Important information on illegal logging legislative reform The Illegal Logging Prohibition Amendment Act 2024 (Amendment Act) and associated Illegal Logging Prohibition Rules (the Rules) will come into effect on 3 March 2025. What does this mean for importers and processors? Your due diligence requirements will change on 3 March 2025. Until then, existing requirements remain in place. The Rules will replace the Illegal Logging Prohibition Regulation 2012 (the Regulation) and introduce changes to due diligence requirements. We will provide detailed guidance material to support you under the new arrangements, however it is up to you to understand your responsibilities as an importer or processor of regulated timber and/or timber products/raw logs. The fundamental steps of your due diligence requirements will remain unchanged. This includes a written due diligence system, information gathering, risk assessment, risk mitigation and record keeping. The requirement to respond to a request for information from the department also remains the same. However, there are key changes to some steps: - The three risk assessment methods in the current Regulation (Country Specific Guidelines or State Specific Guidelines, Timber Legality Frameworks and Regulated Risk Factors) will be replaced with two distinct risk assessment pathways for:
- Certified timber and timber products/raw logs
- Non-certified timber and timber products/raw logs.
- There will be a new repeat due diligence exception. This will allow you to rely on a previous risk assessment and risk mitigation measures if you import or process the same timber, timber products, or raw logs from the same supplier within a 12 month period. You can use this exception regardless of the certification status of your timber or timber products.
- There will be an exemption for processors who are also the person/entity who harvested the raw log.
The new laws will also include a future requirement to provide notice to the department before importing or processing regulated timber, timber products or raw logs. This requirement will not come into effect on 3 March 2025, as it relies on a new IT system that is still being developed. We will update you as this progresses. Look out for guidance material We are developing new guidance material and webpage content to assist you in meeting your due diligence requirements from 3 March 2025. Rest assured; this guidance material will be available to help you when the updated laws come into effect. We will provide updates as this new content progresses. What else will be changing? The Amendment Act will also introduce changes as follows: - We will be able to use timber testing technologies to verify claims of species and origin of timber and timber products at the border and under a warrant.
- We will not commence these activities immediately.
- As per e-update #48, we recently undertook a timber testing trial to understand how best to implement timber testing activities under these new powers.
- We are analysing the final outcomes of the trial to guide our approach in developing possible timber testing activities under legal reforms. We will update you as this work progresses.
- We will be able to publish details of criminal convictions, civil penalty orders, orders of enforceable undertakings under the Act and anonymous timber testing results on our website.
- We will only publish instances of breaches where non-compliance is repeated or very serious and where it is considered in the public interest to do so.
- The intent of these new powers is to inform the regulated community of findings that will assist due diligence efforts, to encourage compliance with the laws and educate the public and consumers to encourage selection and purchase of legally harvested timber and timber products.
- We will have more flexible enforcement options including injunctions, enforceable undertakings and tiered offences.
- These will provide more options to ensure our compliance responses can remain proportionate to the level and nature of non-compliance.
- Most importantly, we will continue to work with individuals and entities to educate and facilitate future compliance.
Audits and compliance – Transitioning to new arrangements We appreciate that these changed legal requirements will involve changes to your internal processes and we remain committed to supporting compliance within the regulated community.
As such, for the first six months of the Rules (from 3 March 2025 – early September 2025), we will conduct audits as usual, but will focus on education and guidance for non-compliance matters relating to the application of new/changed due diligence arrangements.
We may still take further action for non-compliance matters relating to due diligence requirements that remain unchanged.
We acknowledge that the regulated community is best placed to provide feedback on how our guidance material supports your due diligence obligations. We encourage you to use the guidance material within this six-month and provide feedback on its practical application in your business and compliance activities. We will let you know when guidance material becomes available and will welcome your suggestions for further improvements. Stay updated and spread the word As we move towards 3 March 2025, we will continue to keep you updated via this illegal logging e-update subscription and in other ways, including through updates with industry representative bodies and engagement activities.
Please stay subscribed and encourage others you know in the industry to also subscribe.
|