Generic Matrix for Comparison of Legal Requirements

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Generic Matrix for Comparison of Legal Requirements

Background

Principles, Criteria & Indicators for legality listed in the matrix are based on the work done under The Nature Conservancy sponsored project on legality in East Kalimantan, Indonesia that included wide stakeholder participation. The Criteria and Indicators have been revised to provide a generic form of the elements identified as critical for Indonesia to evaluate legality based on the 6 main Principles. Principle 7 has been added to reflect the requirement for a means to identify critical elements for the chain of custody for traceability for material through processing and trading that are not normally directly covered by legislation or codes of practice.

This document is designed to be a matrix to aid in evaluation and comparison of country regulations and systems in respect to key elements that are considered to be critical to determining legality of forest management and operations. Determination of legality can be highly complex as there are often numerous regulations that may be issued by several levels of government and can even be contradictory. Legal regulations may also be open to interpretation that would require the need for legal experts and court systems.

Guidance

Principles 1-6 are defined by general statements within broad categories of regulations that relate to forestry operations. Criterias are listed to better define the Principle within key elements followed by indicators that further define the criteria. Each Indicator has suggested key elements to provide guidance for the user to evaluate compliance to the indicator.

Each indicator in the matrix is further divided into categories (Clarity of Laws, Level of Enforcement and Level of Knowledge) that can be scored for compliance as Adequate = 2; Inadequate = 1; and Not Addressed = 0. Government regulations, codes of practice can be documented against each indicator for each category and averaged to give a general level of compliance to the Principle.

