Proposal for a Regulation of the European Parliament and of the Council laying down the obligations of operators who place timber and timber products on the market - Hoofdinhoud

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COUNCIL OF THE EUROPEAN UNION

Brussels, 25 January 2010

Interinstitutional File: 2008/0198 (COD)

5636/10

NOTE

from: to:

No. Cion prop.: Subject:

Presidency

Working Party on Forestry

AGRI 24 ENV 32 FORETS 11 CODEC 44 DEVGEN 28 RELEX 79 JUR 35 UD 24 WTO 22 PROBA 10

14482/08 + ADD 1 + ADD 2 COM (2008) 644 final

Proposal for a Regulation of the European Parliament and of the Council laying down the obligations of operators who place timber and timber products on the market

With a view to the Working Party on Forestry delegations will find attached a Presidency note on the above mentioned subject.

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ANNEX 1

Explanatory note

Given the latest developments regarding the Proposal for a Regulation of the European Parliament and of the Council laying down the obligations of operators who place timber and timber products on the market, the Presidency has prepared a table (Annex 2), a numeric correspondence table (Annex3) and a comparative text document in order to examine the Working Party’s position on the European Parliament’s amendments (Annex 4).

• 1. 

  Table

The three columns that appear in the table correspond to the following:

» The 1^st column includes the Commission’s original proposal (14482/08) which served as basis for the European Parliament’s amendments.

» The 2nd column is based on document 5720/10.

» The 3^rd column shows the consolidated version of the first reading of the European Parliament (P6_TA(2009)0225 , 22^nd April 2009) in which amendments have been numbered in accordance to the report A6-0115/2009, 2^nd March 2009.

• 2. 

  Correspondence table

This table displays the numeric correspondence between the articles of the Commission proposal, the last Council version (5771/10 ADD1); and the Parliament (P6_TA(2009)0225 , 22^nd April 2009)

• 3. 

  Council and Parliament comparative document

The document includes the text version found in document 5720/10. Following each article, the corresponding European Parliament amendments have been included as shown in document A6-0115/2009, 2^nd March 2009.

In the electronic version of this document, amendments from the Committee on the Environment, Public Health and Food Safety have been marked in blue and those of the Committee on International Trade have been marked in green. Additionally, amendment numbers have been included in order to ease their examination.

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ANNEX 1                                                                                          CHS/rr                           1

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WHEREAS

ANNEX 2

COM

COUNCIL 5720/10

EP

(1)      Forests provide a broad variety of environmental, economic and social benefits including timber and non-timber forest products and environmental services.

(2)      Due to the growing demand for timber and timber products worldwide in combination with the institutional and governance deficiencies that are present in the forest sector in a number of timber-producing countries illegal logging and the associated trade becomes of ever greater concern.

(3)      Illegal logging is a pervasive problem of major international concern. It

(1)

(2)

(3)

Forests provide a broad variety of environmental, economic and social benefits including timber and non-timber forest products and environmental services.

Due to the growing demand for timber and timber products worldwide in combination with the institutional and governance deficiencies that are present in the forest sector in a number of timber-producing countries illegal logging and the associated trade becomes of ever greater concern.

Illegal logging is a major international

pervasive problem It poses

of

(1)         Forests provide a broad variety of environmental, economic and social benefits including timber and non-timber forest products, environmental services and habitats for local communities. (A 1)

(2)         The forest environment is a precious heritage that must be protected, preserved and, where practicable, restored with the ultimate aim of maintaining biodiversity and ecosystem functions, protecting the climate, and safeguarding the rights of indigenous peoples and local and forest-dependent communities. (A 2)

concern.

COM(2003)251, 21.5.2003.

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a

1

(4)

poses a significant threat to forests as it contributes to the process of deforestation, which is responsible for about 20% of CO₂ emissions, threatens biodiversity, and undermines sustainable forest management and development. In addition, it also has social, political and economic implications.

The Communication of the Commission to the European Parliament and to the Council on an EU Action Plan for Forest Law Enforcement, Governance and Trade (FLEGT) proposed a package of measures to support international

(4)

significant threat to forests as it contributes to the process of deforestation, which is responsible for about 20% of CO₂ emissions, threatens biodiversity, and undermines sustainable forest management and development including commercial viability of operators acting in accordance with applicable legislation. In addition, it also has social, political and economic implications.

The Communication of the Commission to the European Parliament and to the Council on an EU Action Plan for Forest Law Enforcement, Governance and Trade (FLEGT) proposed a package of measures to support international efforts to tackle the problem of illegal logging and associated

(3)         Forests are an economic resource, the cultivation of which generates prosperity and employment. The cultivation of forests also has positive effects on the climate since forest products can replace more energy-consuming products. (A 3)

(4)         It is of great importance, particularly from a climate point of view, that subcontractors operating on the Community market only market legally harvested timber since such timber ensures that the important function of forests as carbon dioxide sinks is not disrupted. In addition, the

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

OJ L 347, 30.12.2005, p. 1

OJ L 61, 3.3.1997, p. 1.

*note to OJ: reference to be included when the act is adopted.

OJ L 41, 14.2.2003, p. 26.

OJ L 184, 17.7.1999, p. 23.

COM(2003)251, 21.5.2003.

OJ L 347, 30.12.2005, p. 1

OJ L 61, 3.3.1997, p. 1.

OJ L 41, 14.2.2003, p. 26.

OJ L 184, 17.7.1999, p. 23.

OJ L 242, 10.9.2002, p. 1.

COM(2003)251, 21.5.2003.

OJ L 347, 30.12.2005, p. 1.

OJ L 61, 3.3.1997, p. 1.

OJ L 41, 14.2.2003, p. 26.

OJ L 184, 17.7.1999, p. 23.

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efforts to tackle the problem of illegal logging and associated trade¹.

(5)      The Council and the European Parliament recognising the need for the Community to contribute to global efforts to address the problem of illegal logging welcomed that Communication.

(6)      In accordance with the aim of that Communication, namely to ensure that only timber products that have been produced in accordance with the national legislation of the producing country enter the Community, the Community has been negotiating Voluntary Partnership Agreements (VPAs) with timber producing countries (partner countries), which put a legally binding obligation on the parties to implement a licensing scheme and to regulate trade in timber and timber products identified in the Agreements.

(7)      Given the major scale and urgency of the problem, it is necessary to actively support the fight against illegal logging and related trade, to complement and strengthen the VPA initiative and to improve synergies between policies aiming at the

(5)

(6)

(7)

trade.

The Council and the European Parliament recognising the need for the Union to contribute to global efforts to address the problem of illegal logging welcomed that Communication.

In accordance with the aim of that Communication, namely to ensure that only timber products that have been produced in accordance with the national legislation of the producing country enter the Union, the Union has been negotiating Voluntary Partnership Agreements (VPAs) with timber producing countries (partner countries), which put a legally binding obligation on the parties to implement a licensing scheme and to regulate trade in timber and timber products identified in the Agreements.

Given the major scale and urgency of the problem, it is necessary to actively support the fight against illegal logging and related trade, to complement and strengthen the VPA initiative and to improve synergies between policies aiming at the conservation of forests and the achievement of a high level of

use of legally harvested timber as building material, in wooden houses, for example, helps to lock in carbon dioxide on a long-term basis. (A 4)

(5)         Forestry accounts for a very large part of social and economic development in developing countries and constitutes the primary source of income in such countries for many people. It is therefore important not to curb this development and source of income but to focus on how to promote a more sustainable development of forestry in those countries. (A 5)

(6)         Due to the growing demand for timber and timber products worldwide, in combination with the institutional and governance deficiencies that are present in the forest sector in a number of timber-producing countries, illegal logging and the associated trade have become matters of ever greater concern.

(7)         It is evident that pressure on natural forest resources and the demand for timber and timber products are often too high and that the Community needs to reduce its impact on forest ecosystems regardless of where their effects occur. (A 6)

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conservation of forests and the achievement of a high level of environmental protection, including combating climate change and biodiversity loss.

(8) The efforts made by countries which have concluded FLEGT VPAs with the Community and the principles incorporated in them, in particular with regard to the definition of legally produced timber, should be recognised. It should be also taken into account that under the FLEGT licensing scheme only timber and timber products harvested in accordance with the relevant national legislation are exported into the Community.To that effect, timber products listed in Annexes II and III to Council Regulation (EC) No 2173/2005 of 20 December 2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community², originating in partner countries listed in Annex I to Council Regulation (EC) No 2173/2005 should be considered to have been legally harvested provided they comply with that Regulation and any implementing provisions.

(8)

environmental protection, including combating climate change and biodiversity loss.

The efforts made by countries which have concluded FLEGT VPAs with the Union and the principles incorporated in them, in particular with regard to the definition of legally produced timber, should be recognised. It should be also taken into account that under the FLEGT licensing scheme only timber and timber products harvested in accordance with the relevant national legislation are exported into the Union. To that effect, timber products listed in Annexes II and III to Council Regulation (EC) No 2173/2005 of 20 December 2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community⁸, originating in partner countries listed in Annex I to Council Regulation (EC) No 2173/2005 should be considered to have been legally harvested provided they comply with that Regulation and any implementing provisions.

(9)

Account should also be taken of the fact that

(8)         Illegal logging, in combination with institutional and governance deficiencies in the forest sector of a significant number of timber-producing countries, is a pervasive problem of major international concern. Illegal logging poses a significant threat to forests as it contributes to the process of deforestation and forest degradation, which is responsible for about 20 % of CO₂ emissions, influences the desertification and steppe-formation process, increasing soil erosion and exacerbating extreme weather events and the flooding which may ensue, threatens biodiversity, damages indigenous peoples’ habitats and undermines sustainable forest management and development. In addition, it also has social, political and economic         implications,         often undermining progress towards good governance goals, and threatens local forest-dependent communities and the rights of indigenous peoples. (A 7)

(9)         The aim of this Regulation is to halt the trade in illegally harvested timber and products made from such timber in the EU and to contribute to stopping deforestation and forest degradation and related carbon emissions and biodiversity loss

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(9)      Account should also be taken of the fact that the Convention on International Trade of Endangered Species of Fauna and Flora (CITES) places a requirement on parties to the Convention to only grant a CITES permit for export when a CITES-listed species has been harvested, inter alia, in compliance with domestic legislation in the exporting country. To that effect, timber products of species listed in Annexes A, B and C to Council Regulation (EC) No 338/97 of 9 December 1996 on the protection of species of wild fauna and flora by regulating trade therein³ should be considered to have been legally harvested provided they comply with that Regulation and any implementing provisions.

