ANS LTDD 1.0 - 2013
ANS Standard for Due Diligence in
Procuring/Sourcing Legal Timber
American National Standards Institute, Inc.
Abstract
This Standard establishes nationally recognized requirements for compliance with the legal
requirements in the United States, European Union, Japan, Australia, and other jurisdictions to
harvest, use, and consume legally harvested timber and the products derived from them.
This consensus Standard serves to document a common understanding of the best internal
management system for reducing the risk of illegal timber in the timber supply chain. Entities
may choose to self-certify or to engage a third party with ISO/IEC 65 credentials to perform an
independent audit and prove compliance with this Standard.
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TABLE OF CONTENTS
SECTIONS
PAGE
1.
2.
3.
4.
PURPOSE
SCOPE
DEFINITIONS
REQUIREMENTS
4.1 Procurement Policy Statement
4.2 Infrastructure and Control Systems
4.3 Preliminary Determinations
4.4 Due Diligence Evaluation of Legality
4.5 Establishment of Control Procedures
5. INSPECTION and VERIFICATION PROCEDURES
A. APPENDICES (Non-binding information)
A.1 Policy Statement
A.2 Relevant Industry Standards to Maintain
Coordinator Competency
A.3 Resources for Country Risk Assessments
A.4 Sustainable Forest Certification and 3 rd Party
Legality Verification
A.5 Examples of Declaration of Legality and Origin
A.6 Examples of Supplier Questionnaire and Purchasing Policies
A.7 Examples of Timber Species References
A.8 Examples of High Risk Suppliers
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FOREWARD
(This Foreword is not a part of the American National Standard for Due Diligence in Procuring/Sourcing
Legal Timber. ANS LTDD 1.0 – 2013.)
This American National Standard for Due Diligence in Procuring/Sourcing Legal Timber, ANS LTDD 1.0 –
2013, is sponsored by the Hardwood Plywood & Veneer Association (formerly the Hardwood Plywood
Manufacturers Association) and developed under the Procedures for Development of American National
Standards. This is the first national consensus Standard for providing a quality assurance program to
assist in the determination of the legality of timber in global commerce.
Consensus for this Standard was achieved by use of the “ANSI Essential Requirements: Due Process
Requirements for American National Standards” and the ANSI accredited HPVA Procedures for the
Development of American National Standards. The following organizations, recognized as having an
interest in legal timber and wood products that they purchase or sell and other interested parties, were
contacted prior to the approval of this Standard. Inclusion in this list does not necessarily imply that the
organization concurred with the proposed Standard as submitted to ANSI.
Published by
Hardwood Plywood & Veneer Association
1825 Michael Faraday Drive
Reston, VA 20190
Telephone: (703) 435-2900 Fax: (703) 435-2537
Web site: www.hpva.org
Publication History
Printing History
2013 – 5,000 copies
Copyright © 2012 by the Hardwood Plywood & Veneer Association
No part of this publication may be reproduced in any form, in an electronic retrieval system or otherwise,
without prior permission of the publisher.
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1.0 Purpose
The purpose of this Standard is to facilitate compliance with legal requirements in the United
States (U.S.), European Union (E.U.), Japan, Australia, and other jurisdictions to harvest, use,
and consume legally harvested timber and the products derived from them.
This consensus Standard serves to document a common understanding of the best criteria for
establishing a management system to reduce the risk of illegal timber in the timber supply chain.
Entities may choose to self-certify to this Standard or to engage a third party with ISO 65
credentials to perform an independent audit and to validate compliance with this Standard.
2.0 Scope
This Standard is intended to assist companies in establishing a quality-controlled system to
significantly reduce or eliminate the risk of illegal timber and wood products entering their supply
chain and to demonstrate the level of due diligence in controlling that risk.
The scope of this Standard covers importing, exporting, and inter-state commerce of timber and
wood products.
This Standard is neither a chain-of-custody scheme, a legal verification system nor a
sustainability certification.
3.0
Definitions
Applicable Legislation - the legislation in force in the country of harvest at the time of harvest
that cover: rights to harvest timber within legal boundaries; payments for harvest rights and
timber including duties related to timber harvesting; stumpage fees; timber harvesting, including
environmental and forest legislation including forest management and biodiversity conservation,
where directly related to timber harvesting; third parties‟ legal rights concerning use and tenure
that are affected by timber harvesting; and trade and customs, in so far as the forest sector is
concerned. (European Union (EU) Timber Regulation) Processing laws and related regulations
are outside the intended scope of this standard.
Chain of custody (CoC) - the chronological documentation or records by a person or
organization in the course of activities.
