The due diligence system is to ensure that the company has access to specific information about the timber products, including country of harvest, species, quantity or weight, details of the supplier and information on compliance with national legislation in the country of harvest.
A due diligence system must also include a risk assessment which allows the companies to assess whether the timber has been harvested in compliance with national legislation in the country of harvest.
Unless the risk can be deemed insignificant, the companies are obliged to implement measure to mitigate the risk. Such measures may range from requiring additional documentation of compliance from the supplier, third-party verification to replacing the supplier.
The requirement for due diligence only applies to companies placing timber or timber products on the market for the first time, such as importers or forest owners. Traceability is required for products which are already on the market.
The companies are obliged to maintain and regularly evaluate the due diligence system. However, this does not apply when the companies are using a due diligence system prepared by a monitoring organisation. If so, the 'monitoring organisation' undertakes to maintain and evaluate the due dilligence system which is offered to the users.
All dealers of timber and timber products in the EU, even those who merely resell timber and timber products after the timber has been put on the EU market for the first time, will be obliged to keep records of their timber suppliers and customers.
It goes without saying that Risør Finerhandel A/S has implemented a due diligence system.