(10)     Taking into account the complexity of illegal logging as regards the underlying factors and the impacts, the incentives for illegal behaviour should be reduced by targeting the behaviour of operators.

(11)     In the absence of an internationally agreed definition the legislation of the country where the timber was harvested should be the basis to define

the Convention on International Trade of Endangered Species of Fauna and Flora (CITES) places a requirement on parties to the Convention to only grant a CITES permit for export when a CITES-listed species has been harvested, inter alia, in compliance with domestic legislation in the exporting country. To that effect, timber products of species listed in Annexes A, B or C to Council Regulation (EC) No 338/97 of 9 December 1996 on the protection of species of wild fauna and flora by regulating trade therein⁹ should be considered to have been legally harvested provided they comply with that Regulation and any implementing provisions.

(10) Taking into account the complexity of illegal logging as regards the underlying factors and the impacts, the incentives for illegal behaviour should be reduced by targeting the behaviour of operators.

(11) In the absence of an internationally agreed definition the legislation of the country where the timber was harvested should be the basis to define what constitutes illegal logging.

globally while promoting sustainable economic growth, sustainable human development and respect for indigenous and local peoples. This Regulation should contribute to the fulfilment of obligations and commitments contained in, inter alia: the Convention on Biological Diversity of 1992 (CBD); the Convention on International Trade in Endangered Species of Wild Fauna and Flora of 1973 (CITES); the International Tropical Timber Agreements (ITTAs) of 1983, 1994 and 2006; the United Nations Framework Convention on Climate Change of 2002 (UNFCCC); the United Nations Convention to Combat Desertification of 1994; the Rio Declaration on Environment and Development of 1992; the Johannesburg Declaration and Plan of Implementation as adopted by the World Summit on Sustainable Development on 4 September 2002; the proposals for action of the UN Intergovernmental Panel on Forests, endorsed by the 1997 United Nations General Assembly Special Session (Ungass), and of the UN International Forum on Forests; the United Nations Conference on Environment and Development (UNCED) non-legally binding authoritative statement

of

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what constitutes illegal logging.

(12)     Many timber products undergo numerous processes before and after they are placed on the market for the first time. In order to avoid imposing any unnecessary administrative burden only those operators that place timber and timber products on the market for the first time, rather than all operators involved in the distribution chain, should be subject to the requirements laid down in this Regulation.

(13)     The overall objective of achieving sustainability through the promotion of sustainability criteria remains a priority for the Community. In light of this objective and in order to reduce the burden on operators who place on the market timber and timber products which are subject to mandatory sustainability criteria established by Directive (EC) No XX/XX of the European Parliament and of the Council on the promotion of the use of energy from renewable sources, this Regulation should not apply to such products⁴.

(14)     Operators placing timber and timber products for the first time on the

(12)

(13)

(14)

Many timber products undergo numerous processes before and after they are placed on the market for the first time. In order to avoid imposing any unnecessary administrative burden only those operators that place timber and timber products on the internal market for the first time, rather than all operators involved in the distribution chain, should be subject to the requirements laid down in this Regulation.

Bearing in mind that it would place a disproportionate burden on operators if they were required to provide information on the origin of timber in products made of recycled timber, such products should be excluded from the scope of the Regulation.

Operators placing timber and timber products for the first time on the internal market should exercise due diligence through a system of measures and procedures (due diligence

(10)

principles for a Global Consensus on the Management, Conservation and Sustainable Development of All Types of Forests of 1992; Agenda 21 as adopted by UNCED in June 1992; the Ungass resolution on the ‘Programme for the further implementation of Agenda 21’ of 1997; the Millennium Declaration of 2000; the World Charter for Nature of 1982; the Declaration of the United Nations Conference on the Human Environment of 1972; the 1972 Action Plan for Human Environment; the United Nations Forum on Forests, Resolution 4/2; the Convention on European Wildlife and Habitats of 1979; the UN Convention against Corruption of 2003 (UNCAC). (A 8)

Decision No 1600/2002/EC of the European Parliament and of the Council of 22 July 2002 laying down the Sixth Community Environment Action Programme¹² has identified as a priority activity the examination of the possibility of taking active measures to prevent and combat trade in illegally harvested wood and the continuation of the active participation of the Community and of

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Community market should exercise due diligence through a system of measures and procedures (due diligence system) to minimise the risk of placing illegally harvested timber and timber products.

(15)     The due diligence system should provide access to the sources and suppliers of the timber and timber products being placed on the Community market and to information as regards compliance with the applicable legislation.

(16)     The timber sector is of major importance for the economy of the Community. Organisations of operators are important elements of the sector as they represent the interests of the latter at a large scale and interact with a diverse range of stakeholders. Organisations also have the expertise and capacity to analyse relevant legislation and facilitate the compliance of members, provided they do not use this competence with a view to dominate on the market. In order to facilitate the implementation of this Regulation and to contribute to the development of good practices it is appropriate to recognise organisations which have developed requirements

system) to minimise the risk of placing illegally harvested timber and timber products on the Internal market.

(15)     The due diligence system includes three elements inherent to risk management: access to information, risk assessment and mitigation of the risk identified. The due diligence system should provide access to information about the sources and suppliers of the timber and timber products being placed on the internal market for the first time including relevant information such as compliance with the applicable legislation. On the basis of this information operators should carry out a risk assessment. Where risk is identified, operators should mitigate such risk in a manner proportionate to the risk identified, with a view to prevent placing illegally harvested timber and timber products on the market.

(16)     In order to avoid any undue administrative burden, operators already using systems or procedures which comply with the requirements of this Regulation should not be required to set up new systems.

(17)     In order to recognise good practice in the forestry sector, certification or other third party schemes that include verification of compliance with applicable legislation may be used in the risk assessment procedure.

Member States in the implementation of global and regional resolutions and agreements on forest-related issues.

(A 9)

(11)       The Commission Communication of 21 May 2003 entitled "Forest Law Enforcement, Governance and Trade (FLEGT): Proposal for an EU Action Plan"¹³ proposed a package of measures to support international efforts to tackle the problem of illegal logging and associated trade and to contribute to the wider objective of sustainable forest management. (A 10)

(12)       The Council and the European Parliament, recognising the need for the Community to contribute to global efforts to address the problem of illegal logging and to support sustainable legal logging within the framework of sustainable development, sustainable forest management and poverty reduction, as well as social equity and national sovereignty, welcomed that Communication. (A 11) (A 1)

(13)       In accordance with the aim of that Communication, namely to ensure that only timber products that have been produced in accordance with the national legislation of the producing

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for the realisation of the due diligence systems. A list of such recognised organisations will be made public and will enable the recognition of the monitoring organisations included therein by all Member States competent authorities.

(17)     Competent authorities should monitor that the operators fulfill the obligations laid down in this Regulation. For that purpose the competent authorities should carry out official checks and require operators to take corrective measures where necessary.

(18)     Competent authorities should keep records of the checks and make a summary publicly available in

(18)     The timber sector is of major importance for the economy of the Union. Organisations of operators are important actors in the sector as they represent the interests of the latter at a large scale and interact with a diverse range of stakeholders. Organisations also have the expertise and capacity to analyse relevant legislation and facilitate the compliance of members, provided they do not use this competence with a view to dominate on the market. In order to facilitate the implementation of this Regulation and to contribute to the development of good practices it is appropriate to recognise organisations which have developed requirements for the realisation of a due diligence systems. A list of such recognised organisations will be made public in order to enable operators’ use of such recognised monitoring organisations.

(19)     Competent authorities should monitor that the operators effectively fulfil the obligations laid down in this Regulation. For that purpose the competent authorities should carry out official checks, as appropriate, which may include checks at the premises of the operator, and require operators to take remedial actions where necessary.

(20)     Competent authorities should keep records of the checks and the relevant information

country enter the Community, the Community has been negotiating Voluntary Partnership Agreements (VPAs) with timber producing countries (partner countries), which put a legally binding obligation on the parties to implement a licensing scheme and to regulate trade in timber and timber products identified in the VPAs.

(14)       The Community should also push, in bilateral talks with major timber-consuming countries such as the US, China, Russia, and Japan, for discussions in relation to the problem of illegal logging, for convergence towards harmonised appropriate obligations on operators on their own timber market, and for the creation of an independent, global alert system and register of illegal logging consisting for example of Interpol and an appropriate UN body, benefiting from the latest satellite detection technologies. (A 12) (A 2)

(15)       Operators from countries with forests of international ecological importance should have a particular responsibility for the sustainable exploitation of timber. (A 13) (A 3)

(16)       Given the major scale and urgency of

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accordance with Directive 2003/4/EC of the European Parliament and of the Council of 23 January 2003 on public access to environmental information⁵.

(19)     Taking into account the international character of illegal logging and related trade competent authorities should cooperate between themselves and with the administrative authorities of third countries and/or the Commission.

(20)     Member States should ensure that infringements of this Regulation are punished by effective, proportionate and dissuasive penalties.

(21)     The measures necessary for the

implementation of this Regulation

should be adopted in accordance with

Council Decision 1999/468/EC of 28

June 1999 laying down the procedures

for the exercise of implementing

powers conferred on the Commission⁶.

(22) In particular the Commission should be empowered to adopt detailed rules for the application of the due diligence system and in particular criteria for assessing the risk of placing illegally

should be made available to any applicant in accordance with Directive 2003/4/EC of the European Parliament and of the Council of 23 January 2003 on public access to environmental information¹⁰.

