1 December 2024

Dutch Yacht Builder Settles for €150,000 Over Use of Non-Compliant Timber

European Timber Regulation

The investigation began in March 2022, after reports indicated the use of Myanmar teak on the yacht's deck. The EUTR sets stringent requirements for the import of timber into the EU to combat illegal logging in tropical forests. A 2017 expert panel found that it is nearly impossible to comply with EUTR requirements for timber originating from Myanmar. These rules primarily apply to the party introducing the wood to the EU market.

The investigation revealed that the yacht builder had all necessary documentation for the deck timber and cannot be held responsible for its compliance. However, the teak was supplied to the EU by a German timber trader, who may not have met EUTR standards. This information has been shared with German authorities.

Liability for Other Timber Products

During the investigation, it emerged that in 2022, the yacht builder purchased furniture and finishing wood from a Turkish supplier. Since the yacht builder was the first to place this timber on the EU market, they were responsible for ensuring compliance with the EUTR. The company failed to trace the origin of this wood, making it impossible to determine whether it was legally sourced.

Settlement

The yacht builder acknowledged non-compliance with the EUTR for the Turkish-imported timber. They stated they were unaware at the time of their obligation to meet due diligence requirements under the regulation. The company emphasized that it never intended to violate EUTR rules, recognized the importance of the legislation, and deeply regretted the incident.

Since 2019, the yacht builder has ceased the use of Myanmar teak for new projects. The superyacht in question was the last project to involve this timber, as its construction began before 2019.

Given the builder's acknowledgment, cessation of Myanmar teak use, and cooperation, the OM opted to resolve the matter with a €150,000 fine.

This case underscores the importance of understanding and adhering to EUTR requirements to prevent illegal logging and protect global forest resources.