. What is meant by ‘illegally harvested timber’?
‘Illegally harvested timber’ means timber harvested in contravention of the applicable legislation in the country of harvest. ‘Applicable legislation’ means the legislation in force in the country of harvest covering the following matters:
- rights to harvest timber within legally gazetted boundaries;
- payments for harvest rights and timber, including duties related to timber harvesting;
- timber harvesting, including environmental and forest legislation including forest management, and biodiversity conservation, where directly related to timber harvesting;
- third parties’ legal rights concerning use and tenure that are affected by timber harvesting; and
- trade and customs insofar as the forest sector is concerned.
3. Which products are outside the scope of the Timber Regulation?
The Timber Regulation does not apply to recycled products or printed paper, such as books, magazines and newspapers.
Such items as cardboard boxes and wooden pallets come under the scope of the Regulation if they have been imported as products (for example, if they are used for packing or transporting Finnish-made products). However, products that are solely used to support, protect or carry another product placed on the market do not come under the scope of the Regulation.
If the import (import clearance) concerns a product that has been packed in a cardboard box, the cardboard box in question does not come under the scope of the Regulation because it is used to protect another product placed on the market.
4. Does the Timber Regulation apply to timber harvested in Finland?
The Regulation applies to Finnish forest owners. The legality of the timber harvested in Finland must be demonstrated by means of the existing supervision systems laid down in the Forest Act.
The forest use declaration is the basis of the supervision system laid down in the Finnish Forest Act. For an operator (forest owner), due diligence consists of a forest use declaration plus a certificate of inspection and measurement on delivery, as laid down in the Timber Measurement Act.
The forest use declaration and the certificate of inspection and measurement on delivery must be retained for at least five years. The Finnish Forest Centre keeps the forest use declarations for more than five years, and thus forest owners do not need to retain copies of the declarations.
5. Am I an operator or a trader?
A company that comes under the scope of the Timber Regulation and that sells and buys timber or timber products must determine whether it is an operator or a trader.
You are an operator if you place timber or timber products on the internal market of the EU for the first time for distribution or use in the course of a commercial activity. You are not allowed to place illegally harvested timber or timber products on the EU market, and you or your company must comply with a due diligence system.
You are considered an operator also if you are a Finnish forest owner and sell timber. A forest use declaration and a certificate of inspection and measurement on delivery are considered a due diligence system. You are a trader if you sell or buy – for commercial purposes – timber or timber products already placed on the EU market. Retain supplier and customer information for five years so that the origin of the timber can be traced.
Example 1
A company buys wooden furniture from a supplier in China and sells them to retailers on the internal market of the EU.
=> The company in question is an operator because it places the timber products on the internal market of the EU for the first time.
Example 2
A company sells wooden crates that it has bought from a supplier in Germany.
=> The company in question is a trader because it buys the products on the internal market of the EU.
6. What are the obligations of an operator?
Operators must follow due diligence when placing timber and timber products on the market. This is because placing on the market illegally harvested timber or timber products derived from such timber is prohibited. For this reason, operators must use what is called a ‘due diligence’ system.
A due diligence system includes measures and procedures intended to allow operators to trace the origin of timber and timber products and obtain information on compliance with the applicable legislation. Based on the information that they have compiled, operators must assess the risks of any illegal activity in the preceding supply chain. Provisions on the due diligence systems are included in Article 6 of the Timber Regulation (EUTR 995/2010) and Articles 2–5 of the Implementing Regulation (EU 607/2012).
The operator may use their system or systems provided by EC-approved monitoring organisations. The operator must regularly maintain and assess their due diligence system unless the operator uses a system provided by a monitoring organisation. The obligations of operators are laid down in Article 4 of the Timber Regulation.
7. What are the obligations of a trader?
To ensure origin tracing, those trading in timber and timber products must keep records of their suppliers and customers.
Traders must, throughout the supply chain, be able to identify:
- a) the operators or the traders that have supplied the timber and timber products;
- b) where applicable, the traders to whom they have supplied timber and timber products.
The above information must be retained for at least 5 years. The obligations of traders are laid down in Article 5 of the Timber Regulation.
