Due Diligence and Corporate Social Responsibility

There's a growing number of supply chain issues attracting the attention of law makers around the world. These laws require traders to exercise increased due diligence when dealing with international suppliers. There are also a growing number of voluntary initiatives being adopted by businesses that reflect their positive social and environmental responsibility.

Traders make careful checks to ensure that the goods their suppliers supply are right, but increasingly there is also a requirement to understand how they have been manufactured and the sources of inputs (materials and labour) in the supply chain.

Is the wood in the product from illegally logged timber?

Does the imported product contain asbestos or was asbestos used in its manufacture?

Have the goods been produced under modern slavery conditions?

Is it a natural resource extracted in a conflict zone?

Australian law already requires traders to formally assess some of these issues across their import operations and for certain goods, prior to each import. These laws put the onus on the trader to perform new and possibly unfamiliar regulatory due diligence checks and risk assessments on their suppliers and the imported goods. Failure to do so leaves the trader exposed to seizure of goods, refused entry and costly re-export, fines, import restrictions and significant disruption to their business operations and those of their clients. Traders should also consider the effect of brand damage to their own and their clients' commercial reputations.

Failure to do so leaves the trader exposed to seizure of goods, refused entry and costly re-export, fines, import restrictions and significant disruption to their business operations and those of their clients. Traders should also consider the effect of brand damage to their own and their clients' commercial reputations.

3DL - your partner in regulatory and corporate social responsibility

3DL provides a complete range of services to assist you in meeting your standard cargo clearance requirements, as well as newer supply chain due diligence, and corporate social responsibility requirements.

Whether it's an illegal logging risk assessment for timber and wood-derived products, asbestos free production certification, or minimising the risk of modern slavery in your supply chains, 3DL can provide expert advice and services.

Timber and wood-derived imports

The number of timber and wood-derived products that are covered by Australia's illegal logging legislation are extensive. If you are importing:

then you likely need a documented due diligence system and must conduct an import risk assessment for each import.

3DL can assess whether your imports are covered by the illegal logging legislation, and if so, provide an illegal logging due diligence system tailored to your business' requirements. This will detail how your business will minimise the potential of importing illegally logged timber. Having a written due diligence system when importing timber and wood-derived products within scope of the legislation is a legal requirement.

In addition to a due diligence system, each import in scope of the legislation must be subject to a documented 'product risk assessment'. This risk assessment must be conducted in accordance with the risk assessment framework set out in the legislation. 3DL's experts can conduct the product risk assessment, which will provide you with peace of mind when importing.

Asbestos

For products in targeted tariff classifications, certain testing certificates, laboratory reports or supply-chain documentation may be required to provide assurance that asbestos has not been used in the manufacture or as a component of the product being imported.

Certain products pose a higher risk of containing or being contaminated with asbestos, and only approved laboratories in Australia or overseas can be used for assurance testing. Having your goods tested overseas may avoid delays on arrival, additional costs of sampling and testing in Australia, and potential re-export costs if asbestos is detected. Talk to 3DL about how best to mitigate the risk of asbestos in your imported products.

Modern Slavery

The Australian Government's Modern Slavery Act 2018 established Australia's national Modern Slavery Reporting Requirement. By improving business awareness and transparency of modern slavery, the legislation aims to reduce modern slavery risks in the production and supply chains of Australian goods and services and drive a business 'race to the top' to improve workplace practices.

Those companies that are not legislatively required to conduct modern slavery risk assessments may volunteer to assess and report their compliance. Talk to 3DL's experts about what a modern slavery risk assessment involves and the benefits of proactively reporting your efforts to eliminate modern slavery.

Standard for Responsible Mining program

The Initiative for Responsible Mining Assurance (IRMA) program addresses global demand for more socially and environmentally responsible mining. IRMA provides a comprehensive global standard that covers all mined materials (except energy fuels) coming from all sizes of industrial mines all over the world. If you trade in mining products, speak with 3DL about how to leverage IRMA as a standalone certification process, or combined as part of a modern slavery risk assessment.

Look no further than 3DL

3DL's experts are experienced at providing a comprehensive range of regulatory, and corporate and social responsibility services. If you want to ensure compliance with the growing number of supply chain requirements, or establish your businesses social accountability, call 3DL today.

3DL can also offset your businesses carbon footprint, or the carbon footprint of your imports and exports. Find out more here. Whatever you do, don't wait until the last minute. Doing nothing is not an option. Trying to catch up when it's almost too late - could be very, very expensive.

Contact 3DL to discuss your due diligence obligations and social accountability options

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Products requiring a Due Diligence System and Product Risk Assessment

For the purposes of the Illegal Logging Prohibition Regulation 2012, timber products are those derived from wood which includes solid wood, reconstituted wood, wood fibre, pulp and paper products. The following is a list of products covered by the Regulations:

Wood, including rough, sawn, chipped, shaped or veneer

Engineered wood

Furniture and parts (made of wood)

Seats with wooden frames upholstered and not upholstered

Paper

Pulp

Prefabricated buildings of wood