Illegal logging costs around USD60 billion globally each year and directly threatens timber jobs and businesses by undercutting the price of legally logged timber. Not only that, it has serious environmental impacts.

The Australian Illegal Logging Prohibition Act (AILPA) 2012, is designed to promote the trade in legally harvested timber and timber products in Australia. The Act aims to reduce the harmful environmental, social and economic impacts of illegal logging.This legislation supports Australia’s commitment to promote the global trade of legally harvested timber which is in line with the European Union and the US, who have also taken action to prohibit the trade of illegally harvested timber.

The Act received Royal Assent on 28 November 2012 and it provides for:

1. criminal offences for importing illegally logged timber, importing illegally logged timber in regulated timber products, and the domestic processing of Australian grown illegally logged raw logs
2. civil offences for not complying with due diligence requirements - and the requirement to provide a declaration to the Customs Minister at the time of import
3. due diligence requirements relating to auditing and taking remedial action in prescribed circumstances.
4. monitoring, investigation and enforcement powers including civil penalty orders and an infringement notice scheme.

The Act,which gives high level of prohibition on importing or processing illegally logged timber, is NOW in effect. However the regulations that outline the operational framework for importers and processors will come into effect after 30 November 2014, including due diligence processes and a detailed list of products that will be subject to the regulations. Furthermore, from that date:

1. importers of regulated timber products and processors of raw logs will be required to conduct due diligence in order to reduce the risk that illegally logged timber is imported or processed
2. importers of regulated timber products must provide declarations, at the time of import, to the Customs Minister that they have undertaken due diligence.

The government will table regulations before the end of May 2013 to allow industry sufficient time to establish due diligence systems and processes.

Malaysian Timber Industry Board (MTIB) is a government promotional agency that responsible for initiating development of the various sectors of the timber industry and providing technical, marketing and other forms of assistance to ensure continued growth within a rapidly industrialising Malaysian economy. Our functions include:

1. to regulate and control the trade in, and the marketing and distribution of timber, and
2. to promote and improve, the trade in, and markets for timber.

It is now a criminal offence to import illegally logged timber and timber products into Australia or to process Australian raw logs that have been harvested illegally. Australian importers and processors must not knowingly, intentionally or recklessly import or process illegally logged timber.

If you receive information that timber is illegally logged, believe the timber is illegally logged or are made aware that there is a substantial risk that the timber was illegally logged;be aware that penalties may apply if the timber or timber product is in fact illegally logged.

There are no other requirements that importers and domestic processors are obliged to meet until detailed regulations are implemented, which will come into effect from 30 November 2014 in which the Act becomes law.

Penalties are at the discretion of a court; the maximum penalties that may be applied currently are:

1. five years imprisonment, and/or
2. AU$ 55 000 for an individual, and/or
3. AU$ 275 000 for a corporation or body corporate.

The illegal logging legislation defines these penalties as ‘penalty units’. The Crimes Act 1914 currently sets the value of one penalty unit at AU$ 110.

Australia introduced the Illegal Logging Prohibition Act (AILPA) 2012 to aid international efforts to promote legal timber trade. This reflects both Australia’s commitment to restrict the trade in illegal timber and equivalent legislation being introduced or developed in the European and United States markets.

This legislation is consistent with Australia’s trade obligations and supports Australia’s commitment to promote the trade of legally harvested timber.

Australia’s Department of Agriculture, Fisheries & Forestry (DAFF) is planning to have four face to face interactive workshops as well as two working group meetings. DAFF will also issue a working issue paper before each workshop. The dates are as shown in Table 1:

Table 1: List of Dates and Venue for Drafting of Australia Illegal Logging Prohibition Act 2012

No.	Event	Date issues Paper Available on DAFF website	Date of Face-to-Face Drafting Workshop	Venue of Drafting workshop	Malaysian Working Group Discussion
a	Drafting Workshop on regulated Products	12 Dec 2012	19 Dec 2012	Sydney	19 Dec 2012 (Mon), 11am, MTIB
b	Drafting Workshop on Due Diligence	16 Jan 2013	30 Jan 2013	Melbourne	18 Jan 2013 (Fri), 3pm, MTIB, MTC
c	Working Group Meeting	-	13 Feb 2013	Canberra	13 Feb 2013 (Wed), 7am, MTC
d	Drafting Workshop on Monitoring Compliance and Reporting	20 Feb 2013	27 Feb 2013	Sydney	22 Feb 2013 (Wed), MTIB
e	Drafting Workshop on Regulations Package	13 Mar 2013	27 Mar 2013	Canberra	19 Mar 2013 (Tue), 2.30pm, MTIB
f	Working Group Meeting	-	13 Feb 2013	Canberra	13 Feb 2013 (Wed), 7am, MTC

Please contact the following:

Sunita Muhamad (Ms)
Deputy Director of Licensing
Malaysian Timber Industry Board (MTIB)
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Tel: 603 - 9282 2235 ext 1263
Fax: 603 - 9285 1744

Or

Norhaizurah Zulkarngain (Ms)
Assistant Director International Market
Malaysian Timber Industry Board (MTIB)
E-mail: norhaizurah[at]mtib[dot]gov[dot]my
Tel: 603 - 9282 2235 ext. 1286
Fax: 603 - 9285 1477

For more information, you may to refer to Department of Agriculture, Water and the Enviroment website at https://www.agriculture.gov.au/forestry/policies/illegal-logging

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*Source: Department of Agriculture, Water and the Enviroment Australia