WWF’S GFTN AND TRAFFIC HELP FOREST PRODUCTS COMPANIES VAVIGATE A SHIFTING LEGAL LANDSCAPE

02 Agustus 2010

JAKARTA, INDONESIA, (02/08) — Indonesia as one of the biggest timber producers in the world is a country where rich biodiversity lived. Nevertheless, rampant illegal logging and illegal timber or wood products trade became the threats for forest dependants. A healthy forestry industry plays an important role on this matter. For years Indonesia and the US have been mutually connected through timber. However, the legality of wood products coming to the US market is prone to law’s violation. Therefore, The US Lacey Act is a response of illegal logging and other wildlife issue that occurred in other countries.
As the world’s largest timber consumer, the US feels the responsibility to this critical issue. The US government has been showing their concern by giving aid for Indonesian’s forestry for years in order to develop responsible and best management practice for Indonesian timber companies. On May 22, 2008, the U.S. Congress passed Lacey Act, a groundbreaking law banning commerce in illegally sourced plants and their products – including timber and wood products. The new law is an amendment to a 100-year-old statute. While the Lacey Act has long been one of the mostpowerful tools for the U.S. agencies fighting wildlife crime, its potential to combat illegal logging remained untapped to date. Now the Lacey Act sets a groundbreaking precedent for the global trade in plants and plant products, acknowledging and supporting other countries' efforts to govern their own natural resources and putting in place powerful incentives for companies trading in these commodities to do the same.
WWF’s Global Forest & Trade Network (GFTN) and TRAFFIC, with support from the USAID’s Responsible Asia Forestry and Trade programme (RAFT), will meet suppliers of forestry products from Indonesia this week to explain the implications of laws such as the amended Lacey Act. The Lacey Act is the first law of its kind to prohibit the import, sale or trade of illegally-harvested wood and wood products into the United States. Companies exporting timber products to the US will need suppliers, such as mills and manufacturers from across Southeast Asia, to understand their role in ensuring compliance with the revised regulations.
To help them, WWF’s GFTN and TRAFFIC are holding a series of Legality Training Workshops across Southeast Asia this July, August and September.
The workshops will bring together representatives from government, industry and the environmental community, to cover a range of topics including information on the amended Lacey Act, what US importers need from suppliers in Indonesia, how to help US customers demonstrate due care, relevant legislation in Indonesia, information on legal and responsible trade and training materials for staff involved in the timber trade.
The US is not alone in introducing legislation to tackle the illegal timber trade: the European parliament recently voted to pass new legislation that will require companies importing and selling timber in the EU to demonstrate they have exercised “due diligence” to ensure their timber has been felled legally. The EU is also currently negotiating bilateral voluntary procurement agreements (VPAs), which focus on legal timber sourcing from producing countries.
“As demand for legal and responsible timber increases, Indonesia is well positioned to gain market access by increasing its supply of legal products,” said Scott Dobberstein Deputy Mission Director of USAID Indonesia. “USAID is committed to working with Indonesia’s producers and communities to increase the supply of legal and sustainable products to meet international market standards.” Information sharing and capacity building through workshops like these will contribute to the success of our goal and objectives.
“The amended US Lacey Act is an important tool in helping Indonesia enforce its own laws governing trade in timber and timber products,” said Scott Dobberstein. “As long as Indonesian exporters comply with Indonesian regulations, they will allow US customers to easily comply with the Lacey Act. It is imperative for companies in Indonesia to understand the law and what’s needed from them to help their customers in the US demonstrate compliance and how they can play a part in a larger international movement to combat the trade in illegal wood.”
As new product declarations under the Lacey Act are enforced from September, a growing number of US-based forest products importers will seek assurances from their suppliers that the products they source have been legally produced. This means they must be able to demonstrate the timber has been harvested, possessed, transported, sold or exported without breaking any relevant underlying laws in the country where the tree was grown, even if it was processed in another country.
“If you are exporting to the US market, you need to understand how the Lacey Act impacts your customers in the US, who will face large fines, confiscation and imprisonment if they cannot demonstrate the wood used in making the products they import is legal,” said George White, Head of WWF’s Global Forest & Trade Network (GFTN). “With a long-standing history in advancing responsible forestry and trade, the GFTN is well placed to help Indonesian suppliers understand this groundbreaking law, learn specific steps to demonstrate legal sourcing and most importantly, source responsibly by purchasing certified timber.”
“Illegal logging and timber trade not only undermine conservation, they also lead to reduced profitability of legal trade, loss of foreign revenue and currency exchange, uncollected forestrelated taxes and depleted forest resources and services,” said Chen Hin Keong, TRAFFIC’s Global Forest Trade Programme Leader. “As international legislation increases to combat the illicit trade, it will be imperative for all links in the supply chain to show that they have taken the appropriate measures to keep illegal timber out of the global marketplace.”
For more information, visit gftn.panda.org/training or contact:
Aditya Bayunanda, +6221-5761070, abayunanda@wwf.or.id
Notes
Legality Training Workshops are taking place in <<Malaysia>> as follows:

• August 2, 08.00 – 15.00 WIB — Park Lane Hotel, Jl. Casablanca Kav.18, Jakarta
• August 3, 08.30 – 12.30 WIB — TS Suite Hotel, Jl. Hayam Wuruk No.6, Surabaya
• August 5, 08.30 – 12.30 WIB — SwissBell Hotel, Jl. Mulawarman No.6, Samarinda

About Global Forest & Trade Network (GFTN)
The Global Forest & Trade Network (GFTN) is WWF’s initiative to eliminate illegal logging and drive improvements in forest management while transforming the global marketplace into a force for saving the world’s valuable and threatened forests. First established in 1991, it is the world’s longest-running and largest forest and trade program of its kind providing assistance to hundreds of companies in many countries. To find out more information about WWF’s Global Forest & Trade Network, visit gftn.panda.org.
About TRAFFIC
TRAFFIC, the wildlife trade monitoring network, works to ensure that trade in wild plants and animals is not a threat to the conservation of nature. TRAFFIC was established in 1976 and has developed into a global network, research-driven and action-oriented, committed to delivering innovative and practical conservation solutions based on the latest information. TRAFFIC also works in close co-operation with the Secretariat of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
About Responsible Asia Forestry and Trade (RAFT)
RAFT, a five-year program funded by the US Agency for International Development Regional Development Mission for Asia (USAID RDMA), presents a comprehensive response to persistent deforestation and forest degradation in the Asia-Pacific region. RAFT is designed to improve forest management and timber trade practices in Asia, thereby reducing CO2 emissions from deforestation and forest degradation. The RAFT program is managed by The Nature Conservancy (TNC) in partnership with International Union for Conservation of Nature (IUCN), The Center for People and Forests (RECOFTC), The Wildlife Trade Monitoring Network (TRAFFIC), Tropical Forest Foundation (TFF), The Forest Trust (TFT) and WWF. RAFT operates in Cambodia, China, Indonesia, Lao PDR, Malaysia, Papua New Guinea, Thailand and Vietnam. For more information, please visit www.responsibleasia.org.