Coordinator - that competent person assigned by the Operator‟s top management to maintain
the quality control systems according to this Standard.
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Country of Harvest - the country or territory from which the timber or the timber embedded in
the timber products was taken or harvested. This definition is to be distinguished from country
of origin as defined in 19 CFR 134.1 pertaining to customs regulations.
Document Control System - the means for maintaining the documents and records, digital or
physical, of an organization from the time they are created up to their eventual disposal. This
may include classifying, storing, securing, and destruction of records.
Entity – A business or commercial organization or establishment doing business as a
corporation, partnership, sole proprietorship or other enterprise.
EU Timber Regulation - the European Union legal requirements which entered into force on
December 2, 2010, and will, as of March 3, 2013, make it illegal to place illegally harvested
timber and timber products on the EU market. See Regulation (EU) No 995/2010.
Forest Management Unit (FMU) - a clearly demarcated area of land covered predominantly by
forests, managed to a set of explicit objectives and according to a long-term forest management
plan.
Forest Owner – having the legal right to possess woodlands and sell the timber thereon.
Illegal Logging and its related trade and corruption - when timber is harvested or traded in
violation of relevant national or sub-national laws or where access to forest resources or trade in
forest products is authorized or conducted through corrupt practices.
Lacey Act - United States legislation enacted in 1900 to stop the trafficking of protected wildlife.
The act was amended in May 2008 to make it unlawful to take, possess, transport or sell lumber
or wood products in violation of the laws of the United States, a State, Indian Tribe, or any
foreign law that protects plants; falsify or submit falsified documents, accounts or records of any
plant covered by the Lacey Act; and import plants and plant products (with some exceptions)
without an import declaration. 16 USC 53.
Operator - an entity engaged in importing or exporting wood and/or wood products into the
international or interstate (United States) stream of commerce.
Quality Control System - a system in place to verify and maintain a desired level of quality in a
product or process by careful planning, use of proper equipment, continued inspection, and
corrective action as required.
Spatial Risk Assessment - the analysis of geo-referenced data pertaining to some adverse
outcome such as illegal logs entering a procurement system. The spatial risk map identifies the
geographic areas that drive the risk, thus aiding in decisions on a remedial course of action.
Removal of higher risk areas may sufficiently reduce exposure for certain activities.
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Sustainable Forestry Certification Scheme - a system for certifying that a forest is being
managed according to the principles of sustainable forest management as defined by the Food
and Agriculture Organization of the United Nations (FAO) to mean:
Management of a forest with the aim to ensure that the goods and services derived from
the forest meets present-day needs while at the same time securing their continued
availability and contribution to long-term development. In its broadest sense, forest
management encompasses the administrative, legal, technical, economic, social, and
environmental aspects of the conservation and use of forests. It implies various degrees
of deliberate human intervention, ranging from actions aimed at safeguarding and
maintaining the forest ecosystem and its functions, to favoring specific socially or
economically valuable species or groups of species for the improved production of
goods and services.
Timber - wood products including logs, lumber, veneer, chips, shavings, sawdust, bark, pulp,
paper and products from these materials excluding recycled products.
Trader – an entity engaged in the business of buying and/or selling timber and wood products.
4.0
Requirements - The Operator shall implement a publicly available purchasing policy
that minimally contains the elements of this section. The Operator may choose to institute an
established and reputable responsible purchasing policy as long as it minimally includes the
following elements. See examples in Appendix 6
4.1
Procurement Policy Statement - The Operator shall prepare a procurement
policy statement, approved and supported by top management that shall
minimally include the following:
4.1.1 Statement as to the scope of the commitment of the company to purchase
and trade legal timber
4.1.2 Statement as to the strategy of the company to achieve the goal of
purchasing and trading 100% legal timber
4.1.3 Statement as to the sources of timber that are systematically eliminated
from the supply chain (i.e. unknown or unsustainable sources)
4.1.4 Statement as to the specific actions taken to reduce the risk of illegal timber
entering the supply chain (i.e. consequences to suppliers)
See examples in Appendix A1.
4.2
Infrastructure and Control Systems - The Operator shall establish a
quality control system and a designated competent Coordinator to
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manage the requirements of this Standard (Section 4.2.2). The Operator
shall establish a document control system to fulfill the document control
requirements of this Standard (Section 4.2.3). The quality and document
control systems may be incorporated into a larger audited system used by
the Entity, such as ISO 9001, ISO 14001. The Operator shall provide
adequate and competent staff to implement and maintain the control
systems. The Operator shall appoint an individual, the Coordinator or
member of top management, to manage the relationships with internal
and external stakeholders in the procurement policy.
