A four-year investigation by the US Environmental Investigation Agency (EIA) uncovered evidence of an illegal timber trade stretching from Chinese-owned Dejia Group in West Africa to major hardware stores located across the USA.
The timber was from the okoumé tree, classed vulnerable on the IUCN Red List, with a range limited to just four African countries. US Federal officials are investigating the importers, Evergreen Hardwoods and Cornerstone Forest Products. The Dejia Group also exports to European countries where the EU Timber Regulation is in force, including France, Belgium, Italy, Spain and Greece.

In the recent Forest forum meeting we shared Complicit in Corruption - a recent report written by non-profit Earthsight, highlighting the widespread corruption in Ukraine's forests, and revealing how illegality permeates the timber supply chain in Ukraine from harvest to export.

Earthsight spent two years running field and undercover investigations in Ukraine. Approximately 70% of Ukraine's timber exports enter the EU and Earthsight's investigations indicate that 40% of this timber is being illegally harvest or traded. The report also claims that a significant volume of illegally harvested timber has received the FSC stamp - the former chief of one of the largest timber producing state-forest enterprises admitted to Earthsight he had found it easy to circumvent FSC checks.

Earlier this year Vietnam initialled a timber trade agreement with the EU that will see Vietnam implement legislation to address imports of illegally harvested and traded timber in return for timber exports to the EU. According to a recent EIA investigation, Vietnam continues its role as a serial offender in the illegal timber trade, with large volumes of illegal timber still flowing across the Cambodian border unhindered. EIA have identified three main areas within Cambodia where substantial illegal logging operations continue. EIA tracked timber from these sites is being smuggled out of Cambodia and into Vietnam across informal crossings.

Long known as a hotspot for rapid and largely illegal deforestation, Cambodia was singled out in a May 2017 EIA report. The report was the result of months of undercover investigations which found that from November 2016, more than 300,000 cubic metres (nearly 10.6 million cubic feet) of timber have been illegally felled in a wildlife sanctuary and two protected areas in Cambodia. Most of the timber was sold to Vietnam and generated $13 million in payments from Vietnamese timber traders. Environmental experts believe that a much-publicized crackdown on illegal logging launched in Cambodia in early 2016 had very little effect.

WWF-Vietnam and the Center for People and Forests have launched a joint project under the “Responsible Asia Forestry & Trade” (RAFT) Partnership on sustainable forest management, focusing on classifying and identifying timber for international trade. Viet Nam is also at the final stage of signing a Voluntary Partnership Agreement with the EU.

Interpol has released a purple notice on 30 August about an illegal timber trading operation involving four companies in Brazil, which stems from an investigation by the Brazilian Federal Police that uncovered a technique employed by illegal timber traders in the country. The method in question involves obtaining fraudulent forest management plans that declare a higher density of a high-value timber species within a timber concession than actually exists on the ground, allowing criminals to harvest timber from unauthorized areas and report it as if it was legal. These false forest management plans are obtained through bribery or by the operators who forge them.

From 15 November special licences issued by Jakarta will certify the legality of timber products destined for the EU such as pulp, plywood and furniture. This assurance system, will be independently audited to ensure the timber is legally sourced and meets environmental standards. Once the agreement takes effect from 15 November, timber exports from Indonesia that do not carry this certification will be prohibited from trade within the EU.

Myanmar’s National League for Democracy-led Government announced a national logging ban, effective immediately, which will run until the end of March 2017. Satellite data shows the tree cover in Myanmar has lost nearly 5 percent (2 million hectares) from 2001 through 2014. In 2014, Myanmar enacted a ban on raw timber exports. A driving force of Myanmar’s illegal timber trade is demand from China, and Myanmar was once China’s biggest supplier of rosewood in 2013. The demand from china declined in 2015 since China’s economy slowed, and currently, China’s timber trade with Myanmar is officially suspended.

