German operator set to lose thousands in EUTR case

In August, Germany's EUTR competent authority, the Federal Institute for Agriculture and Food (BLE), confiscated batches of Democratic Republic of Congo wenge logs from the two companies, which were deemed the 'operators' with prime responsibility for due diligence risk assessment in importing the material into the EU.

The 41 logs were part of a consignment into Germany shipped in via Antwerp by Swiss supplier Bois d'Afrique Mondial (BAM). The total cargo was 89 logs (196m3), with the rest now reported in the Czech Republic.

They German cargo was seized from a contract sawmill in Westphalia, where it was being processed for veneer.

According to Euwid, a letter from the Congolese authorities vouched for the legality of the material. However, the BLE submitted this to another agency, which concluded it was a forgery and this was later supported by sources in the DRC. This opened the way to possible charges of fraud and additional penalties.

In another twist, in a later meeting with the German ambassador to the DRC, another official then confirmed that the letter vouching for the timber had, after all, been genuine.

Euwid reported that the value of impounded timber belonging to one company had been estimated "in six figures". In addition, the contract sawmill where it was seized has also lost money, and buyers further down the supply chain are facing contractual penalties from their customers for not delivering in time.

In an added complication, it is unclear whether the second German operator is facing the same sanctions, as it ordered the wenge just before the EUTR became incorporated in Germany's HolzSiG, timber trade security law, so may escape its penalties.

The Czech-bound material may also be beyond EUTR remit because of the current state of the country's enactment of the Regulation.

In America, meanwhile, wood flooring specialist Lumber Liquidators is subject to a US Fish and Wildlife Service investigation under the anti-illegal timber Lacey Act, which has, included search of premises. The company sells through over 300 stores. Its shares fell 9% on news of the probe.