Cocoa, Timber, Palm Oil, Coffee, Soy, Rubber and Beef Can't Be Imported to EU If Deforestation Linked
Crowell attorneys in Brussels note that the new EU regulation that prohibits both export and import of certain commodities if they come from land that was recently deforested (see 2212070039) will affect more than high-risk countries such as Indonesia, Brazil or Ivory Coast.
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Their Dec. 28 client note said timber imports could be affected by the newly defined concept of forest degradation, which is timber harvesting that is not sustainable and causes "a reduction or loss of the biological or economic productivity and complexity of forest ecosystems, resulting in the long-term reduction of the overall supply of benefits from forest, which includes wood, biodiversity and other products or services.”
The EU's due diligence requirements for importers and exporters are stricter for larger firms, including requiring a compliance officer at management level as well as formal compliance management procedures and risk management policies. But small and medium businesses must also have independent audits to check their internal policies, controls and procedures.
The first EU country "to have the [relevant commodities and their products] in its possession is bound by the same obligations as the exporter of the RC&P. This means that Union importers must perform due diligence whenever they buy RC&P from a non-Union entity, regardless of whether the seller comes from a high-risk region or not," the lawyers wrote.
The lawyers note that a product such as cocoa imported into the U.S., processed into chocolate there and then sent to the EU could violate the regulation.