4.2.1 Coordinator Responsibilities - The Operator shall provide the
Coordinator with the necessary resources to fulfill the obligations of this Standard
and maintain his or her competency to relevant industry standards (see
Appendix A3 or other monitoring organizations). The Operator shall establish a
responsibility chain so that the Coordinator‟s determinations are supported by top
management and so that non-compliances can be mitigated efficiently.
4.2.2
Quality Control System
4.2.2.1 Database of Suppliers - The Coordinator shall maintain a
database of suppliers that minimally includes the suppliers‟ identification
and contact information, certification numbers, legality declarations,
species handled/supplied, including all component species, and countries
of timber origin of those species. The same database shall contain the
result of the risk analysis of that supplier (see Section 4.4.3).
4.2.2.2 Database of Country/Region Information - The Coordinator
shall maintain a database of timber source countries with a risk analysis
of each country using publicly available information such as found in
Appendix A2. The Coordinator shall stay informed of developments in
the region(s) and update the database accordingly.
4.2.2.3 Current Reference Material - The Coordinator shall maintain
current reference material according to the document control system
(Section 4.2.3).
4.2.3 Document Control System - The Operator shall establish and maintain
a document control system to ensure the current status of all documents and
references required by this Standard. The Coordinator shall establish expiration
and review periods for each type of document or record and maintain a
corresponding list. Reference materials shall be included in the document
control system.
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4.3
Preliminary Determinations - The Operator shall make preliminary
determinations of all suppliers, all species, and all potential countries of origin,
upon the implementation of this Standard.
4.3.1 Sustainable Forest Management (SFM) Certified Timber - The Operator
shall determine if the timber supplier is currently certified to Forest Stewardship
Council (FSC), Programme for the Endorsement of Forest Certification (PEFC),
Sustainable Forestry Initiative (SFI), American Tree Farm System (ATFS) or
another SFM certification scheme approved by top management. This
determination shall be verified by checking the certification number on the
Internet. The number and verification shall be logged in the supplier database
annually. If the SFM certification is current, the Coordinator may approve the
purchase from the supplier. (see Appendix A4)
In the case of a timber supplier that is not the primary source (not in control of the
forest management unit from which the timber came), but is a trader, the trader
must have a valid chain-of-custody to support the claim that the timber originated
from a certified source.
The Operator shall not pass on a certificate of sustainable forestry without first
having the corresponding chain-of-custody certificate. Checking the validity of a
sustainable forestry certificate serves to reduce the risk of false claims, however,
without a chain-of-custody, risk remains that a supplier may make a false claim
as to the origin of the supplied timber.
Notwithstanding the verifications described above, a review of legal risk reports
of the applicable SFM certification scheme shall also be undertaken.
4.3.2 Third Party Legally Verified Timber - The Operator shall, in the absence
of an SFM certificate, determine if the timber supplier has a 3 rd party legality
verification from a system listed in Appendix A4 or another legality verification
scheme approved by top management. This determination shall be verified by
checking the certification number on the Internet. The number and verification
shall be logged in the supplier database. If the 3rd party legality verification is
current, the Coordinator may approve the purchase from the supplier.
4.3.3 Non-certified/3rd Party Verified Timber - Timber may have legality
verification from an independent inspection organization that declares that no
illegal timber is entering the supply chain. Upon approval of the competency of
the inspection organization, the Coordinator may approve the purchase from the
supplier.
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4.3.4 Non-3rd Party Verified Timber -Timber with no 3rd party certification or
verification of legality shall undergo a due diligence evaluation of legality as
described in Section 4.4.
4.4
Due Diligence Evaluation of Legality - A due diligence evaluation of legality
shall be completed in the absence of a current SFM or third-party legality
verification. A due diligence evaluation of legality shall include a spatial risk
assessment of the country of harvest, a legality requirements determination, a
preliminary risk assessment of the supplier, and collection of documentation.
4.4.1 Spatial Risk Assessment of Country and Region - Top management
shall determine the risk rating (Very High, High, Medium, or Low) of each
source country and region based on the accumulated information in the
Country/Region database (Section 4.2.2.2). This determination and its
basis shall be documented.
Very High Risk countries or regions shall be eliminated from the supply chain.
The operator may purchase supplies from Low Risk source countries or regions,
provided documentation of contract or bill of sale from a forest owner, chain of
custody, legal timber risk assessments, trip tickets, or other relevant evidence is
obtained.
4.4.2 Preliminary Risk Assessment of Suppliers - The Coordinator shall
complete a preliminary risk assessment of all suppliers with uncertified,
non-verified timber originating from Medium or High Risk countries or
regions. The Coordinator shall request that the supplier notify the Entity of
any changes in the sourcing information provided.
