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In e-update 40 we provided details of the Department’s timber identification trial (trial).

This work formed part of the government’s illegal logging budget measure to support legislative reforms, and considered various timber identification testing methods to determine their optimal use under reformed illegal logging laws. We worked with Australian and international experts and service providers to design the trial, which concluded in June 2024.

What the trial involved:

In close collaboration with the department, an Australian laboratory purchased regulated timber products from the Australian market. These products included wooden hair combs, paper drinking straws and construction timber. Product samples were sent to reputable third-party laboratories both in Australia and overseas for testing against existing reference databases to determine species and/or origin. 

The trial utilised a range of scientific timber testing techniques, including:

• wood anatomy analysis
• fibre analysis 
• DNA analysis 
• stable isotope ratio analysis 
• trace element analysis.

Over 170 products were collected from 40 retailers or traders across 45 locations in 4 states. Over 670 tests were performed by four participating laboratories on most of these products.

In addition to the timber testing undertaken by laboratories, we obtained portable timber imaging equipment to trial the accuracy and usability of screening applications outside laboratory settings. This included Xylotron and Xylorix devices.

Departmental officers received specialised training from experts on product sampling and preparation and analysis of results for various testing techniques. 

Under the budget measure, we also explored IT solutions for streamlining data collection and management of declarations. This included supporting the expansion of a global timber testing reference database.

While not an official part of our trial, in April this year departmental officers attended an International Wood ID Workshop in Bogor, Indonesia. Officers gained exposure to a range of leading Wood ID researchers. The department will draw from this experience when shaping implementation options for future timber testing activities.

What we learned

Testing results

Approximately 25% of products tested were found to have results indicating an inconsistency with declared species and/or origin. 

It is important to note that the selection of products under this study were based on a risk-assessment process. Therefore, they are not representative of the entire Australian market, but rather a subset of products identified as higher risk.

However, these results suggest illegally logged products are making their way onto the Australian market. While misrepresentation of products does not indicate illegality, these findings emphasise the importance of taking your due diligence requirements seriously to mitigate the risk of importing or processing timber from illicit sources. 

The legislative reform of our illegal logging laws aims to ensure they remain fit-for-purpose and aligned with international best practice to protect the Australian market from illegally logged timber. 

Key findings

Outcomes of this trial focused on understanding the workings of timber testing and results have not been used for compliance purposes. However, the trial provided useful market insights, including identifying areas of concern regarding misrepresented and potentially illegally logged product.  

These insights reflect reports made by environmental NGOs and the media in terms of geographies and products. In particular, the trial found there to be:

• multiple instances of undeclared veneers and solid timber products of potential, or likely, Russian, or Eastern origins, spanning a range of retailers 
• a significant amount of undeclared content in paper products
• uncertainty around the origin of some products declared as Burmese teak
• misleading information for oak from the USA and Europe.

We urge importers to consider these insights when undertaking their due diligence activities, including the risk assessment, before importing a regulated timber product. 

Technologies 

Considering a range of available technologies confirmed there is no ‘one size fits all’ approach. Future use of these technologies under legislative reforms will likely include multiple technologies for different purposes—considering the speed, accuracy, accessibility, stage of development, and available reference data.  

Verification success

Laboratories used available or assumed species/origin to verify such claims using existing reference data to find a match. Where no information on the species or origin was available, identifying products was more challenging, as laboratories relied on a much wider range of reference datasets. 

This highlights the need for the department to receive species and origin information before timber and timber products enter our market. This supports a key reform under the Illegal Logging Prohibition Amendment Bill 2024 that will introduce a notification requirement.

Resources 

The trial emphasised the breadth of expertise and resources required to map on a global scale the array of timber genus or species worldwide. These resources are required on both a domestic and international level.

Our grant to World Forest ID is supporting the expansion of their global timber reference database to allow us to verify more species and origins of interest to Australia.

What’s next

We are analysing the final outcomes of the trial, including timber verification results, key learnings, and recommendations. 

We will use these findings to guide our approach in developing possible timber testing activities under legal reforms. 

We will continue to update you on the legislative reform process and future implementation as this work progresses. 

Consultation on draft Illegal logging Prohibition Rules

Public consultation on the Illegal Logging Prohibition Rules (rules) closed on 13 September 2024.

We sought feedback  on the rules from our stakeholders, including timber importers and processors, customs brokers, NGOs and other interested parties.

Over 100 participants joined the webinar that we hosted to explain the rules and wider legislative reforms. In total, we received 20 written submissions. We are considering all feedback as we further develop the draft rules into a final iteration for the Minister’s consideration.

Concerns around understanding due diligence requirements under the new arrangements and the availability of guidance material were consistent themes. This echoes similar concerns that were raised in submissions to the Senate’s Rural and Regional Affairs and Transport Committee inquiry into the Bill. We appreciate that this is a key concern among the regulated community and will develop thorough guidance material to support clear and consistent understanding of the new due diligence requirements.

Thank you to all who participated in the webinar, provided submissions and showed an interest in this work. We are encouraged by the level of support received and value the feedback on a wide range of matters which will help us take this work forward.

What’s next

The exact timing for when the current Act and Regulation will cease to be in force and the new Bill and rules will come into effect is not yet determined.

We will continue to engage with the regulated community about the transition to new arrangements and will provide notice before the new arrangements come into effect.

Until then, current due diligence requirements under the existing Regulation remain in force.

More information

The webinar was held on 29 August 2024, you can view the webinar and presentation slides at any time.

For more information on the illegal logging law reform process to date, visit our legislation reviews and consultation page.

Passage of the Illegal Logging Prohibition Amendment (Strengthening Measures to Prevent Illegal Timber Trade) Bill 2024

This special edition e-update provides an update on progress of the Illegal Logging Prohibition Amendment (Strengthening Measures to Prevent Illegal Timber Trade) Bill 2024 (the Bill). 

On 9 September 2024, the Bill was passed by the Australian Parliament and received Royal Assent on 17 September 2024. You can see the legal text of the Bill on the Federal Register.

What does this mean for me?

While this is a significant development for progress of reforms to Australia’s illegal logging laws, it is important to note that obligations under existing laws remain the same. The current Act and Regulation are still in force. Regulated entities must continue to meet their due diligence obligations under existing laws. The exact timing of the changeover to the new arrangements has not yet been determined. However, we anticipate a transition period before the Regulation’s sunsetting date of 1 April 2025. We will provide updates via our website and this newsletter when details are available.

What does the Bill do?

The Bill introduces new powers that will allow the department to:

• use timber identification technologies to verify species and origin claims on timber products
• address noncompliance in more ways 
• publish information such as anonymous timber testing results and details of contraventions of the laws 
• perform more efficient and effective compliance audits. 

The Bill also provides for the replacement of the Illegal Logging Prohibition Regulation 2012 with the Illegal Logging Prohibition Rules 2024 (the rules).

What about changes to due diligence requirements?

We are continuing to develop the Illegal Logging Prohibition Rules. These are intended to replace the existing Regulation at the same time as the Bill comes into force. The rules will streamline the due diligence process for timber importers and processors while effectively combatting illegally logged timber from entering the market. 

Public consultation on the draft rules closed on 13 September 2024. We are now working through submissions and feedback received. We would like to extend our thanks to all those that provided written submissions and feedback on the draft rules. If you missed our webinar on the draft rules, you can view the recording along with the Q&A session on our Have your Say page.

What’s next?

The exact timing for when the current Act and Regulation will cease to be in force and the new Bill and rules will come into effect is not yet determined. However, we anticipate a transition period sometime before April 2025. Until then, current due diligence requirements under the existing Regulation remain in force. 

We will continue to keep you updated on the process and provide notice before the new legislation comes into effect. We will provide supporting guidance material when the time comes to assist you in understanding the changes to your due diligence requirements.

For more information on the illegal logging law reform process to date, visit our legislation reviews and consultation page.

Updates from DAFF

• Consultation open—Draft Illegal Logging Prohibition Rules 2024.

International news

• Timber legality spotlight – Illegal timber detections

In other news

• Spotting fake documents in your due diligence system
• Have your Say—regulatory service delivery and stakeholder engagement

Events

• The International Tropical Timber Organisation (ITTO) - Global Legal and Sustainable Timber Forum

Updates from DAFF

Consultation open! Draft Illegal Logging Prohibition Rules 2024.

We are seeking feedback on the draft Illegal Logging Prohibition Rules 2024 (rules). These are intended to replace the current Illegal Logging Prohibition Regulation 2012 (the Regulation) ahead of it sunsetting (ceasing to have effect) on 1 April 2025.

The draft rules will implement further reforms identified in the Sunsetting Review of the Regulation in 2022 and identified in the Sunsetting Review Regulation Impact Statement published in 2023.

We will be holding a public webinar at 12PM (AEST) Thursday 29 August to explain the rules and the consultation process.

The consultation will remain open for feedback until 5PM (AEST) Friday 13 September.

For further details on the webinar, and to have your say on the draft rules, please visit our Have Your Say page

International News

Timber legality spotlight – Illegal timber detections

Wood Central recently published several articles relating to illegal timber:

• Traffickers smuggling teak wood and birch plywood
• Ukraine timber and organised crime
• Profits from illegal timber fuelling conflict

These findings are a timely reminder of the importance of meeting your due diligence requirements to gather sufficient, reliable information to adequately understand your supply chain/s. We offer a range of resources to help with this.

In other news

Take a look—Spotting fake documents in your due diligence system

To assist in detecting fake documents in your supply chain, Preferred by Nature’s Fake Documents Guide offers some useful tips and hints. The guide includes examples of forged documents, ways of distinguishing between genuine and fake documents and advice on what to do if you encounter fake documents.

Have your Say—Share your ideas for improving regulatory service delivery

Stakeholders are invited to provide feedback on how the wider department delivers regulatory services and engages with stakeholders.

This survey is relevant to everyone who engages with our regulatory activities, including for exports, biosecurity, imported food and the prohibition of illegal logging.

Visit the Have Your Say page to provide your feedback by 9:00AM AEST on 30 September 2024.

Events

Global Legal and Sustainable Timber Forum 2024 (GLSTF 2024)—together towards reliable and effective global timber supply chains

Date and venue:

11-12 September 2024, MGM COTAI, Macao SAR, China.

