EUTR enforcement body the National Measurement Office’s (NMO) Chinese plywood enforcement project – focusing on plywood manufactured in China and placed on the market in the UK – identified 16 companies defined as “operators” under the regulations.

Of these, 14 companies submitted “insufficient” due diligence systems, mainly due to a lack of narrative explaining how the combination of document gathering, risk assessment and mitigation enabled them to conclude a negligible risk of illegal timber sourcing.

The NMO also purchased products from the companies and subjected them to microscopic analysis. Of the 13 purchases tested, nine did not match the declaration supplied by each company regarding timber species used.

“In all, only one company was found to be compliant with the EUTR as a result of testing and submission of their due diligence system,” the NMO said.

“The NMO continues to investigate the remaining cases. Various sanctions will be applied to the companies in question, including the possibility of prosecution based on non-compliance with a Notice of Remedial Action.

“The combined value of the imports of the companies in this project amounts to 10% of the plywood imported from China into the UK in the last year, indicating the potential scale of non-compliance in the industry.”

The NMO says it was likely to conduct a similar project in the future, targeting other companies, in order to monitor progress, while it was also possible that future shipments could be identified from companies already identified as high-risk.

Meanwhile, the Wood Panel Industries Federation (WPIF), which represents UK and Ireland manufacturers of chipboard, OSB and MDF, welcomed the NMO’s report, describing the action as "long overdue".

WPIF wants to see further enforcement of EUTR legislation to drive home a zero tolerance message to all in the supply chain, including manufacturers, importers, distributors and end users.

“Despite EU regulation, it’s now clear that the UK is still importing illegal and unsustainably grown timber from high risk areas of the planet – and that the problem is worse than many had thought, including evidence that some endangered timber species used in the plywood were claimed to be less vulnerable types," said WPIF director general Alastair Kerr.