Sunseeker International has been fined £358,759.64 for 11 specific imports relating to ‘blood’ teak originating in Myanmar. Sitting at Bournemouth Crown Court on 22nd November, Judge Jonathan Fuller KC sentenced the British boat builder, who had previously pleaded guilty to three charges under the UK Timber Regulation, marking the first prosecution under the legislation that replaced the EU Timber Regulation after Brexit.

Following the hearing, London-based Environmental Investigation Agency (EIA), which initially uncovered Sunseeker’s use of illegal Myanmar teak in 2018, hailed the outcome as a pivotal moment in the fight against the illicit trade of Burmese teak.

“These sentences send a clear and unequivocal message to other luxury yacht manufacturers, both in the UK and around the world, that using blood teak from conflict-torn Myanmar is totally unacceptable and will cost them dearly in the end,” Faith Doherty, Forests Campaigner Leader, EIA.

“As well as actually implementing the UK Timber Regulation, the amount of process and legal time within the judiciary reflects the importance of environmental crime and the impact this criminality has.”

In 2018, the EIA formally reported Sunseeker’s US distributors to the US Department of Justice after uncovering that illegally traded teak, in breach of the EU Timber Regulation (EUTR), had entered the company’s supply chains. The US Lacey Act was also implicated, which bans imports of goods in violation of foreign laws protecting or regulating plant species.

On 1st February 2021, a military coup in Myanmar brought a brutal junta to power. The regime, seeking to finance itself, relied heavily on the export of the country’s prized teak, renowned for its water-resistant properties and highly sought after by yacht builders. The State-controlled Myanmar Timber Enterprise, which oversees all sales and exports of teak, became central to these operations.

Since 2020, EU member state enforcement authorities have concluded that it is impossible to conduct adequate due diligence on the legal origin of Myanmar timber. This position violated the EUTR for all timber imports from Myanmar. Subsequently, the EU, UK, and US imposed sanctions on Myanmar and its timber enterprise, effectively making the importation of teak from the country illegal under international trade regulations.

Sunseeker’s charges included failing to exercise due diligence as an operator when placing timber products on the market, failing to maintain and evaluate a due diligence system for timber or timber products, and failing to comply with article 5(1) of the Commission Implementing Regulation (EU) No 607/201, which pertains to record-keeping obligations for operators

During the court proceedings, it was revealed that Sunseeker’s timber imports included teak from Myanmar, wenge from Africa, and European oak, with a combined value of just over £60,000.

However, although the Poole-based firm was sentenced only based on 11 specific imports, the court heard evidence suggesting there were many more.

Judge Fuller noted that Sunseeker was aware of impending changes to timber import regulations after Brexit, which altered its status from ‘trader’ to ‘operator’ and subsequently left it in breach of the rules. He described the company’s failings as a “systemic failure”.

After hearing mitigation and considering the firm’s early guilty pleas, the judge imposed a fine of £240,000, a confiscation order for just under £67,000, prosecution costs of £51,000, and a victim surcharge of £190.

“From 2014, EIA ‘s field investigations in Myanmar and subsequent complaints to the relevant enforcement authorities within the EU are highlighting how timber traders continue to break the law with no consequences,” adds Doherty.

“This case changes that and should be used as the landmark it is for actually using these laws, with the appropriate penalties this crime deserves.”

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