The GLSTF 2024 will provide timber-industry stakeholders the opportunity to network and collaborate with a view to strengthening support for sustainable forest management and the uptake of legal and sustainable wood product supply chains.

The International Tropical Timber Organization (ITTO) and Macao Trade and Investment Promotion Institute (IPIM) will be hosting this in person forum which is expected to attract participants from a wide range of timber-industry stakeholders including those with interests in trade, industrial and business associations, governments, international organizations, research institutions.

For more information on this forum visit the ITTO website, and GLSTF 2024 website to register.

Updates from DAFF

• Supporting trade in legally harvested products
• Information for exporters—European Union Deforestation Regulation

International news

• New Zealand’s Legal Harvest Assurance System
• China and Europe birch wood panels under the microscope

In other news

• Forest Stewardship Council webinar recording—Navigating Compliance with Australia’s Illegal Logging Prohibition Laws
• Programme for the Endorsement of Forest Certification (PEFC) webinar recording— European Union Deforestation Regulation
• Have your Say—future e-update topics

Updates from DAFF

Supporting trade in legally harvested products – CSGs and SSGs

We continue to engage with international and domestic counterparts to support markets for legally harvested timber. One way we do this is through the review and endorsement of Country Specific Guidelines (CSGs) and State Specific Guidelines (SSGs).

CSGs and SSGs are documents that have been developed and co-endorsed by the Australian Government with relevant partner governments. They help importers and processors to understand the legal frameworks used by other countries and Australian states that regulate timber harvesting. They may also set out some of the documents that you need to gather for due diligence.

Detailed information on the interactions between CSGs and SSGs and due diligence requirements is available on our website for importers (CSGs) and processors (SSGs).

CSGs and SSGs endorsed and listed for use under Australia’s illegal logging laws are featured on these pages of our website. These webpages are updated as new CSGs and SSGs are finalised and given effect under legislation, and as outdated and superseded ones are removed. Only those CSGs and SSGs available on the webpage and given effect in the Regulation at the time of conducting your due diligence may be used when conducting a risk assessment.

We encourage you to complete our future topics survey or email IllegalLogging@aff.gov.au to suggest new countries to cover with CSGs or highlight needed updates to CSGs or SSGs.

European Union Deforestation Regulation

In 2023, the European Union (EU) introduced regulation aimed at restricting trade in products that are not ‘deforestation-free’ or ‘degradation-free’ according to the EU’s definitions. From 30 December 2024, the new deforestation regulation (EUDR) will require entities placing and making certain products available on the EU market—including cattle, cocoa, coffee, oil palm, rubber, soya, and wood—to meet certain conditions relating to the land on which they were produced. European importers and traders need to ensure the land has not been subject to deforestation or forest degradation since 31 December 2020.

We are engaging with stakeholders to understand their concerns with the EUDR requirements, and will raise appropriate matters with the EU to seek clarification. We have published an Industry Advice Notice providing an overview of the EUDR and the potential impact on Australian producers and exporters of affected commodities. As the EUDR is European legislation, questions on its implementation and interpretation are ultimately for the EU to clarify.

In relation to timber production and exports, it is important to note that the EUDR does not differentiate between different forest types when defining what constitutes deforestation. The regulation does not restrict export of timber from Australian native forests to the EU if the production has met certain conditions.

Further information on the regulation can be found on the our website. You can provide any views or raise any questions on EUDR directly with the department via europe.tmad@aff.gov.au.

International News

New Zealand’s new legal harvest system

The New Zealand Government is introducing a new legal harvest assurance system into law through the Forests (Legal Harvest Assurance) Amendment Act 2023. Under the legal harvest system, forest owners or those responsible for the harvest will need to provide legal harvest information to the log buyer.

For more information on what is proposed, including the first issues paper, and updates on the consultation process, visit the NZ Ministry Primary Industries website.

Launch of new Transaction Verification (TV) Loop

The Forest Stewardship Council (FSC) and Assurance Services International (ASI) announced the launch of a new TV loop for birch wood panels across the broader Eurasian area.

The TV loop is a verification process based on the FSC chain of custody standard that aims to detect and address any false claims or breaches of FSC requirements.

In other news

Forest Stewardship Council (FSC) webinar recording

Earlier this year the FSC facilitated a webinar titled ‘Navigating Compliance with Australia’s Illegal Logging Prohibition Laws’ in partnership with the Department of Agriculture, Fisheries and Forestry (DAFF) and Scientific Certification Systems (SCS) Global Services.

Tailored to importers and processors sourcing FSC-certified materials, the webinar provided information on how you can use FSC certification to assist with compliance with Australia’s laws.

Visit FSC’s website for a recap of the webinar and the access the webinar recording.

Programme for the Endorsement of Forest Certification (PEFC) webinar recording

In June 2024 PEFC hosted a webinar titled ‘On the path to EUDR alignment’. It provided an update on their advances in aligning sustainable forest management and chain of custody standards with EUDR requirements, as well as looking at the data and integrity elements.

Visit PEFC’s website to access the webinar recording.

Take our Survey—future e-update topics

Thank you to those who completed this survey since it launched in May.

The survey remains open to provide more subscribers the opportunity to influence the topics we cover in future e-updates.

We have designed this survey with topical matters in mind, and invite you to share which of these may be most relevant to your interests and business needs by completing the short questionnaire.

Provide feedback on the Illegal Logging Prohibition Amendment (Strengthening Measures to Prevent Illegal Timber Trade) Bill 2024

This special edition e-update provides an important update on progress of the Illegal Logging Prohibition Amendment (Strengthening Measures to Prevent Illegal Timber Trade) Bill 2024 (the Bill).

On 27 March 2024, the Australian Government introduced the Bill to the Australian Parliament, where it is now under debate in the House of Representatives.

As part of this process, on 16 May 2024 the Bill was referred to the Rural and Regional Affairs and Transport Legislation Committee for inquiry and report.

The inquiry is now open for public submissions, and the Committee is asking for input and comments on the Bill. There are no terms of reference for this inquiry, as the Committee is seeking comments on the Bill itself. Anyone can make a submission to comment on the Bill. You can find more information on the Bill, along with useful instructions on how to make and lodge a submission on the Parliament of Australia’s website.

The Committee has provided a deadline for submissions of 31 May 2024. Please note that this process and timeframe is managed by the Parliament of Australia, and we do not play a role.

For background information on the illegal logging legislative reform process to date visit our website.

Updates from DAFF

• Introduction of the Illegal Logging Amendment Bill to the Australian Parliament

International news

• Timber legality spotlight - Conflict timber
• EGILAT

In other news

• Future E-Update topics

Introduction of the Illegal Logging Amendment Bill

On 27 March 2024, the Australian Government introduced the Illegal Logging Prohibition Amendment (Strengthening Measures to Prevent Illegal Timber Trade) Bill 2024 to the Australian Parliament.

The Bill will implement improvements identified through both the Statutory Review of the Illegal Logging Prohibition Act 2012 (the Act) and the Sunsetting Review of the Illegal Logging Prohibition Regulation 2012 (the Regulation). Measures in the Bill will modernise and strengthen the Act, to better protect the Australian market from illegally harvested timber and timber products and support sustainable and legal timber trade into the future.

Pending passage of the Bill, the department will develop new Rules to replace the current Illegal Logging Prohibition Regulation, where due diligence requirements are prescribed.

The existing due diligence requirements will remain in place until such time that the Rules replace current Regulation, or the legislation sunsets in April 2025. We will continue to keep you updated as this legislative reform process progresses.

For more information, you can read the Bill and Minister for Agriculture, Fisheries and Forestry, Senator the Hon Murray Watt’s media release.

Timber legality spotlight – Conflict timber

European Union authorities have been alerted to hundreds of tons of Russian timber being imported into Europe despite sanctions imposed in early 2022 following the Ukraine invasion. A novel method of timber testing was used to confirm that several wood shipments entering Belgium, originated from Russia.

These findings highlight the usefulness of emerging timber testing technologies to verify the species and origin, and in this case, legality, of timber and timber products. The department continues to investigate how best to implement timber testing in Australia through our current trial (see E-update 40).

These findings are also a timely reminder of the importance of meeting your due diligence requirements to gather sufficient, reliable information to adequately understand your supply chain/s. The department offers a range of resources to help with this.

International News - Meeting of the APEC Experts Group on Illegal Logging and Associated Trade (EGILAT)

In February, Department officials attended the 25th meeting of EGILAT during the APEC First Seniors Officials’ Meeting, hosted by the Government of Peru in Lima.

Australia’s attendance at this meeting provided the opportunity to strengthen international relations with EGILAT member economies working to combat illegal logging. The Department provided updates on Australia’s key initiative to reform our illegal logging laws and strengthen measures to prevent illegal timber trade. This included a presentation to members by Dr Madeleine Osborn, Assistant Director, International Forest Policy.

EGILAT is a valuable international platform that generates policy ideas and practical measures to address the wide-ranging harms of illegal logging and associated trade. Australia’s ongoing involvement helps build the capacity of other member economies and helps to shape our own domestic efforts to combat illegal logging.

More information regarding the EGILAT forum can be found on the EGILAT website.

Take our Survey—future e-update topics

To help shape our future e-updates, we would like to provide you the opportunity to influence the topics we cover. We have developed a short survey outlining potential topics and welcome your feedback.

We have designed this survey with topical matters in mind, and invite you to share which of these may be most relevant to your interests and business needs by completing the short survey.

Looking ahead in 2024

• Continuing our efforts - timber identification trial
• Reforming the Illegal Logging Prohibition Act 2012

In other news

• ATIBT guidance on international trade in tropical timber
• Upcoming events

Reflecting on a productive 2023, we want to thank our stakeholders for your ongoing engagement and interest as we work to protect the Australian market from illegally logged timber and timber products. With both domestic processes and relevant global developments pressing ahead, we anticipate another busy year.

Continuing our efforts - timber identification trial

Trialling timber identification technologies

Our timber identification trial, which we highlighted in E-update 40, remains a top priority this year. We’re trialling lab-based technologies such as DNA analysis, stable isotope testing, fibre analysis and trace element analysis, along with potential screening tools. For this trial we are using existing reference databases for comparison purposes.