(21)     Taking into account the international character of illegal logging and related trade competent authorities should cooperate between themselves and with the administrative authorities of third countries and/or the Commission.

(22)     Member States should ensure that infringements of this Regulation are punished by effective, proportionate and dissuasive penalties.

[(23) The measures necessary for the

implementation of this Regulation should be

adopted in accordance with Council Decision

1999/468/EC of 28 June 1999 laying down

the procedures for the exercise of

implementing powers conferred on the Commission¹¹.]

(24) The Commission should be empowered to adopt delegated acts in accordance with Article 290 of the Treaty on the functioning of the European Union in respect of the procedures for the recognition and withdrawal of recognition of monitoring organizations, further relevant risk assessment criteria that may be necessary to supplement those already

the problem, it is necessary to actively support the fight against illegal logging and related trade, to reduce the Community’s impact on forest ecosystems, to complement and strengthen the VPA initiative and to improve synergies between policies aiming at poverty reduction, the conservation of forests and the achievement of a high level of environmental protection, including combating climate change and biodiversity loss. (A 14)

(17)       Based on the principle of preventive action, all supply chain actors should share responsibility for eliminating the risk of illegally harvested timber and timber products being made available on the market. (A 15)

(18)       The efforts made by countries which have concluded FLEGT VPAs with the Community and the principles incorporated in them, in particular with regard to the definition of legally produced timber, should be recognised. It should be also taken into account that under the FLEGT licensing scheme only timber and timber products harvested in accordance with the relevant national legislation are exported into the Community. To that

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(23)

harvested timber and timber products on the market, to establish criteria for the recognition of due diligence systems developed by monitoring organisations and to adapt the list of timber and timber products to which this Regulation applies where technical characteristics, end uses or production processes of timber or timber products necessitate such adaptations. Since those measures are of general scope and are designed to amend non-essential elements of this Regulation by supplementing it with new non-essential elements, they must be adopted in accordance with the regulatory procedure with scrutiny provided for in Article 5a of Decision 1999/468/EC.

In order to enable operators and competent authorities to prepare themselves in order to meet the requirements of this Regulation, this Regulation shall apply two years after its entry into force.

(24) Since the objective of this Regulation,

(25)

(26)

provided for by this Regulation and of the list of timber and timber products to which this Regulation applies. It is of particular importance that the Commission consults experts in the preparatory phase in accordance with the commitment of the Commission undertaken in the Communication of 9 December 2009 on the implementation of Article 290 of the Treaty on the functioning of the European Union.

In order to enable operators and competent authorities to prepare themselves to meet the requirements of this Regulation, this Regulation should apply 30 months after its entry into force.

Since the objective of this Regulation, namely the fight against illegal logging and related trade, cannot be achieved by the Member

(19)

effect, timber products listed in Annexes II and III to Council Regulation (EC) No 2173/2005 of 20 December 2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community¹⁴, originating in partner countries listed in Annex I to that Regulation, should be considered to have been legally harvested provided they comply with that Regulation and any implementing provisions. The principles set out in the VPAs, particularly with regard to the definition of ‘legally produced timber’ must include and guarantee sustainable forest management, the maintenance of biodiversity, the protection of local forest-dependent communities and of the indigenous peoples, and the safeguarding of the rights of those communities and peoples. (A 16)

Account should also be taken of the fact that the Convention on International Trade of Endangered Species of Fauna and Flora (CITES) places a requirement on parties to the Convention only to ║ grant a CITES permit for export when a CITES-listed species has been harvested, inter alia, in compliance with domestic legislation

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namely to complement and underpin the existing policy framework and support the fight against illegal logging and related trade, cannot be sufficiently achieved by the Member States and can therefore, by reason of its scale be better achieved at Community level, the Community may adopt measures, in accordance with the principle of subsidiarity as set out on Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,

States individually and can therefore, by reason of its scale be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out on Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives.

in the exporting country. To that effect, timber products of species listed in Annexes A, B and C to Council Regulation (EC) No 338/97 of 9 December 1996 on the protection of species of wild fauna and flora by regulating trade therein¹⁵ should be considered to have been legally harvested provided they comply with that Regulation and any implementing provisions.

(20)       Taking into account the complexity of illegal logging as regards the underlying factors and the impacts, the incentives for illegal behaviour should be reduced by targeting the behaviour of          operators.          Strengthening requirements and obligations and enhancing the legal means to prosecute operators for possession of illegal timber and timber products and for placing or making available such timber and timber products on the Community market are among the most effective solutions to deter operators from trading with illegal suppliers. (A 17) (A 4)

(21)       In the absence of an internationally agreed definition the legislation of the country where the timber was harvested should be the primary basis to define

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Council of 28 January 2003 on public access to environmental information¹⁶.

(31)       Taking into account the international character of illegal logging and related trade, competent authorities should cooperate between themselves and with environmental organisations, human rights organisations, and the administrative authorities of third countries and/or the Commission. (A 26)

(32)       Member States should ensure that infringements of this Regulation are punished by effective, proportionate and dissuasive penalties.

(33)       The measures necessary for the implementation of this Regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission¹⁷.

(34)       In particular, the Commission should be empowered to adopt detailed rules for the application of the due diligence system and in particular criteria for assessing the risk of placing illegally harvested timber and timber products on the market, to establish criteria for the recognition of due diligence

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systems developed by monitoring organisations and to adapt the list of timber and timber products to which this Regulation applies where technical characteristics, end uses or production processes of timber or timber products necessitate such adaptations. Since those measures are of general scope and are designed to amend non-essential elements of this Regulation by supplementing it with new non-essential elements, they must be adopted in accordance with the regulatory procedure with scrutiny provided for in Article 5a of Decision 1999/468/EC.

I (A 27)

(35)

(36)

Development in sustainable forestry is an ongoing process and this Regulation should, therefore, be evaluated, updated and amended on a regular basis in line with the results of new research. The Commission should therefore regularly analyse the latest available research and development and present the conclusions of its analysis and proposed amendments in a report to the European Parliament. (A 28)

In order to ensure a smoothly operating internal market in forest products, the Commission should analyse the impact of this Regulation on an ongoing basis.

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Article 1 Subject matter

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Article 2 Definitions

OJ L144, 04.06.1997, p.0019-0027

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Article 3 Obligations of operators

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Article 3 Obligations of operators

• 1. 

  Operators shall exercise due diligence to minimise the risk of placing illegally harvested timber and timber products on the market. To that effect, they shall use a framework of procedures and measures, hereinafter referred to as a 'due diligence system'.
• 2. 

  Operators shall establish a due diligence system containing the elements referred to in Article 4(1) or make use of a due diligence system of a recognised monitoring organisation referred to in Article 5(1).
• 3. 

  Timber products listed in Annexes II and III to Regulation (EC) No2173/2005 originating in partner countries listed in Annex I of Regulation (EC) No2173/2005 and which comply with that Regulation and its

Article 3 Obligations of operators

• 1. 

  Operators shall exercise due diligence to minimise the risk of placing illegally harvested timber or timber products derived from such timber on the market. To that effect, they shall use a framework of procedures and measures, hereinafter referred to as a 'due diligence system' as further defined in Article 5.
• 2. 

  Each operator shall maintain and regularly evaluate the due diligence system which it uses, except where the operator makes use of a due diligence system established by a monitoring organisation referred to in Article 6.

Article 3 Obligations of operators

• 1. 

  Operators shall ensure that they place or make available on the market only legally harvested timber and timber products.
• 2. 

  Operators who place timber and timber products on the market shall establish a due diligence system containing the elements referred to in Article 4 ║ or make use of a due diligence system of a recognised monitoring organisation referred to in Article 6(1).

Existing         national         legislative

supervision and any voluntary chain of custody mechanism which fulfil the requirements under this Regulation may be used as a basis for the due diligence system.

• 3. 

  Operators who make timber and timber products available on the market shall, throughout the supply chain, be able

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Article 4 Status of timber products covered by FLEGT and CITES (COUNCIL)

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Article 4 Due diligence systems

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• 2. 

  Detailed rules necessary to ensure the uniform implementation of paragraph 1 except as regards further relevant risk assessment criteria referred to in paragraph 1 point (b), subparagraph 2, shall be adopted in accordance with the regulatory procedure referred to in Article 16(2).
• 2. 

  The Commission shall adopt measures

for the implementation of this Article with a view to ensuring uniformity of interpretation of the rules and effective compliance by operators. (A 47) (A 8)

The Commission shall, in particular, establish criteria for assessing whether there is a risk of illegally harvested timber and timber products being placed on the market. In doing so, the Commission shall take particular account of the special position and capacity of SMEs and, as far as possible, offer those enterprises adapted and simplified alternatives to reporting and control systems so that those systems do not become too burdensome. (A 47)

Based on factors related to the product type, source or complexity of the supply chain, certain categories of timber and timber products or suppliers shall be considered 'high risk', requiring extra due diligence obligations from the operators.

Extra due diligence obligations may, inter alia, include:

– requiring additional documents, data or information;

– requiring third party audits.

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Article 5 (EP) Labelling

Note to OJ: two years after the entry into force of this Regulation. (A 50)

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Article 5 Recognition of monitoring organisations

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Article 5 Recognition of monitoring organisations

• 1. 

  Competent authorities shall recognise monitoring organisations which apply for such recognition, if the monitoring organisation complies with the following requirements:

(a) it has legal personality;

(b) it has established a due diligence system which contains the elements set out in Article 4(1);

(c)  it obliges operators it certifies to use its due diligence systems;

(d) it has in place a monitoring mechanism to ensure the use of the due diligence systems by the operators which it has certified as making use of its due diligence system;

(e) it takes appropriate disciplinary measures against any certified operator who fails to comply with the due diligence system of the monitoring organisation.

• 2. 

