Prof. dr Branko Glavonjić University of Belgrade Faculty of Forestry

Regulation N° 995 for wood construction and especially to sawmills business Prof. drBranko Glavonjić University of Belgrade Faculty of Forestry brankogl@afrodita.rcub.bg.ac.rs

CONTENTS • The main reasons for adoption of new EUTR? II. Processes that preceded the adoption of new EUTR III. Aim of the new EUTR and list of products covered by it IV. The main actors and their obligations in the process of implementationof EUTR V. Position of operators from non-EU countries in the context of the new EUTR

I. Main reasons for adoption of new EUTR

EU: Import of illegal harvested roundwood

EU: Balance of illegal harvested timber and timber products trade • 26,5 – 31 million m³ of illegal harvested roundwood equivalent/annually are placed on EU timber market

Illegal logging and trade in the World • 15% - 30% of the total timber trade in the world originated from illegal logging • 30 – 100 Billion US$ is the value of global trade of illegal timber • 50% - 90% of the value of the global trade of illegal timber is under organized crime

II. Processes that preceded the adoption of new EUTR Illegal logging and related large-scale deforestation has been a global problem for many decades and has resulted in extensive and negative environmental, social and economic impacts. To tackle this problem, the European Union, USA and Australia have implemented new regulations banning illegal wood products on their markets.

II. Processes that preceded the adoption of new EUTR 2010. EU TIMBER REGULATION 2008. FLEGT REGULATION ABOUT IMPLEMENTATION 2005.FLEGT Regulation 2003. FLEGT ACTION PLAN 2001. FLEG PROCESS 1998. G8 DIALOG ABOUT ILLEGAL LOGGING

II. Processes that preceded the adoption of new EUTR EU FLEGT Action Plan FLEGT-VPA (=Volontary Partnership Agreements) VO (EU) Nr. 2173/2005 Importing countries EU Timber Regulation Nr. 995/2010 + Application Reg. VO (EU) Nr. 607/2012 Voluntary Partnership Agreement (VPA): Bilateral agreement between EU and exporting countries, aimed at assisting to exporting countries to strengthen their monitoring and control procedures for their forestry industry to ensure that all timber and timber products are legally harvested. EU FLEGT Action Plan (since 2003)

II. Processes that preceded the adoption of new EUTR

III. Aim of the new EUTR and list of products covered by it

III. Aim of the new EUTR and list of products covered by it • Three key obligations of operators who place timber and timber products on the market are: • prohibition of placing of illegally harvested timber and products derived from such timber on the EU market; • 2. implementation of due diligence system • 3. keeping of records of their suppliers and customers.

III. Aim of the new EUTR and list of products covered by it The EUTR covers a large range of timber products including solid wood products, flooring, plywood, pulp and paper. Not included are recycled products, as well as printed papers such as books, magazines and newspapers. 4401 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms 4403 Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared 4406 Railway or tramway sleepers (cross-ties) of wood

III. Aim of the new EUTR and list of products covered by it 4407 Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness exceeding 6 mm 4408 Sheets for veneering (including those obtained by slicing laminated wood), for plywood or for other similar laminated wood and other wood, sawn lengthwise, sliced or peeled, whether or not planed, sanded, spliced or end- jointed, of a thickness not exceeding 6 mm 4409 Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sanded or end-jointed

III. Aim of the new EUTR and list of products covered by it 4410 Particle board, oriented strand board (OSB) and similar board (for example, waferboard) of wood or other ligneous materials, whether or not agglomerated with resins or other organic binding substances 4411 Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other organic substances 4412 Plywood, veneered panels and similar laminated wood 4413 00 00 Densified wood, in blocks, plates, strips or profile shapes

III. Aim of the new EUTR and list of products covered by it 4414 00 Wooden frames for paintings, photographs, mirrors or similar objects 4415 Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums of wood; pallets, box pallets and other load boards, of wood; pallet collars of wood 4416 00 00 Casks, barrels, vats, tubs and other coopers’ products and parts thereof, of wood, including staves 4418 Builders’ joinery and carpentry of wood, including cellular wood panels, assembled flooring panels, shingles and shakes

III. Aim of the new EUTR and list of products covered by it Pulp and paper of Chapters 47 and 48 of the Combined Nomenclature, with the exception of bamboo-based and recovered (waste and scrap) products 9403 30, 9403 40, 9403 50 00, 9403 60 and 9403 90 30 Wooden furniture 9406 00 20 Prefabricated buildings

IV. The main actors and their obligations in the process of implementation of EUTR COMPETENT AUTHORITIES MONITORING ORGANISATIONS OPERATERS TRADERS

IV. The main actors and their obligations in the process of implementation of EUTR 1. Competent authorities • Each Member State shall designate one or more competent authorities responsible for the application of this Regulation. • Main obligations: • Defining of the rules and instructions • Defining of the penalties • Controlling Member states are currently defining the criteria for legality as well as what will be expected from local forestry operators in terms of evidence of compliance and due diligence to be provided in case of controls.

IV. The main actors and their obligations in the process of implementation of EUTR 2. Monitoring organization An independent organization that develops a Due Diligence System and makes it available to operators for their compliance with EUTR. • A Monitoring organization should: • maintain and regularly evaluate a due diligence system and grant operators the right to use it; • (b) verify the proper use of its due diligence system by such operators; • (c) take appropriate action in the event of failure by an operator to properly use its due diligence system, including notification of competent authorities in the event of significant or repeated failure by the operator.

