ITTO Shipping Consultation

This two-day consultation was held to explore the many complexities associated with the maritime transport of tropical timber and to enhance ITTO's capability to plan an international conference on the transportation of timber products. The information and knowledge made available in this small consultation meeting will be used by the Secretariat in its further preparations for an international conference on the transportation of timber products. It was agreed, during the recent Committee on Forest Industry meeting, that on the basis of this small consultation meeting, the Secretariat would prepare draft Terms of Reference (TOR) for further work in this area (including a draft program for an international conference on the transportation of timber products) for the consideration of the Committee at its next session.

The presentations made during the two-day consultation meeting focused on the international maritime shipping of tropical timber products and helped answer three overarching questions:

1. What are the complexities of shipping tropical timber from producer to consumer countries?
2. What elements of tropical timber shipping processes allow for illegal trade of logs and tropical timber products?
3. What international tools exist or can be created to ensure legal shipments of timber?

Part of the discussion focused on changing trends in the transport business and tropical timber trade, including the containerization of shipping of timber products, the increasing trade in processed timber products, and issues related to chain of custody and certification. There was also recognition of the wide interpretation of 'illegality' in the forest sector and an acknowledgement that some importing countries have no legal basis or framework for making imports of 'illegally' produced timber an offence.

Additionally, participants sought clarification on the issue of shipping documentation and procedures. In particular, participants debated which entity (such as shippers, traders or customs) is responsible for checking the accuracy, authenticity and legality of shipping documents, which include, but are not restricted to, the bill of lading, certificate of origin, packaging lists and description of goods. It was unclear to participants: what happens when a bill of lading is switched in international waters during the timber shipping process; which country's laws and procedures prevail; and how electronic trading arrangements might assist in preparing shipping documentation and help prevent fraud. Participants also sought clarification on the role of banks in the process, how to create incentives for 'good players' (such as shippers, traders, producers,…), and other issues such as licensing, chain of custody, 'self-policing' and corporate code of conducts for responsible timber purchasing.

Finally, participants discussed the need for capacity building and awareness raising to enhance law enforcement. They suggested this would be especially relevant at the national level, so that government agencies from exporting and importing countries could ensure respect of law and legality as well as authenticity of shipping documentation and procedures. Attention was also drawn to the role of importing countries, which could be more proactive by, for example, ensuring that their customs authorities check for legal documentation. Participants also recognized the impact and role of ongoing and emerging initiatives in combating fraud, such as CITES, Forest Law Enforcement and Governance, Voluntary Partnership Agreements, and public procurement policies.

Participants made several recommendations to ITTO, to take into consideration when preparing TOR for an international conference: work with the International Maritime Organization on shipping documentation or other relevant substantive matters; consider future policy work on customs issues and capacity building; strengthen regional cooperation; consider establishing a system to minimize smuggling (e.g. by prior notification of export); engage bankers, shipowners and shipping companies in more dialogue to clarify the paper trail in maritime trade; and consider information gathering on documentation required for tropical timber shipping. Based on these recommendations and feedback obtained during the consultation, the ITTO Secretariat is preparing a draft TOR and conference agenda for presentation to ITTO Committee on Forest Industry members during its November session.

Participants at the workshop were from the following organizations, agencies and governments:

APKINDO – The Indonesian Wood Panel Association
Ang and Partners, Singapore
UK Chamber of Shipping, on behalf of BIMCO
Danzer, UK
Chatham House, UK
UK Timber Trade Federation
Ministry of Environment and Forests, India
TRAFFIC International
Environmental Investigation Agency, UK
HMRC, UK
International Maritime Organization, UK
International Maritime Bureau, UK
ITTO Trade Advisory Group
ITTO Civil Society Advisory Group
Arpeni Pratama Ocean Line, Indonesia
Malaysian Timber Council, London
Commercial Section, Embassy of Brazil, London
ITTO Secretariat