New Zealand Forests Amendment Act

The New Zealand government amended the Forests Act 1949 to set up a timber legality assurance system, which was enacted in May 2023 through the Forests (Legal Harvest Assurance) Amendment Act 2023. The legal harvest assurance system requires forest owners, log traders, primary processors, and timber importers and exporters to provide assurance that New Zealand timber and imported timber have been legally harvested or sourced, as well as provide a framework for carrying out due diligence when harvesting and sourcing timber.

The Act

The Act enters into force on August 1, 2027, or an earlier date specified by Order in Council, and establishes provisions for New Zealand to combat illegal logging and trade. An additional twelve months from the commencement date are provided for compliance.

Compliance Requirements

The legal harvest assurance system process requires:

1. The person responsible for harvesting or supplying regulated timber to another person to provide up-to-date legal harvest information about the timber which they are supplying, including a legal harvest statement, and maintain records of the information that they have provided;
2. Any person to complete registration with the Ministry for Primary Industries (MPI) for legal harvest before buying and trading, first processing, importing, and exporting timber or timber products. Registered persons are subject to obligations detailed in the Act for compliance purposes; and
3. Registered persons to have a due diligence system in place that is assessed by an assessor (see below) and allows the Secretary (chief executive of the MPI) to issue exporter statements. An exporter statement provides that the person engaged in export is registered for legal harvest and is complying with export requirements.

A legal harvest statement is a form that contain the following details:

1. Timber identification that is in accordance with New Zealand regulations, such as location information and species details;
2. Any information required in regulations; and
3. Be provided in a form approved by the Secretary.

Some people and activities are exempt from registration for legal harvest but can choose to register voluntarily:

1. People that only carry out activities related to indigenous timber that is not regulated timber;
2. People that are within a class of persons that are exempted by regulations; and
3. People whose activities are exempted from the legal harvest assurance system (see below).

The following activities are exempt from registering for legal harvest:

1. Activities that were carried out in the previous full financial year that meet the following criteria, also known as low-level activities:
   1. Activities were less than the threshold level of timber (regulations may specify a threshold level);
   2. The level of activity in the current financial year does not exceed the threshold level.
2. Shipping or transporting regulated timber or timber products, or associated logistical activities.
3. Activities that are within a class of exempt activities specified by regulations.

The Secretary may recognize an assessor (an individual or class of individuals) or an agency (whose function is to operate and manage systems that allow assessors to carry out their duties) to assess due diligence systems (Subpart 8). An assessor is subject to the requirements detailed in the Act and must submit an application to the Secretary. The Secretary may recognize certain assessors or agencies without an application, such as the Ministry or any group within the Ministry and any officer or employee of any department as specified in the Public Service Act 2020.

Due Diligence System

Registered persons are obligated to have a due diligence system for legal harvest and act in accordance with their due diligence system when carrying out regulated activities. The due diligence system must eliminate or minimize the risk of the person dealing in any timber sourced from the harvest of regulated timber and any illegally harvested timber. Due diligence system requirements are established by regulations and may require specific information to be collected, such as the kind, origin and details of the regulated timber or specified product and/or evidence of any contravention of harvest laws in the country or place of harvest.

Due diligence systems may be based on template, as approved by the Secretary. The Secretary may also recognize certification schemes that may be used in a due diligence system.

Due diligence systems are required to be up-to-date and assessed by an assessor.

For more information about the due diligence requirements and ensuring the legal trade of timber and timber products, see the Ministry of Primary Industries’ (MPI) webpages for importers and exporters.

Penalties

Offences relating to knowingly providing false or misleading information during registration or when seeking registration renewal, are subject to fines up to NZD$200,000 for individuals or in any other case, up to NZD$600,000. Providing false or misleading information is subject to a fine of up to NZD$100,000 for individuals or in any other case, up to NZD$200,000. Failing to comply with legal harvest information requirements may result in fines up to NZD$40,000 for individuals and up to NZD$200,000 in any other case.