Analysis of the draft law:
I’m sorry, but without the text of the draft law, I will not be able to analyze it. Please provide me with the text of the draft law so that I can fulfill the request.
Analysis of other documents:
Analysis of the Conclusion of the Committee on Economic Development
Position: The Committee supports the idea of adopting a law on the timber market, but not in the current wording of the submitted draft laws. It proposes to revise draft laws №4197 and №4197-1 and submit a revised draft law to the Verkhovna Rada of Ukraine, and to reject the original draft laws.
Key provisions for legislators, experts, businesses, and citizens:
- Need for adoption of the law: The Committee recognizes the urgent need to adopt legislation regulating the timber market.
- Comments on current draft laws: Existing drafts, in particular №4197 and №4197-1, require significant revision to comply with legal requirements and the interests of all market participants.
- Impact on the budget: Draft laws may have a significant impact on the budget, requiring additional costs for the creation and maintenance of the forest portal and the electronic trading system. At the same time, an increase in revenues from taxes of timber industry enterprises is possible.
- Recommendations: The Committee recommends revising the draft laws in accordance with the requirements of the Rules of Procedure of the Verkhovna Rada of Ukraine and the Law “On Committees of the Verkhovna Rada of Ukraine”, and rejecting the current versions of the draft laws.
Analysis of the Conclusion of the Main Scientific and Expert Department
Position: The Main Scientific and Expert Department (hereinafter – MSED) has a number of significant comments on the revised draft law “On the Timber Market”. Although the Department recognizes that some previous comments have been taken into account, many of them have been ignored, and new questions have also arisen. Therefore, according to the MSED, the draft needs significant revision.
Key provisions for legislators, experts, businesses, and citizens:
- Terminological inaccuracies: The definition of key terms, such as “timber” and “electronic declaration,” needs clarification to avoid legal confusion and corruption risks.
- Inconsistency with the Forest Code: The draft contains discrepancies with the Forest Code of Ukraine, especially in terms of defining annual timber harvesting plans and controlling timber operations.
- Insufficient regulation: Important issues of state regulation of the timber market, such as the powers of the relevant authorities, remain unregulated.
- Forest portal and access to information: The provisions on the forest portal as an official source of information need to be harmonized with the Law of Ukraine “On Environmental Protection” regarding free access to environmental information.
- Export of timber materials: There are inconsistencies regarding the prohibition of export of timber materials from tree species listed in the Red Book of Ukraine and timber harvested within the nature reserve fund.
- Certification: The provisions on the certificate of origin of timber materials need clarification, especially in terms of the grounds for refusal to issue the certificate and maintaining an electronic list of issued certificates.
- Financing of the electronic trading system and the forest portal: The sources of funding for the creation and technical support of the electronic trading system (ETS) and the forest portal have not been determined, which may lead to an increase in expenditures from the state budget.
Analysis of the Conclusion of the Committee on Budget Issues
Position: The Committee on Budget Issues notes that the draft law will have an impact on budget indicators and will require additional expenditures from the state budget. The Ministry of Finance of Ukraine does not support the draft law in its submitted version.
Key provisions for legislators, experts, businesses, and citizens:
- Impact on the budget: The draft law may require an increase in expenditures from the state budget for the creation and functioning of the forest portal and the electronic trading system. Financial and economic justifications and calculations have not been provided.
- Impact on the revenue side of the budget: Lifting the ban on the export of unprocessed timber materials may affect the revenue side of the state budget.
- Negative impact on state enterprises: The exclusion of woodworking units from state forestry enterprises may negatively affect their activities.
- Lack of financial and economic justification: No financial and economic justification has been provided for the draft law, which does not comply with the requirements of the Budget Code of Ukraine and the Rules of Procedure of the Verkhovna Rada of Ukraine.
Analysis of the Conclusion of the Committee on Integration of Ukraine into the European Union
Position: The Committee believes that the draft Law does not contradict Ukraine’s international legal obligations and the law of the European Union, but requires significant revision.
Key provisions for legislators, experts, businesses, and citizens:
- Compliance with the Association Agreement: The draft law is consistent with the goal of sustainable forest resource management and the right to set its own levels of environmental protection.
- Harmonization with EU Directives: The provisions of the draft law do not contradict Directive 1999/105/EC on forestry and the use of timber materials, as well as the general objectives of the EU Forest Strategy.
- Electronic system: The introduction of an electronic automated system for information support of the timber market does not contradict Regulation 995/2010 on the regulation of the timber market.
- Need for revision: The provisions of the draft law need to be revised in order to bring them into compliance with the principle of legal certainty, as well as in terms of monitoring and establishing requirements for confirming the origin of timber.
Analysis of the Conclusion of the Main Directorate for Document Support
Position: The Main Directorate for Document Support conducted a linguistic examination of the draft Law and has no comments.
Key provisions for legislators, experts, businesses, and citizens:
- Linguistic examination: Editorial corrections provided as a result of previous examinations have been taken into account by the main committee.
- No comments: After the secretariat of the main committee takes into account the agreed editorial corrections and verifies their inclusion, there are no comments on the text of the draft law.
Analysis of the Conclusion of the Main Legal Department
Position: The Main Legal Department emphasizes the relevance of previous comments on the draft law.
Key provisions for legislators, experts, businesses, and citizens:
- Relevance of previous comments: In connection with the draft law, the relevance of previous comments prepared by the Main Legal Department to the specified draft law is noted.
Analysis of the List of Subordinate Regulatory Legal Acts
Position: The Ministry of Environmental Protection and Natural Resources of Ukraine provides a list of subordinate regulatory legal acts necessary for the implementation of the provisions of the draft Law of Ukraine “On the Timber Market” in case of its adoption as a Law.
Key provisions for legislators, experts, businesses, and citizens:
- List of subordinate acts: An indicative list of subordinate regulatory legal acts necessary for the implementation of the provisions of the draft Law of Ukraine “On the Timber Market” is provided.
- Deadlines for adoption: Deadlines for the adoption of subordinate regulatory legal acts are set.
- Subject of regulation: The main provisions that must be regulated by subordinate regulatory legal acts are defined.
