Schedule 17: Use of forest risk commodities in commercial activity Part 1: Requirements Exemption
Paragraph 5 sets out that a regulated person can be exempt from the requirements set out in Paragraphs 2 to 4 in relation to their use of forest risk commodities in their UK commercial activities if the amount they use is below a weight or volume threshold. For example, a large processor of a food item may use a very small amount of a forest risk commodity as an ingredient to make up the food item. If, in aggregate, the total use of that commodity over the course of a year is below the threshold, they would be exempt. Sub-paragraph (1) sets out that regulated persons can only be exempt if they satisfy two conditions, as detailed below.
	Sub-paragraph (2) requires that in order to satisfy the first condition, a regulated person must give notice to the relevant authority before the start of a reporting period. The notice must contain a declaration that the person is satisfied they will not be using an amount of forest risk commodity during the reporting period that exceeds a prescribed weight or volume threshold, and other prescribed information.
	Sub-paragraph (3) requires that in order to satisfy the second condition, the regulated person must not use an amount of the commodity in their UK commercial activity during the period that exceeds the prescribed weight or volume threshold for that commodity.
	Sub-paragraph (4) sets out that the following sub-paragraphs (5) and (6) only apply in the scenario where a regulated person gives notice under sub-paragraph (2), but the amount of the forest risk commodity used in their UK commercial activities during the period exceeds the prescribed weight or volume threshold for that commodity.
	Sub-paragraph (5) outlines that if the regulated person gives a second notice to the relevant authority containing the prescribed information before the date at which their commodity use exceeds the threshold, the person is exempt from the Part 1 requirements from the start of the reporting period until the date this second notice is given.
	Sub-paragraph (6) outlines that if the regulated person does not give a second notice to the relevant authority before the date at which their commodity use exceeds the prescribed threshold, then they will not be exempt from the requirements in Part 1 of the Schedule for any part of the reporting period.
	Sub-paragraph (7) defines the terms "prescribed", "relevant date" and "relevant enforcement authority" used in this paragraph.
	Sub-paragraph (8) sets out that regulations made under this paragraph may set thresholds on the weight or volume of a forest risk commodity below which the exemption may apply. Regulations may also make provision about how the amount of forest risk commodity used in the threshold is to be determined.
	Sub-paragraph (9) requires the Secretary of State to consult with appropriate persons before making regulations under this paragraph (apart from regulations made under sub-paragraphs (2)(b) and (5)). Sub-paragraph (10) sets out that the consultation may be carried out before paragraph 5 comes into force.