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Experts of the EBA discussed the Draft Law “On the Timber Market” with the Verkhovna Rada Economic Development Committee

22/ 11/ 2024
  On 21 November, Yurii Andriiv, Manager of the European Business Association’s Committees, participated in a working group meeting of the Verkhovna Rada Committee on Economic Development. The meeting focused on discussing the draft law On the Timber Market, which aims to define the legal, economic, and organisational framework for the functioning of the timber market. The EBA’s Woodworking and Furniture Committee unites companies with significant experience in woodworking and furniture manufacturing, including domestic producers and timber product manufacturers. According to the Committee’s experts, the following key provisions should be considered in the draft law: Mandatory electronic timber accounting should apply to forest owners and permanent forest users during logging, storage, and shipment. Other market participants (buyers) should be allowed to enter data into the system voluntarily, simplifying their operations, e.g., for automating certification processes or recording resale transactions upon buyers’ requests. Mandatory exchange-based sales of fuelwood and unprocessed timber should only apply to forest owners and permanent forest users, while other market participants should retain the right to trade these goods freely. Extension of the moratorium on timber exports to enable domestic processing companies to invest in production, create jobs, strengthen the labour market, and increase tax contributions. Setting the guarantee deposit for auction organisers at no more than 5% of the starting lot price to prevent a drain on working capital for buyers. Exclusion of provisions referencing EU Regulation No. 2023/1115 (dated 31 May 2023) from the draft law, instead addressing them in separate legislation. Holding exchanges accountable for violations of legal requirements or misuse of their position. Prioritised access for processing enterprises to auctions. The Verkhovna Rada Committee on Economic Development plans to review the draft law On the Timber Market soon and recommend it for adoption in its entirety. The business community appreciates the inclusion of proposals aimed at improving state policies in the sector, enhancing the investment appeal of the woodworking and furniture industries. We look forward to continued collaboration on refining the draft law, ensuring it reflects the perspectives of woodworking companies. The European Business Association extends its gratitude to MP Bohdan Kytsiak for the opportunity to contribute to the discussion of this significant industry document!
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On 21 November, Yurii Andriiv, Manager of the European Business Association’s Committees, participated in a working group meeting of the Verkhovna Rada Committee on Economic Development. The meeting focused on discussing the draft law “On the Timber Market,” which aims to define the legal, economic, and organisational framework for the functioning of the timber market.

The EBA’s Woodworking and Furniture Committee unites companies with significant experience in woodworking and furniture manufacturing, including domestic producers and timber product manufacturers. According to the Committee’s experts, the following key provisions should be considered in the draft law:

  • Mandatory electronic timber accounting should apply to forest owners and permanent forest users during logging, storage, and shipment. Other market participants (buyers) should be allowed to enter data into the system voluntarily, simplifying their operations, e.g., for automating certification processes or recording resale transactions upon buyers’ requests.
  • Mandatory exchange-based sales of fuelwood and unprocessed timber should only apply to forest owners and permanent forest users, while other market participants should retain the right to trade these goods freely.
  • Extension of the moratorium on timber exports to enable domestic processing companies to invest in production, create jobs, strengthen the labour market, and increase tax contributions.
  • Setting the guarantee deposit for auction organisers at no more than 5% of the starting lot price to prevent a drain on working capital for buyers.
  • Exclusion of provisions referencing EU Regulation No. 2023/1115 (dated 31 May 2023) from the draft law, instead addressing them in separate legislation.
  • Holding exchanges accountable for violations of legal requirements or misuse of their position.
  • Prioritised access for processing enterprises to auctions.

The Verkhovna Rada Committee on Economic Development plans to review the draft law “On the Timber Market” soon and recommend it for adoption in its entirety.

The business community appreciates the inclusion of proposals aimed at improving state policies in the sector, enhancing the investment appeal of the woodworking and furniture industries. We look forward to continued collaboration on refining the draft law, ensuring it reflects the perspectives of woodworking companies.

The European Business Association extends its gratitude to MP Bohdan Kytsiak for the opportunity to contribute to the discussion of this significant industry document!

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