Expanding global resources

In parallel to the timber identification trial, we are supporting World Forest ID to expand their global, open-source reference database. By including more species of interest that are regularly traded on the Australian market, we will improve the ability to verify claims of species and/or origin of more products through timber identification methods. You can read the Minister’s media release to learn more about the WFID grant.

Investigating IT solutions

Also forming part of our broader illegal logging budget measure, we are exploring IT system options for collecting and managing due diligence declaration data efficiently. This includes exploring options for an e-declarations process. This initial phase is simply to identify systems options, and we will provide further updates on any subsequent steps.

Illegal Logging law reforms

The department is continuing to progress the reforms to Australia’s illegal logging laws. We will provide substantial updates as they arise, including opportunities for further input.

For more information on the Sunsetting Review and Regulation Impact Statement, please visit the department’s Have Your Say webpage.

New guidance for tropical timber transactions

Association Technique Internationale des Bois Tropicaux (ATIBT) recently published a series of 12 short pamphlets providing information to assist with commercial transactions in tropical timber.

Development of the pamphlets involved the contribution of ATIBT members, ensuring a solid basis for the identification of recommended practices.

Topics covered in these booklets aim to equip the reader with the knowledge and skills to better identify tropical timber species accurately in paperwork and apply the correct terminology to wood-based products. The guidance also provides recommendations for the terms of timber sales contracts.

These pamphlets are available for download on the ATIBT website.

Register for FSC’s upcoming webinar

Webinar:
Navigating Compliance: Understanding Australia’s Illegal Logging Prohibition Laws for Importers and Processors of FSC-Certified Material

Date:
Thursday, 21 March 2024

Forest Stewardship Council is organising a webinar Navigating Compliance with Australia’s Illegal Logging Prohibition Laws in partnership with the Department of Agriculture, Fisheries and Forestry (DAFF) and SCS Global Services.

The webinar is relevant to FSC certificate holders. It is also relevant to non-certified organisations that import and/or process material sourced from FSC-certified suppliers and need to verify that the certification applies to the particular product.

Further information regarding the webinar is available at timberbiz, and you can register via this Zoom link.

• Australian Government’s timber identification trials
• Global Legal and Sustainable Timber Forum 2023
• Try our new due diligence guidance material

Australian Government’s timber identification trials

In an ongoing effort to combat illegal logging and associated trade, the Australian Government is trialling various timber testing technologies that can identify the species and/or origin of timber used in different products.

The trial will run until mid-2024 and will help inform us of the most appropriate tools and technologies to potentially use in future, should corresponding legislative reforms occur.

This work forms part of the government’s illegal logging budget measure, and involves purchasing a range of timber products available on the Australian market. Samples from these products are provided to laboratories across the world to test against existing reference databases using a range of scientific methods.

Trials will investigate the accuracy and usability of different timber testing techniques and will help inform our consideration of how we can use these technologies in future.

This trial is operating separately from other departmental functions and results will not be used for compliance purposes.

Global Legal and Sustainable Timber Forum 2023

The first annual Global Legal and Sustainable Timber Forum will be held from 21-22 November 2023 in Macao SAR, China. Under the theme ‘connect, cooperate and share to promote the recovery of the global tropical timber market’, the forum aims to increase networking, collaboration, and business exchange among timber industry stakeholders, including producers, buyers, and processors.

Specialised sub-forums organised by partner agencies will also focus on issues related to timber legality and sustainability among different stakeholders, including:

• sustainable timber resources, markets, and trade
• advanced wood processing technology and machinery
• green finance and innovative facilitating measures for green supply chains.

Around 500 participants from wood enterprises and trading companies, industrial and business associations, and governments are expected to attend the forum.

The International Timber Trade Organization (ITTO) and the Macao Trade and Investment Promotion Institute are co-hosting the forum to accelerate development of legal and sustainable wood product supply chains. For more information and registration details visit the official website.

Try our new due diligence guidance material

Further to our article in E-update 39, we have developed a due diligence toolkit for importers of regulated timber products under Australia’s illegal logging laws.

The toolkit is optional to use, but we encourage you to use it as it aligns with Australia’s illegal logging laws and the way the department conducts compliance audits.

We welcome your feedback on the toolkit as we continue to refine and improve our resources. Please email IllegalLogging@aff.gov.au with your feedback.

• Try our new due diligence guidance material
• Understanding your due diligence requirements – risk mitigation
• Timber legality spotlight – legislative changes in New Zealand
• Report on Australia’s exposure to illegally-logged timber

Try our new due diligence guidance material

We have developed new guidance material to help importers and processors of regulated timber products to understand and meet their due diligence requirements under Australia’s illegal logging laws. A good due diligence system will help you assess the risk of the product containing illegally logged timber and, where appropriate, mitigate the risk.

Separate toolkits are now available on the department’s resources page for importers and processors that outline the five key due diligence steps. These toolkits are optional, but we encourage you to use them as they are designed to assist with your due diligence activities. They align with the illegal logging laws and the way the department conducts compliance audits. Toolkits are the only departmentally endorsed guidance material and you should exercise caution when relying on other guidance material. We welcome your feedback on the toolkits so we can continue to refine and improve these resources into the future.

The toolkits include guidance on conducting a risk assessment, but we have also updated the risk assessment templates available on our website for importers and processors. These are step-by-step guides on how to undertake each risk assessment method allowed under our illegal logging laws – the Timber Legality Framework method, Country or State Specific Guideline method and the Regulated Risk Factor method.

We have also updated our webpage content relating to risk assessment processes for both importers and processors.

Understanding your due diligence requirements – risk mitigation

In the two previous E-updates (e-update 37 and e-update 38) we unpacked the information gathering requirements (step 2) and the risk assessment requirements (step 3) of the five-step due diligence process. In this update, we seek to clarify the requirements for risk mitigation (step 4).

For further clarity on your illegal logging due diligence requirements, please email us at IllegalLogging@aff.gov.au. You can also provide anonymous information and report suspected non-compliance via our online form.

Step 4 – Mitigate the risk

If you cannot conclude a low risk rating after undertaking your risk assessment process, you must undertake risk mitigation before importing or processing regulated timber. Risk mitigation requirements are set out in the Illegal Logging Prohibition Regulation 2012 (s 14 for importers and s 23 for processors).

The risk mitigation process must be adequate and proportionate to the identified risk. This process may involve gathering further information about the products and reassessing the risk that the product contains illegally logged timber.

If you do import or process the product and it is later found to contain illegally logged timber, you could face serious penalties.

Where an importer is using a previously completed risk assessment for the exact same regulated timber product, and where no changes have occurred, importers can also use the previous risk mitigation process undertaken for the product and keep a record of having done this. Where any element has changed, the importer must repeat the risk mitigation steps at s 14 of the Regulation.

The same process applies for processors under the respective sections of the Regulation each time they process timber.

You must keep a written record of all risk assessment and risk mitigation steps you take. These records must be retained in accordance with the legislated timeframe of five years from the date of import or processing of the product.

If audited, you must be able to show that the risk assessment and mitigation process (if required) was undertaken prior to importing or processing. For more information on Step 4 of the due diligence process, please visit our website for importers and processors.

Timber legality spotlight – legislative changes in New Zealand

New Zealand is introducing a timber legality assurance system through the Forests (Legal Harvest Assurance) Amendment Act 2023 (the Act). The Act was enacted in May 2023 and will commence within three years.

Under the new system most harvesters, traders, processors, importers and exporters will need to register with the New Zealand Ministry for Primary Industries (MPI) and show how they will reduce the risk of dealing with illegally harvested timber through a due diligence process.

Forest owners and those responsible for forest harvest in New Zealand will need to provide evidence of legal harvest to the log buyers. Documentation will follow the logs or timber through each stage of the supply chain.

New Zealand exporters will be able to apply to the MPI for an exporter statement to help them trade and gain access to markets.

If you are importing from New Zealand once their timber legality assurance system commences, you will be expected to consider the new requirements for New Zealand operators as part of your due diligence process.

To read more about the New Zealand laws, please visit the Ministry of Primary Industries website, or see the Forests (Legal Harvest Assurance) Amendment Act 2023.

Take part in EGILAT’s stocktaking survey

You are invited to take part in a brief online survey related to trade in legal timber in the Asia-Pacific region.

The survey is part of a project under the APEC forum’s Experts Group on Illegal Logging and Associated Trade (EGILAT). It seeks to help EGILAT members better understand regulatory frameworks, requirements, and other measures relevant to the trade in legal timber, along with challenges and opportunities identified by stakeholders like you.

The survey will take around 10-15 minutes to complete and responses will remain confidential. Multiple participants from your organisation may also complete the survey.

The survey is open until 10 November 2023.

Report on Australia’s exposure to illegally logged timber

A report that considers timber trade imports into Australia from countries and regions with a high risk of illegal logging has been released by the Centre for International Environmental Law (CIEL) and the Environmental Investigation Agency (EIA).

The Calculated Risk: Australia’s Exposure to Illegal Logging report aims to inform companies in their efforts to implement, enforce and comply with Australia’s illegal logging laws.

It includes several recommendations for both the Australian Government and Australian companies to reduce illegal timber imports.

While the Australian Government was not involved in developing this report, the department has considered the report’s recommendations and is looking at options for future implementation.

• Illegal Logging Prohibition Regulation amendments – updated CSG and SSGs
• Website updates
• Due diligence – using the risk assessment methods
• Timber legality spotlight - Malaysian rubberwood
• Illegal logging reforms

Illegal Logging Prohibition Regulation amendments – Updated CSG and SSGs

The Illegal Logging Prohibition Regulation has recently been amended to reflect updates to the Italy Country Specific Guideline (CSG) and New South Wales, Victoria, Queensland and Western Australia State Specific Guidelines (SSGs).

The amended Regulation is available on the Federal Register of Legislation. The amendments will come into effect on 13 August 2023. Until this date, the previous CSG and SSGs, which are still available on our website, will continue to apply.

We will ensure that the updated CSG and SSGs are available on our website prior to August 13. From this date, you must use the updated documents to conduct your risk assessments.

Read about how you can use CSGs and SSGs in the article below (Step 3b – Country Specific Guidelines (CSGs) and State Specific Guidelines (SSGs).

Website updates

Updated resources for our regulated community are now available on the department’s Resources for importers webpage. This includes updates to the Due Diligence guidance document for importers and Optional Response Template for those who have been issued a Request for Information notice. We have also updated our Compliance and enforcement webpage.

