Forest Chain of Custody Analysis

The analysis of forest chain of custody is essential to ensure that forest products are obtained and traded in compliance with international legislation and regulations, such as the European Union Deforestation Regulation (EUDR) and the U.S. Lacey Act. Let’s explore how each of these laws relates to the chain of custody and how to ensure compliance with them.

1. European Union Deforestation Regulation (EUDR)

Objective: The EUDR aims to eliminate the import of products that contribute to deforestation and forest degradation. The law requires that products sold in the European Union are not sourced from lands deforested after December 2020.

EUDR Requirements for Chain of Custody:

Documentation: There must be complete and verifiable documentation demonstrating the origin of the products. This includes information about the production location, the deforestation area (if applicable), and the production date.
Traceability: It is crucial that the product can be traced from its origin to the point of sale in the EU. The chain of custody must allow verification that the product does not contribute to deforestation.
Due Diligence: Companies must perform rigorous due diligence to ensure their suppliers comply with EUDR requirements. This may include audits and certifications.
2. Lacey Act

Objective: The Lacey Act, a U.S. law, prohibits the trade of forest products obtained illegally. This includes the import of wood and derived products that have been cut, processed, or traded in violation of the laws of any country.

Lacey Act Requirements for Chain of Custody:

Declaration of Origin: Companies must provide a declaration informing the origin of the wood and details about compliance with the laws of the country of origin.
Documentation and Recordkeeping: Maintain detailed records of all transactions and movements of forest products to ensure traceability and compliance with the Lacey Act.
Verification and Audits: Companies must be prepared for audits and verifications that confirm the legality of the practices for acquiring and trading forest products.