  The monitoring organisation shall submit to a competent authority the following information together with its application for recognition:

Article 6 Monitoring organisations

• 1. 

  A monitoring organisation shall exercise the following functions:

(a) maintain and regularly evaluate a due diligence system in accordance with Article 5 and grant operators the right to use it;

(b) verify the proper use of its due diligence system by such operators;

(c) take appropriate actions in the event of failure by an operator to properly use its due diligence system, including notification of competent authorities in the event of serious or repeated failure by the operator.

• 2. 

  An applicant may apply for recognition as a monitoring organisation, if it complies with the following requirements:

(a)        it has legal personality and is legally established within the Union;

(b)        it has the capacity to exercise

Article 6 Recognition of monitoring organisations

• 1. 

  The Commission shall, in accordance with the regulatory procedure referred to in Article 12(3), recognise as a monitoring organisation a private or public entity which has established a due diligence system which contains the elements set out in Article 4(1).
• 2. 

  A public entity applying for the recognition provided for in paragraph 1 shall comply with the following requirements:

(a)    it has legal personality;

(b)    it is governed by public law;

(c)    it has been established to carry out particular functions regarding the forest sector;

(d)    it is financed, for the most part, by the State, regional or local authorities, or other bodies governed by public law;

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(a) its statute;

(b) the names of persons authorised to act on its behalf;

(c) a detailed description of its due diligence system.

• 3. 

  Competent authorities shall decide whether to grant recognition to a monitoring organisation within three months of the submission of an application by the monitoring organisation.

They shall carry out checks at regular intervals to ascertain that monitoring organisations comply with the requirements laid down in paragraph 1.

• 4. 

  A competent authority shall withdraw the recognition of a monitoring organisation if it has been established that the requirements set out in paragraph 1 are no longer fulfilled.

5.

Competent authorities shall notify the Commission within two months of any decision to grant, refuse or withdraw recognition to a monitoring organisation.

6.

The Commission shall adopt measures for the

implementation of this Article. Those measures designed to amend non-essential elements of this Regulation by supplementing it shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 11(2).

the functions referred to in paragraph 1; and,

(c)         it carries out its functions in a

manner that avoids conflict of interest.

• 3. 

  An applicant that fulfils the requirements set out in paragraph 2 shall be recognised as a monitoring organisation.

(a) The competent authority of a Member State shall recognise the monitoring organisation which intends to exclusively carry out its activities in that Member State, and thereafter without delay inform the Commission.

(b) The Commission shall, after informing Member States, recognise a monitoring organisation which intends to carry out its activities in several Member States, or throughout the Union.

• 4. 

  The competent authorities shall carry out checks at regular intervals to verify that the monitoring organisations operating within the competent authorities’ jurisdiction continue to fulfil the functions laid down in paragraph 1 and comply with the requirements laid down in paragraph 2.

5.          If a competent authority determines that

(e)    it obliges operators it certifies to use its due diligence system;

(f)     it has in place a monitoring mechanism to ensure the use of the due diligence system by the operators which it has certified as making use of its due diligence system;

(g)    it takes appropriate disciplinary measures against any certified operator who fails to comply with its due diligence system; disciplinary measures shall include reporting the matter to the relevant national competent authority;

(h) it has no conflict of interest with the competent authorities. (A 51)

• 3. 

  A private entity applying for the

recognition provided for in paragraph 1 shall comply with the following requirements:

(a)    it has legal personality;

(b)    it is governed by private law;

(c)    it has appropriate expertise;

(d)    it is legally independent from the

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a monitoring organisation that has been recognised by the Commission no longer fulfils the functions laid down in paragraph 1 or complies with the requirements laid down in paragraph 2, it shall without delay inform the Commission.

• 6. 

  The competent authorities or the Commission may withdraw a recognition when the competent authority or the Commission has determined that a monitoring organisation no longer fulfils the functions laid down in paragraph 1 or the requirements laid down in paragraph 2. The competent authority and the Commission may only withdraw a recognition that they have issued themselves. Before a withdrawal by the Commission, Member States shall be informed. Member States shall inform the Commission of the withdrawal of a recognition.
• 7. 

  In order to supplement the procedural rules with regard to the recognition and withdrawal of recognition of Monitoring organisations and, if experience so requires, to amend them, the Commission may adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union. When adopting such

4.

operators it certifies;

(e)    the operators it certifies are bound by the entity's articles of association to use its due diligence system;

(f)     it has in place a monitoring mechanism to ensure the use of the due diligence system by the operators which it has certified as making use of its due diligence system;

(g)    it takes appropriate disciplinary measures against any certified operator who fails to comply with its due diligence system; disciplinary measures shall include reporting the matter to the relevant national competent authority. (A 52)

The monitoring organisation shall submit to the Commission the following information together with its application for recognition:

(a)    its statute;

(b)    the names of persons authorised to act on its behalf;

(c)    documentation to demonstrate its

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appropriate expertise; (A 53)

(d) a detailed description of its due diligence system.

• 5. 

  In accordance with the regulatory

procedure referred to in Article 12(3), the Commission shall decide whether to grant recognition to a monitoring organisation within three months of the submission of an application by the monitoring organisation or a recommendation from the competent authority of a Member State that it is recommending the organisation for recognition.

The decision to grant recognition to a monitoring organisation shall be communicated by the Commission to the competent authority of the Member State with jurisdiction over that organisation, together with a copy of the application, within 15 days of the date of the decision.

Member State competent authorities shall carry out checks, including field-based audits, at regular intervals, or on the basis of substantiated concerns from third parties, to ascertain that monitoring organisations comply with the requirements laid down in paragraph 1. The check reports shall be made

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Article 6 List of monitoring organisations

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Article 6 List of monitoring organisations

The Commission shall publish the list of the monitoring organisations recognised by the competent authorities in the Official Journal of the European Union, C series, and shall make it available on its website. The list shall be regularly updated.

Article 7 List of monitoring organisations

The Commission shall publish the list of the monitoring organisations in the Official Journal of the European Union, C series, and shall make it available on its website. The list shall be regularly updated.

Article 7 List of monitoring organisations

The Commission shall publish the list of the recognised (A 57) monitoring organisations ▌in the Official Journal of the European Union, C series, and shall make it available on its website. The list shall be regularly updated.

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Article 7 Monitoring measures

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Article 7 Monitoring measures

• 1. 

  Competent authorities shall carry out checks to verify if operators comply with the requirements set out in Article 3(1) and (2) and Article 4(1).
• 2. 

  Operators shall offer all assistance necessary to facilitate the performance of the checks referred to in paragraph 1.
• 3. 

  Following the checks referred to in paragraph 1 the competent authorities may request the operator to take corrective measures.

Article 9 Checks on operators

• 1. 

  The competent authorities shall carry

out checks to verify if operators comply with the requirements set out in Articles 3 and 5.

Article 8 Monitoring and control measures

• 1. 

  Competent authorities shall carry out controls to verify if operators comply with the requirements set out in Article 3(1), (2) and (3) and Article 4(1).
• 2. 

  Controls shall be conducted in accordance with a yearly plan and/or on the basis of substantiated concerns provided by third parties; or in any event where the competent authority of the Member State is in possession of information that questions compliance by the operator with the requirements for due diligence systems set out in this Regulation.
• 3. 

  Controls may include, inter alia:

(a)    examination of the technical and managerial systems and procedures of due diligence and risk assessment that the operators use;

(b)    examination of documentation

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• 2. 

  Operators shall offer all assistance

necessary to facilitate the performance of the checks referred to in paragraph 1.

• 3. 

  Where, following the checks referred to

in paragraph 1, shortcomings have been detected, the competent authorities may issue a notice of remedial actions to be taken by the operator. Any failure by the

(c)

and records that demonstrate the proper functioning of the systems and procedures;

spot checks, including field audits.

• 4. 

  Competent authorities shall be

equipped with a reliable traceability system to track internationally traded timber products and with public monitoring systems to assess the performance of operators in complying with their obligations and to help operators identify suppliers of high-risk timber and timber products.

• 5. 

  Operators shall offer all assistance

necessary to facilitate the performance of the controls referred to in paragraph 1, notably as regards access to premises and the presentation of documentation or records.

• 6. 

  If, following the controls referred to in

paragraph 1, the operator is presumed to have infringed the requirements set out in Article 3, the competent authorities may in accordance with their national legislation start a full

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investigation of the infringement and, in conformity with national law and depending on the gravity of the infringement, take immediate measures which may inter alia include:

(a)    the immediate cessation of commercial activities; and

(b)    the seizure of timber and timber products.

• 7. 

  Any immediate measures taken by the competent authorities shall be of such nature as to prevent the continuation of the infringement concerned and to allow the competent authorities to complete their investigation.
• 8. 

  Where the competent authorities find that the technical and managerial systems and procedures of due diligence and risk assessment are not sufficient, they shall require the operator to take corrective measures. (A 58)

Section-4.(-A 10)

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Article 8 Records of checks

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Article 8 Records of checks

• 1. 

  Competent authorities shall keep records of the checks referred to in Article 7(1), indicating in particular their nature and results, including any corrective measures requested to be taken. Records of all checks shall be kept for at least 10 years.
• 2. 

  A summary of the records referred to in paragraph 1 shall be made available to the public in accordance with Directive 2003/4/EC.

Article 10 Records of checks

• 1. 

  The competent authorities shall keep records of the checks referred to in Article 9(1), indicating in particular their nature and results, as well as of any remedial actions under Article 9(3). Records of all checks shall be kept for at least 5 years.
• 2. 

  The information referred to in paragraph 1 shall be made available to any applicant in accordance with Directive 2003/4/EC.

Article 9 Records of controls (A 59)

• 1. 

  Competent authorities shall keep records of the controls referred to in Article 8(1), indicating in particular their nature and results, including any corrective measures requested to be taken. Records of all controls shall be kept for at least 10 years. (A 60)
• 2. 