PRINCIPLE 1. LAND TENURE AND USE RIGHTS The legal status of, and tenure rights to the Forest Management Unit (FMU) (natural or plantation area) [1]are clearly defined, and its boundaries have been properly gazetted. The Company has documented legally established rights to manage and/or harvest timber within the approved / licensed boundaries.
Clarity of laws	Avg score	Comments for each principle is a brief summary of the general strengths / weaknesses
Level of Enforcement	Avg score	Also comments should provide brief basis for average scoree
Level of knowledge	Avg score	Eg. Average score for level of knowledge = total score / number of applicable indicators
Criterion 1.1: Forest / plantation areas have been formally classified for commercial land use by the appropriate government authority.
1.1.1 Government agency has long term land use plans for forest areas that include conservation and commercial land use
Clarity of laws	Score 2,1,0	Is the legal status of forest land clearly defined ? Identify land registration documents, license agreements, use rights agreements that allow for tenure over forest land and harvest rights Government agency can show long term land use maps which shows forests zoned for commercial production, conversion, conservation, social benefits etc. Identify forest types, (production, protection, conservation etc,) the decrees by which they were designated and any amendments
Level of enforcement	Score 2,1,0	Commercial forests properly regulated with licensing ? Validity of zonation in regards to traditional use rights by indigenous / local communities Identify all govt. agencies that have power to reclassify land use (mining, economic development) Illegal logging or significant changes in land use away from permanent forests
Level of knowledge	Score 2,1,0	Knowledge of government officers and management on level of security of tenure
1.1.2 There is provision for forest areas to be licensed by the government department as a permanent forest or tree plantation to be used for commercial operations
Clarity of laws	Score	Identify all long, medium and short term licenses required to carry out forest operations. Licenses clearly define forest unit under commercial and protection and or social elements defined Give details of any “eligibility criteria” such as the need to have a given level of capital reserve to invest in the forest operation, % of foreign ownership allowed, or any other stipulations
Level of enforcement	Score	What are the monitoring procedures? How often are inspection system and records by government staff What are the sanctions for non-compliance?
Level of knowledge	Score	Identify the agencies responsible for issuing them, (forest dept., wildlife, environmental, etc)
1.1.3 There is provision for forest areas to be zoned or licensed by the government department for conversion to other land use.
Clarity of laws	Score	Legislation and process for a change of land use from permanent forest to other use. Transfer process involves public participation ? Violations or conflicts of traditional land use rights ?
Level of enforcement	Score	Evaluation by government staff as part of the process Evidence that procedures for change of use are followed
Level of knowledge	Score	Process for transfer known by staff and relevant stakeholders
Criterion 1.2: There are plans for the Forest Management Unit that meet all applicable government regulations
1.2.1 The FMU has a long / medium term management plan approved / endorsed by the appropriate government agency.
Clarity of laws	Score	Identify regulations & approval process What are key issues needed to have an FMP approved?
Level of enforcement	Score	What is the capacity of the implementing agency How frequent is any monitoring Are there any constraints due to poor access, lack of transport How independent is the monitoring
Level of knowledge	Score	Does the government have clear format for an FMP What are the key elements within the FMP
1.2.2 Annual plan for harvesting operations are approved by the appropriate government authority that define area and conditions for harvesting as in species, diameter limits, volume, number of trees / ha, etc that can be extracted.
Clarity of laws	Score	Detail the plans required (under what legislation or decree)
Level of enforcement	Score	Identify the approval process. Timeframe, agencies involved, how plans are monitored how govt. agencies approve or reject plans How does government monitor Annual Plans ? Is there a field inspection as part of the approval process ?
Level of knowledge	Score	Does the government have clear format for an Annual Plan What are the key elements within the Annual Plan
1.2.3 Harvesting licenses are issued by the appropriate government authority to fell and extract trees within a predefined area and conditions for harvesting (net production area, conservation / buffer zones, species, diameter limits, volume, number of trees / ha, etc that can be extracted,
Clarity of laws	Score	Detail the plans and licenses required for harvesting (under what legislation or decree) Identify the approval process. Timeframe, agencies involved, how govt. agencies approve or reject plans Detail the gazetting process for land types with FMU, (under what legislation or decree)
Level of enforcement	Score	Detail inventory process (reference and FD procedures or guideline documents) Detail monitoring process
Level of knowledge	Score	Knowledge of staff and managers on requirements for harvest planning
Criterion 1.3: The Company holds a valid permit to manage or a license to harvest timber within the FMU that has been formally approved by appropriate government authority.
1.3.1 Concession permits and or harvesting licenses are issued by the government to manage and extract timber within defined areas within the FMU.
Clarity of laws	Score	Copy of concession permit or harvest license How are they applied for, how often through what agency Permits clearly identify and define the species and quantity that can be extracted within the permit area
Level of enforcement	Score	Identify the documents that prove compliance Monitoring process within harvesting license period
Level of knowledge	Score	Knowledge of staff and management on process and types of licenses
1.3.2 Harvesting licenses issued by the government to extract timber within defined areas in the FMU as part of land use plan for conversion.
Clarity of laws	Score	Process or regulations on issuing harvest permits for conversion areas Permits clearly identify the land area to be cleared
Level of enforcement	Score	Monitoring of conversion areas by staff