8. Do I have to keep records of the sales of timber and timber products to consumers?
No, you do not have to.
9. What is meant by ‘due diligence system’?
Operators must exercise due diligence when placing timber on the EU market. Operators must minimise the risk that the timber originates from an illegal source or that a product derives from illegally harvested timber. This means that operators must use a risk management system, which is called a due diligence system. A due diligence system is based on the following:
- Access to information: Operators must have access to information on the timber and timber products, country of harvest (and where applicable, sub-national regions and concessions), tree species, quantity, details of the suppliers and traders and details of compliance with national legislation.
- Risk assessment: The operators must assess the risk of illegal timber in their supply chain on the basis of the above information and considering the risk assessment criteria laid down in the Timber Regulation.
- Risk mitigation: If the assessment shows that the risk of illegal timber in the supply chain is not negligible, the risk can be reduced by taking further measures, such as by requiring additional information and verification from suppliers.
10. What is meant by a ‘monitoring organisation’?
The task of the monitoring organisations is to assist operators in the compliance with the requirements laid down in the Regulation. For this purpose, the monitoring organisations prepare a due diligence system, grant operators the right to use the system and check that the system is used correctly.
Under the Timber Regulation, a private or public legal person established in the EU that has set up a due diligence system in accordance with the requirements laid down in the Regulation may act as a monitoring organisation. The monitoring organisation meeting the requirements of the Regulation must have appropriate expertise and the capacity to exercise the functions laid down for it without any conflicts of interest.
Operators may use their own systems or systems provided by monitoring organisations recognised by the European Commission. An operator must regularly maintain and assess their due diligence system unless the operator uses a system provided by a monitoring organisation.
A list of the monitoring organisations is published in the C series of the Official Journal of the European Union and on the Commission’s website. A list of the recognised monitoring organisations can be viewed on the Commission’s website.
If a company does not have a due diligence system of its own or a system provided by a monitoring organisation, it may ask an organisation representing the interests of the sector for such a system.
11. Does the Timber Regulation have any effect on import clearance practices and the required certificates?
The Regulation does not bring any changes to the import clearance practices.
12. What is meant by a ‘guidance document’?
The purpose of the guidance document is to clarify a number of sections of the Timber Regulation and to provide guidelines for their interpretation. However, the guidance document is not legally binding as its purpose is to serve as an interpretation guide for competent authorities in the Member States and the parties to whom the obligations of the Timber Regulation apply.
The Guidance document was compiled in cooperation between stakeholders, experts from Member States and members of the FLEGT Committee.
13. Do CITES or FLEGT licences meet the requirements of the Timber Regulation?
Yes. A CITES or a FLEGT licence is sufficient, and a due diligence system is not required for CITES- or FLEGT-licensed products.
Further information:
14. Are certificates and other systems verified by third parties a sufficient proof of legality?
No, they are not.
Only products covered by FLEGT or CITES meet the requirements of the Timber Regulation without a due diligence system.
Certificates and other systems verified by third parties may be part of the risk assessment and mitigation measures. With regard to certified timber or timber products, the risk that they contain illegally harvested timber is negligible provided that the rest of the information gathered in connection with the risk assessment do not contradict such a conclusion.
Voluntary origin tracing systems which fulfil the requirements of the EU Timber Regulation (EUTR 995/2010) may be used as a basis for the due diligence system. The credibility of a certification system or other third-party system must be assessed in accordance with the criteria listed in Article 4 of the Commission Implementing Regulation (607/2012). For more information about the matter, see also section 6 of the EUTR Guidance document.
15. What are the tasks of the competent authority?
In Finland, the competent authority is the Finnish Food Authority. The Finnish Food Authority implements risk-based supervision for ensuring that the operators, traders and monitoring organisations fulfil their obligations so that illegally harvested timber or timber products derived from such timber are not placed on the EU market. The Finnish Food Authority inspects the due diligence system and the related documents and practices. In addition, the Finnish Food Authority inspects the operations of monitoring organisations and ensures that traders meet the traceability obligation.