EUTR and complex supply chains - Europa · •More companies demonstratie corporate social reponsibility (CSR); need to demonstrate about origin of their raw materials/products •Financial

EUTR and complex supply chains: challenges ahead Rob Busink

Senior policy advisor

Nature and Biodiversity Department

EUTR and complex supply chains| 15 March 2016

Overview of my presentation

• The implementation of the EUTR in the Netherlands

• The Dutch timber market structure

• Main findings

• Evaluation of the EUTR and the product scope

• Future market trends

• Possible ways forward


Netherlands Food and Consumer product safety authority

• Independent agency of Ministry of Economic Affairs

• Tasks

• Supervision (inspections, certification, investigations)

• Risk assessment

• Risk communication

• 2350 employees

• Working areas

• Animal welfare, animal health, animal husbandry, fishery, nature conservation, product safety, food safety, food quality, Plant health


Enforcement Timber related legislation CITES border Customs

inland Police NVWA – inspectors nature

conservation Fytosanitairy border Certification bodies

inland NVWA- inspectors fytosanitairy FLEGT border Customs physical inspection

NVWA permit check EUTR inland NVWA inspectors nature

conservation Forestry law inland Provinces/municipalities NVWA for Crown domain, State

forestry service,Ministry of Defence/Army, Ministry of Infrastructure


Structure of timber market in NL Production consumption

• Annual consumption: 10.6 mln m3 of which 0. 6 mln m3 tropical timber

• Total imports: 24. 8 mln m3

• Total exports: 14.9 mln m3

• Local production 1.1 mln m3

Structure of the market

• About 5000 market operators, of which

• 4500 are importer and market operator (according definition of the EU Timber Regulation

• 350 companies that harvest and process wood;

• Market operators which are being supplied from other member states but place iton the market for the first time:?

• Number of imports of woodproducts in 2011: 50.154


Country of origin (2010-2012 importdata- frequency)


2010-2012 tonnage


Imported (wood)products categories


Origin imports of wooden furniture


Enforcement so far

•

More than 100 market operators checked; 10 re-inspections

About 29 written warnings issued

Focus has been on

large timber importers

Dutch timber importer sanctioned by CA for breaching the EU timber regulation

We are shifting focus

to other sectors


Evaluation EU Timber regulation

• not possible yet to determine whether EUTR has had significant impacts on the market such as causing shifts in trade flows

• created an incentive for producer countries to develop systems to verify and demonstrate compliance with the legality requirements,

• the communication campaigns have raised awareness of the problem of the illegal logging amongst EU consumers.

• also created an incentive for producer countries to develop systems to verify and demonstrate compliance with the legality requirements.

• Response by NGO’s : extension of the product scope needed

• Several member states considering extension


SHARES OF VALUES OF EU28 IMPORTS BY REGIONS, 2004-2014


VALUE OF EU28 IMPORTS FROM CHINA BY PRODUCT GROUP, 2004-2014


Recent developments and observations

• growing export of more secondary processed wood products to EU;

• Growing demand among consumers for proff of origin of wood

• Increase in complex supply chains; increase in risk of possible import of illegal timber by EU

• More companies demonstratie corporate social reponsibility (CSR); need to demonstrate about origin of their raw materials/products

• Financial institutes/banks like to invest more in sustainability; requie from companies to act sustainably and to demonstrate it.

• Need for proof of origin of timber product


PRESENTATIE STUDENTEN 2 DECEMBER

PRESENTATIE STUDENTEN 2 DECEMBER

DNA Analysis:Analysis of products labeled as “American oak”:


Tracking and tracing


ISO works on Chain of custody of Forest Based Products


Possible issues to be discussed

• Will tracking and tracing of forest based products be a basic requirement in the future for imports by consuming regions?

• What is the role of existing certification schemes like FSC and PEFC?

• Is there a need to mainstream tracking and tracing of timber products and is developing an ISO standard a good way forward?

Thank you !

Rob Busink

[email protected]


Documents

EUTR and complex supply chains - Europa · •More companies demonstratie corporate social reponsibility (CSR); need to demonstrate about origin of their raw materials/products •Financial