NEPCon and Estonian Fund for Nature (ELF) Main author: Mirjam Marastu

1. Assessment of Additional Measures to Exclude Illegal Timber from the EU Market: Analysis of Applicable Legislation in Estonia NEPCon and Estonian Fund forNature (ELF) Main author: Mirjam Marastu Co-authors: Kärt Vaarmari, Kaupo Kohv, Jüri-Ott Salm QA: Nicolai A. Clausen, Jan Feil December 2005

2. ILLEGAL TIMBER Estonian legislation does not provide a definition of illegal timber. However, illegal timber could be considered to be: • timber acquired through illegal cutting of trees; • timber acquired through illegal trafficking; • timber acquired through larceny. Other offences of importance: money laundering, corruption etc

3. LEGISLATION The applicable legislation can be divided into following fields of law: • penal law Penal Code (offences against ownership, offences related to criminal organisation, offences related to gratuities and bribe) • environmental law; Forestry Act, Environmental Supervision Act; Rules of conveyance of timber, Regulation of transactions with timber. • money laundering law; The Money Laundering and Terrorist Financing Prevention Act • tax and customs law; Customs Act • procedural law.

4. LEGISLATION (in theory) • The framework of the legislation should be sufficient for combating import of illegal timber; • The sufficiency of the regulations of legislation have never been tested in practice as there have been no case of detected imported illegal timber.

5. LEGISLATION (in practice) • The timber has to be declared illegal in Russia as the authorities of Estonia have no competence to declare the timber illegal in case the documentation of timber is correct. • Reversed proof obligation regardless of the origin of timber: the possessor of timber is required to prove the legality of timber to enforcement officials. The seller of timber is obliged to verify the legality of timber to the purchaser and the purchaser is obliged to be convinced of the legality. • Timber is not the priority group (Tax Board, the Police etc) and law enforcement authorities have not allocated enough resources to combat the imported illegal timber. • Some private timber companies are very active in clarifying the legality of the purchased timber. • Difficulties in gathering the necessary evidence for proving the illegality of the timber.

6. LEGISLATION (timber movementin practice)

7. LEGISLATION (enforcement in practice)

8. OTHER • The current analysis and round table held with representatives from different public and private institutions raised awareness to the subject of imported illegal timber. The general conclusion was the need to carry this subject further. • The key words are information (exchanged between public and private sector and among Russia and Estonia) and co-operation(between public and private sector and among Russia and Estonia).

9. SUMMARY • The compilation of the current analysis clarified the need to analyse further following areas: Illegal timber movement from Russia to Estonia and analysis of the Russian legislation in theory and in practise

10. SUMMARY The co-operation possibilities and necessities between Estonian governmental institutions, third sector and private companies.

11. SUMMARY The study of Estonian taxation system of forestry and among other it's “contribution” to expansion of illegal logging