For meeting the demand of EUTR and ACT concerning the transparency in Supply Chain, all vendors are required by signature to declare they are in compliance with all applicable Chinese laws and make official statements of their resources coming from well-managed legal and sustainable plantations in accordance with the principles of sustainable yield management, the maintenance of ecological balance and safeguarding of the environmental quality and stability. 

Critical Elements of the EUTR Due Diligence include the following three elements to minimize the risk  that  timber products come from illegal harvesting:

1. Information:
Companies must have access to information specifying the timber and timber products, country of harvest, species, quantity, details of the supplier and information on compliance with national legislation.

2. Risk assessment: 

    This enables operators to analyze and evaluate the risk of illegally harvested timber in their products. It takes into account the information provided in the access information section as well as relevant risk assessment criteria, including:
assurance of compliance with applicable legislation, which may include certification or other third-party verified schemes which cover compliance with applicable legislation

• prevalence of illegal harvesting of specific tree species

• 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

• sanctions imposed by the UN Security Council or the Council of the European Union on timber imports or exports

• the complexity of the supply chain of timber and timber products

3. Risk mitigation: 

         When the assessment shows a risk of illegal timber in the supply chain, that risk can be mitigated by requiring additional information and verification from the supplier. 

Legislation

• The European Union Timber Regulation: EU No 995/2010 is part of UK law under the Timber and Timber Products (Placing on the Market) Regulations.

• EC delegated regulation EU No 363/2012 sets out the procedural rules for the recognition and withdrawal of recognition of monitoring organizations.

• EC regulation EU No 607/2012 details the rules concerning the due diligence system and the nature and frequency of checks on monitoring organizations.

The European Timber Regulation also references several other EC decisions, communications, regulations and directives as follows:

• Decision No 1600/2002/EClaying down the Sixth Community Environment Action Programme

• Forest Law Enforcement, Governance and Trade (FLEGT) Proposal for an EU Action Plan

• Regulation (EC) No 2173/2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community

• Regulation (EC) No 338/97 on the protection of species of wild fauna and flora by regulating trade therein

• Directive 2008/98/ECof the European Parliament and of the Council on waste

• Directive 97/7/ECon the protection of consumers in respect of distance contracts

• Regulation (EC) No 338/97 on the protection of species of wild fauna and flora by regulating trade therein

• Directive 2008/98/EC of the European Parliament and of the Council on waste

• Directive 97/7/EC on the protection of consumers in respect of distance contracts