The impending European illegal timber due diligence legislation will have a “significant” impact on timber industry operations and could result in further structural change in the industry, said the president of the Scottish Timber Trade Association (STTA).

Russell Paterson was speaking after a gathering of members of the Scottish Timber Trade Association and supporters of the Scottish Timber Products Forum during which the legislation, due to be implemented in 2013, was debated.

Rachel Butler, The Timber Trade Federation’s head of sustainability, and Jon Buckrell from Chatham House, addressed the issue.

Mr Paterson said the legislation would lead to some adjustments to supply chains. “Great care will be required by those representing our interests to avoid unintended consquences for the trade, as there is much at stake.”

Meanwhile, STTA secretary David Sulman said the issue of penalties within the legislation was not entirely clear.

“One of the key questions that businesses need to answer is whether they are responsible for placing products on the European market for the first time,” he said.

Importers need to undertake a process of environmental due diligence, while traders buying from importers just need to maintain records of purchases and sales in order to provide traceability.