World Trade Organization

Import Licensing Procedures

Harvested timber

Document symbol
G/LIC/N/3/EU/13
Original language
English
Published on
19/11/2024

Outline of Systems

Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.

This section provides a description of the Forest Law Enforcement, Governance and Trade licensing scheme (FLEGT licensing) scheme as established under the EU FLEGT Regulation.

The FLEGT licensing scheme is a voluntary scheme to ensure that only legally produced timber products are imported into the EU from countries with which the EU concludes bilateral FLEGT Voluntary Partnership Agreements (VPAs). Under an operational FLEGT licensing scheme, a partner country issues FLEGT licences for every shipment of timber products covered by the VPA, exported to the EU. The release for free circulation in the EU of such shipments is conditional on the acceptance by EU FLEGT competent authorities of the FLEGT licence. EU FLEGT competent authorities may verify the authenticity of the FLEGT licence and its conformity with the shipment that it covers.

Purposes and Coverage of Licensing

Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.

Under the FLEGT licensing scheme the EU has concluded FLEGT VPAs with a number of countries. Timber products (defined in the Agreements by HS codes) exported from FLEGT VPA partner countries to the EU are covered by a FLEGT license issued by the licensing authority (-ies) of that country. The FLEGT license demonstrates that the timber products have complied with relevant legislation as set out in the corresponding bilateral FLEGT VPAs. Once operational the implementation of the licensing scheme requires that imports of relevant timber products into the EU be made subject to a system of checks and controls so that only FLEGT licensed timber will be imported to the EU.

Please see Products - Harvested timber

Q3. The system applies to goods originating in and coming from which countries?

The FLEGT licensing scheme applies only to imports from partner countries with which the EU has concluded FLEGT VPAs. These agreements place a legally binding obligation on the EU and on the partner country to implement the licensing scheme as set out in each VPA. To date, the EU has concluded FLEGT VPAs with: Cameroon, the Central African Republic, Ghana, Liberia, Indonesia, the Republic of Congo and Viet Nam. The EU has concluded negotiations and initialled a VPA with Honduras and Guyana. In order for a partner country to be able to issue FLEGT licences, it must put in place a timber legality assurance system and other measures outlined in the VPA. As of 15 November 2016, the FLEGT licensing scheme has become operational between the EU and Indonesia. The scheme is not yet operational for other VPA countries.

Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?

The FLEGT licensing system has been put in place so that countries exporting to the EU can demonstrate that their exports of timber products to the EU are legally produced. The scheme does not impose any restrictions neither in terms of quantity nor in terms of volumes to the imported goods.

Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?

The internal EU legal framework for the FLEGT licensing scheme is:

Council Regulation (EC) No. 2173/2005 of 20 December 2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community (OJ L 347, 30.12.2005, p. 1) and its subsequent amendment. A consolidated version of the Regulation can be consulted at the following address: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02005R2173-20200101

Commission Regulation (EC) No. 1024/2008 of 17 October 2008 laying down detailed measures for the implementation of Council Regulation (EC) No. 2173/2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community (OJ L 277, 18.10.2008, p. 23): https://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1566906359238&uri=CELEX:32008R1024

The licensing is statutorily required for those countries that enter into bilateral FLEGT VPAs, once the parties have decided to make the scheme operational and the legislation does not leave designation of products to be subjected to licensing to administrative discretion. Furthermore, it is not possible for the government (or the executive branch) to abolish the system without legislative approval.

Procedures

Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):

N/A

Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?

N/A

Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?

N/A

Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)

N/A

Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?

N/A

Q6.V. What are the minimum and maximum lengths of time for processing applications?

N/A

Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?

N/A

Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?

N/A

Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?

N/A

Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?

N/A

Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?

N/A

Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?

N/A

Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:

Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?

Under the agreements a FLEGT license is issued when a shipment is exported from the partner country to the EU. An EU importer of such a shipment does not need to apply for an import license from an EU competent authority. An EU importer shall lodge the original FLEGT license, as issued at the time of export of the shipment from the partner country, for acceptance and verification with the competent authority of the EU Member State in which the shipment covered by that license is declared for release for free circulation. An EU importer of such a shipment does not need to apply for an import license from an EU competent authority but must present a copy of the FLEGT license as issued at the time of export of the shipment from the partner country. If justified and subject to verification that the shipment meets the relevant conditions it is generally possible for a FLEGT license to be re-issued by the partner country in case of unforeseen circumstances.

Q7.b. Can a licence be granted immediately on request?

The procedures established by the partner country determine whether a license can be granted immediately upon request or not.

Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.

There are no limitations as to the period of the year during which application for licence and/or importation may be made.

Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?

As indicated above, licenses are issued by the exporting country and not by the EU.

Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?

The issuance of a licence is the responsibility of the partner country; the procedures in case of refusal are therefore subject to the partner countries' rules.

Eligibility of Importers to Apply for Licence

Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?

All persons, firms and institutions are eligible to apply for licences.

Documentational and Other Requirements for Application for Licence

Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?

The information required to apply for a FLEGT licence is set out in the FLEGT VPA and is subject to the rules of the partner country. The format of the FLEGT licence is set out in an Annex of each FLEGT VPA but follows the general format set out in the Annex to Commission Regulation (EC) No 1024/2008 of 17 October 2008. An EU importer needs to lodge the original of the FLEGT licence to the competent authority and the relevant copy with the customs authority of the EU Member State in which the shipment covered by that licence is declared for release for free circulation.

Q11. What documents are required upon actual importation?

A FLEGT licence cross referenced to the Single Administrative Document for release for free circulation.

Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?

EU Member States have discretion on whether to charge any administrative fee and the amount of the fee arising from official acts by competent authorities required for control purposes.

Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.

Not applicable as the EU does not issue the licences.

Conditions of Licensing

Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?

The period of validity of FLEGT licences from a given partner country is set out in the corresponding bilateral FLEGT VPA. The validity can be extended by the issuing country upon request if adequately justified.

Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?

There is no penalty for the non-utilization of a licence or a portion of a licence.

Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?

The licences may be not transferable between importers, subject to each VPA requirements. The name of the importer on the FLEGT licence can however be amended by the issuing country upon request if adequately justified.

Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?

Evidence of compliance with relevant legislation, as set out in the relevant FLEGT VPA.

Other Procedural Requirements

Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?

No other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation.

Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?

N/A