Fern have produced a report outlining China’s efforts in combatting the trade of illegally sourced timber. The report covers the forest policies and timber trade trends in China as well as the engagement from national and international bodies. Strategies for China-EU efforts in tackling illegal logging and forest governance failure and other drivers of deforestation are also shared. One recommendation includes a robust enforcement of the EUTR in imports from China.

Leaders from international indigenous and forest communities gathered in London to address the violation of human rights and land grabbing associated to the global trade of palm oil. A report last year from Fern showed that 18% of palm oil produced from illegal tropical forest destruction ends up in the EU. The community leaders are calling for the London Stock Exchange to stop trading with companies who act outside of the law as well as improvements in certification schemes in responding and investigating community complaints.

According to Myanmar military officials 122 foreign national (mainly Chinese) and 20 Myanmar citizens were arrested for illegal logging and other alleged crimes in northern Myanmar. Along with the arrests, authorities seized 436 logging trucks and 14 pickup trucks loaded with logs, stimulant drugs, raw opium and Chinese currency. Locals blame the continuous illegal logging on the lack of enforcement as authorities and rebel officers are commonly bribed in exchanged for permission for illegal logging in the area. Unfortunately the insatiable Chinese appetite for hardwood furniture and a lengthy and porous border enables this illegal activity to continue.

WWF is urging the European Commission to use the results of the recent surveys on implementation of the EU Timber Regulations to put more pressure on national governments and take legal action against non-compliant countries. WWF’s EU Government barometer shows that only 11 EU countries have so far adopted national legislation and procedures considered robust enough to control the legality of timber and timber products, thus leaving 17 without robust legislation. The most recent EU survey on implementation highlights Hungary, Poland, Spain, Malta, France, Greece and Italy as being among the countries failing to fully implement the regulations.

The Indonesian Government is considering the viability of creating a voluntary partnership agreement (VPA) on timber trade with Australia to boost exports of forestry products. The VPA with Australia would be similar to the VPA between Indonesia and Europe: Under the EU-Indonesia VPA, all timber and timber products certified by the domestic timber legality verification system (SVLK) are considered legally harvested and in compliance with the EU’s timber regulation.

A new paper by Chatham House and the Center for International Forestry Research (CIFOR) has found that timber harvested illegally in Africa, Asia and Latin America continues to be sold on world markets, despite international efforts to curb the trade. Experts say that the EUTR and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) are complementary. However, there is a lack of coordination between the agencies involved in enforcing the rules of the two systems. One of the biggest loopholes identified is that both CITES- and FLEGT-licenced timber is exempt from the due diligence requirements under the EUTR, so fraudulent paperwork could escape scrutiny.

The Myanmar Timber Merchants Association claims that illegal logging incurs costs Myanmar US$ 200m every year. The most affected areas in Myanmar are Kachin and Shan states near the Myanmar-China border as well as Kayin and Kayah states near the Myanmar-Thai border.

Peruvian environmental prosecutor, Francisco Berrospi, comments on the corruption he has experienced first-hand across the timber trade in the Peruvian Amazon. A slideshow also accompanies this story: http://www.nytimes.com/slideshow/2013/10/19/world/americas/20131019Peru.html?ref=americas

Four Russians have been charged with smuggling timber valued at $3m per month into neighbouring China. The four are accused of using dozens of different companies and fake documents to smuggle 150 freight cars of lumber every month. Police believe the four are part of a much larger smuggling ring. Trade across the border is driven by huge Chinese demand for raw materials, and illegal trade increased dramatically after the collapse of the Soviet Union. Illegal timber trade from Russia to China in 2011 was valued at $1.3 billion, accounting for around 10 million cubic metres of logs and sawn timber.

‘Green Carbon, Black Trade’, a joint report from UNEP and INTERPOL says that $30-$100 billion of revenue are lost by key logging countries each year to the illegal timber trade. The losses are mainly attributed to key logging countries in Central Africa, the Amazon Basin and South East Asia. An editor of the report highlights how organised crime has become more sophisticated over the past decade with government websites hacked to extract logging permits, falsifying certificates and laundering timber by selling it through plantations.