4.4.2.1 If the procurement by the supplier is within the country of harvest,
and none of the exclusionary factors listed in 4.4.2.2 are present, then the
Coordinator shall collect the following documents from the supplier:
Logging permit
List/map with the valid concession or harvest title
Forest Management Plan approval
Proof of tax payment
as well as any additional documents according to applicable legal
requirements (Section 4.4.4)
4.4.2.2 If the procurement by the supplier is not within the country of
harvest, and none of the following factors are evident:
Timber originating from areas associated with human rights
violations, armed conflict or violation of UN sanctions
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Timber from areas where open conflict exists between
communities, worker groups, concession managers and/or
government forces
Any suspicion that timber originates from Protected Areas,
National Parks or other illegal sources
Suppliers that are suspected to be involved in armed conflict or
illegal logging
Species on CITES list Appendix I
Species on CITES list Appendices II or III or partially protected by
national law without compliant permits,
then the Coordinator shall collect a questionnaire and legality declaration
from the supplier that shall serve as a part of the commercial warranty
between the supplier and the Operator. (see Appendices A4 and herein)
If any of the preceding exclusionary factors are present, the timber shall
be excluded from the supply chain.
4.4.2.3 When the supplier is merely an intermediary between the
forest/mill and the Entity, every effort should be made to ensure that the
forest/mill is answering the questionnaire directly.
The Coordinator shall ensure that the Preliminary Risk Assessment steps
are carried out for all forest sources included in the timber products.
4.4.3
Secondary Risk Assessment of Suppliers - The Coordinator shall use
the information supplied in the preliminary risk assessment to make a
recommendation to top management as to the risk level of the supplier
(High, Medium or Low Risk) according to their likelihood of supplying
illegal timber. Factors such as deep discounts, cash transactions, past
illegality, reputation, targets of Non-Government Organizations (NGO)
reports or new entrants shall be taken into consideration when evaluating
the supplier.
Top management shall determine the risk rating of each supplier based
on the accumulated information and recommendation of the Coordinator.
High Risk suppliers shall be eliminated from the supply chain. Medium
and Low Risk suppliers shall be engaged by the Coordinator in a control
procedure to include paper and/or physical audits as appropriate to the
risk level. (see Section 4.5.2.3)
The Operator shall develop an improvement program with the
supplier including firm targets. Medium to Low Risk suppliers that do not
cooperate with the audit/improvement program shall be eliminated from
the supply chain. Procurement may continue with cooperating suppliers.
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The following requirements are intended for suppliers in the Medium and
Low Risk categories sourcing timber from Medium and High Risk
countries.
4.4.4
Legality Requirements Determination of Country/Region/FMU A list of legal requirements of the timber source countries or regions is
important for:
The documentation request of the Preliminary Risk Assessment of
Suppliers (Section 4.4.2.1)
The improvement programs for Medium and Low Risk suppliers
procuring outside the country of harvest (4.5.3)
The Coordinator shall maintain a database of legal requirements of the
timber source countries or regions. Legal requirements may be limited to
those pertaining to forest management and/or those relevant to
stakeholder concerns. A list of species handled, including component
species, and their likely countries of origin shall be maintained to limit or
expand the analysis of legal requirements according to the Operator‟s
handled species. (see Appendix A4 for resources.)
A legal review based on the laws of the country may be performed by
local legal counsel with expertise both in forestry and export laws. This
legal review combined with a thorough review of all the appropriate
documentation can be used to establish the legality of the initial
ownership with the right to sell, harvest, transport, and export.
Legal requirements may be unclear because of conflicting
local/national/international laws. In these instances the Coordinator shall
note the conflict and document the basis for the legal determination in the
database.
4.4.5
Collection of Documentation - For procurement outside the country of
harvest, the Coordinator shall collect a questionnaire and legality
declaration to determine the risk rating of the supplier on an annual basis.
The following document verification procedure shall be considered in
determining the risk of the supplier.