IV. The main actors and their obligations in the process of implementation of EUTR 3. Obligations of operators Operators and Traders shall ensure that no timber of illegal origin or illegally derived timber products enter the European market. Operators shall exercise due diligence system when placing timber or timber products on the market. Each operator shall maintain and regularly evaluate the due diligence system which it uses, except where the operator makes use of a due diligence system established by a monitoring organization ’’.

IV. The main actors and their obligations in the process of implementation of EUTR The due diligence system contains the following elements: a) Measures and procedures providing access to information on products to be placed on the market b) Risk assessments on products to identify illegal origin of products c) Mitigation measures if the risk of importing illegal products is known as not negligible

IV. The main actors and their obligations in the process of implementation of EUTR a) Measures and procedures providing access to information on products to be placed on the market contains: 1. description, including the trade name and type of product as well as the common name of tree species and, where applicable, its full scientific name, 2.country of harvest, and where applicable: (i) sub-national region where the timber was harvested; and (ii) concession of harvest,

IV. The main actors and their obligations in the process of implementation of EUTR • 3. quantity (expressed in volume, weight or number of units), • 4. name and address of the supplier to the operator, • name and address of the trader to whom the timber and timber products have been supplied, • 6. documents or other information indicating compliance of those timber and timber products with the applicable legislation;

IV. The main actors and their obligations in the process of implementation of EUTR b) Risk assessments on products to identify illegal origin of products contain: 1. assurance of compliance with applicable legislation, which may include certification or other third-party- verified schemes which cover compliance with applicable legislation, 2. prevalence of illegal harvesting of specific tree species, 3. prevalence of illegal harvesting or practices in the country of harvest and/or sub-national region where the timber was harvested, including consideration of the prevalence of armed conflict,

IV. The main actors and their obligations in the process of implementation of EUTR b) Risk assessments on products to identify illegal origin of products contain: 4. sanctions imposed by the UN Security Council or the Council of the European Union on timber imports or exports, 5. complexity of the supply chain of timber and timber products.

IV. The main actors and their obligations in the process of implementation of EUTR c) Mitigation measures if the risk of importing illegal products is known as not negligible are: 1. Where a non negligible level of risk is identified or when the risk level can not be determined, the operator must undertake mitigation measures to eliminate any potentially illegal timber. 2. Risk mitigation measures must be adequate and proportionate to effectively minimize any potential risk and may require additional information, documents and/or third-party verification. 3. Certification or other Third-party Verification Schemes may be taken into account in risk assessment and risk mitigation procedures in accordance with the criteria described by the EU Regulation 607/2012/EC.

IV. The main actors and their obligations in the process of implementation of EUTR 4. Obligations of Traders Traders buying or selling timber or timber products in the EU, must be able to identify following actors in the supply/value chain: 1. The operators or the traders who have supplied the timber and timber products, 2. Client to whom the timber or timber products were sold (if the identification is applicable) Traders have to keep the information at least five years and provide that information to competent authorities if they so request.

IV. The main actors and their obligations in the process of implementation of EUTR 5. Penalties • The penalties must be effective, proportionate to caused demage and dissuasive, comprising: • environmental damage, • (b) the value of the timber or timber products concerned, • (c) the tax losses, • (d) economic detriment resulting from the infringement. • (e) seizure of the timber and timber products concerned; • (f) immediate suspension of authorization to trade.

V. Position of operators from non-EU countries in the context of the new EUTR • Serbia doesn’t have VPA with EU • Due diligence system is still not required • FOLLOWING DOCUMENTS with EU importers must contain: • General data about supplier and buyer (company name, address,...) • Type of goods (description, including the trade name and type of product as well as the common name of tree species and, where applicable, its full scientific name) • Quantity (m3, weight, number of units)

V. Position of operators from non-EU countries in the context of the new EUTR • DELIVERY NOTE from state forests • General data about goods-description, quantity • sub-national region where the timber was harvested (Serbiaforest, FU Nova Varoš) • DELIVERY NOTE from private forest owners • General data about goods-description, quantity • Private property where the timber was harvested • CERTIFICATION • Desirable but not sufficient condition

Example of export of roundwood to the EU Roundwood spruce Country of harvest (Serbia) Certificate of legality State forest DELIVERY NOTE Private forest DELIVERY NOTE

EXAMPLE OF EXPORT OF FURNITURE to the EU 3 different wood species State forests „DELIVERY NOTE Private forests “DELIVERY NOTE” COUNTRY OF HARVEST (Serbia) SPRUCE COUNTRY OF HARVEST Bosnia and Herzegovina State forests „DELIVERY NOTE Private forests “DELIVERY NOTE” BEECH Country of harvest Croatia State forests „DELIVERY NOTE Private forests “DELIVERY NOTE” OAK

THANK YOU FOR YOUR ATTENTION Prof.dr Branko GlavonjicUniversity ProfessorFaculty of Forestry Belgrade State University Department of technology, management and design of furniture and wood productsKneza Viseslava 1, 11030 BelgradeRepublic of Serbiatel.+381 11 30 53 863fax.+381 11 3059537email: brankogl@afrodita.rcub.bg.ac.rsbranko.glavonjic@sfb.bg.ac.rs www.sfb.rs

Prof. dr Branko Glavonjić University of Belgrade Faculty of Forestry