Mumbai: The European Forest Institute’s (EFI) with the objective to create awareness on the new regulation held a workshop on the European
Ms Maria Sube Elodie, Office of the EU Delegation to India, New Delhi is delivering her address
Union Timber Regulation (EUTR) on 18 June 2013 at Hotel Sea Princess, Mumbai as part of EU -FLEGT Asia Programme.
The EU Timber Regulation (EUTR) came into force on March 3 this year and requires operators and traders dealing with timber and timber products in all 27 member states of the European Union (EU) to ensure that the wood they place on the market is sourced legally from the country of harvest.
The meeting is attended by Ms Maria-Sube Elodie, Office of the EU Delegation to India, Mr Bhavan H Patel, Chairman- Plywood and allied Products, CAPEXIL, Dr T R Manoharan, Consultant- European Forest Institute and Forest Stewardship Council National Representative for India, Mr R T Somaiah, President, Timber Importers Association of India, representatives of the plywood and allied products exporters, representatives of Maharashtra State Forest Department and other invited guests.
Organised in partnership with the Chemicals and Allied Product Export Promotion Council (CAPEXIL) set up by the Ministry of Commerce and Industry, Government of India.
Mr Somaiah, Timber Importers Association of India during his address said “We welcome EU Timber Regulation and support the initiatives to address illegal logging globally. As far as India is concerned, the compliance to EUTR is possible since we have all information and documents available to meet the requirements of buyers in Europe to address EUTR”
The EUTR may at first glance seem an additional burden but is in fact a golden opportunity for India to seize a bigger share of the massive, no-less-than USD 63 billion a year European market for timber.
Dr TR Manoharan, Consultant- European Forest Institute and Forest Stewardship Council National Representative for India said “EUTR provides several opportunities for Indian exporters and therefore more awareness is required to understand the regulation”
Indian exporters of wood products to Europe will inevitably be affected by the new regulation, which the European Union introduced to tackle illegal logging in the world’s forests, and the economic, environmental and social damage it entails.
The EU is one of the biggest trading partners for India, with annual trade in goods and services of US$ 110 billion and the EU is the largest market for India’s wood products.
The exports of timber products covered by the EUTR are worth US$1.2 billion. These include wood products such as furniture, paper and paper products, handicrafts, plywood and veneer.
What is the EU Timber Regulation?
The EU Timber Regulation (EUTR) came into force on March 3 this year and requires operators and traders dealing with timber and timber products in all 27 member states of the European Union (EU) to ensure that the wood they place on the market is sourced legally from the country of harvest.
Under the EUTR, European operators who import wood products from India and place these on the market for the first time are required to exercise ‘due diligence’ to minimise the risk of illegal timber entering their supply chain.
They are expected to know information about the product, including tree species, the origin of the wood and whether or not the harvesting process has complied with the source nation’s laws and regulations. This could mean Indian exporters are asked by their European buyers to furnish information on the origin of the wood and evidence of legal compliance.
Indian exporters of wood products to Europe will inevitably be affected by the new regulation, which the European Union introduced to tackle illegal logging in the world’s forests, and the economic, environmental and social damage it entails.
Although the onus of compliance is on the first placers on the EU Market and European traders, the trickledown effect of the new legislation will be felt in every country that exports wood and wood products to Europe. Exporters in India who want to continue to do business with EU have to make sure that they have adequate information to support the regulatory requirements of the importers in Europe.
The EU is one of the biggest trading partners for India, with annual trade in goods and services of US$ 110 billion and the EU is the largest market for India’s wood products.
The exports of timber products covered by the EUTR are worth US$1.2 billion. These include wood products such as furniture, paper and paper products, handicrafts, plywood and veneer.
India also imports timber to meet its needs for the processing and value added wood based industry. Exports of these semi finished and finished products to Europe are also subject to due diligence from the buyers in Europe in order to comply with the EUTR. It is therefore important for Indian importers to ensure legal sourcing.
The workshops conducted by EFI in India February this year in Kozhikode (Kerala) (in association with Malabar Chamber of Commerce) and Jaipur(in association with Federation of Rajasthan Handicraft Exporters) and a round table meeting on April 10 this year in New Delhi ( in association with CAPEXIL and Export Promotion Council for Handicrafts) revealed that there is a need for increased awareness on the EUTR among exporters and the relevant Government institutions besides preparing a plan of action.
The EUTR may at first glance seem an additional burden but is in fact a golden opportunity for India to seize a bigger share of the massive, no-less-than USD 63 billion a year European market for timber.
How will India react? Will she be able to meet with these new market requirements, not only in the EU but also in the US and Australia? Do we need a national policy and regulatory mechanism in line with accepted international guidelines on forest governance? It seems like this will help us, not just to increase the value of Indian wood products globally and to expand into a number of lucrative markets besides the EU; it will ensure sustainable harvesting of wood, fairer trade practices, and control deforestation and loss of biodiversity.
Source : Sachin Murdeshwar