Appalachian hardwood export companies recently learned the latest details on the European Union Deforestation Regulations (EUDR) from the American Hardwood Export Council (AHEC).
Tripp Pryor, AHEC International Program Manager, spoke to the Appalachian Lumbermen’s Club (ALC) at the Carnegie Hotel in Johnson City, TN, at its November meeting. He provided the latest details on laws governing imported agricultural products in Europe that require proof that land was not deforested.
The EUDR requires timber importers to report the geolocation of harvest for every piece of lumber or product sold into Europe. The government will use satellite images to review if the land was returned to forests.
Pryor said forests of the United States are sustainable and there is extremely low risk for deforestation. An issue for U.S. producers is that forestlands are privately owned and the logger, sawmiller or distribution company cannot control what the landowner does after the harvest.
AHEC has been developing a system to track parcels of forestland and locations of harvest. The platform is designed to help lumber producers determine the geolocation and include in documents provided to customers.
Pryor said multiple areas can be listed for shipments, but if one plot is discovered to be deforested, the importer faces a fine of 4 percent of their total annual sales. The timber importer has liability and he reminded exporters to not enter agreements that forward the liability to them.
He also noted that European exporters do not have to follow the same regulations and are not required to provide geolocations for export products. The double standard allows for legal challenges and AHEC is working with U.S. Trade Representative (USTR) to make sure EU products coming to the U.S. are held to the same standard.
AHEC reported on Nov. 13 that a delay on regulation implementation has now been endorsed by all three EU institutions: Parliament, Council, and Commission. There were other amendments to the Parliament proposal that must be approved by the European Commission and the European Council before it is finalized. At press time, officials said there was adequate time to have this completed by the December 30, 2024, implementation date to postpone the requirement for large importers. Small importers have a deadline of June 30, 2025.
The reports indicate if the new amendments are not finalized in time, these will be withdrawn and revert to the existing EUDR text so that the 12-month delay is still confirmed.
According to the Parliament’s amended text, the requirement to provide geolocation data would not apply to commodities from “no risk” countries. The specific data required from these countries would be:
• trade name and type of the relevant products;
• the quantity of the relevant products;
• the country of production and, where relevant, parts thereof;
• the name, postal address and email address of any business or person from whom they have been supplied with the relevant products;
• the name, postal address and email address of any business, operator or trader to whom the relevant products have been supplied;
• adequately conclusive and verifiable information that the relevant products are free of forest degradation;
• adequately conclusive and verifiable information that the relevant commodities have been produced in accordance with the relevant legislation of the country of production.
It is hoped that the U.S. would qualify as a no-risk country because of laws on private land ownership, forest management and best practices.
The next meeting of ALC is January 14, 2025, in Concord, NC, at the Embassy Suites.
For more information, visit www.lumberclub.org
