NEW ILLEGAL LOGGING RULES START

CHANGES TO AUSTRALIA’S ILLEGAL LOGGING LAWS START ON 3 MARCH.

For timber importers and processors, it’s time to check that you and your operation are familiar with and ready to transition to the new arrangements regarding Australia’s illegal logging laws.

Illegal logging is the most valuable environmental crime in the world, estimated to cost the global community around $240 bn per annum. In addition to being directly linked to species extinction for both fauna and flora and wider environmental destruction, illegal logging has close links to organised crime and funding war and has been linked to murders and corruption in multiple countries.

It’s not just an ‘over there’ problem, some high-value Australian timbers have also been logged illegally and it’s estimated that up to 10% of our timber imports could come from high-risk sources every year.

Under Australian law, illegal logging means ‘the harvesting of timber in contravention of the laws of the country where the timber is harvested’.

This includes a wide range of illegal activities, such as:
• logging of protected species,
• logging in protected areas,
• logging with fake or illegal permits and
• using illegal harvest methods.

If you import wood, pulp or paper products into Australia, or process Australian grown raw logs, the updated laws affect you. You have legal responsibilities and need to know your obligations.

In short, from 3 March, the new rules will replace the existing Illegal Logging Prohibition Regulation 2012 and introduce changes to due diligence requirements. The onus is on importers of timber and/or timber products, or processors of Australian-grown raw logs to understand changes to due diligence requirements.

The fundamental steps for due diligence requirements will remain unchanged, that is:
• 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, as follow.

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:
1. Certified timber and timber products/raw logs
2. Non-certified timber and timber products/raw logs.

There is 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 is an exemption for processors who are also the person/entity who harvested the raw log.

In addition, the Amendment Act introduces powers for the department to undertake certain activities, two of which will not be fully implemented until the department has the necessary IT systems and regulatory framework in place. These two reforms are:
1. The use of timber testing technologies to verify product claims related to species and/or origin.
2. The notification requirement to receive due diligence information prior to the importation or processing of timber products.

The department has recently undertaken a timber testing trial to understand how best to implement timber testing activities under these new powers and will provide further details on these reforms once the systems for both are operational and the implementation plan is finalised.

ACCOUNTABILITY
With respect to publishing details of criminal convictions, civil penalty orders, orders of enforceable undertakings under the Act and anonymous timber testing results on the Department’s website, it advises it 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.

However, the Act allows for significant financial penalties and even prison time for those who breach it.
The advice for importers makes clear that if you believe your wood, pulp or paper product may include illegally logged timber, you should not import it.

Similar advice and penalties apply to domestic processors, who should ensure all logs have been legally harvested.

More flexible enforcement options including injunctions, enforceable undertakings and tiered offences. These will provide options to ensure compliance responses can remain proportionate to the level and nature of non-compliance.

The Department has committed to continuing to work with individuals and entities to educate and facilitate future compliance.
These changed legal requirements will involve changes to internal processes. In order to support compliance within the regulated community, for the first six months of the Rules being in effect (from 3 March 2025 – early September 2025), the Department 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.

However, it may still take further action for non-compliance matters relating to due diligence requirements that remain unchanged.

While customs brokers and overseas suppliers are not directly impacted by the new rules, their work will be affected by customer enquiries and information requirements.

For people who suspect they are aware of illegal logging imports or processing, the Department recommends they call 1800 803 006 for a confidential discussion, which can be anonymous.

MAIN PIC: Timber logged illegally, such as here in the Peruvian Amazon, may be acquired by organised criminals with far larger distribution chains. Photo: CC by JYB Devot