  The records referred to in paragraph 1 shall be made available to the public on the Internet in accordance with Directive 2003/4/EC. (A 61)

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Article 9 Cooperation

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Article 10 Competent authorities

• * 

  6 months after the entry into force of this Regulation.

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• 2. 

  The Commission shall make publicly available the list of the competent authorities.
• 2. 

  The Commission shall make publicly

available, including on the Internet, a list of the competent authorities. The list shall be regularly updated.

• 2. 

  The Commission shall make publicly

available on the Internet the list of the competent authorities. This list shall be kept up-to-date.(A 64)

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Article 11 Committee

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Article 12 Amendments

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Article 12 Amendments

The Commission may amend the list of timber and timber products set out in the Annex taking into account technical characteristics, end-uses and production processes.

Those measures designed to amend non-essential elements of this Regulation by supplementing it shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 11(2)

Article 12 Amendments of the Annex

In order to take into account experience gained on the implementation of this Regulation, in particular the reporting referred to in Article 18(3), or developments with regard to technical characteristics, end-users and production processes of timber and timber products concerned, the Commission may to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union by amending and supplementing the list of timber and timber products set out in the Annex. When adopting such delegated acts, the Commission shall act in accordance with the relevant provisions of this Regulation.

For the delegated acts referred to in this paragraph the procedures set out in Articles 13 to 15 shall apply.

Article 15 Amendments

The Commission may add to the list of timber and timber products set out in the Annex taking into account technical characteristics, end-uses and production processes. (A 68)

Those measures, designed to amend non-essential elements of this Regulation by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 12(2).

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Article 13 Penalties

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Article 13 Penalties

The Member States shall lay down the rules on penalties applicable to infringements of the provisions of this Regulation and shall take all measures necessary to ensure that they are implemented. The penalties provided for must be effective, proportionate and dissuasive. The Member States shall notify those provisions to the Commission by 31 December 20XX and shall notify it without delay of any subsequent amendment affecting them.

Article 17 Penalties

The Member States shall lay down the rules on penalties applicable to infringements of the provisions of this Regulation and shall take all measures necessary to ensure that they are implemented. The penalties provided for must be effective, proportionate and dissuasive. The Member States shall notify those provisions to the Commission and shall notify it without delay of any subsequent amendments affecting them.

Article 16 Penalties

The Member States shall lay down the rules on penalties applicable to infringements of the provisions of this Regulation and shall take all measures necessary to ensure that they are implemented. The penalties provided for may be criminal or administrative, must be effective, proportionate and dissuasive, and shall include, where appropriate, inter alia:

(a)         financial penalties reflecting:

– the degree of environmental

damage; – the value of the timber products

concerned by the infringement; – the tax losses and economic

damage occasioned by the

infringement;

(b)         seizure of timber and timber products;

(c)         temporary prohibition from marketing timber and timber products.

Where legal proceedings are pending, operators shall suspend sourcing timber and timber products from the areas in question.

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Article 13 (COUNCIL) Exercise of the delegation

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Article 13 (EP) Development of sustainability requirements

Note to OJ: one year after the date of entry into force of this Regulation.(A 66)

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Article 14 Reporting

Note to OJ: please insert date 30 April of the third year following the date of entry into force of this Regulation.

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Article 14(COUNCIL) Revocation of the delegation

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Article 14 (EP) Advisory Group

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Article 15 (COUNCIL) Objections to delegated acts

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Article 18 (EP) Amendment to Directive 2008/99/EC

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OJ L 328, 6.12.2008, p. 28.

Note to OJ: one year after the date of entry into force of this Regulation.(A 71)

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Article 19 (EP) Review

Note to OJ: three years after the date of entry into force of this Regulation. (A 72)

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Article 15 Entry into force

Note to OJ: 6 months after the date of entry into force of this Regulation Note to OJ: one year (A 73) after the date of entry into force of this Regulation.

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ANNEX - Timber and timber products as classified in the Combined Nomenclature set out in Annex I to Council Regulation (EEC) No 2658/87^20,

to which this Regulation applies

20

Council Regulation (EEC) No 2658/87 of 23 July 1987on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 256, 7.9.1987, p. 1).

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wood, including cellular wood panels, assembled flooring panels, shingles and shakes, wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sanded or end-jointed of CN code 4418;

• 7. 

  Particle board, oriented strand board (OSB) and similar board of wood whether or not agglomerated with resins or other organic binding substances of CN code 4410;
• 8. 

  Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other organic substances of CN code 4411;
• 9. 

  Densified wood, in blocks, plates, strips or profile shapes of CN code 4413 00 00;
• 10. 

  Wooden frames for paintings, photographs, mirrors or similar objects of CN code 4414 00;
• 11. 

  Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums of wood; pallets, box pallets

or end-jointed

• • 

  4410 Particle board, oriented strand board

(OSB) and similar board of wood whether or not agglomerated with resins or other organic binding substances;

• • 

  4411 Fibreboard of wood or other ligneous

materials, whether or not bonded with resins or other organic substances;

• • 

  4412 Plywood, veneered panels and similar

laminated wood;

• • 

  4413 00 00 Densified wood, in blocks, plates,

strips or profile shapes;

• • 

  4414 00 Wooden frames for paintings,

photographs, mirrors or similar objects;

• • 

  4415 Packing cases, boxes, crates, drums and

similar packings, of wood; cable-drums of wood; pallets, box pallets and other load boards, of wood; pallet collars of wood; coffins; (Not packing material used exclusively as packing material to support, protect or carry another product placed on the market.)

• • 

  4416 00 00 Casks, barrels, vats, tubs and other

coopers’ products and parts thereof, of wood, including staves.

• • 

  4418 Builders’ joinery and carpentry of wood,

including cellular wood panels, assembled flooring panels, shingles and shakes, wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like) along any of its edges, ends or faces,

including cellular wood panels, assembled flooring panels, shingles and shakes, wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sanded or end-jointed of CN code 4418;

• 7. 

  Particle board, oriented strand board (OSB) and similar board of wood whether or not agglomerated with resins or other organic binding substances of CN code 4410;
• 8. 

  Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other organic substances of CN code 4411;
• 9. 

  Densified wood, in blocks, plates, strips or profile shapes of CN code 4413 00 00;
• 10. 

  Wooden frames for paintings, photographs, mirrors or similar objects of CN code 4414 00;
• 11. 

  Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums of wood; pallets, box pallets and other load boards, of wood; pallet collars of

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ANNEX 3

• 2. 

  Correspondence table

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ANNEX 4

Article 1. Subject matter

This Regulation lays down the obligations of operators who place timber and timber products on the internal market for the first time, to minimise the risk of placing illegally harvested timber or timber products derived from such timber on the market.

Amendment to the title; (A.30) Subject matter and objective

Amendment to the writing of the Article (A.31);

This Regulation lays down the obligations of operators who place or make available timber

and timber products on the market.

Operators shall ensure that only legally harvested timber and timber products are

made available on the market.

Operators who place timber (or) timber products on the market shall use a due

diligence system.

Article 2. Definitions

For the purposes of this Regulation, the following definitions shall apply:

(a) 'Timber and timber products' means the timber and timber products set out in the Annex. Timber products derived from timber or from timber products which have already been placed on the market as well as timber products or components of such products manufactured from timber or timber products that have completed their lifecycle and would otherwise be disposed of as waste shall not be subject to this Regulation

(A.32) a) ‘timber and timber products’ means the timber and timber products set out in the Annex without exception

(b) 'placing on the market' means supply by any means, irrespective of the selling technique used, of timber or timber products, for the first time on the Internal market for distribution or use in the course of a commercial activity, whether in return for payment or free of charge. It shall also include supply by means of distance communication as defined in Directive 97/7/ EC of the European Parliament and of the Council of 20 May 1997 on the protection of consumers in respect of distance contracts.

(A. 34) (b) 'placing on the market' means the first making available of timber and timber products on the Community market; subsequent processing and distribution of timber does not constitute 'placing on the market';

(c) 'operator' means any natural or legal person that places timber or timber products on the market;

(A.35) (c) 'operator' means any natural or legal person that places or makes available on the market timber or timber products

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(d) ‘legally harvested’ means harvested in accordance with the applicable legistation in the country of harvest;

‘illegally harvested’ means harvested in contravention of the applicable legislation in the country of harvest;

(e)'applicable legislation' means the legislation in force in the country of harvest, covering the following areas of law:

• • 

  rights to harvest timber within gazetted boundaries;
• • 

  payments for harvest rights and timber including duties related to timber harvesting;
• • 

  timber harvesting, including directly related environmental and forest legislation;
• • 

  third parties’ legal rights concerning use and tenure that is affected by timber harvesting; and
• • 

  trade and customs legislation, in as far as the forest sector is concerned

(A 38) (f) 'applicable legislation' means legislation, whether national, regional or international, in particular that concerning the conservation of biological diversity, forest management, resource use rights and the minimisation of adverse environmental impacts; it should also take into account property tenure, rights of indigenous people, labour and community welfare legislation, taxes, import and export duties, royalties or fees related to harvesting, transportation and marketing;

• f) 

  'country of harvest' means the country or territory where the timber or the timber embedded in the timber products was harvested;

Additions to the Article;

(A. 33) (aa) 'making available on the market' means any supply of timber and timber products on the Community market for distribution or use in the course of a commercial activity whether in return for payment or free of charge; ;( originally new)

(A 36) (da) 'Risk' means a function of the probability of timber or timber products from an illegal source being imported into, exported from or traded in the territory of the Community and the severity of that event ;( originally new)

(A 37) (e) 'risk management' means the systematic identification of risks and the implementation of a set of measures and procedures in order to minimise the risk of placing illegally harvested timber and timber products on the market;(originally amendment of the former paragraph e)

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(A 39) (fa) ‘Sustainable forest management’ means the management and use of forests and wooded lands, in a way, and at a rate, that maintains their biological diversity, productivity, regeneration capacity, vitality and their potential to fulfil, now and in the future, relevant ecological, economic and social functions, at local, national, and global levels, without causing any damage to other ecosystems;(originally new)

(A 40) (h) 'monitoring organisation' means a legal entity or a membership-based association that has the legal capacity and appropriate expertise to monitor and ensure the application of due diligence systems by the operators certified as making use of such systems, and which is legally independent from the operators it certifies. ;(originally amendment of the former paragraph h)

(A 41) (ha)'traceability' means the ability to trace and follow timber or timber products through all stages of production, processing and distribution;(originally new)

Article 3. Obligations of operators

• 1. 