For procurement inside the country of harvest, the Coordinator shall
determine the fulfillment of legality requirements by collecting objective
evidence and completing the following document verification procedure:
4.4.5.1 Legal Right to Harvest
The Coordinator shall collect/conduct the following:
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The position of the known source forest on a map
The harvesting/logging permit and authorization of forest
owner or concession licensee
4.4.5.2 Legal Compliance of Harvest - The Coordinator shall collect/
conduct the following:
Approved management plan or equivalent consulting
forester best management plan
Specification of applicable harvesting restrictions
Evidence (map/records) showing harvesting from the
designated harvest area (audit by paper or on-the-ground
as necessary based on risk per Section 4.5.2)
Records showing yield figures, volumes and species for
evidence of harvesting rate compliance such as Bills-ofLading (audit by paper or on-the-ground as necessary
based on risk per Section 4.5.2)
Professional harvest certificate
Sales and purchase contracts
Evidence of fee payment for harvesting
Evidence of compliance with harvesting permit/contract
Current list of species harvested (to compare with CITES
list)
Bill of Lading or trip tickets to show compliance with timber
transport regulations
Records and photos to show compliance in harvesting
with, for example:
o water protection zones
o skid trails
o stream crossings
• Conduct audits (see Section 4.5.2)
Any evidence of a dispute over the right to harvest shall be
investigated and purchases put on hold until the dispute is
satisfactorily resolved. Determinations shall be documented in
every case.
The Coordinator shall be competent to identify evidence of fraud
and other falsehoods in the documents (see examples in
Appendix A8)
4.5
Establishment of Control Procedures - Establishment of control procedures
including document retention and renewal, audits, and improvement programs
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shall be completed in the absence of a current SFM or third-party legality
verification.
4.5.1
Document Retention and Renewal - A document control program shall
be written that instructs the Coordinator in retaining and renewing
documents according to their type.
A new questionnaire shall be required of suppliers providing new
product(s).
Questionnaires and timetables of Medium- to Low-Risk suppliers shall be
updated according to the established timetable.
Confidentiality agreements may be a necessary part of each
questionnaire.
4.5.2
Control Procedures - Control procedures including audits shall be
relevant to the risk. The level of verification procedure (document audits
or on-the-ground audits) shall correspond to the level of risk that the
supplier is trading in illegal timber, in order to keep the Operator‟s supply
chain legal. For example, a Low-Risk supplier in a Medium-Risk country
might have his audits tailored to the specific timber management - related
risks of that country or region.
4.5.3
Improvement Programs
The preliminary assessment of the supplier will reveal gaps in supply
chain management. These areas shall be the focus of an improvement
program. Targets and objectives shall be established for suppliers who
provided weak responses to the questionnaires but who are not
considered to be very High Risk. The targets and objectives of the
improvement program shall be specific, measurable, achievable, realistic,
and time-bound. Mitigation must be adequate and proportionate to
minimize the identified risk. Progressive follow-up inspections are
required and consequences, including removal from the list of approved
suppliers, shall be included in the program.
The Coordinator shall document all stages of each supplier‟s individual
improvement program.
5.0
Inspection and Verification Procedures - The Operator shall develop and maintain a
quality control procedure for this program including an annual report of supplier progress
toward objectives and targets as well as an annual report of the Operator‟s progress
toward its internal objectives and targets.
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APPENDICES
The following Appendices are not a part of the ANSI Standard for Due Diligence in
Procuring/Sourcing Legal Timber but are included for information purposes only.
A1.
Policy Statement
The United States Congress passed an amendment to the Lacey Act in 2008, which impacts the
importation and interstate sale of wood and other plant products in an effort to combat illegal
logging. These amendments subject violators to severe criminal and civil penalties which may
include imprisonment. The legislation provides that individuals and companies shall not “import,
export, transport, sell, receive, acquire or purchase” any plant (including wood and wood
products) that has been illegally removed from its place of origin. It applies to all species of
wood.
The European Union‟s Timber Regulation went into force on December 2, 2010 and will also
make it illegal to place illegally harvested timber and timber products on the EU market effective
March 3, 2013.
The Japanese government has implemented a policy to prevent the government purchase and
use of wood materials harvested illegally. The system requires confirmation that the timber is
from legally harvested forests. Effective July 1 2006, any wood products purchased in Japan will
have to hold certification issued by groups such as environmental non-government
organizations (ENGOs) or Japanese timber organizations, proving that the wood was harvested
legally.
Australia has similar legislation pending in 2012 requiring trade in legally harvested timber and
timber products in Australia.
These laws have common characteristics. In general, they:
Prohibit all trade in timber and wood products that are illegally sourced from any U.S. state,
province or foreign country
Require importers to declare the origin and species name of all wood contained in their
products
Establish penalties for violation of the law, including forfeiture of goods, fines or jail time or
seizure of transportation vehicles and equipment in the most serious cases
These laws apply to every person and company involved in the interstate and international
commerce of wood products. Manufacturers, importers, distributors, retailers, contractors, and
even individuals must comply with these new rules of business. It is important to note that the
Lacey Act and the E.U. Timber Regulation provide some enforcement relief for persons and
companies who exercise “due care” in verifying that wood is legally harvested.