We are continuing to develop more comprehensive guidance material and will continue to provide updates as this work progresses.

Due diligence – using the risk assessment methods

In E-update 37 we unpacked the information gathering requirements (step 2) of the five-step due diligence process under Australia’s illegal logging laws. In this update, we seek to clarify the requirements for the risk assessment (step 3).

For further clarity on your illegal logging due diligence requirements, please email us at IllegalLogging@aff.gov.au. You can also provide anonymous information and report suspected non-compliance via our online form.

Step 3 – Assess the risk

Once you have gathered all available information that you can reasonably obtain about your regulated timber product(s) supply chain, you must identify and assess the risk that the product(s) contains illegally logged timber. You must conduct the risk assessment and make a written record of the risk assessment, prior to import or processing and records must be kept for at least five years after import date.

Our laws provide three methods to assess risk:

1. Timber Legality Framework (TLF)
2. Country Specific Guideline (CSG) OR State Specific Guideline (SSG)
3. Regulated Risk Factors (RRF)

The appropriate method depends on the circumstances surrounding your timber product. The TLF and CSG/SSG methods may only be used where your product(s) meet certain requirements. The RRF method may be used in all circumstances. We provide information on each of the three risk assessment methods below.

To reach a reasonable risk conclusion, you must consider:

• all information gathered in Step 2;
• other information you ought reasonably to know, which could indicate the timber is illegally logged; and
• specific information required under the chosen risk assessment method.

If you are audited, the department will assess your written risk assessment and consider; whether there was sufficient information to inform a risk assessment, whether the risk conclusion sufficiently considers the available information, and whether the outcome was reasonably concluded.

It is important that, when stating the basis for arriving at a particular risk conclusion, it can be verified by supporting documentation. Upon audit, it is found that many low-risk conclusions are not sufficiently justified with supporting documentation or other evidence. For example, statements indicating that the product is commonly exported from that country, or speaking to the reputation of, or relationship with, the supplier without evidence to support these claims are not sufficient to support a low-risk conclusion.

If you conduct a risk assessment using the TLF or CSG/SSG method and conclude a risk rating higher than low, you must complete a subsequent risk assessment using the RRF method.

If you still cannot conclude a low risk rating after using the RRF method, you must take additional actions to mitigate the risk before importing or processing the timber (step 4).

Step 3a – Timber Legality Framework

When importing products or processing timber certified under the Forest Stewardship Council (FSC) or Programme for the Endorsement of Forest Certification (PEFC), you may use the TLF assessment method, set out in the Regulation (s 11 for importers and s 20 for processors).

Our illegal logging laws recognise FSC and PEFC certification schemes provide rigorous forest management and chain of custody standards that consider risks of illegally logged timber. However, having a certificate does not exempt importers and processors from undertaking the complete due diligence process.

Importers and processors who hold FSC and/or PEFC Chain of Custody certification may rely upon their current procedures and work instructions to comply with the due diligence system requirements, as set out in the Regulation (s 9 for importers and s 18 for processors). However, businesses still need to comply with all other sections of the Regulation, including the requirements to gather information (s 10 and s 19), perform risk assessments (s 11 and s 20), risk mitigation (s 14 and s 23) and record keeping (s 16 and s 25).

Detailed information on conducting the TLF risk assessment method is available on our website for importers and processors.

Step 3b – Country Specific Guidelines (CSGs) and State Specific Guidelines (SSGs)

When importing products that have been wholly harvested in and directly shipped from a country with a CSG in place, you may use this risk assessment method as set out in s 12 of the Regulation.

Similarly, you can use this risk assessment method when processing Australian grown raw logs from a state with an SSG.

CSGs and SSGs are documents that have been negotiated by the Australian Government with relevant partner governments. They help you to understand the legal frameworks used in other countries and states to regulate timber harvesting and may set out some of the documents that you need to gather for due diligence.

CSGs currently endorsed under Australia’s illegal logging laws are listed on our website. Endorsed SSGs are found here. These webpages are updated as new CSGs/SSGs are finalised or outdated and superseded ones are removed. Only those CSGs/SSGs available on the webpage at the time of conducting your due diligence may be used when conducting a risk assessment.

Detailed information on using this method is available on our website for importers (CSGs) and processors (SSGs).

Step 3c – Regulated Risk Factors

Section 13(3) and s 22(3) of the Regulation set out the risk factors that are considered under this method, including:

• The prevalence of illegal logging in the area where the timber was harvested; and
• The prevalence of illegal harvesting in the area of the species of tree from which the timber is derived.

Section 13(3) sets out further factors for importers to consider, including:

• The prevalence of armed conflict in the area; and
• The complexity of the products.

Detailed information on using the RRF method is available on our website.

Timber Legality Spotlight - Malaysian rubberwood

There have been some recent changes to the legal requirements for the importation of rubberwood and its products from Malaysia.

The Malaysia Timber Industry Board (MTIB) now issues Timber Legality Assurance System (MyTLAS) certificates with each shipment of rubberwood as proof of legality. These MyTLAS certificates replace the Statement on Rubberwood Products currently listed in the Malaysia CSG.

We will work with Malaysia to update the CSG and will keep you informed of any further changes. For further information on the new certification, visit here.

Illegal logging reforms

The department is continuing to progress the reforms to Australia’s illegal logging laws. We will provide substantial updates as they arise, including on opportunities to input further.

For further information on the Sunsetting Review and Regulation Impact Statement, please visit the department’s Have Your Say webpage.

• Update on illegal logging reforms
• Due diligence – review of existing advice and guidance material
• Timber legality spotlight – global conflict
• Asia-Pacific Forestry Commission – save the date

Update on illegal logging reforms

Publishing of Regulation Impact Statement

Further to our update in February 2023, we have now published the Regulation Impact Statement (RIS) for the Illegal Logging Sunsetting Review on the Department’s Have Your Say webpage. The RIS explores the costs and benefits of proposed reforms and other options for Australia’s illegal logging prohibition legislation. It also provides details on the recommended option to reform the legislation that Minster Watt considered and agreed to in December 2022.

Provision of sunsetting extension

We are now progressing reforms to provide a broader range of monitoring, investigation, and enforcement powers, clarify areas of ambiguity, and enable use of emerging timber testing technology under the legislation. This work will continue over the coming months.

In the meantime, we have received a 2-year deferral of the Regulation’s current sunsetting date of 1 April 2023. You can see the deferral certificate on the Federal Register of Legislation. This means the existing Regulation and due diligence requirements will remain in force until 2 April 2025.

Due diligence

Review of guidance material

We are continuing to review and update the guidance material available to help importers and processors comply with due diligence requirements under the illegal logging prohibition laws. Updates will ensure all guidance material on our website is accurate, clear, consistent, and user-friendly. Many thanks to those who have expressed an interest in providing feedback on the revised guidance material. We will be in touch when the material is ready for road testing.

While we are finalising the revised material, we have updated the Department's illegal logging website to clarify requirements in relation to the frequency of conducting due diligence with the following information:

Do I need to conduct due diligence for each consignment that I import or process?

The legislation requires that each time an importer imports a regulated timber product, they complete the due diligence process set out in Part 2, Division 1 of the Regulation. Where an importer has previously imported the product, they must first verify that none of the information relating to the product previously gathered, or required to be gathered under section 10, has changed. This could include the harvest location, product certification number or outbreak of conflict in the harvest region for example. A record of having done this must be created.

Where no changes have occurred, importers can utilise the previous risk assessment and mitigation process undertaken for the product and keep a record of having done this. Where any element has changed, the importer must repeat the risk assessment and mitigation steps at sections 11 and 14 of the Regulation and keep records of having done this.

The same process applies for processors under the respective sections of the Regulation each time they process timber.

Further updates to the website are planned for the coming months and we will develop a dedicated FAQs page to provide answers to common questions in a single location.      

Information gathering requirements

Following recent fines issued by the Department under the illegal logging prohibition laws, we have provided information below as a timely reminder of timber importer’s due diligence requirements, particularly in relation to the information gathering step (Step 2).

The due diligence process involves 5 steps, all of which must be completed to satisfy legal requirements. Each step is outlined below, with further information at the links provided. It is important to complete each step in the logical order below, to avoid jumping to conclusions about risk assessment methods, risk levels or risk mitigation measures.

Step 1 – Establish and maintain a due diligence system
Step 2 – Gather information
Step 3 – Assess the risk using the most relevant of the three methods provided
Step 4 – Risk mitigation
Step 5 – Keep records

Step 2 – Gather information

Before importing a regulated timber product, regulated entities must gather information about the timber in the product. It is important to gather as much information as possible on the timber product and supply chain first, before determining which risk assessment option to use in Step 3.   

As a minimum, importers of regulated timber products need to seek information that demonstrates:

• The type and trade name of the product being imported.
• The name (common or scientific) of the tree/s the timber has come from.
• The country, region and harvesting unit from where the timber was harvested.
• The country where the product was manufactured.
• The product supplier’s details, including name, address, trading name, and business identification numbers.
• The quantity of product being imported (in volume, weight, or number of units).
• Documents provided by the supplier in relation to the product’s purchase.
• Any information or documents demonstrating the timber was legally harvested.

Much of this information can be found in existing commercial documents, contracts, invoices, etc. You can also check the online resources and links to timber legality databases provided on our website. But you may need to work directly with suppliers to get more information, documents, or evidence.

How you gather the necessary information is up to you. This could include phone calls, emails, online research, questionnaires sent to suppliers etc. Just remember to make and keep records to satisfy Step 5. Records should be kept for at least 5 years after the date of import. The department will request these records if your business is audited for compliance purposes in the future.

You need to gather information on products and supply chains so you can perform well-informed risk assessments and draw reasonable conclusions on the risk of products containing illegally logged timber before you import them into Australia. As such, you should not rely on any information or documents that you cannot read or understand as these will not help inform your decisions. For example, if documents are provided in a language other than English, you should seek a translation to ensure you understand the content and what this means for your risk assessment. You should not defer the gathering of this information to after import, and all information used should directly relate to the specific regulated timber product that is to be imported. If you are audited by the department, you will need to be able to show that you understood the content of all documents when you used them to inform the decisions you made during the due diligence process.

