The UK’s largest boatbuilder has attributed its “unintended failure” to exercise due diligence in moving from the European Union’s Timber Regulation (EUTR) to the post-Brexit United Kingdom Timber Regulation (UKTR) after courts fined the company almost £360,000.00 last week.
Yesterday, Wood Central revealed that Sunseeker was found guilty in 11 cases of importing vast volumes of (illegal) Myanmar teak used in luxury vessels’ decks, interiors, and exteriors. The landmark case—the first tried under the UKTR, which came into effect on January 1st, 2021—is a “wake-up call” for global boatbuilders, who have relied on Burmese teak to build superyachts for decades.
“Although Sunseeker continued to use its existing EU-based supply chain and was undertaking the same commercial activity (namely, procuring timber/timber supplies from the EU) as it had done before January 1st 2021, the effect of Brexit was to impose additional due diligence obligations on Sunseeker whether it proceeded timber or timber products from the EU, duplicating the due-diligence obligations of its EU-based suppliers,” a corporate statement read.
According to the Environmental Investigation Agency (EIA), Sunseeker pleaded guilty to three charges, including failure to exercise due diligence and maintain proper records when placing timber products on the market. The charges involved 11 imports of teak from Myanmar, wenge from Africa, and European oak, all having a combined value of £60,000.00.
Judge Johnathan Fuller KC noted that Sunskeer had been aware of the changes and thus changed its yard status from “trader” to “operator”, which left it in breach of a raft of regulations that the judge dubbed a “systematic failure.” Wood Central understands that Maynmar teak was banned from the UK, US and EU after a military junta, in 2021, was found to use the proceeds of timber sales to help fund its illegitimate regime.
Sunseeker has maintained that it has “fully co-operated” with the UK’s Office for Product Safety and Standards (OPSS) throughout the investigation and has taken “decisive steps to rectify the issue,” including a new procurement policy and a UKTR-compliant due diligence process.
“The Sunseeker Board regrets the Company’s failure to meet its responsibilities under the UKTR and underlines its ongoing commitment to compliance with the laws and regulations.”
- To learn more about the case and Myanmar Teak’s risk in the boatbuilding supply chain, click here for Wood Central’s special feature from yesterday.