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(NAME OF COMPANY) is firmly committed to the legal trade of wood products. As such, we
expect the same commitment from our suppliers. We will not knowingly purchase or use wood,
wood fiber or products for distribution that originate from illegal logging.
To implement these legal requirements, we have contacted all of our associated suppliers and
verified the materials sourced are in compliance with applicable legal wood standards. (NAME
OF COMPANY) is committed to making best efforts to identify the sources of wood used in the
manufacture and sale of our products but recognizes the difficulty in achieving 100% certainty.
We expect the complete cooperation and responsiveness from each of our suppliers.
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A2. Relevant Industry Standards to Maintain Coordinator Competency – There should be a
written procedure that describes how training and qualification of personnel are determined,
delivered, and documented. It should define the requirements for the identification and delivery
of necessary training to meet the requirements of Sections 4.0 and 5.0 of the ANSI Standard for
Due Diligence in Procuring/Sourcing Legal Timber.
The Operator‟s top management supervising the Coordinator should be responsible for:
Maintaining a list of individuals authorized to perform specific inspections, requests and
analyses
Identifying skills or tasks that require training
Maintaining a list of operations and activities that require training
Establishing training requirements for each procedure and work instruction requiring
training
Determining the content of training sessions
Establishing and maintaining training schedules to ensure that employee training is
current
The Operator‟s top management supervising the Coordinator is responsible for establishing and
maintaining a training schedule and training records with respect to the Quality Manual and
Quality Procedures.
Training should include sessions addressing all aspects of the Due Diligence Management
System including the quality policy, quality manual, quality procedures, inspection and
conducting risk assessments, information solicitation methods, work instructions, and records.
Training and orientation of newly hired employees should include the subjects in Sections 4.0
and 5.0 within thirty days of the hire date. Employees should receive training within thirty days
of the initial issue or revision issue of quality documents, including those types listed in 4.0 and
5.0.
Technical proficiencies for inspections, risk assessments and information solicitation performed
as part of the quality system should be determined and documented by the Operator‟s top
management supervising the Coordinator. Satisfactory completion of training may be
evidenced by use of written “open book” tests, verbal tests or demonstrations of competence
witnessed and attested by the Operator‟s top management supervising the Coordinator.
Each employee performing inspections and test methods should demonstrate proficiency in the
requirements annually. Records of individual proficiency should be maintained. A records
retention policy should also be established. Quality system training content and frequency is
based upon Operator‟s top management supervising the Coordinator„s recommendations to
meet the objectives of the due diligence quality system.
REFERENCES
ISO Guide 65, par 4.5, 4.8 4.9, and 5.0
ISO 17020 par 6, 8, and 10
ISO 17025 par 4.1.5 and 5.2
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A3.
Resources for Country Risk Assessments
Central Point of Expertise for Timber Procurement maintains lists of UN Sanctions against
timber producing countries. It also indicates the status of countries with the EU FLEGT
Voluntary Partnership Agreements (full implementation, development, negotiation, information).
www.cpet.org.uk/eutr
Chatham House features Consumer Country Policy initiatives including the status of EU
FLEGTVPAs. See also “Illegal Logging and Related Trade: Indicators of the Global Response,”
July 2010, Sam Lawson, Larry MacFaul, Chatham House (data from 2006 -2009).
www.chatthamhouse.org
CITES list annex I, II, and III
Appendices I, II, and III to the Convention are lists of species afforded different levels or types of
protection from over-exploitation. The CITES Trade Database, managed by UNEP-WCMC on
behalf of the CITES Secretariat, is a unique resource and currently holds more than 10 million
records of trade in wildlife and 50,000 scientific names of taxa listed by CITES. Currently, more
than 750,000 records of trade in CITES-listed species of wildlife are reported annually.
http://www.cites.org/eng/app/index.php; http://www.cites.org/eng/resources/species.html
Forest Legality Alliance provides a simple, interactive online risk assessment tool developed
by the Tropical Timber Action Plan that outlines four steps to help companies assess their risk
of inadvertently buying illegally produced timber products.
http://www.forestlegality.org/tools-guides/ttap-risk-assessment-tool
illegal-logging.info is a website which provides information on the key issues in the debate
around illegal logging and the trade in illegal timber, via news stories and key documents, as
well as details of relevant events and links to other relevant websites. Funded by UKaid from the
Department for International Development with additional support from the European Forest
Institute's EU FLEGT Facility. The EU FLEGT Facility is funded by the European Union, the
Governments of Finland, France, Germany, the Netherlands, United Kingdom, and the
European Forest
http://www.illegal-logging.info/index.php
International Labor Organization’s main aim is to promote rights at work, encourage decent
employment opportunities, enhance social protection, and strengthen dialogue on work-related
issues.
