The EUTR is a European regulation aimed to counter the trade of illegally harvested timber and timber products through three key obligations:
- It prohibits the placing on the EU market for the first time of illegally harvested timber and products derived from such timber.
- It requires EU traders who place timber products on the EU market for the first time to exercise «due diligence».
- It obliges those companies to keep records of their suppliers and customers.
The Regulation covers a broad range of timber products including:
- Solid wood products
- Flooring
- Plywood
- Pulp and paper
Musical instruments are NOT included.
What is «due diligence»?
Due diligence is an investigation of a business or person prior to signing a contract or acquiring its assets. Performing this type of investigation contributes to informed decision making, ensuring that the acquired product complies with certain standards. The three key elements of the "due diligence system" are:
1. Information
The operator must have access to information describing:
- The wood
- The country of harvest
- The quantity
- Details of the supplier
- Information on compliance with national legislation
Madinter requests its suppliers to indicate on all shipping documents the following information:
- Common name of the wood
- Botanical name of the wood
- TARIC / HTS codes
- Volume
- Country of harvest
- Area of harvest
- Name and address of the manufacturer (if it is not the same as the seller)
2. Risk assessment
The operator should assess the risk of illegal timber in his supply chain, based on the information identified above and taking into account criteria set out in the regulation.
Madinter studies the documentation supplied, taking into account the laws of the country of harvest.
3. Risk mitigation
When the assessment shows that there is a risk of illegal timber in the supply chain that risk can be mitigated by requiring additional information and verification from the supplier.
We visit each supplier at least once a year. That way, for every species we purchase, we can control the traceability from the forest to our factory in Madrid. All of our suppliers must promise, by contract, to comply with all the laws of their country. After each visit a report is written which is then evaluated by our team. If we are not satisfied that all laws are complied with, even if the supplier has signed our contract, we choose not to purchase from that source.
This law applies to companies or persons who first introduce the wood into the EU.
Madinter, as the importer, is required to exercise Due Diligence to ensure that all of the timber it purchases is of legal origin.
As a customer of Madinter, what do I have to do?
Your obligation, as customers is simply to keep all purchase and sales invoices for a minimum period of 5 years. You need not take any further action as it is Madinter who guarantees that the wood you have purchased from us is of legal origin.