Legal Harvest Assurance System for Timer

According to INTERPOL, the trade of illegally logged timber is estimated to account for 15-30 per cent of all timber traded globally, with an estimated value of between USD 51-152 billion annually. Not surprisingly, it also attracts the world’s biggest organised crime groups. In terms of the environment, illegal logging is responsible for habitat loss, species extinction, and deforestation – for some countries it accounts for up to 90% of tropical deforestation.
With this backdrop, the Forests (Legal Harvest Assurance) Amendment Act 2023 (Act) was passed on 19 May 2023, and amends the Forests Act 1949. Forestry Minister Peeni Henare stated “By introducing a legal harvest assurance system for timber products, New Zealand is taking a tangible step to support international efforts to stamp out the trade in illegally harvested timber products and provide assurance that our country is committed to
trading only in legally harvested timber.”
Forestry is our fourth largest primary sector export earner, and with around 85% of NZ timber products going to markets that have or are implementing legal harvest assurance legislation, it will be increasingly important to be able to validate the legality of our timber to safeguard our access to these markets.
The legal harvest system will apply to forest owners (or those responsible for the harvest), log traders, primary or first-stage processors (includes saw milling, chipping, pulping), importers and exporters. In most cases, persons carrying out these activities will be required to register with the Ministry for Primary Industries (MPI), and as part of that process pass a “fit and proper person” test. A registered person will also be required to provide an annual declaration that they are continuing to comply with their obligations.
Registered parties will be required to set up a due diligence plan showing how they will reduce the risk of dealing with illegal timber. Forest owners, or those responsible for the harvest, will need to be able to provide legal harvest statements and supporting evidence to log buyers that confirms the timber is legally harvested. Importers will need to use their due diligence system to verify that timber products they are importing into New Zealand come from legally harvested forests.
The system is expected to deliver a significant net benefit of approximately $690 million over 10 years; achieved primarily through maintaining higher value markets by having a legal harvest system that can meet the legality requirements of these markets.
The Act allows for up to three years for it to come into force (a date earlier than three years may be specified by Order in Council) and a further 12 months for compliance. MPI and Te Uru Rākau – New Zealand Forestry Service will be administering and facilitating its implementation. During this time, officials will consult and engage with industry to develop regulations.