On 8 June 2018, the Commission adopted the Annual Synthesis Report on the implementation of the FLEGT licensing scheme for the year 2016. The FLEGT licensing scheme became operational on 15 November 2016, when Indonesia started issuing FLEGT licences. Although this report covers a limited period of time (15 November to 31 December 2016 and a limited number of FLEGT licences (591), it can be concluded that the implementation of the scheme has progressed well. All required measures were put in place by the Commission and the Member States for the implementation of the FLEGT licensing scheme, including the designation of competent authorities, the development of arrangements for cooperation with customs authorities where needed, and the setting out of provisions for penalties for infringement of the FLEGT Regulation. All relevant shipments from Indonesia were duly covered by FLEGT licences and there were no cases in which penalties were issued or other enforcement measures were taken to deal with shipments not accompanied by a FLEGT licence. Nonetheless, implementation challenges have been highlighted by Member States, particularly related to cases of mismatching information on FLEGT licences compared to customs declarations and timely communication with the Indonesian authorities. The Commission will continue to work in close cooperation with Member States towards a consistent application of the FLEGT Regulation across the EU, and with the Indonesian authorities to address the issues and challenges identified.