Chamber of furniture Industries of the Philippines

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Chamber of furniture Industries of the
Philippines FORUM on EU FLEGT COMPLIANCE and
ALTERNATIVE SOLUTIONS INSIGHTS UPDATES on
FOREST CERTIFICATION and CHAIN-OF-CUSTODY for
SUSTAINABLE FOREST MANAGEMENT
For. Raul M. Briz Senior Forest Management
Specialist Forest Management Bureau 26 March
2014, Lancaster Hotel, Mandaluyong City
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SUSTAINABLE FOREST MANAGEMENT Also known as
RESPONSIBLE FOREST MANAGEMENT Governments main
policy thrust to guarantee the long-term
stability of the Philippine forests and its
resources.
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RATIONALE OF FOREST CERTIFICATION A process of
managing forests to achieve one or more clearly
specified objectives of management with regard to
the production and continuous flow of desired
forest products and services, without undue
reduction of its inherent values and future
productivity and without undue undesirable
effects on the physical and social environment
(International Tropical Timber
Organization-ITTO)
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SUSTAINABLE FOREST MANAGEMENT (SFM) Shall be in
compliance with the phase-approach agreed by
ASEAN Member State (AMS) wherein all forests in
the ASEAN region must be sustainably managed by
2015. Eventually, forest certification will be
a standard of forest management for ASEAN by
2015.  
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HOW IS FOREST CERTIFICATION OBTAINED? On-the
ground evaluation assessment of forest
management practices in a forest management unit
(FMU) conducted by an accredited third party
forest certifier using tools locally developed
that are anchored on internationally accepted
standards, principles and criteria. If passed the
assessment process, forest certification is
awarded to the FMU allowed to use the company
logo of the forest certifier that it indeed
practices sustainable forest management .
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HOW IS FOREST CERTIFICATION BTAINED? THIRD PARTY
FOREST CERTIFIER is a non-government local or
international organization which is conducts
assessment of a particular forest under a
management regime using internationally accepted
tools and forest management principles. The
Philippine Criteria and Indicators (CI) System
for Sustainable Forest Management
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• HOW IS FOREST CERTIFICATION OBTAINED?
• Certification used to a voluntary, market-based
  tool that supports Sustainable Forest Management
  (SFM).
• SFM is also known as responsible forest
  management worldwide.
• It is done by a third party in compliance with
  established principles, criteria, policies
  standards prepared in multi-stakeholders process
  that are transparent, democratic inclusive.

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• HOW IS FOREST CERTIFICATION OBTAINED?
• Certain forest described as forest management
  units (FMUs) are assessed evaluated by a third
  party forest certifiers using internationally
  accepted standards adopt sustainable forest
  management (SFM) principles, criteria
  indicators. E.g. Philippine Criteria Indicators
  System with Audit Procedures.
• The FMU when finally certified is authorized to
  use the Company logo or the third party forest
  certifier certifying that the wood indeed comes
  from a sustainably managed forests.

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CHAIN OF CUSTODY (CoC) This makes use of primary
existing inventory system assuring the
SEGREGATION of certified and non-certified forest
products. This principle applies from the point
of harvest up to the forest gate by forest
management enterprises (FMEs) and between
handling steps by other suppliers, manufacturers,
and traders.
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CHAIN-OF-CUSTODY (CoC) CERTIFICATION A
chain-of-custody system allows for tracking of
wood, paper products other wood product from
1.) the forest transport to primary processing
(i.e. WPP) 2.) primary processing to downstream
processing (e.g. furniture shops 3) processing
to export/ distribution point (e.g. importer
exporter,) 4.) finally to trade and retail
outlets where it reaches the final consumer (e.g.
hardware, depot). Set of procedure wherein
timber and timber products could be ascertain of
its source as they moved along supply chain even
ownership changes hands to wood processing down
to retailer.
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• SAMPLE STEPS /PROCESSESS OF CHAIN-OF-CUSTODY
• Quality System Criteria for Chain of Custody
•  1. Company shall define CoC system
  responsibilities and appoint staff positions,
  including the following
•  2. Company shall develop and maintain
  up-to-date documented procedures and/or work
  instructions to ensure implementation of all
  applicable CoC standard requirements.
•  3. Company shall develop implement procedures
  for addressing non-conformances (corrective
  action requests, observations) identified by
  auditors.
• 4. Company shall develop and implement
  procedures for internal evaluation (audit) of its
  system as related to CoC requirement in this
  standard.
•  5. Company shall develop training requirements
  and implement training.
• Company shall define and document Verified Legal
  Origin (VLO) as a claim category that will be
  tracked.
• 7. Company shall develop and maintain records to
  document quantities of VLO product