If you are unable to gather some of the minimum information above, the department expects you to create and retain notes that support why this information could not be obtained. It is important to note that if you cannot obtain enough information about the species of timber and where the timber was harvested, it will be difficult to conclude that the product has a low risk of containing illegally logged timber.

For further questions or clarity on due diligence requirements for importing regulated timber products, please email us at IllegalLogging@aff.gov.au. You can also provide anonymous information and report suspected non-compliance via the online form. 

Timber legality spotlight – global conflict

Following earlier updates on the suspension of PEFC Russia and PEFC Belarus, we have introduced a new ‘timber legality spotlight’ section to our newsletter to highlight shifting global dynamics and other issues that affect the risk exposure of Australia’s market to imports of illegally logged timber and timber products. If you have a particular legality issue that you would like us to address in future updates, please let us know at IllegalLogging@aff.gov.au.    

Fragile and conflict-affected regions

Fragile and conflict-affected regions of the world are characterised by political instability, limited institutional capacity, and ineffective laws and governance arrangements. While it is possible to buy legal wood from these regions, responsible buyers must negotiate unclear political mandates, contested laws, weak governance and a lack of enforcement relating to forest protection. Official documents may also be vulnerable to fraud or forgery.

Sawn wood is the most common regulated timber product imported into Australia from these regions. Other common product categories include veneers, moulding and strips, joinery products and plywood.

Australian companies considering importing timber from fragile and conflict-affected regions need to invest sufficient resources to ensure that their due diligence practices are strong and the resultant risk assessments and risk mitigation practices are robust. Numerous reports and tools are available on the internet to help determine which areas fall into this high-risk category. Some of these include:

• Conflict map – Defcon Level Warning System
• Conflict map – Crisis Group
• Conflict map – Emmeline Carto

Myanmar

In light of recent targeted financial sanctions imposed by the Australian Government in response to human rights violations in Myanmar, we want to draw attention to the ongoing situation in this region and heightened risk of illegal logging as a result of the 2021 coup d’état.

Several legality risks are present in Myanmar timber supply chains. The risks are wide ranging and appear across all categories of law. There are no FSC-certified forests in Myanmar and therefore no harvesting of FSC-certified teak or other tree species can take place in the country. In September 2021, PEFC suspended its assessment of the Myanmar forest certification system due to concerns that Myanmar-based stakeholders were unable to participate in the assessment process and speak freely during public consultation.

Given the ongoing conflict and timber legality risks present in Myanmar, we urge Australian timber importers to take their due diligence requirements seriously and gather sufficient information to adequately understand their supply chains. PEFC has advised companies sourcing forest-based products from Myanmar to be mindful of the risk that revenues could potentially be used to finance activities that violate human rights. If you are sourcing timber from Myanmar you should take care to ensure legality risks are not present in your supply chains, or have been sufficiently mitigated.

You can read more about the current situation surrounding teak harvesting in Myanmar in online articles published recently here and here.

Asia-Pacific Forestry Commission – save the date

The UN Food and Agriculture Organization’s (FAO) Asia-Pacific Forestry Commission (APFC) is the Asia-Pacific region’s key decision-making forum for forestry issues and this year its Australia’s turn to host the event. The event will run from 2-6 October 2023 in Sydney, with the theme of Sustainable forests for a sustainable future.

The biennial event will bring together around 200 delegates and observers from more than 30 Asia-Pacific nations to discuss and agree on the FAO work priorities for the region. These discussions will also provide a regional voice to the FAO Committee on Forestry, which ultimately guides the FAO’s multi-million-dollar forestry program.

The event will provide an opportunity to showcase Australia’s world class, unique, and diverse forest industry. Delegates and observers will take part in three days of formal sessions and a full-day field trip. Industry groups, research institutes and visiting nations will also host side-events over the course of the week, building links between Australian industry and international counterparts.

Australia will also host a meeting of the Montreal Process Working Group immediately following the APFC event on 6-7 October. The group’s 12 nations account for 90% of the world’s temperate and boreal forests, and together lead work accounting for and assessing forest trends and conditions.

For more information on APFC 30, visit the FAO website.

• Update on the Sunsetting Review of the Illegal Logging Prohibition Regulation
• Reminder: Deloitte Survey - Illegal logging exposure study
• Updating our due diligence guidance material

Update on the Sunsetting Review of the Illegal Logging Prohibition Regulation

As part of the department’s Sunsetting Review of the Illegal Logging Prohibition Regulation (the Regulation), the Australian Government has agreed to recommended reforms to both the Regulation and the Illegal Logging Prohibition Act 2012 (the Act), including:

• requiring regulated entities to provide key due diligence information to the department upfront to verify legality, such as the timber species and origin of harvest
• adding powers to seize, sample and detain regulated timber products
• adding injunction and enforceable undertaking powers
• adding publication powers for compliance findings and instances of non-compliance
• adding or amending definitions in the Act.

As part of this process, the department used the feedback received from stakeholders during the public consultation phase to develop a Regulation Impact Statement (RIS) exploring the costs and benefits of proposed reforms and other legislative options.

The Minister considered the RIS and agreed in December to pursue the recommended option to reform the legislation, over the options to either remake the Regulation as is or let it sunset. The department is now progressing the legislative reforms, which require changes to both the Act and the Regulation and will be considered by Government once substantially drafted.

The RIS will soon be publicly available on the Have Your Say webpage. We will keep you updated on the legislative reforms as they progress, and further opportunities for input. 

Reminder - Deloitte Survey: Illegal logging exposure study

Further to our last e-update in December 2022, the closing date for the Australian timber product imports industry survey has been extended to 10 February 2023. 

The survey forms part of a broader study being led by Deloitte Access Economics that aims to assess Australia’s exposure assess:

• the Australian market’s current and future exposure to illegally logged timber
• how Australia’s laws have reduced demand for illegally logged timber
• where compliance and enforcement efforts under the laws can be tailored to address emerging risks.

Thank you to all those who have already taken the opportunity to share your experience of the requirements under Australia’s current illegal logging laws. These will help form the outcomes of the study into the laws and their impact.

We are eager to hear from as many regulated entities and others with close interaction with the laws as possible, as survey results will be used to inform study outcomes. As such, we encourage those of you who haven’t participated to spend 10-15 minutes to provide your responses. We are also seeking your assistance to disseminate this survey further to any other relevant contacts.

We highlight that this survey is separate to the Sunsetting Review, which has considered regulatory reforms. The study is centred on trade shifts to date and Australia’s future exposure to illegally logged timber to better target compliance efforts. 

Updating our due diligence guidance material

As part of a broader review of our processes relating to administering illegal logging prohibition laws, we are updating due diligence guidance material available to the regulated community. Updates will ensure all guidance material on our website is accurate, clear and user-friendly to help regulated entities meet their due diligence requirements efficiently.

We will be seeking stakeholder feedback on the updated guidance material to ensure that our guidance is as useful as possible, including through working with key industry representative groups. Please get in touch by emailing illegallogging@aff.gov.au if you are interested in road testing the new guidance material prior to its public release. ;

The updated guidance material for importers and processors will be available in coming months at the links provided and will be further updated for any legislative reforms implemented.

• Update on the Sunsetting Review of the Illegal Logging Prohibition Regulation
• Deloitte Survey: Illegal logging exposure studies
• PEFC update on Belarus and PEFC Russia certification suspension
• Illegal logging international engagement

Update on the Sunsetting Review of the Illegal Logging Prohibition Regulation

As mentioned in previous e-updates, the Department of Agriculture, Fisheries and Forestry is conducting a Sunsetting Review of the Illegal Logging Prohibition Regulation 2012 (the Regulation). Following public consultation on the Sunsetting Review, the department is considering a range of legislative reforms, which include:

• the department receiving information to verify legality, such as the timber species and origin of harvest, from the regulated community upfront
• adding powers to seize, sample and detain regulated timber products
• adding injunction and enforceable undertaking powers
• adding publication powers for compliance findings and instances of non-compliance
• adding or amending definitions in the Act.

A summary of stakeholder feedback received on potential reforms is available on the department’s Have Your Say webpage for the Sunsetting Review at: haveyoursay.agriculture.gov.au/illegal-logging-sunsetting-review.

The department has finalised its analysis of regulatory options, which will now be used by government to decide on next steps. The reform package and cost-benefit analysis will be published on the Have Your Say webpage once a decision is finalised.

Deloitte Survey: Illegal logging exposure studies

Further to our e-update in December 2021, the department has invested in a study examining Australia’s current and future exposure to illegally logged timber, and the effects of the laws to date at shifting this. The study is being led by Deloitte Access Economics and aims to assess:

• the Australian market’s current and future exposure to illegally logged timber
• how Australia’s laws have reduced demand for illegally logged timber
• where compliance and enforcement efforts under the laws can be tailored to address emerging risks.

As part of the study, we have released a survey for members of the regulated community to share their experience of the requirements under Australia’s current illegal logging laws for timber products and domestically grown raw logs.

The survey can be found here and we encourage you to take part. The survey will remain open until 31 January 2023.

To help assess Australian the market’s exposure to illegal logging and shifts in behaviour due to the laws, we are eager to hear from as many regulated entities and others with close interaction with the laws as possible. We are seeking your assistance to participate in and disseminate this survey further to your contacts in the regulated community.

We highlight that this survey is separate to the Sunsetting Review, which has considered regulatory reforms, whereas this is centred on trade shifts to date and Australia’s future exposure to illegally logged timber to better target Compliance efforts.

PEFC update on Belarus and PEFC Russia certification suspension

As mentioned in our last e-update from March 2022, the Programme for the Endorsement of Forest Certification (PEFC) Council issued a statement on 4 March 2022 clarifying that all timber originating from Russia and Belarus is considered ‘conflict timber’ and therefore cannot be used in PEFC-certified products.

PEFC have since issued another statement declaring that all certificates issued against the Russian National Voluntary Forest Certification System (FCR) are no longer PEFC recognised as of 11 August 2022, and all certificates issued against the National Forest Certification System of Belarus (both SFM and CoC) are no longer PEFC recognised as of 18 April 2022. For more information, you can visit the following PEFC webpages:

• PEFC suspends PEFC Russia
• PEFC suspends PEFC Belarus

Illegal logging international engagement

In August 2022, Australian Government officials attended a series of international meetings with APEC member economies in Chiang Mai, Thailand, where challenges and opportunities for forests across the Asia-Pacific region were discussed. Australia participated in the APEC Experts Group on Illegal Logging and Associated Trade (EGILAT) meeting, the Meeting of Ministers Responsible for Forestry (MMRF) and side meetings with other APEC economies to discuss a range of forest-related issues, including combatting illegal logging.

