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The European Union's Regulation on Deforestation-free Products (EUDR) is set to significantly impact global timber trade, including New Zealand's sawmillers and timber suppliers. This regulation aims to ensure that products entering the EU market are free from deforestation and forest degradation, placing stringent due diligence requirements on suppliers worldwide.
The EUDR mandates that commodities such as timber, along with products derived from it, must not originate from land deforested after December 31, 2020. Companies are required to collect precise geographic coordinates of the land where the commodities were produced and ensure compliance with local laws. Non-compliance can result in fines up to 4% of a company's EU turnover.
For New Zealand timber exporters, this regulation means that any timber products intended for the EU market must adhere to these strict standards. Failure to comply can lead to significant penalties, including fines and the confiscation of goods. This legislation was intended to come into law next month however, it appears that implementation has been deferred by 12 months. The good news is that provides time to setup systems to demonstrate compliance.
Traceability: Establish systems to trace timber back to its origin, ensuring it does not come from deforested land post-December 2020.
Documentation: Maintain comprehensive records of the supply chain, including harvesting permits and land ownership documents.
Supplier Audits: Regularly audit suppliers to verify their compliance with EUDR requirements.
Educate suppliers about the EUDR to ensure they understand and meet the necessary standards.
Keep abreast of any changes or updates to the EUDR to ensure ongoing compliance.
If a batch of timber products fails to meet EUDR standards, all products within that batch, including those from compliant suppliers, can be subject to penalties. This underscores the importance of thorough due diligence and collaboration across the supply chain to prevent such outcomes.
Partnering with TimberSmart can significantly aid New Zealand timber suppliers in meeting EUDR requirements. TimberSmart specializes in developing and supporting information systems tailored for the timber industry, offering solutions that enhance traceability and compliance.
By integrating TimberSmart's systems, suppliers can efficiently manage log inventories, track timber processing stages, and maintain detailed records necessary for EUDR compliance. This integration ensures that all timber products can be traced back to their origin, verifying adherence to deforestation-free standards.
Additionally, TimberSmart's solutions facilitate seamless communication across the supply chain, enabling suppliers to collaborate effectively with partners and ensure that all parties meet the stringent requirements set forth by the EUDR.
The EUDR presents both challenges and opportunities for New Zealand's timber industry. By proactively implementing stringent due diligence processes and leveraging advanced information systems like those offered by TimberSmart, New Zealand timber suppliers can not only comply with the EUDR but also position themselves as leaders in sustainable forestry practices.
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