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• In-Forest Production Criteria
•  
• 8. FME procedures practices shall provide
  effective control of forest products from
  standing timber until ownership is transferred to
  the forest gate. 
• FME procedures practices shall control the risk
  of mixing VLO forest products with non-VLO
  products which originate outside the scope of the
  verification.
• In-forest Production Criteria..
•   
• 10. A system shall exist to identify FME
  products as VLO (e.g. through documentation or
  marking system) at the forest gate
•  

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• Purchasing and Receiving Criteria
•  11. Company shall verify the validity of the
  suppliers VLO claim.
• 12 . Company shall verify that material purchased
  and received is consistent with the VLO claim
  category specified.
• 13. Company shall store VLO material as
  separate, secure units.
• Company shall use a distinguished mark to
  identify VLO material.
• Processing Criteria
•  15. Company shall keep VLO material physically
  separate during all stages of processing.
• 16. Company shall use a tracking system or
  production records to document production of VLO
  material.
• 17. Company shall ensure that any off-site
  processing that takes place at a subcontracted
  facility follows CoC procedures and is covered by
  a signed outscoring agreement.
• 18. All material that cannot be identified as
  VLO shall be kept physically separate from all
  other material until documented evidence of the
  claim category is obtained.

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•  
• Processing Criteria
•  15. Company shall keep VLO material physically
  separate during all stages of processing.
• 16. Company shall use a tracking system or
  production records to document production of VLO
  material.
• 17. Company shall ensure that any off-site
  processing that takes place at a subcontracted
  facility follows CoC procedures and is covered by
  a signed outscoring agreement.
• All material that cannot be identified as VLO
  shall be kept physically separate from all other
  material until documented evidence of the claim
  category is obtained.
• Shipping and Sales Criteria
•  19. Company shall store final VLO products as
  separate, secure units.
• 20. Company shall use a distinguishing mark to
  identify final VLO products.
• 21. Company shall include claim information on
  sales invoices and shipping documents.

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BACKGROUND ON VARIOUS INTERNATIONAL INITIATIVES
ON SUSTAINABLE FOREST MANAGEMENT
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EUROPEAN UNION TIMBER REGULATIONS (EU TR) Became
effective in 03 March 2013 Operators (any
natural or legal person who places timber or
timber products on the EU market shall exercise
due diligence when placing timber or timber
products on the market). They shall use a
framework of procedures and measures, referred to
as a DUE DILIGENCE SYSTEM , pursuant to Article
6 of EUTR. HOW? 1) Access to information
(species, origin, quantities, traders and
compliance with legal requirements of harvest
country) 2) Risk assessment (certification
prevalence of illegal harvesting sanctions
complex supply chains, etc.) 3) Risk mitigation
(additional information or documentation
certification, etc.)
 
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• EU TR
• Countries enters into a bilateral arrangement
  with the European Union or EU called Voluntary
  Partnership Agreement or VPA.
• 1. Monitoring organisations (MO) will be legally
  established within the EU recognised by the
  Commission
• 2. Maintain and evaluate a due diligence system
  grant operators the right to use it
• 3. Ensure that operators correctly apply Due
  Diligence System
• 4. Subject to checks by competent authorities
• FEATURES OF HAVING A VPA
• Products covered by FLEGT or CITES licenses are
  considered to have been legally harvested for the
  purposed of the EU Timber Regulation
• This means by importing FLEGT or CITES licensed
  timber, due diligence is exercised

