The European Union Timber Regulation (EUTR), an acronym for European Union Timber Regulation, was implemented in 2010 with the aim of eliminating the marketing of illegally harvested timber, promoting a more sustainable and ethical trade. This regulation imposes strict obligations on economic operators who place timber or timber products on the European market, requiring them to implement a Due Diligence System (DDS). This system includes the collection of information on the legality and traceability of timber products, risk assessment and, if necessary, risk mitigation through additional measures.
The EUTR is one of the pillars of the FLEGT (Forest Law Enforcement, Governance, and Trade) Action Plan, implemented by the European Union in 2003 to ensure the legality of traded timber. It also promotes sustainability and traceability in the international trade of timber and timber products.
The FLEGT Action Plan also includes Voluntary Partnership Agreements (VPAs) to ensure that timber exported to the EU is legal, improving national laws and addressing problems such as corruption and land tenure.
What products are covered by the EUTR?
These regulations apply to both imported timber and products of EU origin. The Annex to the EUTR specifies the products subject to these regulations, such as:
- Roundwood, sawnwood, plywood and panels.
- Briquettes, firewood, wood furniture, pulp and paper.
It should be noted that certain products, such as books, magazines and newspapers, are excluded, although the raw material used for their manufacture must comply with the regulation at the time of being placed on the market.
Responsibilities of actors and traders
Within the scope of the regulation, two key actors can be distinguished: operators and traders. On the one hand, those who bring timber or timber products onto the European market for the first time are classified as operators. This includes importers, auctioneers and processors. Their obligations include not placing illegally sourced timber on the market, implementing and updating the Due Diligence System (DDS) and submitting a responsible declaration annually.
Traders, on the other hand, are those who sell products that have already been placed on the European market by an operator. Their main obligation is to register and keep for at least 5 years the information of suppliers and customers, guaranteeing the traceability of the supply chain.
Companies such as Pallets Castillo, when working with products covered by EUTR regulations, must ensure that they comply with these obligations to guarantee the legality and traceability of their materials.
Importance in biosecurity: heat treatment of pallets
In addition to the legality of wood sourcing, wooden pallets must comply with international biosecurity standards ISPM 15 (International Standard for Phytosanitary Measures), which establishes heat treatment requirements to prevent the spread of forest pests and diseases. This process involves heating the wood to 56°C for at least 30 minutes in the core, eliminating insects, fungi and other harmful organisms that could compromise biosecurity in the ecosystems of importing countries. This practice is mandatory for export to countries outside the EU and reinforces confidence in wooden pallets as a safe, sustainable product suitable for global trade.
Challenges and benefits
The implementation of the EUTR and ISPM 15 entails logistical and economic challenges, as implementing and maintaining a Due Diligence System requires resources and continuous monitoring. Also, processes such as heat treatment require significant investment in infrastructure and certified facilities.
However, the benefits of complying with these regulations are manifold:
- Environmental protection: helps to curb deforestation and conserve forests.
- Transparency and commercial confidence: it ensures the legality and sustainability of timber, improving the reputation of companies and facilitating exports.
- Legal compliance: it avoids financial penalties and possible trade blockages resulting from non-compliance with regulations.
Next steps
Since the FLEGT Action Plan in 2003, and the implementation of the EUTR, the EU’s focus on forest protection has expanded beyond timber. In December 2022, the EU Deforestation Free Regulation (EUDR) was implemented with the aim of curbing global deforestation and forest degradation driven by the consumption of risky products. This regulation came into force in 2023, also applying to European forests.
Despite progress, environmentally conscious NGOs and civil society criticise the lack of effective consultation and the risk of diverting illegal timber to other markets, such as China and the United States. To address this, some producer countries have created the Broader Market Recognition Coalition, encouraging sustainable forest management by adopting standards similar to those implemented by the European Union.
We hope this information has been useful. At Pallets Castillo, we are proud to comply with the highest European standards and we invite you to visit our website to learn more about our certificates!