Notification of disallowance - 8 February 2018

Overview

The Illegal Logging Prohibition Amendment (Due Diligence Improvements) Regulations 2017 were disallowed by the Senate on 8 February 2018, as per the Gazette C2018G00093. This disallowance pertains to specific items within Schedule 1 of the Regulations, which were originally made under the Illegal Logging Prohibition Act 2012. The Act was enacted to address the problem of illegal logging by establishing a robust framework to prevent the import and export of illegally harvested timber and timber products in Australia. The disallowance by the Senate indicates a scrutiny of the regulatory measures intended to enhance due diligence and compliance within the supply chains, aiming to ensure that Australian trade practices align with international standards against illegal logging.

Scope and Application

The Illegal Logging Prohibition Act 2012, as amended by the disallowance of certain regulatory provisions, governs the importation of timber and timber products into Australia to prevent illegal logging practices. The Act applies to any person or entity involved in the importation of timber and timber products, thereby impacting industries such as forestry, timber trading, and related supply chains. The jurisdictional reach of this legislation is national, applying across all states and territories of Australia. The disallowance specifically affects the regulatory framework established by the Illegal Logging Prohibition Amendment (Due Diligence Improvements) Regulations 2017, thereby potentially restricting the scope of enforcement and compliance measures previously intended to be implemented. The Act itself, however, remains in effect and continues to prohibit the importation of goods known or suspected to be illegally logged, unless an appropriate licence is held. The disallowance of specific regulatory items does not negate the overarching purpose of the Act but may necessitate the creation of new subordinate instruments to address the legislative intent effectively.

Key Provisions

The main operative sections of the legislation, specifically Schedule 1 of the Illegal Logging Prohibition Amendment (Due Diligence Improvements) Regulations 2017, have been disallowed by the Senate, as per the resolution passed on 8 February 2018. This disallowance pertains to items 1, 3 to 8, 11 to 13, 16 to 19, 21 to 25, 28 to 30, and 33 to 36 of Schedule 1. Essentially, these sections, which had been established under the Illegal Logging Prohibition Act 2012, are now void and cannot be enforced. The disallowed provisions likely contained specific regulations and requirements intended to enhance the due diligence measures against illegal logging. The Act imposes several obligations on entities involved in the timber supply chain, including importers, exporters, and businesses that deal with timber and timber products. These obligations likely include maintaining detailed records, implementing strict due diligence processes, and ensuring transparency and traceability in the supply chain to prevent the involvement of illegally harvested timber. The disallowed provisions would have further defined these obligations, providing clearer guidelines and standards for compliance. For example, they might have specified the documentation required to demonstrate compliance or outlined the procedures for verifying the legality of timber sources. The consequences of breaching these regulations, had they not been disallowed, could have been severe. Offences under the Illegal Logging Prohibition Act 2012 are treated with significant gravity due to the environmental and economic impacts of illegal logging. Penalties for non-compliance could include substantial fines, both for individuals and corporations. The maximum penalties may vary depending on the severity of the offence and the extent of non-compliance. In addition to financial penalties, breaches could also lead to criminal charges, resulting in imprisonment for those found guilty of knowingly dealing in illegal timber. These consequences underscore the importance of adhering to the regulations, even though the specific disallowed provisions are no longer in effect.