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Business insists on finalizing the sectoral draft law on the timber market

22/ 09/ 2021
  In September, the Verkhovna Rada registered a revised draft law on the timber market (№4197-d) aimed at defining the basic principles of the industry. Having studied the text of the draft law in detail, EBA Woodworking& Furniture Committee experts note that the updated version took into account a range of important proposals from the business. These include provisions that provide a mechanism for the sale of timber on the terms of the offer in parity with auction bidding and the restructuring of state forestry enterprises with the separation of the woodworking units of state forestries. However, the business community is still unable to support the draft law in its current version and insist on its mandatory revision in the following aspects: First, a cascade auction needs to be established to provide real producers in priority order with raw materials and to stimulate in-depth wood processing. First of all, the materials should be sold to domestic businesses that have production facilities located in Ukraine and process wood in Ukraine. Secondly, it is necessary to significantly revise and simplify the rules for the administration of operations with wood products, which, in the opinion of business, are not only excessive but also inappropriate given the specifics of the market. Businesses find it inappropriate to declare transactions with wood products, instead, it would be worth focusing on declaring the procurement and sale (resale) of wood. Also, it is necessary to review the list of wood products that require a certificate of origin, excluding goods that are not products of primary wood processing. Third, we do not support the rules concerning the exclusion of wood from the list of exchange goods that are subject to circulation on the commodity exchange. The business supports the positive practice of exchange trade in timber. The sale of timber (except for the sale of timber on the terms of the offer) must be carried out openly in accordance with the rules of exchange trade and exclusively in accordance with the legislation on commodity exchanges. The European Business Association will be ready to support the law provided that the above comments from our experts and appropriate changes to the text of the draft law are adopted as they are crucial for the integrated development of the woodworking industry.   Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

In September, the Verkhovna Rada registered a revised draft law on the timber market (№4197-d) aimed at defining the basic principles of the industry. Having studied the text of the draft law in detail, EBA Woodworking& Furniture Committee experts note that the updated version took into account a range of important proposals from the business. These include provisions that provide a mechanism for the sale of timber on the terms of the offer in parity with auction bidding and the restructuring of state forestry enterprises with the separation of the woodworking units of state forestries.

However, the business community is still unable to support the draft law in its current version and insist on its mandatory revision in the following aspects:

First, a cascade auction needs to be established to provide real producers in priority order with raw materials and to stimulate in-depth wood processing. First of all, the materials should be sold to domestic businesses that have production facilities located in Ukraine and process wood in Ukraine.

Secondly, it is necessary to significantly revise and simplify the rules for the administration of operations with wood products, which, in the opinion of business, are not only excessive but also inappropriate given the specifics of the market. Businesses find it inappropriate to declare transactions with wood products, instead, it would be worth focusing on declaring the procurement and sale (resale) of wood. Also, it is necessary to review the list of wood products that require a certificate of origin, excluding goods that are not products of primary wood processing.

Third, we do not support the rules concerning the exclusion of wood from the list of exchange goods that are subject to circulation on the commodity exchange. The business supports the positive practice of exchange trade in timber. The sale of timber (except for the sale of timber on the terms of the offer) must be carried out openly in accordance with the rules of exchange trade and exclusively in accordance with the legislation on commodity exchanges.

The European Business Association will be ready to support the law provided that the above comments from our experts and appropriate changes to the text of the draft law are adopted as they are crucial for the integrated development of the woodworking industry.

 

Be the first to learn about the latest EBA news with our Telegram-channel EBAUkraine.

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