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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. PURPOSE 1

2. SCOPE 1

3. DEFINITIONS 1

4. REQUIREMENTS 3

4.1 Procurement Policy Statement 3

4.2 Infrastructure and Control Systems 3

4.3 Preliminary Determinations 4

4.4 Due Diligence Evaluation of Legality 5

4.5 Establishment of Control Procedures 9

5. INSPECTION and VERIFICATION PROCEDURES 10

A. APPENDICES (Non-binding information) 11

A.1 Policy Statement 11

A.2 Relevant Industry Standards to Maintain

Coordinator Competency 13

A.3 Resources for Country Risk Assessments 14

A.4 Sustainable Forest Certification and 3rd Party

Legality Verification 16

A.5 Examples of Declaration of Legality and Origin 17

A.6 Examples of Supplier Questionnaire and Purchasing Policies 18

A.7 Examples of Timber Species References 18

A.8 Examples of High Risk Suppliers 19

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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 3rd 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-of-

Lading (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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