  Operators shall exercise due diligence to minimise the risk of placing illegally harvested timber or timber products derived from such timber on the market. To that effect, they shall use a framework of procedures and measures, hereinafter referred to as a 'due diligence system' as further defined in Article 5.

(A.42) Operators shall ensure that they place or make available on the market only legally harvested timber and timber products.

• 2. 

  Each operator shall maintain and regularly evaluate the due diligence system which it uses, except where the operator makes use of a due diligence system established by a monitoring organisation referred to in Article 6.

(A.42) Operators who place timber and timber products on the market shall establish a due diligence system containing the elements referred to in Article 4 or make use of a due diligence system of a recognised monitoring organisation referred to in Article 5(1).

Additions to the Article:

(A.42) Existing national legislative supervision and any voluntary chain of custody mechanism which fulfil the requirements under this Regulation may be used as a basis for the due diligence system.

(A.42) 2a. Operators who make timber and timber products available on the market shall, throughout the supply chain, be able to:

(i) identify the operator who has supplied the timber and timber products, and the operator to whom the timber and timber products have been supplied

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ANNEX 4                                                   DG B II                                                           EN

(ii) provide upon request information on the name of the species, the country/countries of harvest and where feasible the concession of origin;

(iii) check, where necessary, that the operator who has placed the timber and timber products on the market has fulfilled his obligations under this Regulation.

Article 4. Status of timber products covered by FLEGT and CITES

Timber products listed in Annexes II and III to Regulation (EC) No2173/2005 originating in partner countries listed in Annex I of Regulation (EC) No2173/2005 and which comply with that Regulation and its implementing provisions shall be considered to have been legally harvested for the purposes of this Regulation.

Timber products of species listed in Annexes A, B or C to Regulation (EC) No 338/97 and which comply with that Regulation and its implementing provisions shall be considered to have been legally harvested for the purposes of this Regulation.

Article 5. Due diligence systems

• 1. 

  The due diligence system referred to in Article 3(1) shall contain the following elements: measures and procedures to provide access to information, risk assessment and, except where the risk identified is negligible ,risk mitigation.

Additions (former Article 4):

(A.43) (-a) ensure that only legally harvested timber and timber products are placed on the market, employing a traceability system and third party verification by the monitoring organisation;

CIT (A.6) (-a) ensure that only legally harvested timber and timber products are placed on the market by means of a traceability system and third party verification;

a). Measures and procedures providing access to the following information concerning the operator's supply of timber or timber products placed on the market:

• • 

  description, including the full scientific name or common name of tree species, trade name and type of product;
• • 

  country of harvest, and where applicable sub-national region of harvest;

•    quantity (expressed in volume, weight or number of units);

• • 

  name and address of the supplier to the operator;
• • 

  documents or other information indicating compliance of such timber and timber products with the applicable legislation;¹⁸

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(A.44)

(a) Comprise measures to ascertain:

(i) country of origin, forest of origin and, where feasible, concession of harvest;

(ii) name of the species, including scientific name;

(iii) value;

(iv) volume and/or weight;

(v) the timber or the timber embedded in the timber products has been legally

harvested;

(vi) the name and address of the operator who has supplied the timber and timber

products;

(vii) the natural or legal person responsible for harvesting;

(viii) the operator to whom the timber and timber products have been supplied;

Addition (former Article 4,a):

(A.45) These measures shall be supported by appropriate documentation maintained in

a database by the operator or by the monitoring organisation.

• b) 

  Risk assessment procedures enabling the operator to analyse and evaluate the risk of illegally harvested timber or timber products derived from such timber being placed on the market. Such procedures shall¹⁹ take into account the information set out in point (a) as well as relevant risk assessment criteria, including:
• • 

  assurance of compliance with applicable legislation, which may include certification or other third-party-verified schemes which cover compliance with applicable legislation;
• • 

  prevalence of illegal harvesting of specific tree species;
• • 

  prevalence of illegal harvesting or practices in the country of harvest and/or sub-national region where the timber was harvested;
• • 

  complexity of the supply chain of timber products.

Additions (former Article 4,b):

(A.46) (b) include a risk management procedure which shall consist of the following:

(i) systematic identification of risks, inter alia through collecting data and information

and making

(ii) implementation of all measures necessary for limiting exposure to risks

(iii) establishing procedures which shall be carried out regularly to verify that the

measures set out in points (i) and (ii) are working effectively and to review them where

necessary;

(iv) establishing records to demonstrate the effective application of the measures set

out in points (i) to (iii).

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CIT (A.7) b) include an effective and clear risk management procedure which

concentrates controls and the financial means of operators on high-risk cases and

which shall consist of the following:

(i) systematic identification of risks;

(ii) implementation of all measures necessary in order to limit exposure to risks;

(iii) establishment of procedures and records which shall be carried out regularly to

verify that the measures set out in points (i) and (ii) are working effectively and to

review them where necessary;

• c) 

  Risk mitigation procedures consisting of a set of measures and procedures that are adequate and proportionate to effectively minimise the risk identified in the course of the risk assessment procedures as referred to in sub paragraph (b) and which may include requiring additional information or documents and/or requiring third party verification. Such risk mitigation procedures shall not apply where the risk identified is negligible.

[2. Detailed rules necessary to ensure the uniform implementation of paragraph 1 except as regards the relevant risk assessment criteria referred to in paragraph 1 point (b), subparagraph 2, shall be adopted in accordance with the regulatory procedure referred to in Article 16(2).

Amendments and Additions to the former writing of this paragraph 2) (A.47) The Commission shall adopt measures for the implementation of this Article with a view to ensuring uniformity of interpretation of the rules and effective compliance by operators. The Commission shall, in particular, establish criteria for assessing whether there is a risk of illegally harvested timber and timber products being placed on the market. In doing so, the Commission shall take particular account of the special position and capacity of SMEs and, as far as possible, offer those enterprises adapted and simplified alternatives to reporting and control systems so that those systems do not become too burdensome.

Based on factors related to the product type, source or complexity of the supply chain, certain categories of timber and timber products or suppliers shall be considered 'high risk' requiring extra due diligence obligations from the operators

Extra due diligence obligations may, inter alia, include:

• - 

  requiring additional documents, data or information;
• - 

  requiring third party audits.

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ANNEX 4                                                   DG B II                                                           EN

Timber and timber products from

§ conflict areas, or countries / regions covered by a UN Security Council ban on

timber exports, § countries where there is consistent and reliable information regarding significant

failures of forest governance, low level of forest law enforcement or high level of

corruption, § countries where official Food and Agriculture Organisation (FAO) statistics show

a decrease in forest area, § supplies where information on potential irregularities supported by reliable

evidence, that has not been disproved by investigation, has been made available

from customers or external parties,

shall be considered as ‘high risk’ by operators under this Regulation.

The Commission shall make available a register of high-risk sources of timber and timber products or suppliers

(A.48) Relevant stakeholders shall be consulted prior to the adoption of additional implementing measures.

(A.49) 2a. Individual Member States shall not be prevented, with regard to access to the market of timber and timber products, from setting more stringent requirements for the harvesting and origin of timber than laid down in this Regulation, in respect of sustainability, the protection of the environment, the conservation of biodiversity and the ecosystem, the protection of local communities’ habitats, the protection of forest-dependent communities, the protection and rights of indigenous peoples and human rights.

(A.50) Member States shall ensure that by two years of the entry into force of this Regulation all timber and timber products placed and made available on the market are labelled, as appropriate, with the information specified in Art 3(2a).

• 3. 

  In order to take into account market developments and experience gained in the implementation of this Regulation, in particular identified through the reporting referred to in Article 18(3), the Commission shall be given the power to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union as regards further relevant risk assessment criteria that may be necessary to supplement those referred to in paragraph 1, point (b), subparagraph 2. When adopting such delegated acts, the Commission shall act in accordance with the relevant provisions of this Regulation, in particular with regard to paragraph 1(b).

For the delegated acts referred to in this paragraph the procedures set out in Articles 13 to 15 shall apply.]

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ANNEX 4                                                   DG B II                                                           EN

CIT Amendment to the former writing of Article 4,2,1

(A.8) 2. The Commission shall adopt measures for the implementation of this Article with a view to ensuring uniformity of interpretation of the rules and effective compliance by operators. The Commission shall, in particular, establish criteria for assessing whether there is a risk of illegally harvested timber and timber products being placed on the market.

Article 6. Monitoring organisations

• 1. 

  A monitoring organisation shall exercise the following functions:
• a. 

  maintain and regularly evaluate a due diligence system in accordance with Article 5 and grant operators the right to use it;
• b. 

  verify the proper use of its due diligence system by such operators;
• c. 

  take appropriate actions in the event of failure by an operator to properly use its due diligence system, including notification of competent authorities in the event of serious or repeated failure by the operator.
• 2. 

  An applicant may apply for recognition as a monitoring organisation, if it complies with the following requirements:
• a. 

  it has legal personality and is legally established within the Union;
• b. 

  it has the capacity to exercise the functions referred to in paragraph 1; and,
• c. 

  it carries out its functions in a manner that avoids conflict of interest.
• 3. 

  An applicant that fulfils the requirements set out in paragraph 2 shall be recognised as a monitoring organisation.
• a. 

  The competent authority of a Member State shall recognise the monitoring organisation which intends to exclusively carry out its activities in that Member State, and thereafter without delay inform the Commission.
• b. 

  The Commission shall, after informing ²¹Member States, recognise a monitoring organisation which intends to carry out its activities in several Member States, or throughout the Union.
• 4. 