APEC economies account for 2.19 billion hectares of forest cover—over 50 percent of the world’s forests—and engage in approximately 80 percent of international trade in forest products. EGILAT’s goal is to enhance the efforts of APEC member economies to combat illegal logging and its associated trade; promote trade in legally harvested forest products; and support capacity building activities in member economies.

Over recent years, EGILAT has engaged directly with the private sector to examine challenges and opportunities to promote trade in legally sourced forest products. In 2021, this included a series of workshops involving businesses from across the APEC region dealing in the trade of forest products on a day-to-day basis. Workshops aimed to identify issues faced by private sector entities throughout the timber supply chain when trading legally harvested forest products, as well as actions by APEC and others to address these.

Through a recent project, the group also developed a Compendium of Resources for the Facilitation of the Trade and Distribution of Legally Harvested Forest Products. This freely available document draws together existing resources, tools and materials to assist operators in the supply chain to understand and navigate various economies’ legal frameworks and help determine timber legality.

As the APEC host economy in 2023, the United States will host upcoming EGILAT meetings scheduled for February 2023 (Palm Springs) and August 2023 (Seattle), with activities continuing under the 2022-2024 Policy Theme of ‘Advancing the trade and distribution of legally harvested forest products: Navigating to legal timber’. An in-person technology workshop is anticipated to be held alongside the August 2023 meeting, showcasing the range of timber testing technologies available across the APEC region to identify timber species, origin and harvest location. To read more about APEC’s EGILAT, please visit the webpage or contact us at illegallogging@aff.gov.au if you are interested in participating in future EGILAT industry activities.

• PEFC and FSC suspend certification of all timber originating from Russia and Belarus
• Heightened risk of importing illegally logged timber due to Russia-Ukraine conflict

PEFC and FSC suspend certification of all timber originating from Russia and Belarus

On 4 March 2022, the Programme for the Endorsement of Forest Certification (PEFC) Council issued a statement clarifying all timber originating from Russia and Belarus is considered ‘conflict timber’ and therefore cannot be used in PEFC-certified products. This clarification is valid for six months and will then be reviewed by the PEFC Council Board of Directors. The full statement can be found at: PEFC website.

On 8 March 2022, the Forest Stewardship Council (FSC) announced the FSC International Board of Directors agreed to suspend all trading certificates in Russia and Belarus and to block all controlled wood sourcing from both countries. This means timber from Russia and Belarus cannot be used in FSC products or carry FSC certification. The suspension will remain in place while the armed violence continues. The full statement can be found on the Forest Stewardship Council website.

The decisions by PEFC and FSC have some implications for the operation of Australia’s illegal logging laws as outlined below.

What does this mean for my obligations under Australia’s illegal logging laws?

Under the Illegal Logging Prohibition Regulation 2012 (the Regulation), importers may use PEFC or FSC certification as the basis for conducting their due diligence risk assessment under the ‘timber legality framework’ pathway under section 11. This risk pathway will no longer be available for PEFC or FSC certified timber from Russia or Belarus from 4 March 2022 and 8 March 2022 onwards respectively (noting that the FSC effective date is tbc), as this timber is no longer considered certified.

We understand that the FSC decision means that timber originating from Ukraine can still carry FSC certification. The PEFC decision also means that timber originating from the Ukraine can still carry PEFC certification, however timber from Russian occupied regions or that has been traded by Russian or Belarussian entities should be treated with high caution. We strongly encourage anyone considering importing timber from this region to consider the information given below regarding the heightened risk of importing illegally logged timber.

Importers considering importing timber products from Russia and Belarus can use the Regulated Risk Factors risk assessment method under section 13 of the Regulation. This method requires importers to evaluate collected due diligence information against a number of risk factors, including:

• illegal logging in general in the area in which the timber in the product is harvested
• illegal harvesting in the area of the species of tree from which the timber in the product is derived
• armed conflict in the area of harvest.

Further information on the due diligence requirements and risk assessment methods is available at: Due diligence for importers.

What about due diligence assessments completed before the announcements by PEFC and FSC that relied on certification?

Importers can rely on due diligence assessments conducted before 4 March 2022 using PEFC certification or 8 March 2022 using FSC certification for timber from these origins. However, importers should be aware that they may still be liable for any other obligations and penalties under the legislation and may wish to consider if they need to conduct further due diligence in light of the decisions taken by PEFC and FSC.

Heightened risk of importing illegally logged timber due to Russia-Ukraine conflict

What does the conflict mean for illegally logged timber?

The presence of armed conflict is often associated with a heightened risk of illegal logging activity occurring. Importers should consider that Ukraine is a currently a conflict zone and factor that there is a heightened risk that timber imported from Ukraine, Russia and Belarus may be illegally logged into their due diligence assessments, where applicable.

How must importers take the conflict into account through their due diligence requirements?

Due diligence assessments based on the ‘regulated risk factors’ at section 13(3) of the Regulation specifically require that the presence of armed conflict in the area of harvest is considered. The two further risk assessment options (timber legality frameworks and country-specific guidelines) also require importers to taken into account other information that they know, or ought reasonably to know concerning whether the product comprises illegally logged timber.

Where importers assess under section 13 that the risk that the regulated timber product contains illegally logged material is greater than ‘low’, steps to mitigate the risk must be taken. Risk mitigation processes and requirements are outlined in section 14 and examples of ways to mitigate the risk include asking for more evidence or information from your supplier or asking your supplier for a certified alternative. In some cases, importers may need to consider changing suppliers or importing an alternative product to mitigate this risk.

What products and pathways may be affected?

Common products with known Russian origin imported into Australia include laminated veneer lumber (LVL), plywood and kraft paper. The department understands that Russian timber also often flows through intermediate countries including China, Finland, Estonia and Germany before reaching Australia. The department’s compliance and enforcement officers will be monitoring due diligence processes, systems and records to ensure that importers are taking the heightened risks into account.

We understand that undertaking due diligence on products from these regions will become more challenging for our regulated community. We encourage importers to engage with the department and work constructively together on updating your due diligence systems and conducting risk assessments by emailing: IllegalLogging.ComplianceAssessment@aff.gov.au.

• Illegal Logging Sunsetting Review
• New studies into Australia’s exposure to illegally logged timber
• Updated CSGs and SSGs
• APEC EGILAT’s final policy theme report;
• International news

Sunsetting Review of the Illegal Logging Prohibition Regulation 2012

As mentioned in our last e-update in July, the department is conducting a sunsetting review of the Illegal Logging Prohibition Regulation 2012 (the Regulation). Australia was among the first countries globally to introduce illegal logging laws and the review is an opportunity to learn from nearly 10 years of experience here and overseas.

The review is considering if the Regulation continues to be fit-for-purpose. It is also considering potential reforms to strengthen Australia’s illegal logging laws more broadly, which may require changes to both the Regulation and the overarching Illegal Logging Prohibition Act 2012.

The potential reforms aim to ensure that the laws are effective at protecting the Australian market from illegally logged timber, and efficient in minimising burdens on regulated businesses from the law’s operation.

Public consultation on the potential reforms opened on 6 July 2021 and closed on 30 September 2021. We invited feedback from the public and targeted our engagement at those with a close interest in the laws. We received 20 written submissions and 30 survey submissions from 47 participants.

An overview of the views received from stakeholders on the key potential reforms can be found on the review’s Have Your Say webpage. The Government is currently considering the outcomes of the public consultation and the next steps for the potential reforms and remaking of the Regulation. The department will continue to update stakeholders on progress.

Australian Government announce series of studies to assess our exposure to illegally logged timber

Recently announced in the department’s 2021-22 Mid-Year Economic and Fiscal Outlook (MYEFO), the Australian Government is investing $900,000 over 2 years to deliver a series of studies to assess our current and future exposure to illegally logged timber imports. As part of this commitment, these studies will assess:

• Australia’s current and future exposure to illegally logged timber imports
• how Australia’s laws have reduced demand for illegally logged timber
• where enforcement efforts under the laws can be tailored to emerging risks.

These studies will harness specialist knowledge and skillsets in illegal logging, trade, regulatory implementation and policy, strengthening our illegal logging laws to better protect the profitability and viability of the Australian market and our timber producers.

The studies will be used to develop a set of recommendations for better targeting compliance efforts across the 30,000 importers and $7.8 billion of annual trade regulated under the illegal logging laws.

Resources for importers: updates to the Country Specific Guidelines and State Specific Guidelines

Country Specific Guidelines (CSGs) and State Specific Guidelines (SSGs) outline the legal frameworks used in the relevant jurisdictions to regulate timber harvesting. This information can help importers and processors with their due diligence assessments.

Updates to these documents include a new Thailand CSG and Quick Reference Guide (QRG). Additionally, the Tasmanian and South Australian SSGs and QRGs have been updated. These documents come into effect on 17 February 2022, two months after the legislative instrument was registered on 17 December 2021.

We continue to work with our trading partners to develop and routinely update CSGs. Similarly, SSGs will be updated as changes are made in the relevant state jurisdictions. New CSGs will be added to the CSG webpage page as they are finalised/updated and SSGs will be added to the SSG webpage as they are updated. Please check these webpages regularly to ensure the documents you are referencing are the most up-to-date versions.

APEC Experts Group on Illegal Logging and Associated Trade (EGILAT) two-year policy theme report endorsed

The final report of EGILAT’s 2-year policy theme, ‘Advancing the trade and distribution of legally harvested forest products’ will soon be published on the APEC EGILAT webpage.

EGILAT’s policy theme commenced in 2019, and recognised that private sector entities are the key players in the trade and distribution of forest products. The policy theme sought to identify:

• the issues faced by private sector entities in legal forest product trade
• potential actions that might be undertaken to support them
• the resources and materials available to help.

The report details the policy theme’s three distinct streams of work:

1. a series of four stakeholder workshops to identify challenges and opportunities for the private sector
2. a private sector survey to capture the views of a broader range of industry organisations
3. the development of a ‘Compendium of Resources’ to draw together existing tools, materials and resources to understand and navigate the legal frameworks of various economies.

