What a registered log trader must do

Your obligations as a registered log trader

Once you register as a log trader, there are certain things you need to do. If you don’t, you may be subject to compliance action and your registration may be revoked. If this happens, you would be committing an offence if you continued to trade more than 2,000 cubic metres of logs per year.

As a registered log trader, each year you must:

• pay the application fee to register, and the annual levy
• continue to be able to pass the background check and tell us if anything changes
• meet the forestry practice standards when conducting business
• keep records about log trading transaction details
• provide annual reports to us about your log trading activity in an annual return
• comply with any other obligations we may publish here in future.

The forestry practice standards are being developed and will be published on this website.

Fees

The fee to apply to register as a log trader must be paid using a debit or credit card at the end of the registration process.

The annual registration fee and 5-year renewal fee are due on anniversary of the date your registration was approved. You will be reminded that these fees are due.

The first levy year begins on 1 July 2023.

Meeting the conditions of the background check

Registered log traders complete background checks during registration. The background check for each person asks questions about the conduct of each decision maker in the business. The background check for the organisation asks questions about criminal and civil convictions and other compliance matters.

Fit and proper person requirements: Section 5, Forests (Regulation of Log Traders and Forestry Advisers) Regulations 2022 – NZ Legislation

While you are registered as a log trader, you must continue to meet the requirements of each background check. You must tell us if anything changes.

Keeping records as a registered log trader

Registered log traders must keep certain records. You will need these to complete your annual report. You won’t need to provide these to us unless we ask for them.

Keeping records of log trading transactions

As a registered log trader, you must keep records of all transactions involving logs you have:

• traded
• transferred
• processed from trees you have grown.

Records must include these details:

• total annual volume of logs
• grade
• age
• price
• species
• region of origin
• immediate next destination, for example, the logs were for:
  • domestic processing
  • on-sale as logs, or
  • export.

Keeping records about complaints and disputes

As a registered log trader, you must keep records when:

• someone makes a complaint to you
• you make a complaint directly to someone else, including a business
• you are involved in a dispute.

When any of these things happen, you should keep records of:

• the document (for example, email) that raised or started the complaint or dispute
• any notes you made about the background to the complaint or dispute, and how it was handled
• any relevant correspondence (for example, with a mediator or us)
• the outcomes (this might include resolution by agreement, or referral of the matter to arbitration) and
• further actions, including what you will do to avoid similar issues from happening again.

Format of records

Records must be kept in a way that makes them available for 7 years. They can be:

• in hard copy or digital form
• handwritten or drawn
• photographs
• audio recordings.

When you may need to provide records

You must provide us with information in your log trader annual report, explained later on this page.

We may ask you for information to get a better understanding of trends and behaviours in the forestry supply chain. We can request this information under section 63G of the Forests (Regulation of Log Traders and Forestry Advisers) Amendment Act 2020.

The Ministry for Primary Industries (MPI) or a complaints' panel may also request records you keep for evidence of agreements, transfers, and transactions.

Log trader annual reports

As a registered log trader, you need to provide us with certain information about your log trading activity for each financial year ending 30 June. These are called log trader annual reports. We use this information to check if you have done what registered log traders need to do. If you don’t give us this information every year, you may face compliance action.

By 1 December each year, as a registered log trader you must:

• tell us the total volume of logs you traded, transferred, or processed if you grew them
• confirm you have met your obligations as a registered log trader
• confirm the information you provided when you registered hasn’t changed
• confirm you are still able to pass the background check.

If you haven’t met your obligations, you must provide an explanation of:

• how and why you haven’t met the obligations
• what you have done to deal with any issues.

For example, if a complaint was made against you during that year, you must tell us how you have dealt with the issues that led to the complaint.

Renewing your registration

Your registration as a log trader expires 5 years after your application to register was approved. To continue trading logs, you must apply to renew your registration as a log trader at least 3 months before your registration expires.

When renewing, you must:

• pay a registration fee of $510.60 including GST
• provide details of your current registration
• confirm these details are the same as you gave us when registering or later.

You and each decision maker in the business must provide a criminal record check from the Ministry of Justice that is less than 3 months old. You must also declare any relevant civil liabilities.

When renewing, you must declare that you have met the obligations of a log trader during the 5 years since you registered or renewed your registration. If you haven’t met these obligations, you must explain:

• how and why you haven’t met the obligations, and
• what has been done to deal with any issues that prevented you from meeting them.

Keeping your information up to date

As a registered log trader, you need to keep your information up to date. This means telling us about any changes to:

• information on a forestry register
• information provided when you applied for registration, for example:
  • changes to decision makers, or
  • new criminal or civil proceedings.

To update your information, contact us at TeUruRakau@mpi.govt.nz

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Who to contact

For more information about the registration system for log traders and forestry advisers, email TeUruRakau@mpi.govt.nz