  The competent authorities shall carry out checks at regular intervals to verify that the monitoring organisations operating within the competent authorities’ jurisdiction continue to fulfil the functions laid down in paragraph 1 and comply with the requirements laid down in paragraph 2.
• 5. 

  If a competent authority determines that a monitoring organisation that has been recognised by the Commission no longer fulfils the functions laid down in paragraph 1 or complies with the requirements laid down in paragraph 2, it shall without delay inform the Commission.

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• 6. 

  The competent authorities or the Commission may withdraw a recognition when the competent authority or the Commission has determined that a monitoring organisation no longer fulfils the functions laid down in paragraph 1 or the requirements laid down in paragraph 2. The competent authority and the Commission may only withdraw a recognition that they have issued themselves. Before a withdrawal by the Commission, Member States shall be informed. Member States shall inform the Commission of the withdrawal of a recognition.

[7. In order to supplement the procedural rules with regard to the recognition and withdrawal of recognition of Monitoring Organisations and, if experience so requires, to amend them, the Commission shall be given the power to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union. When adopting such delegated acts, the Commission shall act in accordance with the relevant provisions of this Regulation, in particular with regard to paragraphs 3, 5 and 6.

For the delegated acts referred to in this paragraph the procedures set out in Articles 13 to 15 shall apply.

• 8. 

  Detailed rules concerning the frequency and the nature of the controls, necessary to ensure the uniform implementation of paragraph 4, shall be adopted in accordance with the regulatory procedure referred to in Article 16 (2).]

(Amendments and additions to the former writing of the former Article 5. Since the content of the article has completely change, we reproduce the Amendments to the Article (A.51, A 52, A.53, A 54, A.55 y A.56) as a whole.

• 1. 

  The Commission shall, in accordance with the regulatory procedure referred to in Article 11(2a), recognise as a monitoring organisation a private or public entity which has established a due diligence system which contains the elements set out in Article 4(1).

1a. A public entity applying for the recognition provided for in paragraph 1 shall comply with the following requirements

(a) it has legal personality; (aa) it is governed by public law;

(b) it has been established to carry out particular functions regarding the forest sector;

(ba) it is financed, for the most part, by the State, regional or local authorities, or other bodies governed by public law;

(c) it obliges operators it certifies to use its due diligence system;

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ANNEX 4                                                   DG B II                                                           EN

(d) it has in place a monitoring mechanism to ensure the use of the due diligence system by the operators which it has certified as making use of its due diligence system;

(e)  it takes appropriate disciplinary measures against any certified operator who fails to comply with its due diligence system; disciplinary measures shall include reporting the matter to the relevant national competent authority(ea) it has no conflict of interest with the competent authorities

1b. A private entity applying for the recognition provided for in paragraph 1 shall comply with the following requirements:

(a) it has legal personality

(b) it is governed by private law

(c) it has appropriate expertise;

(d) it is legally independent from the operators it certifies

(e) the operators it certifies are bound by the entity's articles of association to use its due diligence systems

(f)  it has in place a monitoring mechanism to ensure the use of the due diligence systems by the operators which it has certified as making use of its due diligence system

(g) it takes appropriate disciplinary measures against any certified operator who fails to comply with its due diligence system; disciplinary measures shall include reporting the matter to the relevant national competent authority.

• 2. 

  The monitoring organisation shall submit to the Commission the following information together with its application for recognition

(a) its statute;

(b) the names of persons authorised to act on its behalf;

(ba) documentation to demonstrate its appropriate expertise

• 3. 

  In accordance with the regulatory procedure referred to in Article 11(2a), the Commission shall decide whether to grant recognition to a monitoring organisation within three months of the submission of an application by the monitoring organisation or a recommendation from the competent authority of a Member State that it is recommending the organisation for recognition.

The decision to grant recognition to a monitoring organisation shall be communicated by the Commission to the competent authority of the Member State with jurisdiction over that organisation, together with a copy of the application, within 15 days of the date of the decision.

Member State competent authorities shall carry out checks, including field-based audits, at regular intervals, or on the basis of substantiated concerns from third parties, to ascertain that monitoring organisations comply with the requirements laid down in paragraph 1. The check reports shall be made available to the public.

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ANNEX 4                                                   DG B II                                                           EN

If, following those checks, competent authorities ascertain that monitoring organisations do not comply with the requirements laid down in paragraph 1, they shall forthwith inform the Commission and communicate to it any relevant evidence in that regard.

• 4. 

  In accordance with the regulatory procedure referred to in Article 11(2a), the Commission shall withdraw the recognition of a monitoring organisation if it has been established that the requirements set out in paragraph 1 and 1a or paragraph 1 and 1b are no longer fulfilled.
• 5. 

  Competent authorities shall notify the Commission within two months of any decision to recommend the granting, refusal or withdrawal of recognition of any monitoring organisation.

CIT (A.10) Amendment to the former Article 7, p.1

1b. Competent authorities shall be equipped with a reliable traceability system to track internationally-traded timber products and with public monitoring systems to assess the performance of operators in complying with their obligations and to help operators identify high-risk suppliers of timber and timber-derived products.

Article 7. List of monitoring organisations

The Commission shall publish the list of the monitoring organisations in the Official Journal of the European Union, C series, and shall make it available on its website. The list shall be regularly updated.

(A.57) The Commission shall publish the list of the recognised monitoring organisations in the Official Journal of the European Union, C series, and shall make it available on its website. The list shall be regularly updated

Article 8. Competent authorities

• 1. 

  Each Member State shall designate one or more competent authorities responsible for the application of this Regulation.

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ANNEX 4                                                   DG B II                                                           EN

(A.63), Amendment to the former Article 10

• 1. 

  Each Member State shall designate one or more competent authorities responsible for the application of this Regulation. These authorities shall be given sufficient powers to enforce this Regulation by monitoring its application, investigating alleged infringements in cooperation with the customs authorities, and reporting offences to the prosecuting authority in a timely manner.

CIT (A.11) Each Member State shall designate one or more competent authorities responsible for the application of this Regulation. These authorities must be given sufficient powers to enforce this Regulation by monitoring its application, investigating alleged infringements in cooperation with customs, and reporting offences to the prosecuting authority in a timely manner.

Member States shall inform the Commission of the names and addresses of the competent authorities by […]^∗. Member States shall inform the Commission of any changes to the names or addresses of the competent authorities.

• 2. 

  The Commission shall make publicly available, including on the Internet, a list of the competent authorities. The list shall be regularly updated.

(A.64), Amendment to the former Article 10

• 2. 

  The Commission shall make publicly available on the Internet the list of the competent authorities. This list shall be kept up-to-date.

Article 9. Checks on operators

• 1. 

  The competent authorities shall carry out checks to verify if operators comply with the requirements set out in Articles 3 and 5²

Amendment; (A.58)

Amendment to the tittle; Monitoring and control measures

Amendment to the writing;

• 1. 

  Competent authorities shall carry out controls to verify if operators comply with the

requirements set out in Article 3(1), (2) and (2a) and Article 4(1).

Additions:

1a. Controls shall be conducted in accordance with a yearly plan and/or on the basis of substantiated concerns provided by third parties; or in any case where the competent authority of the Member State is in possession of information that questions compliance by the operator with the requirements for due diligence systems set out in this Regulation.

^∗ 6 months after the entry into force of this Regulation.

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1b. Controls may include, inter alia

(a)  examination of the technical and managerial systems and procedures of due diligence and risk assessment that the operators use

(b)   examination of documentation and records that demonstrate the proper functioning of the systems and procedures.

(c) spot checks, including field audits

1c. Competent authorities shall be equipped with a reliable traceability system to track internationally-traded timber products and with public monitoring systems to assess the performance of operators in complying with their obligations and to help operators identify suppliers of high-risk timber and timber-derived products.

• 2. 

  Operators shall offer all assistance necessary to facilitate the performance of the checks referred to in paragraph 1.

Amendment to the former writing of paragraph 2 of this Article;

• 2. 

  Operators shall offer all assistance necessary to facilitate the performance of the controls referred to in paragraph 1, notably as regards access to premises and the presentation of documentation or records.
• 3. 

  Where, following the checks referred to in paragraph 1, shortcomings have been detected, the competent authorities may issue a notice of remedial actions to be taken by the operator. Any failure by the operator to take such remedial action may give rise to penalties in accordance with Article 17.

Additions to the former writing of this Article (A.58)

3a. If, following the controls referred to in paragraph 1, the operator is presumed to have infringed the requirements set out in Article 3, the competent authorities may in accordance with their national legislation start a full investigation of the infringement and, in conformity with national law and depending on the gravity of the infringement, take immediate measures which may inter alia include:

• a) 

  the immediate cessation of commercial activities; and
• b) 

  the seizure of timber and timber products

3b. Where the competent authorities find that the technical and managerial systems and procedures of due diligence and risk assessment are not sufficient, they shall require the operator to take corrective measures

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ANNEX 4                                                   DG B II                                                           EN

Article 10. Records of checks

(A.59) Amendment to the Title; Records of controls

• 1. 

  The competent authorities shall keep records of the checks referred to in Article 9(1) , indicating in particular their nature and results, as well as of any remedial actions under Article 9(3). Records of all checks shall be kept for at least 5 years.

(A.60) 1. Competent authorities shall keep records of the controls referred to in Article 7(1), indicating in particular their nature and results, including any corrective measures requested to be taken. Records of all controls shall be kept for at least 10 years.

• 2. 

  The information referred to in paragraph 1 shall be made available to any applicant in accordance with Directive 2003/4/EC.

(A.61) 2. The records referred to in paragraph 1 shall be made available to the public on the Internet in accordance with Directive 2003/4/EC

Article 11. Cooperation

• 1. 

  Competent authorities shall cooperate with each other and with administrative authorities of third countries and with the Commission in order to ensure compliance with this Regulation.
• 2. 