The report outlines key themes and challenges identified throughout the policy theme, and explores opportunities identified through stakeholder workshops and by survey respondents, including options to optimise use of the Compendium of Resources.

The final report provides eight recommendations for consideration, which will help shape EGILAT’s future work plan, including its future work with industry and other partners.

International News - Illegal Logging: a global issue

• In Mexico, the Federal Agency of Environmental Protection, Procuraduría Federal de Protección al Ambiente (Profepa), has released a report stating forests in about 15% of Mexico’s territory are disappearing due to illegal logging. The document notes there are 122 areas where severe deforestation has occurred due to ‘the high incidence of illegal logging related to organized crime groups’.
• In Myanmar, authorities seized over 510 tons of illegal timber across the country in just over a month. The Forest Department under the Ministry of Natural Resources and Environmental Conservation stated seizures were made from 30 August to 3 October 2021 and included over 217 tons of teak, over 72 tons of hardwood and over 221 tons of other types of timber.
• In Zambia, the High Commission has confirmed 200 Tanzanian registered trucks have been seized for illegally logging a protected rosewood type without valid permits. Tanzania's High Commissioner to Zambia, Hassan Simba Yahya said that the issue will now be resolved diplomatically by the two countries.
• In the Philippines, the Anti-Illegal Logging Task Force confiscated P4.5 million (A$125,000) worth of illegally cut premium wood in three separate operations. The Department of Environment and Natural Resources also reported 13 individuals were arrested and two vehicles were confiscated as part of the operation.
• In Papua New Guinea, Gary Juffa, governor of the Oro province, has called for the international community to join forces to fight illegal loggers destroying PNGs rainforests at the COP26 climate summit in Glasgow, Scotland. Juffa said political corruption has forced him to use the court system to remove three of the five timber companies operating in the Oro province.
• In the lower Mekong, more than a 100 forestry, law enforcement and customs officials from relevant countries met virtually for a five day CITES led workshop to bolster their skills in timber identification. The aim of the workshop was to give the officials the tools to identify and combat illegal shipments of timber and wood products moving through their countries. It was the third such online workshop held this year.
• In Ukraine, forty-three organizers of illegal logging schemes, including high-ranking officials of state forestry enterprises, have been convicted in Ukraine since the beginning of this year. In addition, the Security Service of Ukraine stated seven organised groups engaged in illegal logging and trade have been neutralised.

• Illegal Logging Prohibition Regulation 2012 Sunsetting Review
• APEC government-industry forestry workshop
• Forest Trends’ Global Illegal Logging and Associated Trade Risk Assessment Tool
• International News

Illegal Logging Prohibition Regulation 2012 Sunsetting Review

The department has commenced a review of Australia’s illegal logging laws and is seeking stakeholder input via haveyoursay.awe.gov.au/illegal-logging-sunsetting-review.

The review will assess if the Illegal Logging Prohibition Regulation 2012’s continues to be fit-for-purpose. This is standard practice for many pieces of Commonwealth legislation of a similar nature. 

The review will also consider potential reforms to strengthen Australia’s illegal logging laws more broadly, which may require changes to both the Regulation and the Illegal Logging Prohibition Act 2012.

Australia was among the first countries globally to introduce illegal logging laws. The review is an opportunity to learn from nearly 10 years of experience here and overseas.

The potential reforms aim to ensure that the laws are effective at protecting the Australian market from illegally logged timber, and efficient in minimising burdens on regulated businesses from the law’s operation.

Some of the improvements being considered as part of the review include:

• receiving key information before regulated goods arrive at the border
• ensuring officials are empowered to deal with compliance risks at the border
• reducing the need to repeat due diligence
• simplifying requirements for low-risk products.

These potential reforms stem from recommendations made by the 2018 Statutory Review.

Anyone with an interest in our illegal logging laws is encouraged to provide their feedback on the review. Consultation is open until 31 August 2021.

Please visit haveyoursay.awe.gov.au/illegal-logging-sunsetting-review to find out more and participate in the review, including through upcoming information sessions, answering a short survey or uploading a written submission.

Australia co-hosts APEC government-industry workshop focused on combatting illegal logging and associated trade

Australia recently co-hosted a virtual two-day workshop focused on the theme of ‘Advancing the trade and distribution of legally harvested forest products’. The workshop brought together a range of public and private organisations from the APEC region to identify key challenges and solutions facing the private sector when dealing in forest products.

The workshop was organised under APEC’s Experts Group on Illegal Logging and Associated Trade (EGILAT), an expert group of members from the 21 APEC economies focused on combatting illegal logging and associated trade. These economies together account for over 50% of the world’s forests and 80% of international trade in forest products. Australia is a co-lead with the United States and New Zealand on progressing the group’s current focus on advancing trade in legally harvested products. Australia’s Agriculture Counsellor to Korea, Emma Hatcher, is the current chair of the group.

The EGILAT workshop was held over 27-28 May 2021 and was the third and final in a two-year series aimed at advancing trade in legally harvested products. Sessions included stakeholder presentations that explored practical experiences and challenges faced when dealing in legally harvested timber products, breakout rooms where attendees further explored solutions to promote legally harvested timber products, and moderated discussions on potential future initiatives.

Further information on EGILAT’s activities and resources supporting trade in legally harvested products can be found at on EGILAT’s webpage. The group is currently developing a comprehensive compendium of the resources available to assist entities with trade in legally harvested products.

New resources - Forest Trends’ Global Illegal Logging and Associated Trade Risk Assessment Tool (ILAT Risk)

Forest Trends has developed a publicly available tool to assist the global timber trade community assess the risk of illegal timber entering supply chains.

The tool has been designed to address information gaps concerning global trade flows and supply chains. The tool allows users to access global trade data and has created key indicators of risk for over 200 countries. These indicators of risk are based on multiple factors, including existing indices of corruption, governance, political risk and harvest risk associated with a trading country.

The ILAT Risk tool is now available for use and will benefit importers to develop and maintain their due diligence systems. Please note that this tool provides an indication only, and all due diligence systems cannot rely on this in isolation.

You can find the ILAT Risk Data Tool and a helpful user guide on Forest Trends’ webpage.

International News - Illegal Logging: a global issue

• In Laos, authorities have reported more than 2,600 cubic metres of illegally harvested wood and over 290 tonnes of illicit timber was seized. Authorities also inspected 2,788 wood processing plants that were found to be in breach of a variety of laws, with 1,636 of these plants then being ordered to close.
• In the Philippines, national authorities have seized ₱2.9 million (A$80,000) worth of illegally harvested and traded agarwood. Authorities have claimed the timber’s real worth is ten times as much if the lost environmental services are factored in.
• In Ghana, the Savannah Region has introduced a ban on illegal logging and commercial charcoal burning on 10 May 2021. All exit points for the banned commodities were effectively closed from 30 May 2021.
• In Russia, the proposed 2022 log export ban is reported to have far-reaching impacts on global forest product markets including Australia. Australian traders have been sourcing sizeable volumes of Baltic pine and white spruce from Russia.
• In Brazil, the Environment Minister has recently resigned due to his alleged links to illegal logging in the Amazon rainforest. The Minister is accused of vouching for the legal origin of timber worth approximately £18m (A$33 million) against contrary evidence.
• In the Congo Basin, illegal logging has increased during the COVID-19 pandemic according to reports by the University of Wolverhampton’s Centre for International Development and Training.
• The European Union has announced a new wave of sanctions against Myanmar, including prohibiting timber imports from Myanmar.
• In Guinea Bissau, a government proposal to lift its logging ban has raised concerns that it will allow damaging tree felling, as seen in the 2012-2015 period that led to the ban. 
• In Indonesia, illegal logging activities on the island of Sulawesi increased by 70% in 2020 according to reports by the NGO, JURnal Celebes. This was attributed to decreased monitoring activities because of the ongoing COVID-19 pandemic.

• Trial of technology to confirm wood claims
• Establishing a due diligence system
• The FSC risk assessment platform
• Outcomes of Interpol’s Operation Thunder
• International News

Department trials new technology to confirm wood claims

On 8 December 2020, the then Assistant Minister for Fisheries and Forestry, announced the initial round of results from a timber testing program being trialled by the Department of Agriculture, Fisheries and Forestry.

The department’s illegal logging compliance program is piloting the use of DNA and chemical isotope testing to determine if the claims being made by timber retailers regarding the species and origin of their timber products are accurate.

In late 2020, timber samples were purchased from major hardware stores, timber suppliers, and furniture stores in Queensland, New South Wales, Western Australia, South Australia and the Australian Capital Territory. The samples were provided to the University of Adelaide for testing. The selected products came from various countries and were sold as oak, merbau, meranti, acacia, cedar, eucalyptus, pine, rosewood, mahogany, and teak varieties.

Results from an initial round of testing have now been provided to the department, and showed that around 60 per cent of the timber species tested in this batch were accurately labelled. However, there were several examples where the timber was incorrectly labelled. For example, the DNA testing found that durian-tree timber had been wrongly labelled as cedar, while a species of rubber tree was labelled as meranti. The tests also suggested that a product identified as American Oak was more likely to have come from Russian or Chinese based oak species.

These outcomes underline the importance of importers having robust due diligence systems to ensure that they know what they’re buying and selling. Australian consumers should be able to buy timber products secure in the knowledge they are getting what they pay for and are not contributing to the international trade in illegally logged timber.

The department will be working with retailers where discrepancies have been identified to determine what may have occurred and identify if there has been any non-compliance with Australia’s illegal logging laws. Further testing results are expected in the coming months.

New Resources – Establishing a due diligence system

The department has published two new resources to help importers and processors to understand what is required when establishing a new illegal logging due diligence system.

Sections 9 and 18 of the Illegal Logging Prohibition Regulation 2012 specifically require importers and domestic processors to have a written due diligence system before they import regulated timber products, or process domestically grown raw logs. Failure to have a suitable due diligence system could expose an importer or processor to financial penalties of $2,664 for individuals and $13,320 for body corporates.

The new guidance provides detailed advice on what needs to be included in a due diligence system and the type of information the department looks for when auditing parties to determine their compliance with the illegal logging laws. The two guidance documents can be downloaded at:

• Guidance for Importers – Establishing a due diligence system
• Guidance for Processors – Establishing a due diligence system

More detail, advice and scenarios on the due diligence process is provided on the department’s website.

