Illegal Logging Prohibition Bill 2011

1. Illegal Logging Prohibition Bill 2011 Information Sessions 2012

2. Why? Illegal logging of timber contributes to environmental degradation and hampers social development by depriving local communities and governments from the benefits of using their resource. Environmental and social costs worldwide have been estimated at approximately US$60 billion per annum. Illegally logged timber also undermines well regulated and sustainable industries by undercutting legally harvested timber products. The Australian Government made election commitments in 2007 and 2010 to combat illegal logged timber from entering the Australian market. 5 June, 2014 Department of Agriculture, Fisheries and Forestry Information Sessions Feb-March 2012 Illegal Logging Policy 2

3. Senate Inquiry • The Illegal Logging Prohibition Bill 2011 was introduced into Parliament on 23 November 2011. • The Bill was referred to the Senate Standing Committee on Rural Affairs and Transport for a public inquiry by Minister Ludwig on 25 November 2011. • The Senate Committee received submissions and held a public hearing on 14 December. • The Senate Committee released their findings on the public inquiry of the Bill on 27 February 2012. • The Bill may be subject to change depending on the outcomes of the public inquiry and passage through Parliament. 5 June, 2014 Department of Agriculture, Fisheries and Forestry Information Sessions Feb-March 2012 Illegal Logging Policy 3

4. The Bill • Immediate requirements • Prohibition on import of illegally logged timber – clause 8. • Prohibition on processing domestic raw logs that have been illegally logged – clause 15. • Requirements two-years after commencement • Prohibition on import of regulated timber products containing illegally logged timber – clause 9 • Due diligence requirements for importers of regulated timber products – clause 14 • Due diligence requirements for processors of raw logs – clause 18 5 June, 2014 Department of Agriculture, Fisheries and Forestry Information Sessions Feb-March 2012 Illegal Logging Policy 4

5. Overseas Timber & Wood Products IMPORTER Subject to discussion Prohibition – All timber and wood products Section 8 (The day after the Act receives Royal Assent) & Section 9 (Two years from the day after Royal Assent) GOVERNMENT Government Audits • Due Diligence for Regulated Timber & Wood Products Section 14 • (2 years from the day after Royal Assent) • - Risk Identification • - Risk assessment • Risk mitigation Importer to complete annual statement of compliance Non-regulated timber & wood product Declaration of Due Diligence at the border Section 12 Online form or template declaration of compliance with the Act Keep on file 5 years Completed by the importer Audit reports of annual statistics aggregated to be made public Failed audit Provide to Customs Broker Enforcement of graduated administrative and criminal sanctions Customs Import Declaration Form Section 13 “Has the importer undertaken due diligence in accordance with the Illegal Logging Prohibition Act?” TIMBER RELEASED ONTO AUSTRALIAN MARKET DRAFT – WITHOUT PREJUDICE

6. Regulation Development Three areas of work: Part 1: Due Diligence Requirements Part 2: List of Regulated Timber Products Part 3: Recognition of existing state and territory processes to align with the new legislation

7. Due Diligence Requirements a. Due diligence process Risk gathering and identification Risk assessment Risk mitigation b. Due diligence declaration or statement of compliance Consignment Annual Fields of information required c. Administration Reporting Auditing Publication

8. Future Direction • Consider the Senate Committee findings • Develop this list of regulated timber products • Continue to work with states and territories about compliance issues • Develop the due diligence requirements for importers of regulated timber products and processors of raw logs. 5 June, 2014 Department of Agriculture, Fisheries and Forestry 8 Information Sessions Feb-March 2012 Illegal Logging Policy

9. Thank you Any further questions please contact daff.forestry@daff.gov.au Website www.daff.gov.au/illegallogging.gov.au 5 June, 2014 Department of Agriculture, Fisheries and Forestry 9 Information Sessions Feb-March 2012 Illegal Logging Policy