 
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US Lacey Act (1900) Oldest wildlife protection
law designed to combat trafficking of illegal
wildlife, fish or some plants.   Amendment to the
Lacey Act was passed on May 22, 2008 effective
immediately. It was known as the Amendment to the
Lacey Act Farm Bill 2008 specifically Section
8204. Prevention of Illegal Logging Practices.
This expands Laceys protection to broader range
of plants, extends the statutes reach to
encompass illegally harvested plants (includes
timber), and NEW DECLARATION REQUIREMENTS.   Amend
ment to the Lacey Act addressed Illegal
Logging 1. Theft of timber, including from parks
protected areas 2. Harvesting without
permission 3. Failure to comply with harvesting
regulations 4. Failure to pay royalties, taxes or
fees
 
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• AUSTRALIA
• November 2012 Illegal Logging Prohibition Act
  2012
• November 2014 Illegal Logging Prohibition
  Amendment Regulation 2013
• Adopts, implements and practices DUE DILIGENCE
• HOW?
• Gather information
• Mitigate Risk Assessment
• Risk Mitigation
• Import

 
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• JAPAN
• 2006. The Government of Japan included Goho
  wood in the Environmentally Friendly Goods List
  which are subject to Green Purchasing Law.
• 2010. Implementation Act for Promoting the Use
  of Wood in Public Buildings. The Basic Principle
  of the Act strongly encourages to use
• Legality/Sustainability verified wood or Goho
  Wood (go for wood) in government subsidized
  projects.
• 2013. Implementation of Wood Use Point Program

 
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UPDATES ON FOREST CERTIFICATIONS,
CHAIN-OF-CUSTODY TIMBER LEGALITY SYSTEMS
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• FOREST CERTIFICATIONS CHAIN-OF-CUSTODY
• Guidelines or implementing rules and regulations
  to Operationalize and Implement Forest
  Certification nationwide Chain-of-Custody
  Certification - is still in progress
• -includes accreditation of third party forest
  assessors/ certifiers, governing body of forest
  certifications, etc.
• 2. Undertaking the newly-funded project by ITTO
  entitled Development and Testing of National
  Forest Stock Monitoring System (FSMS) with
  Improved Governance Capabilities at All Levels of
  the Forest Administration PD 599/11(M)
• Short-term project (Assessment of Existing
  Philippine Timber Tracking System the
  Development of Chain-of-Custody Procedures
  PP-A/39-170)

 
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TIMBER LEGALITY ASSURANCE SYSTEMS
(TLAS) Setting-up a systematic timber legality
assurance procedures is closest option in the
absence of a VPA. TLAS is fully compliant with
EU TR In this context, we will adopt the six
elements or criteria of legality of timber within
the ASEAN Framework. AS member of ASEAN, we are
obliged to follow such criteria in developing our
own timber legality assurance system or TLAS
based on the ASEAN Economic Community Blue Print,
which is already acceptable in ASEAN region
likewise compliant with EU TR or Due
Diligence. We are in the process of developing
our own TLAS for Philippines.
 
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ASEANs SIX ELEMENTS OF TIMBER LEGALITY 1.
Compliance with all relevant forestry laws and
regulations (PD 705, EO 277, RA 7161, DAOs, DMCs,
DMOs, etc) 2. Payment of all statutory charges
(forest charges, admin. fees, production sharing
agreement, local taxes, ) 3. CITES compliance
(timber species banned for cutting or commercial
harvesting cannot b e marketed, except when grown
in plantations) 4. Implementation of a system
that allows the tracking of logs to the forest of
origin (DAO 2007-31 DAO 1994-07, DAO 1996-06
LCMS) 5. Timber must be harvested by parties
who have legal rights to carry out logging in
designated forest area based on approved cut
(licenses, agreements, special permits, etc) 6.
The party which harvests the timber shall comply
with the laws governing social and environmental
aspects (PD 1586 PEIS for ECC, RA 8371-IPRA law,
etc)
 
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If we would want our forest products to be
marketed even more competitive in the regional
(i.e. ASEAN) and global markets, forest
certification is the only way and excellent
option before we completely lost our forests from
all forms of destructive human activities. And
complimented with certified Chain-of-Custody
system for the wood manufacturers/ producers,
sustainable management of countrys forests can
be truly possible. Finally if we can genuinely
effective implement forestry laws, rules and
regulations, we could attain sustainable forest
management for the sake of the next generation of
Filipinos.
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SALAMAT PO! DAGHAN SALAMAT MABALOS PO! THANK
YOU