Explanatory Memorandum to COM(2013)433 - Conclusion of the Voluntary Partnership Agreement with Indonesia on forest law enforcement, governance and trade in timber products to the EU

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dossier COM(2013)433 - Conclusion of the Voluntary Partnership Agreement with Indonesia on forest law enforcement, governance and trade in timber ...
source COM(2013)433 EN
date 20-06-2013
The Action Plan on Forest Law Enforcement, Governance and Trade (FLEGT) i, endorsed by the Council in 2003 i, proposes a set of measures, including support for timber-producing countries, multilateral collaboration to tackle trade in illegal timber, support for private-sector initiatives, and measures to discourage investment in activities that encourage illegal logging. The cornerstone of the Action Plan is the establishment of FLEGT partnerships between the EU and timber-producing countries, aimed at putting a stop to illegal logging. In 2005 the Council adopted Regulation (EC) No 2173/2005 i establishing a mechanism to verify the legality of timber imported into the EU under the FLEGT partnerships.

In December 2005 the Council authorised the Commission to negotiate FLEGT partnership agreements with timber-producing countries i.

The Commission entered into negotiations with Indonesia in January 2007. The Commission was assisted by a number of Member States, in particular the UK, which provided resources to facilitate the process in Indonesia. The Commission has kept the Council updated on progress, with reports to the Working Party on Forests as well as to EU Embassies in Indonesia.

The Agreement addresses all the elements of the negotiating directives adopted by the Council. In particular, it establishes the framework, institutions and systems for the FLEGT licensing scheme. It sets out the framework for monitoring legal compliance and for independent auditing of the system. These are set out in annexes to the Agreement, which provide a detailed description of the structures that will underpin the assurance of legality afforded by a FLEGT licence.

The Voluntary Partnership Agreement (VPA) focuses on governance and law enforcement and, by means of the licensing system, provides the assurance that Indonesia's timber is legally produced. It represents a major commitment by Indonesia to address the persistent problem of illegal logging. The FLEGT licence will reassure the EU market that Indonesian timber products are from verified legal sources.

The legislation for which compliance must be verified has been identified following an extensive stakeholder consultation process within Indonesia. Indonesia will work with an independent auditor, which will provide regular, public reports on the effectiveness of the system. The Agreement also aims to increase transparency in the sector, including through the application of Freedom of Information legislation in Indonesia.

The Agreement goes beyond the limited product coverage proposed in Annex II to Regulation (EC) No 2173/2005 on the FLEGT scheme and covers a wide range of exported timber products.

The Agreement makes provision for import controls at the EU’s borders, as provided for in Regulation (EC) No 2173/2005 on the FLEGT scheme and Regulation (EC) No 1024/2008 laying down detailed measures for implementing it. The Agreement includes a description of Indonesia's FLEGT licence, which uses the format prescribed in the above-mentioned Regulation.

The Agreement establishes a mechanism for dialogue and cooperation with the EU on the FLEGT scheme, via the Joint Implementation Committee. It also establishes principles of stakeholder participation, social safeguards, accountability and transparency, and monitoring of and reporting on implementation of the Agreement.

The FLEGT licensing scheme is expected to be fully operational by late 2013. The licensing scheme will be assessed against the criteria laid down in the Agreement before the EU begins accepting FLEGT licences.