Why World Forest Day Matters to Customs

Celebrate World Forest Day by understanding its impact on global trade and why deforestation-free supply chains are vital for compliance.

Green globe with continents surrounded by lush trees and wildlife. Sun above, set against a light background, evokes a theme of nature. — Global collaboration for sustainable development: Celebrate World Forest Day by promoting deforestation-free supply chains to protect our planet's invaluable resources.

Each year, on 21 March, World Forest Day highlights the critical importance of forests in our fight against climate change. As a customs professional, you may not immediately think of forests when dealing with trade compliance, but the effects of deforestation and forest degradation can have far-reaching implications on global supply chains. From import regulations to export compliance, ensuring that products traded are sourced sustainably is becoming increasingly vital. This blog will explore the relevance of World Forest Day for customs professionals and why we need deforestation-free and forest degradation-free supply chains, especially in light of regulations such as the EU Deforestation Regulation (EUDR).

Key Questions Covered in This Blog

Why do we celebrate World Forest Day, and what does it mean for the global community?
Why should customs professionals care about deforestation-free and forest degradation-free supply chains?
How is the European Union (EU) addressing the challenge of deforestation in trade?
What role do importers, exporters, and customs professionals play in promoting sustainability in global trade?
How can EUDR compliance support businesses in meeting environmental standards and enhance trade compliance?

"As customs professionals, it’s our responsibility not only to ensure that trade flows smoothly but also that the goods we import and export align with global sustainability goals. By adopting practices that prevent deforestation and forest degradation, we are contributing to a greener future for all."— Arne Mielken, Managing Director, Customs Manager

Abbreviations Used in This Blog

EU: European Union
UK: United Kingdom
USA: United States of America
Sustainable Supply Chains: Supply chains that minimize negative environmental impact.
Deforestation-Free: Products sourced from regions where deforestation is not occurring.
EUDR: EU Deforestation Regulation (Regulation (EU) 2023/1115), aimed at prohibiting the sale of certain products linked to deforestation and forest degradation.

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Why Do We Celebrate World Forest Day, and What Does It Mean for the Global Community?

World Forest Day, established by the United Nations, is an important occasion to reflect on the vital role forests play in global ecosystems. From regulating carbon dioxide levels to providing livelihoods for millions of people, forests are indispensable to our planet’s health. However, despite their significance, deforestation and forest degradation continue to accelerate at alarming rates, driven by industries such as agriculture, logging, and mining.

For customs professionals, it’s crucial to understand the intersection of trade and sustainability. As global trade continues to grow, so does the demand for raw materials sourced from forests. This makes the responsibility of ensuring that imports and exports are deforestation-free more urgent than ever.

Why Should Customs Professionals Care About Deforestation-Free and Forest Degradation-Free Supply Chains?

Customs professionals are at the forefront of managing compliance with international regulations. With growing global concern over environmental sustainability, both public and private sectors are increasingly addressing the role of trade in driving deforestation.

One of the key reasons why customs professionals should care is the emergence of regulations that mandate deforestation-free supply chains. The European Union, for example, is working to tackle the issue head-on by creating frameworks like the EU Deforestation Regulation (EUDR) that require companies to prove their products do not contribute to deforestation.

Failure to comply with these regulations not only risks heavy fines but also puts businesses at risk of reputational damage. Customs compliance is about ensuring goods cross borders legally and ethically—protecting both your business and the planet.

How is the European Union Addressing the Challenge of Deforestation in Trade?

The EU has been a leader in implementing measures aimed at protecting the environment and regulating supply chains to prevent deforestation. In December 2022, the European Commission proposed the EU Deforestation Regulation (EUDR), which requires companies to ensure that products like palm oil, soy, cocoa, coffee, and rubber, as well as wood, paper, and charcoal, are free from deforestation.

This regulation requires businesses to show due diligence by providing evidence of how products are sourced. The introduction of these measures represents a significant shift in how the EU views trade compliance and sustainability.

For customs professionals in the EU, this regulation means an increased focus on verifying supply chain sustainability. Your role will involve ensuring that businesses adhere to these new regulations by verifying the documents accompanying goods, conducting risk assessments, and maintaining up-to-date knowledge of emerging standards.

What Role Do Importers, Exporters, and Customs Professionals Play in Promoting Sustainability in Global Trade?

The responsibility of promoting sustainability in trade does not lie solely with policymakers. Importers, exporters, and customs consultants all have critical roles to play in shaping how businesses engage with sustainability issues.

Importers need to ensure that the products they bring into their countries meet compliance standards for deforestation-free sourcing. They must verify the traceability of raw materials, working closely with suppliers to establish proof of sustainable sourcing practices.

Exporters must ensure their goods meet the sustainability standards of importing countries, such as the EU’s deforestation-free regulations. They must provide clear documentation proving that the products they are selling are sourced ethically and sustainably.

Customs professionals, on the other hand, act as the gatekeepers. They ensure that goods crossing borders comply with both domestic and international trade regulations. By adopting best practices in sustainability, customs professionals not only protect the environment but also help businesses avoid costly penalties for non-compliance.

At Customs Manager, we assist businesses in navigating EUDR compliance by offering bespoke training and compliance services. Our expert guidance helps companies implement the necessary systems and practices to meet the EU’s new deforestation-free requirements and integrate them seamlessly into their operations.

Arne’s Takeaway

World Forest Day serves as a reminder of the integral role forests play in our global ecosystem. As customs professionals, we have an essential part to play in promoting sustainable trade and ensuring compliance with regulations like the EUDR. Now more than ever, customs professionals must understand the regulations emerging around forest conservation and adapt to this new compliance landscape.

Take the opportunity to educate your team and business partners on the importance of ensuring that the supply chains you are involved in are both transparent and ethical. Doing so will not only safeguard your business from regulatory penalties but also contribute to a greener, more sustainable future.

Expert Recommendations

Stay Updated on Regulations: Ensure you are aware of any new trade regulations related to deforestation and forest degradation, especially those emerging in the EU and UK.
Build Sustainable Relationships: Work closely with suppliers to ensure you are sourcing deforestation-free products.
Invest in Compliance Tools: Use trade compliance tools that allow for better traceability of raw materials and sustainability practices in supply chains.
Leverage Training and Support: Take advantage of bespoke training and compliance services to ensure your business is fully prepared for EUDR requirements.

Sources & Further Information

European Commission's proposal for deforestation-free trade: European Commission Official Website
United Nations Forest Day Overview: UN Forest Day

Disclaimer

The information provided in this blog is for educational purposes only and should not be considered as legal advice. Please consult with a legal professional for guidance tailored to your business’s specific needs.