Australia Bans Timber and Wood Products Under New Illegal Logging Rules

Australia has implemented strict prohibitions on the import and trade of timber and wood products to prevent illegal logging, with new rules targeting specific HS codes and enforcing compliance across all timber-related goods

Compliance Requirements for Importing and Trading Timber and Wood Products in Australia

Australia has strengthened its legal framework to combat illegal logging through the Illegal Logging Prohibition Amendment (Strengthening Measures to Prevent Illegal Timber Trade) Act 2024 and the Illegal Logging Prohibition Rules 2024, which amend the Illegal Logging Prohibition Act 2012. These regulations impose due diligence obligations on importers and processors of regulated timber products to assess and mitigate the risk of illegally logged timber entering the Australian market. The reforms take effect on 3 March 2025, with a six-month education and guidance period to support compliance¹.

1. Regulated Products and Scope

The regulations apply to both imported and domestically grown/processed timber products under the following Harmonized System (HS) codes:

• Chapter 44: Wood and articles of wood (e.g., raw logs, sawn wood, plywood)
• Chapter 47: Wood pulp
• Chapter 48: Paper and paperboard
• Chapter 94: Wooden furniture and prefabricated buildings

A full list of regulated products is specified in Section 5 of the Illegal Logging Prohibition Rules 2024¹.

2. Key Compliance Obligations

A. Due Diligence System

Importers and processors must establish and maintain a due diligence system to:

1. Assess the risk that regulated timber products have been illegally logged¹.
2. Mitigate the risk of importing or processing illegally logged timber, including:
   • Gathering information on the timber’s harvesting country, species, and legality¹.
   • Using timber identification technologies (e.g., DNA testing, stable isotope analysis) where required¹.
   • Documenting compliance measures and retaining records for audit purposes¹.

B. Information Requirements

Before importing or processing regulated timber, businesses must obtain and verify:

• Country of harvest and region of origin¹.
• Species identification (scientific name)¹.
• Evidence of legal harvesting, such as:
  • Forest management certification (e.g., FSC, PEFC)¹.
  • Government-issued permits or licenses¹.
  • Country-specific guidelines (to be updated by the Australian Government)¹.

C. Record-Keeping and Audits

• Businesses must retain records of due diligence assessments for five years¹.
• The Australian Government may conduct audits to verify compliance with due diligence requirements¹.
• During the first six months (3 March 2025 – early September 2025), enforcement will focus on education and guidance, with penalties applied only in cases of serious non-compliance¹.

3. Enforcement and Penalties

A. Offences and Liabilities

The Illegal Logging Prohibition Amendment (Strengthening Measures to Prevent Illegal Timber Trade) Act 2024 introduces:

• Clarified offences for importing or processing illegally logged timber¹.
• New enforcement mechanisms, including:
  • Testing of timber products using identification technologies¹.
  • Publication of offence details (e.g., names of non-compliant businesses)¹.
  • Civil and criminal penalties for breaches (exact amounts not specified in the sources)¹.

B. Audit Process

• Audits will be conducted on a case-by-case basis¹.
• Businesses may be required to demonstrate compliance with due diligence requirements¹.

4. Timeline and Transition Period

5. Country-Specific Guidelines

The Australian Government will update Country-Specific Guidelines to assist importers in assessing legality risks for timber sourced from high-risk regions. These guidelines will be published early in the reforms’ operation and will provide additional opportunities for bilateral cooperation with trading partners¹.

6. Summary of Key Regulations

Summary Answer

Australia’s Illegal Logging Prohibition Amendment (Strengthening Measures to Prevent Illegal Timber Trade) Act 2024 and Illegal Logging Prohibition Rules 2024 impose mandatory due diligence requirements on importers and processors of regulated timber products (HS Chapters 44, 47, 48, and 94) to prevent illegally logged timber from entering the market. Businesses must assess and mitigate risks, maintain records, and comply with audits, with enforcement beginning 3 March 2025 and a six-month education period¹. The reforms introduce timber identification technologies, publication of offences, and country-specific guidelines to align with international best practices¹. Feedback from WTO members was accepted until 60 days post-notification (12 March 2025)¹. Non-compliance may result in penalties and enforcement actions¹.

Sources

1. ↩ Committee on Technical Barriers to Trade – Notification – Australia – Strengthening measures to prevent illegal timber trade and illegal logging prohibition rules https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=Q:/G/TBTN25/AUS180.pdf&Open=True