ЕВА experts discuss polish experience in the context of draft law “On the timber market”

07/ 11/ 2024

Representatives of the EBA’s Woodworking and Furniture Committee participated in a roundtable on 6 November organized by the Wood Industry UA platform. The main topic of the event was discussing Poland’s experience in timber trade within the framework of the draft law “On the timber market.” Key points included the positive aspects of Polands approach to timber trade for processors and the criteria for participants in the register of timber processors, as proposed in the draft law “On the timber market.” Committee representatives highlighted Poland’s timber market model, particularly the legislative restriction preventing direct timber purchases by companies that produce energy or burn wood. These companies, as a result, are excluded from auctions and must purchase timber through traders. The legislative reasoning behind this approach is the necessity of transforming roundwood into high-added-value products with appropriate market distribution. Additionally, the EBA’s experts emphasised the practicality and importance of the tender system, which allows processing enterprises to secure up to 75% of their raw material needs for the current year by participating in only two auctions. The tender system is based on several criteria, the main ones being price, localisation of production, and the role of the processor. Experts stressed the importance of open access to procurement histories for wood-processing enterprises to ensure market transparency. The business community supports the adoption of the draft law “On the timber market,” while urging consideration of the business sector’s position on several key provisions: Auction cascade implementation at the fastest possible pace, with additional sales for unsold raw and fuel timber in all stages of quarterly auctions. Extension of the moratorium to attract capital investment, increase the number of employees, and raise the tax contributions. Setting a guarantee deposit at no more than 5% of the starting lot price for auction organisers, helping to avoid draining buyers working capital. Revision of inconsistencies and contradictions within the text, ensuring alignment with core principles of the timber market. The roundtable included participation from the European Business Association’s Committee Manager Yurii Andriiv, Head of the Woodworking and Furniture Committee Bohdan Tsupryk, and Committee member company representatives: Serhii Smetiukh, Head of Logistics and Timber Procurement at Kronospan UA, and Vitalii Ovsiuk, Head of Legal Affairs at ODEK Ukraine. We extend our thanks to Wood Industry UA coordinator Yurii Duh and Member of the Ukrainian Parliament Bohdan Kytsak for the opportunity to participate in this discussion and explore Poland’s experience in developing sectoral legislation in Ukraine.

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Representatives of the EBA’s Woodworking and Furniture Committee participated in a roundtable on 6 November organized by the Wood Industry UA platform.

The main topic of the event was discussing Poland’s experience in timber trade within the framework of the draft law “On the timber market.” Key points included the positive aspects of Poland’s approach to timber trade for processors and the criteria for participants in the register of timber processors, as proposed in the draft law “On the timber market.”

Committee representatives highlighted Poland’s timber market model, particularly the legislative restriction preventing direct timber purchases by companies that produce energy or burn wood. These companies, as a result, are excluded from auctions and must purchase timber through traders. The legislative reasoning behind this approach is the necessity of transforming roundwood into high-added-value products with appropriate market distribution.

Additionally, the EBA’s experts emphasised the practicality and importance of the tender system, which allows processing enterprises to secure up to 75% of their raw material needs for the current year by participating in only two auctions. The tender system is based on several criteria, the main ones being price, localisation of production, and the role of the processor. Experts stressed the importance of open access to procurement histories for wood-processing enterprises to ensure market transparency.

The business community supports the adoption of the draft law “On the timber market,” while urging consideration of the business sector’s position on several key provisions:

Auction cascade implementation at the fastest possible pace, with additional sales for unsold raw and fuel timber in all stages of quarterly auctions.
Extension of the moratorium to attract capital investment, increase the number of employees, and raise the tax contributions.
Setting a guarantee deposit at no more than 5% of the starting lot price for auction organisers, helping to avoid draining buyers’ working capital.
Revision of inconsistencies and contradictions within the text, ensuring alignment with core principles of the timber market.

The roundtable included participation from the European Business Association’s Committee Manager Yurii Andriiv, Head of the Woodworking and Furniture Committee Bohdan Tsupryk, and Committee member company representatives: Serhii Smetiukh, Head of Logistics and Timber Procurement at Kronospan UA, and Vitalii Ovsiuk, Head of Legal Affairs at ODEK Ukraine.

We extend our thanks to Wood Industry UA coordinator Yurii Duh and Member of the Ukrainian Parliament Bohdan Kytsak for the opportunity to participate in this discussion and explore Poland’s experience in developing sectoral legislation in Ukraine.