  The competent authorities shall exchange information on serious shortcomings detected through the checks referred to in Articles 6(4) and 9(1) and on the types of penalties imposed in accordance with Article 17 with the competent authorities of other Member State(s) and with the Commission

(A.62) 2. The competent authorities shall exchange information on the results of the controls referred to in Article 7(1) with the competent authorities of other Member State(s) and with the Commission

[Article 12. Amendments of the Annex

In order to take into account experience gained on the implementation of this Regulation, in particular the reporting referred to in Article 18(3), and developments with regard to technical characteristics, end-users and production processes of timber and timber products concerned, the Commission shall be given the power to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union by amending and supplementing the list of timber and timber products set out in the Annex without creating a disproportionate burden on operators. When adopting such delegated acts, the Commission shall act in accordance with the relevant provisions of this Regulation, in particular to this Article.

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Amendment to the former Article 12,1

(68) The Commission may add to the list of timber and timber products set out in the Annex

taking into account technical characteristics, end-uses and production processes.

For the delegated acts referred to in this paragraph the procedures set out in Articles 13 to 15 shall apply.]

[Article 13. Exercise of the delegation

• 1. 

  The powers to adopt the delegated acts referred to in Articles 5(3), 6(7) and 12 shall be conferred on the Commission for a period of 7²⁵ years following the entry into force of this Regulation. The Commission shall make a report in respect of the delegated powers at the latest three months before the end of a three year period after the date of application of this Regulation. The delegation of power shall be automatically extended for periods of an identical duration, unless the European Parliament or the Council revokes it in accordance with Article 14.
• 2. 

  As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council
• 3. 

  The powers to adopt delegated acts are conferred on the Commission subject to the conditions laid down in Articles 14 and 15.]

Article 14. Revocation of the delegation

• 1. 

  The delegation of power referred to in Articles 5(3), 6(7) and 12 may be revoked by the European Parliament or by the Council.
• 2. 

  The institution which has commenced an internal procedure for deciding whether to revoke the delegation of power shall inform the other legislator and the Commission at the latest one month before the final decision is taken, stating the delegated powers which could be subject to revocation and the reasons for the revocation.
• 3. 

  The decision of revocation shall put an end to the delegation of the powers specified in that decision. It shall take effect immediately or at a later date specified therein. It shall not affect the validity of the delegated acts already in force. It shall be published in the Official Journal of the European Union.

[Article 15. Objections to delegated acts

• 1. 

  The European Parliament and the Council may object to the delegated act within a period of 3 months from the date of notification.

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• 2. 

  If, on expiry of that period, neither the European Parliament nor the Council has objected to the delegated act, or if, before that date, the European Parliament and the Council have both informed the Commission that they have decided not to raise objections, the delegated act shall enter into force at the date stated in its provisions.
• 2. 

  If the European Parliament or the Council objects to the adopted delegated act, it shall not enter into force. The institution which objects shall state the reasons for objecting to the delegated act.]

[Article 16. Committee

• 1. 

  The Commission shall be assisted by the Forest Law Enforcement Governance and Trade (FLEGT) Committee established under Article 11 of Regulation 2173/2005.
• 2. 

  Where reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.]

Article 17. Penalties

The Member States shall lay down the rules on penalties applicable to infringements of the provisions of this Regulation and shall take all measures necessary to ensure that they are implemented. The penalties provided for must be effective, proportionate and dissuasive. The Member States shall notify those provisions to the Commission and shall notify it without delay of any subsequent amendments affecting them.

(A.69) The Member States shall lay down the rules on penalties applicable to infringements of the provisions of this Regulation and shall take all measures necessary to ensure that they are implemented. The penalties provided for may be criminal or administrative, must be effective, proportionate and dissuasive, and shall include, where appropriate, inter alia:

(i) financial penalties reflecting

the degree of environmental damage;

the value of the timber products concerned by the infringement;

the tax losses and economic damage occasioned by the infringement

(ii) seizure of timber and timber products

(iii) temporary prohibition from marketing timber and timber products.

Where legal proceedings are pending, operators shall suspend sourcing timber and timber products from the areas in question.

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Financial penalties shall represent at least five times the value of the timber products obtained by committing a serious infringement. In case of a repeated serious infringement within a five year period, the financial penalties shall gradually increase up to at least eight times the value of the timber products obtained by committing a serious infringement.

The Member States shall notify those provisions to the Commission by 31 December 20XX and shall notify it without delay of any subsequent amendment affecting them.

CIT Amendment 9

1a. Member states shall take appropriate measures to ensure the imposition of sanctions for infringements of this Regulation.

Article 18. Reporting

• 1. 

  Member States shall submit to the Commission, by 30 April of every second year following the date of application of this Regulation, a report on the application of this Regulation during the previous two years.

Amendment to the former Article 14,2

(A.70). 2a. In preparing the report referred to in paragraph ..., the Commission shall have regard to the progress made in respect of the conclusion and operation of the FLEGT VPAs adopted pursuant to Regulation (EC) No 2173/2005. The Commission shall consider whether any revisions of this Regulation are required in the light of experience of the operation of the FLEGT VPAs and their effectiveness in addressing the problem of illegal timber.

• 2. 

  On the basis of those reports the Commission shall draw up a report to be submitted to the European Parliament and to the Council every two years.
• 3. 

  Three years after the date of application of this Regulation, and every six years thereafter, the Commission shall, on the basis of reporting on and experience with the application of this Regulation, review the functioning and effectiveness of this Regulation in particular with respect to administrative consequences for small and medium sized enterprises as well as the product coverage. The reports may be accompanied, if necessary, by appropriate legislative proposals

Article 19. Entry into force

This Regulation shall enter into force on the seventh day following that of its publication in the Official Journal of the European Union.

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It shall apply no later than 30 months after the date of entry into force of this Regulation.

The measures referred to in [Articles 5(2) and the delegated acts to supplement the procedural rules as referred to in Article 6(7) ]shall be adopted no later than 18 months after the entry into force of this Regulation. However, as regard Article 8(1) it shall apply on […]^∗

Amendments of the Parliament consistent in the addition of new Articles which has not been

included.

(A.66) Article ..... Development of sustainability requirements

Within one year after the entry into force of this Regulation, the Commission shall present a legislative proposal to the European Parliament and the Council on a Community standard for all timber and timber products sourced from natural forests aimed at achieving the highest sustainability requirements.

(A.67) Article...Advisory Group

• 1. 

  An Advisory Group shall be established, consisting of representatives of interested stakeholders including, inter alia, forest-based industry representatives forest owners, nongovernmental organisations (NGOs) and consumer groups and chaired by a representative of the Commission.
• 2. 

  Representatives of Member States may participate in the meetings either on their own initiative or upon invitation by the Advisory Group.
• 3. 

  The Advisory Group shall set its rules of procedure which shall be made public on the Commission’s website.
• 4. 

  The Commission shall provide the technical and logistic support necessary for the Advisory Group and provide the Secretariat for its meetings.
• 5. 

  The Advisory Group shall examine and issue opinions on matters relating to the application of this Regulation raised by the chairman, either on his own initiative or at the request of the members of the Advisory Group or the Committee.
• 6. 

  The Commission shall convey the opinions of the Advisory Group to the Committee.

^∗ 6 months after the entry into force of this Regulation.

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(A.71)

Article 14a

Amendment to Directive 2008/99/EC

Directive 2008/99/EC of the European Parliament and of the Council of 19 November 2008 on

the protection of the environment through criminal law²¹ shall be amended, with effect from

the date of application of this Regulation, as follows:

• 1. 

  The following point shall be added to Article 3: ´(ia) the making available on the market of illegally harvested timber or timber products.´
• 2. 

  The following indent shall be added to Annex A:

-´Regulation of the European Parliament and of the Council of […] laying down the obligations of operators who place timber and timber products on the market.´

(A.72) Article ...... Review

Three years after the entry into force of this Regulation, and every five years thereafter, the Commission shall carry out a review of the operation of this Regulation in regard to its object and purpose and report its conclusions and, on the basis thereof, its proposals for amendments to the European Parliament

The review shall focus on the following

• - 

  a detailed and thorough analysis of research and development in the field of sustainable forestry;
• - 

  the impact of this Regulation on the internal market, with particular reference to the competitive situation and the ability of new players to establish themselves on the market;
• - 

  the situation of SMEs on the market and how this Regulation has affected their activities.

²¹ OJ L 328,6.12.2008, p.28.

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• 17 okt '08
  COM(2008)644 - Verplichtingen van marktdeelnemers die hout en houtproducten op de markt brengen
  
  
  
• 9 feb '07
  COM(2007)51 - Bescherming van het milieu door middel van het strafrecht
  
  
  
• 20 jul '04
  COM(2004)515 - Opzet van een FLEGT-vergunningensysteem op vrijwillige basis voor de invoer van hout in de EG
  
  
  
• 21 mei '03
  COM(2003)251 - Wetshandhaving, governance en handel in de bosbouw (FLEGT) - Voorstel voor een EU-actieplan
  
  
  
• 29 jun '00
  COM(2000)402; - Toegang van het publiek tot milieu-informatie
  
  
  
• 24 jun '98
  COM(1998)380 - Voorwaarden voor de uitoefening van de aan de Commissie verleende uitvoeringsbevoegdheden
  
  
  
• 25 nov '96
  COM(1996)597 - Uitvoer van bepaalde EGKS- en EG-ijzer- en staalprodukten uit Tsjechië naar de EG voor de periode van 1 januari tot en met 31 december 1997 (verlenging van het systeem van dubbele controle)
  
  
  
• 20 mei '92
  COM(1992)11; - Bescherming van de consument bij op afstand gesloten overeenkomsten
  
  
  
• 13 nov '91
  COM(1991)448 - Bepalingen inzake het bezit van en de handel in specimens van in het wil levende dier- en plantesoorten
  
  
  
• 15 mei '87
  COM(1987)228 - Tarief- en statistieknomenclatuur en het gemeenschappelijk douanetarief