www.ilo.org
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Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones aims to
help companies that invest in countries where governments are unwilling or unable to assume
their responsibilities and developed by OECD.
http://www.oecd.org/investment/investmentpolicy/36885821.pdfhttp://www.oecd.org/investment/i
nvestmentpolicy/36885821.pdf
The Global Forest Registry maintained by the Forest Stewardship Council is a free source of
information on the risk of sourcing controversial timber throughout the world.
http://www.globalforestregistry.org/map
Transparency International provides a website for the Corruption Perception Index with scores
conducted on an annual basis by Transparency International.
http://cpi.transparency.org/cpi2011/results/
http://gcb.transparency.org/gcb201011/infographic/cpi.transparency.org (/cpi2011)
World Wildlife Fund Global Forest Trade Network provides a website with information about
participants in WWF‟s Global Forest Trade Network. Useful papers that are available include:
Framework for Assessing Legality of Forestry Operations, Timber Processing and Trade,
October 2009, WWF
Exporting in a Shifting Landscape, 18 June 2010, G. White, WWF
GFTN‟s Guide to Legal and Responsible Sourcing, 17 June 2010,
http://sourcing.gftn.panda.org/index
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A4.
Sustainable Forest Certification and Third Party Legality Verification
American Tree Farm System
http://www.treefarmsystem.org/
Forest Stewardship Council
http://www.fsc.org/
Malaysian Timber Certification Council
http://www.mtcc.com.my/
National Wood Flooring Association: Responsible Procurement Program
http://www.nwfa.org/member/rpp.aspx
OLB (Origine et Légalité du Bois)
http://www.groupesefac.com/fra/?p=757
Programme for the Endorsement of Forest Certification
http://www.pefc.org/
Rainforest Alliance Timber Legality Verification
http://www.rainforest-alliance.org/forestry/verification/legal
SmartwoodVLO (Verified Legal Origin)
http://www.rainforest-alliance.org/forestry/certification/
Sustainable Forestry Initiative
http://www.sfiprogram.org/
Timber Legality and Traceability Verification
http://www.proforest.net/objects/publications/review-of-timber-legality-verification-schemes
Timber Trade Federation
,
http://www.ttf.co.uk/Environment/Third_Party_Schemes.aspx
World Wildlife Fund Global Forest Trade Network
http://sourcing.gftn.panda.org/index
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A5.
Example of Declaration of Legality and Origin
SELLER HEREBY REPRESENTS, WARRANTS, AND CERTIFIES THAT ALL WOOD AND PLANTS, INCLUDING
THOSE FROM WHICH THE PRODUCTS MAY BE DERIVED, PURCHASED, AND SOLD PURSUANT TO THIS
AGREEMENT:
HAVE BEEN HARVESTED, TAKEN, POSSESSED, TRANSPORTED, AND
SOLD IN COMPLIANCE WITH ALL LAWS, TREATIES AND
REGULATIONS OF THE UNITED STATES AND ANY INDIAN TRIBAL
LAW
HAVE BEEN HARVESTED, TAKEN, ACQUIRED, POSSESSED,
TRANSPORTED, SOLD, AND PURCHASED IN COMPLIANCE WITH ALL
FOREIGN AND STATE LAWS, TREATIES, AND REGULATIONS THAT
PROTECT OR REGULATE
o PLANTS AND TREES OR WOOD,
o THE THEFT OF PLANTS, TREES OR WOOD,
o THE TAKING OF PLANTS, TREES OR WOOD FROM PARKS,
FOREST RESERVES, OFFICIALLY PROTECTED OR
OFFICIALLY DESIGNATED AREAS, OR
o THE TAKING OF PLANTS, TREES OR WOOD WITHOUT, OR
CONTRARY TO, REQUIRED AUTHORIZATION; AND
o HAVE BEEN TAKEN, POSSESSED, TRANSPORTED AND SOLD
IN COMPLIANCE WITH ANY LIMITATION UNDER ANY LAW OR
REGULATION OF ANY STATE OR UNDER ANY FOREIGN LAW ,
GOVERNING THE EXPORT OR TRANSSHIPMENT OF PLANTS
AND WOOD.
