Australian Illegal Logging Prohibition Act (AILPA)

What is the Australian Illegal Logging Prohibition Act (AILPA)? 

AILPA is Australia’s primary law aimed at preventing illegally logged timber from entering the domestic market. It makes it illegal to import or process timber that has been harvested unlawfully and places legal responsibility on businesses to manage sourcing risks. 

What are regulated timber products under AILPA? 

Regulated timber products include specific timber and wood-based goods covered by the legislation. Importers must determine whether their products fall within regulated categories and apply due diligence before market entry. 

Who is considered an importer under AILPA? 

An importer is any business or individual bringing regulated timber products into Australia. Importers must conduct due diligence and demonstrate that illegal logging risks have been assessed and mitigated. 

Who qualifies as a processor? 

A processor is a business that handles domestically grown raw logs within Australia. Processors must also implement due diligence systems to minimize illegal timber risks. 

What is a Due Diligence System (DDS)? 

A DDS is a structured compliance framework that helps businesses identify, assess, and mitigate the risk of illegal timber in supply chains through formal procedures and documentation. 

What does information gathering involve? 

Businesses must collect key product and supplier details, including timber species, country of harvest, supplier identity, and legality documentation to support compliance. 

What does timber legality mean? Why is the country of harvest important? 

Timber legality means wood has been harvested, transported, and traded according to the laws of the country of origin, including forestry and environmental regulations. The country of harvest identifies where timber was originally sourced. It is critical for assessing legality risks since regulations and enforcement differ by region. 

What is risk assessment and risk mitigation in AILPA compliance? 

Risk assessment involves evaluating the likelihood that timber products originate from illegal sources using governance indicators, logging prevalence, and supply chain complexity. Risk mitigation refers to actions taken to reduce identified risks, such as requesting additional documentation, conducting supplier audits, or changing sourcing strategies. 

What is supply chain traceability and Chain of Custody 

Traceability is the ability to track timber products through every stage of the supply chain, ensuring origin verification and compliance visibility. Chain of custody is the documented trail showing ownership and handling of timber products as they move from harvest to market. 

What counts as supplier documentation and how are documents verified? 

Supplier documentation includes permits, licenses, transport records, and declarations that prove timber legality and sourcing details. Verification is the process of reviewing supplier documents to ensure they are authentic, accurate, and complete before relying on them for compliance. 

What is record keeping under AILPA? 

Businesses must securely store due diligence records for several years to demonstrate compliance during inspections or audits. 

What qualifies as illegal logging, and what are the penalties for non-compliance? 

Illegal logging refers to timber harvesting that violates local laws, such as unauthorized harvesting, logging in protected areas, or illegal trade. Failure to comply with AILPA can result in fines, legal prosecution, product seizures, and reputational damage.

Frequently Asked Questions (FAQ’s)