New resources – FSC Risk Assessment Platform

The Forest Stewardship Council (FSC) has launched its new Risk Assessment Platform.

The platform provides a simplified and easy-to-use overview of the contents of all the FSC’s sixty country risk assessments. While intended mainly for FSC certified businesses managing the sourcing of FSC Controlled Wood (i.e. non-certified but low risk wood), the FSC country risk assessments provide a useful summary of potential timber legality risks and suggested control measures.

This information could be useful in helping to inform the risk assessment and mitigation elements of your due diligence process. For example, it can help identify potential high-risk timber sources (useful when considering the risks associated with your own supply chains) and potential measures and approaches to mitigating these risks.

The full sixty FSC country risk assessments can be found in the FSC’s Document Centre.

Worldwide seizures: INTERPOL-WCO Operation Thunder

A month-long INTERPOL and World Customs Organisation (WCO) coordinated police and customs cross border operation has resulted in large seizures of protected wildlife and forestry specimens and products, triggering arrests and investigations worldwide.

Operation Thunder 2020 (which ran from 11 September to 11 October 2020) focused on pre-identified trade routes and hotspots and resulted in more than 2,000 seizures of wildlife and forestry products. In total, 699 offenders were apprehended. Further arrests and prosecutions are anticipated as ongoing global investigations progress.

The operation saw 87 truckloads containing over 950 tonnes of illegally logged and traded timber confiscated by government authorities. This included Indian Customs intercepting an 18-tonne shipment of red sandalwood destined for the United Arab Emirates. While police and forestry officers in North Macedonia were attacked during the operation (with two seriously injured) while attempting to prevent illegal logging activities.

“Wildlife and forestry crime is the world’s fourth largest illegal trade — a lucrative illegal business with far-reaching and devastating consequences not just for the environment but also for society, public health and global economics,” said Interpol secretary general Jurgen Stock.

“Wildlife and forestry crime often occurs hand in hand with tax evasion, corruption, money laundering and even murder, with organized crime groups using the same routes to smuggle protected wildlife as they do people, weapons, drugs and other illegal products.”

Operation Thunder 2020 was the fourth in a series of ‘Thunder’ operations that have been coordinated by Interpol since 2017, which have resulted in significant seizures and the arrest of thousands of suspects engaged in the illegal trade of wildlife and timber species.

International News - Illegal Logging: a global issue

Several recent media reports have highlighted some of the challenges facing countries across the world in dealing with illegal logging:

• In Brazil, the Attorney General’s Office has conducted its largest ever investigation into the illegal timber market; and military troops have been deployed to combat illegal logging.
• In Europe, the European printing industry’s peak body has supported calls to add printed products to the European Union Timber Regulation.
• In the Netherlands, the Dutch Government has ordered a company to cease importing tropical face plywood from a key Chinese exporter over concerns about its legality.
• In Myanmar, the Government has confiscated over 381 tonnes of illegally logged timber in a single week.
• In Pakistan, the Government has warned the local ‘timber mafia’ of significant consequences if they are caught illegally harvesting local forests.
• In the Philippines, 2 police officers were killed during an armed confrontation with illegal loggers, while the Government has declared a crackdown on illegal logging after the devastating flooding and land slippage caused by Typhoon Ulysses.
• In Sri Lanka, journalists have been attacked and threatened with death while investigating an illegal logging racket.
• In Romania, there are growing concerns over the threat posed to the country’s forests from the ‘timber mafia’ and alleged corrupt practices.
• In Russia, the WWF and Ikea have launched new artificial intelligence (AI) monitoring technology to help detect illegal logging operations in high-conservation value forests, while the FSC have launched a study into illegal salvage logging.
• In Uganda, the National Forestry Authority are promoting the expansion of forestry plantations as one way of tackling illegal logging, while also suspending commercial charcoal production due to concerns over its legality.
• In the United States, the United States Trade Representative has initiated an investigation into Vietnam’s import practices and alleged use of illegal timber.
• In the Ukraine, the Security Service of Ukraine has exposed and stopped the large-scale theft of forest resources in the Zakarparria region.

Disclaimer: The information on these websites represents the views of a third party and may not be accurate, up to date, or relevant to your due diligence process.

International News - Illegal Xmas trees in the Ukraine

As the holidays approach, we thought it apt to close out the year with a suitable Christmas story. In the Ukraine, the State Environmental Inspectorate of Ukraine has launched an environmental campaign “Christmas Tree – 2021”, during which the inspectorate, law enforcement bodies, and local governments will strength controls over the sale of Christmas Trees. This is in response to ongoing illegal logging in the country. Read more online.

• New Country Specific Guidelines for Chile, Finland, Malaysia and New Zealand
• World Forest ID
• Useful resources
• International news

Welcome back!

In late 2019, the Department of Agriculture, Fisheries and Forestry moved to a new mail subscription system. With the process complete, we look forward to picking up where we left off with the regular publication of the Department's Illegal Logging E-updates. Thank you for bearing with us during the transition, and for re-subscribing to the new platform.

A challenging start to the year - but don't forget to check where your timber is coming from!

We recognise the start to 2020 has been very challenging and hope that everyone has managed to stay safe and healthy through this difficult period.

While timber legality has probably not been your highest priority during this time, we just wanted to remind you of the importance of managing your timber supply chains. There have been a growing number of media reports highlighting the challenges of enforcing forestry laws during the pandemic (with forestry rangers and police often unable to get out in the field) and the heightened risks of illegally harvested timber entering the supply chain.

Added to this, we know that many in our regulated community are dealing with the long-term impacts of last summer's bushfires. The 'Black Summer' bushfires affected significant amounts of Australia's plantation and public native forest timber resources and is likely to impact our timber supply into the future, including supplies to mills, processors, and customers.

Put all of this together and we are likely to see an increased demand for overseas timber products at a time where their legality may be even less certain. As a result, it's probably never been more important to ensure that you know where your timber is coming from and having effective due diligence systems that are comprehensive and up to date.

You can find a range of information to help you meet your due diligence obligations on our illegal logging webpages.

Supporting articles:

Global: https://www.aljazeera.com/indepth/features/coronavirus-crimewave-illegal-loggers-profiteering-200507060825786.html

Global: https://www.triplepundit.com/story/2020/deforestation-increasing-pandemic/120676

Myanmar: https://elevenmyanmar.com/news/over-1400-tons-of-illegal-timber-seized-in-mandalay-amid-covid-19-outbreak

Tunisia: https://e360.yale.edu/digest/amid-coronavirus-lockdown-a-spike-in-illegal-logging-in-tunisia

A new Country Specific Guideline for Chile and updated guidelines for Finland, New Zealand, and Malaysia

The department is pleased to announce the release of a new Country Specific Guideline (CSG) for Chile, and updated versions of the CSGs for Finland, New Zealand, and Malaysia.

The new and revised CSGs represent the culmination of an extended program of work with the Governments of Chile, Finland, New Zealand, and Malaysia to develop documents that clearly describe their forestry laws. The finalised guidelines will help Australian importers to better understand how timber harvesting is managed in these countries, and the type of documents and information that might be available to help establish legality.

The use of a CSG to determine and manage risk is one of the main ways of satisfying the illegal logging laws' due diligence requirements. Further information on the use of a CSG in your due diligence process can be found on the department's illegal logging webpages.

You can view and download copies of the new and updated Chile, Finland, New Zealand, and Malaysian CSGs on the department’s CSG webpage.

Protecting Forests with Science - World Forest ID

As part of the global fight against illegal logging, the World Forest ID (WFID) consortium is working with the scientific and timber sectors to build the world’s largest geo-referenced, open source, forest sample collection. This collection will provide essential reference materials to support the use of scientific testing to help confirm claims made about the species and provenance of forest products.

All timber has intrinsic anatomical, genetic, and chemical attributes. Drawing on these attributes, several different scientific methods can be used to identify what the timber in a product actually is, where it comes from, and whether any claims being made about the product are accurate. This includes wood anatomy, mass spectrometry, DNA, stable isotope, and fibre analysis. All of which rely on suitable supporting reference materials being available.

The WFID consortium is made up of five institutions representing government as well as the scientific, environmental and forestry sectors – including the Forest Stewardship Council, the US Forest Service, the World Resources Institute, AgroIsoLab, and the Royal Botanic Gardens Kew.

In the long term, it is hoped that the WFID collection may lead to the broader use of timber testing in the fight against the trade in illegally logged timber. It may also provide a useful tool for those businesses who are seeking to conduct due diligence on their own timber supply chains.

Samples for the WFID collection are currently being collected by independent third parties. The WFID is also inviting interested parties (including members of the commercial timber sector) to provide reference samples from forests of interest.
For more information on how the WFID is being progressed and how to participate in the sample collection process, you can visit their website.

International News - Illegal Logging: a globally significant issue

Several recent media reports have highlighted some of the challenges facing countries across the world in dealing with illegal logging:

• In Brazil, Indigenous groups are reportedly facing genocide due to illegal logging.
• In Latin America, 2020 has seen an acceleration in the number of environmentalists who are being murdered for their opposition to illegal logging and other crimes.
• In Mexico, drug cartels have allegedly turned to illegal logging as an alternative source of income.
• In Cambodia, several companies have been accused by conservation groups of deliberately plundering a Wildlife Sanctuary for its timber.
• In Malaysia, the Government has continued to confiscate large amounts of illegally logged timber during the COVID-19 pandemic.
• In India, illegal logging mafia are stripping the timber that forms the habitat of a rare species of hornbill.
• In Europe, a number of timber firms have been accused by the Environment Investigation Agency of importing illicit Myanmar teak into Europe.
• In Europe, illegally harvested timber from the Ukraine is allegedly making its way into key timber supply chains.
• In Romania, the Government has been served notice by the European Commission for its high illegal logging levels.
• In Kenya, two people have been shot dead in a confrontation between the Kenya Forestry Service and illegal loggers.

Disclaimer: The information on these websites represents the views of a third party and may not be accurate, up to date, or relevant to your due diligence process.

Further information

See the department's illegal logging website for information and resources.

Read previous e-updates.

Email the department's illegal logging compliance section.

Call the department during business hours (8.30 am to 5.30 pm) on 1800 657 313, or +61 2 6272 3933 outside Australia.