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.org/news/timber-from-russia-and-belarus-considered-conflict-timber.
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 at: fsc.org/en/newsfeed/no-fsc-material-from-russia-and-belarus-until-the-invasion-ends.
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 Belarusian 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: awe.gov.au/agriculture-land/forestry/policies/illegal-logging/importers/due-diligence.
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 illegal 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@agriculture.gov.au. |