Legal harvest assurance system for timber

Update – 22 June 2022

Have your say – Make a submission to the Select Committee

The Forests (Legal Harvest Assurance) Amendment Bill has been referred to the Primary Production Select Committee which is holding a public submission process. Submissions close on 3 August 2022.

Make a submission about the Forests (Legal Harvest Assurance) Amendment Bill – NZ Parliament

A way to ensure timber is harvested legally

The legal harvest assurance system would cover:

forest owners, or those responsible for the harvest
log traders
primary or first-stage processors
importers
exporters.

Under the system, most would have to:

register with the Ministry for Primary Industries (MPI)
show how they'll reduce the risk of dealing with timber that is illegally harvested (due diligence).

Under the system, forest owners or those responsible for the harvest would need to provide legal harvest information to the log buyer.

Some exemptions and thresholds would apply.

Forest owners would not be required to register unless they were also a log trader or exporter.

Anyone not required to register could still register voluntarily. They might do this if:

they were exporting
their customers were asking for evidence that showed timber was legally harvested.

Forests (Legal Harvest Assurance) Amendment Bill – New Zealand Legislation

Benefits of the system

The system will:

help reduce illegal logging
make it easier for exporters to sell timber overseas
reduce the risk of timber not being legally harvested
help ensure timber products imported into New Zealand come from legally harvested forests.

Why illegal logging is a problem

How the system might work

Registered operators would need to set up a due diligence plan. The plan would have to show how they'll reduce the risk of dealing with timber that is illegally harvested.

Some private certification schemes could be recognised as part of a due diligence system.

Forest owners, or those responsible for the harvest, would need to provide legal harvest statements and supporting evidence to log buyers, if requested.

Importers would need to use their due diligence system to verify timber products they are importing into New Zealand come from legally harvested forests.

All registered parties would need to

pass a "fit and proper person" test, and
do an annual compliance declaration.

Documentation would follow the logs or timber through each stage of the supply chain.

Exporters could apply to MPI for an exporter statement to help them trade and gain access to markets.

Log traders already registered under the Forests Act 1949 would also need to register under the Legal Harvest Bill.

Enforcing the requirements

The legal harvest system would introduce new obligations. Offences would apply when regulated parties:

failed to meet those obligations
provided misleading or inaccurate information.

The compliance system would be graduated. For example, a warning notice might be issued if an officer believes a person is not complying with their obligations. The Legal Harvest Bill also provides for offences and infringement notices.

Offences and fines would be introduced around a year after it becomes mandatory to register and meet other requirements.

How MPI would administer the system

MPI would handle the registration system and:

undertake fit and proper person assessments
recognise assessors to assess due diligence plans
issue the exporter statements
monitor imports and exports
recognise private certification schemes
provide guidance and templates, such as for the due diligence plan and the legal harvest statement.

ESTIMATED IMPLEMENTATION TIMEFRAME AS AT JUNE 2022

Introduction: The Forests (Legal Harvest Assurance) Amendment Bill was introduced to Parliament on 18 May 2022
1st reading: 21 June 2022
Select committee stage: From 22 June 2022, closing date for submissions is 3 August
2nd reading: Early 2023
3rd reading and enactment: First half of 2023
Commencement: Staged commencement

Progress through Parliament and consultation

The legislation was introduced to Parliament on 18 May 2022 and had a first reading on 21 June 2022. It has been referred to the Primary Production Select Committee, which is holding a public submission process.

Make a submission about the Forests (Legal Harvest Assurance) Amendment Bill – NZ Parliament

Forest (Legal Harvest Assurance) Amendment Bill – NZ Parliament

Legal harvest assurance in other countries

The proposed legislation is in line with some other countries. Countries with similar laws are the USA, Canada, the European Union, Australia, China, Vietnam, Republic of Korea, and Japan.