SELLER HEREBY FURTHER REPRESENTS, WARRANTS. AND CERTIFIES THAT ALL APPROPRIATE
ROYALTIES, TAXES, AND STUMPAGE FEES REQUIRED BY ANY LAW OR REGULATION OF ANY STATE OR
ANY FOREIGN LAW FOR THE PLANTS AND WOOD, INCLUDING THOSE FROM WHICH THE PRODUCTS MAY
BE DERIVED, TAKEN, POSSESSED, TRANSPORTED, PURCHASED, AND SOLD PURSUANT TO THIS
AGREEMENT HAVE BEEN PAID.
Name:
Signature
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A6. Sources of Supplier Questionnaires and Purchasing Policies
A.6.1 Example of a Supplier’s Questionnaire and Check List - The GFTN Guide to Legal
and Responsible Sourcing,
World Wildlife Fund
http://sourcing.gftn.panda.org/index.php?id=20
http://sourcing.gftn.panda.org/index.php?id=59#questionnaires
http://sourcing.gftn.panda.org/files/PDF/Example_Questionnaire_1.pdf
A.6.2 Sample Checklist of Questions
1. Does supplier have long standing relationship with the supplier/s (exporter) of this product?
How long?
2. Does the supplier/s of this supplier buy this product from “spot markets”?
3. Does supplier regularly question their suppliers regarding the origin of this product?
4. Did supplier provide you with all required documentation?
a. For non high risk countries, a written and signed document from supplier identifying
companies included in the full supply chain of the product back to the harvesting
entity/ies, including name and location of the harvesting entity/ies and Forest
Management Unit.
b. A list of supplying companies harvesting wood from source forests and copies of the
association harvesting permits for supplied product and/or other form of authorization
from the forest owner, including, for example:
c. Species, district of origin information and any other related harvesting or purchasing
agreements.
d.
Evidence of compliance with timber transportation documents: Copies of transport or
sales permits with specification of species and volumes as applicable.
5. Have you reviewed the documents and verified that they meet the due diligence
requirements?
6. Is there any reason for supplier to believe that paperwork from their suppliers may not be
authentic for this product?
7. Is there a ban on exports from this region/country?
8. Have you checked on approved species/products with State/Province for that supplier?,
(etc.)
9. Have you retained copies of required documentation?
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10. Is this supplier sourcing from a high risk country?
11. If yes, verify that additional required procedures were followed, e.g.,
a. product is certified against a Chain of Custody or Traceability Standard,
b. the supplier certificate is valid and the scope includes the product supplied,
c. the product has been traced along an unbroken and verified chain of custody from
the purchaser back to the source entirely by obtaining supplier certification codes on
documentation for that product down to forest level, and
d. the harvest and export of the species is not restricted or prohibited in the source
country.
Source: U.S. Department of Justice, United States Attorney Middle District of Tennessee, In Re:
Gibson Guitar Corporation, July 27, 2012, Appendix B, Attachment A.
6.3 Examples of reputable, responsible purchasing policies:
The Global Forest and Trade Network
http://www.wwf.org.uk/what_we_do/safeguarding_the_natural_world/forests/responsible_forestr
y_and_trade/forest_trade_network/
UK Timber Trade Federation
http://www.ttf.co.uk/
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A7.
Examples of Timber Species References
World Customs Organization, Harmonized Commodity Description and Coding System, Chapter
44, Annex 44 – Appellation of Certain Tropical Wood Species: Africa and other tropical woods
http://www.wcoomd.org
Wood Handbook: Wood as an Engineering Material, U.S. Forest Service
www.fpl.fs.fed.us/products/publications/several_pubs
Tropical Woods of the World, U.S. Forest Service
www.fpl.fs.fed.us/research/centers/woodanatomy/techsheets
Manual of the Trees of North America, Charles Sprague Sargent
key in Charles Sprague Sargent
American Woods, Shelley E. Schoonover
key in Shelley E. Schoonover
Veneer Species of the World, U.S. Forest Service
www.fpl.fs.fed.us/research/centers/woodanatomy/techsheets
Commercial Foreign Woods on the American Market, David A. Krips
www.amazon.com/Commercial-foreign-woods-American-market
Identifying Wood, R. Bruce Hoadley
www.woodmagazine.com/community/persona/woodworker-biography-r-bruce-hoadley
Timber Monographs, Edmondo Palutan
www.books.google.com/books/about/Timber_Monographs
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A8.
Examples of High Risk Supplies
• Goods significantly sold below going market rate
• Cash only/lower price for goods without paperwork
• Paperwork facially invalid or otherwise suspect
• Unusual sales methods or practices
• Transactions fit the description of illegal transactions discussed in trade/industry
publications
• Inability of suppliers to provide rational answers to routine questions
• Bills of lading that exceed the timber allowances in the relevant permit
• Documents that do not have matching PO numbers or some other identifier that is
consistent
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