On March 6th 2019, we've posted a blog about the status of Brexit and what this could mean for the British timber industry, especially regarding the EUTR. Now that Brexit finally became a reality it’s time for an update.
Even though the UK formally left the EU on January 31, there is a transition period in 2020 where the UK and the EU will try to negotiate new trade deals. Until then, the same rules apply for the timber industry as it was before.
There is a certain amount of doubt that the UK and the EU will finalize their new trade deal on December 31 2020, which will mean that this transition period could be extended with another year. In the meantime, the UK government issued out documentation on what timber trading companies are required to do starting January 1st, 2021.
The good news here is that the new rules in the UK have similar requirements as the EUTR and FLEGT and therefore the requirements for the timber companies should look familiar. The only thing that changes is the status of the UK itself. British timber operators should be prepare themselves for the scenario that the UK will become a third country’ under the EUTR.
This means that if a British company imports wood from an EU country, it will be obligated to exercise their due diligence. It also means that if a British company exports timber to the EU, it will have to supply documentation about the source and legality of your timber. This increases the administrative burden on British timber companies.
What does due diligence mean for the timber industry?
Due diligence under EUTR consists of three elements:
- Information collection
- Risk assessment
- Risk mitigation
You can read more about these requirements in this blog or watch this video.
ChainPoint's Timber Platform
Our Timber Due Diligence Platform helps companies meet their due diligence requirements as stated by the EUTR in one easy, ready to use platform. Our software makes it possible to onboard suppliers, map supply chains, collect information and assess and mitigate risks. Companies use our timber platform to reduce paperwork, reduce costs and have a better insight in their supply chain.
Want to know more?
If you have any questions about EUTR, timber due diligence, we strongly recommend registering our demo session of our timber due diligence platform on March 5th. In this In this short live session you will see firsthand how our dedicated Timber Due Diligence Platform can help you with your timber compliance.