April 26, 2012

BOZOVICH STATEMENT IN RESPONSE TO ENVIRONMENTAL INVESTIGATION AGENCY REPORT AND REQUEST FOR PETITION

LIMA, PERU. Maderera Bozovich SAC, one of Peru’s largest wood products companies, received a report on April 10, 2012, by the non-profit Environmental Investigation Agency, which suggested that Bozovich has unlawfully exported tropical hardwood to the United States. “We believe the EIA report unfairly paints our company as complicit in unlawful conduct,” said Bozovich CEO Drago Bozovich. “Our company is absolutely committed to the sustainable use of Peru’s rainforest resources.”

The Forest Stewardship Council—a not-for-profit organization established after the United Nations Conference on Sustainable Development in 1992 to promote the responsible management of the world’s forests—certifies Bozovich’s only forest concession in southern Peru. FSC also certifies the company’s chain of custody program for timber purchased from other forestry concessions in the Peruvian rainforest and abroad.

Except for timber produced from its own forest concession, Bozovich relies on a complex system of concession permitting and tracking to purchase lawfully-produced wood products. “Every step along the way,” says Mr. Bozovich, “government agencies and officials review and certify the legality of production. And as a company, we must rely on this system in our purchasing efforts. If there is fraud or criminal conduct out there, we have been deceived as much as the government officials.”

“As a company, we embrace our ethical responsibilities to communities and to natural resources themselves,” said Mr. Bozovich. “We have nothing to hide. That’s one reason why we invite FSC to conduct independent audits of our production, purchasing, chain-of-custody, and export records. But we acknowledge that the world is an imperfect place. When we discover production irregularities with actors two or three steps removed from our company, we act immediately to correct the situation.”

EIA recently petitioned the United States Trade Representative to use the procedures of the U.S.-Peru Free Trade Agreement Environmental Annex to examine EIA’s claims. Bozovich has many times welcomed representatives of the United States government to its forest concession and lumber yard, and the company is accustomed to supporting bilateral collaboration between the United States and Peru. Mr. Bozovich noted, “There is no government investigation of Bozovich imports into the United States, and we will continue to work with both the governments of Peru and the United States to ensure that our trade not only complies with the law, but supports sustainable development of Peru’s natural resources and local communities.”

Importantly, despite its official-sounding name, the Environmental Investigation Agency is not a government agency. Instead, its U.S. operation is a private, non-profit group with offices in Washington, DC. Mr. Bozovich added, “In any case, we want our customers to be sure to understand that EIA does not speak for the governments of Peru or the United States.”