Level of knowledge	Score	How is timber from conversion area treated differently, (inventory, traceability markings…)
1.3.3 Government agencies actively identify third party claims to use rights of the forest / plantation area. Claims are adequately resolved and do not contradict management or harvesting licenses issued.
Clarity of laws	Score	Regulations on ownership and resource rights of forest areas; Detail all potential contradictory or overlapping claims (Customary use rights vs government ownership) Regulations on 3^rd part claims against the government
Level of enforcement	Score	System for government to handle 3^rd party claims System of delineation & demarcation of boundaries
Level of knowledge	Score	System for staff to know the existing claims on forest areas by communities, Customary rights claims etc. Knowledge of system or process for disputes / 3^rd party claims
1.3.4 In no cases do the gazetted boundaries of a license area conflict with any land use classification in which the activities allowed under that license are prohibited.
Clarity of laws	Score	Land use between government agencies (Forestry; Wildlife; Agriculture; Mining; Water; etc) Overlapping jurisdictions on same forest / land area
Level of enforcement	Score	Agency cooperation on land use activities in areas of overlapping jurisdiction
Level of knowledge	Score	Knowledge between departments in forest areas with overlapping land use and activities.
PRINCIPLE 2. PHYSICAL AND SOCIAL ENVIRONMENTAL An Assessment of Environmental and Social Impacts covering the Forest Management Unit has been approved / endorsed by the appropriate government authority as required under regulations
Clarity of laws	Avg score	Comments for each principle is a brief summary of the general strengths / weaknesses
Level of enforcement	Avg score	Also comments should provide brief basis for average score
Level of knowledge	Avg score	Average score for level of knowledge = total score / number of applicable indicators
Criterion 2.1: A physical, social and environmental assessment of the operations in FMU has been conducted based on government requirements.
2.1.1 A current approved EIA and Social Assessment exists that clearly defines measures to be taken to minimize impacts of its operations in line with government regulations.
Clarity of laws	Score	Regulations on environmental and social assessments for forest management and harvesting activities Clear requirements for conducting the assessments and contents of the assessment report
Level of enforcement	Score	System to verify the credibility of environmental and social assessments and content of report for approval
Level of knowledge	Score	Registration of consultants or companies eligible to conduct assessments Knowledge on identification of key aspects and mitigation measures.
2.1.2 Measures to mitigate social and environmental impacts of forestry operations are incorporated into management plans as part of the approval process.
Clarity of laws	Score	Regulations regarding protection social and environmental aspects in forest management and operations Code of Practice for forestry operations clearly define reduced impacts for logging and protection of environment
Levelof enforcement	Score	Process for verification of EIA and social conditions as part of the approval for management planning
Level of knowledge	Score	Knowledge of staff regarding appropriate mitigation measures for environmental protection and social benefits
2.1.3 Implementation of plans, mitigation measures related to its approved impact assessment is actively monitored.
Clarity of laws	Score	Regulation and penalties for lack of implementation of mitigation measures stated in the approved EIA, social assessments or forest management plan
Level of enforcement	Score	System for verification of implementation by government agency
Level of knowledge	Score	Knowledge of staff and management on procedures or code of practice for implementation of mitigation measures for environmental and social issues.
2.1.4 Monitoring Reports are available demonstrates the actions taken to mitigate environmental impacts and to provide social benefits in line with the requirements of the assessment.
Clarity of laws	Score	Monitoring reports required by government regulations for EIA and social issues
Level of enforcement	Score	System to evaluate and verify actions taken based on monitoring reports Penalties for non compliance in implementing mitigations measures
Level of knowledge	Score	Knowledge of staff and management on monitoring and implementation of mitigation measures
Criterion 2.2: Measures for protection of endangered species as listed in Government Regulations and CITIES red list whose range of habitat form part of the Forest Management Unit are defined.
2.2.1 Plans and procedures to protect rare threatened and endangered species and habitat whose range form part of the Forest Management Unit are defined and implemented.
Clarity of laws	Score	Regulations on protection RTE species and habitat Inadequacies in regulations and identification of RTE Clear lists for international, regional and local RTE species Code of Practice for forestry operations include identification and protection of RTE species and habitat
Level of enforcement	Score	Government or management staff monitoring of system for protection and implementation of mitigation measures
Level of knowledge	Score	Knowledge of Government or management staff on identification of RTE, habitat and appropriate protection measures.
PRINCIPLE 3. COMMUNITY RELATIONS AND WORKERS RIGHTS The Company complies with all its legal responsibilities in ensuring the well being of communities affected by its activities in the Forest management Unit, its provision of services to local communities and the well-being and safety of its workers and contractors employed in the Forest Management Unit.
Clarity of laws	Avg score	Comments for each principle is a brief summary of the general strengths / weaknesses
Level of enforcement	Avg score	Also comments should provide brief basis for average score
Level of knowledge	Avg score	Average score for level of knowledge = total score / number of applicable indicators
Criterion 3.1: All local communities affected by activities in the Forest Management Unit are identified and have been consulted in respect to forestry operations and management plans.
3.1.1 All communities affected by activities in the Forest Management Unit are identified based on the social assessment and measures to consult them about planned activities are identified in the approved management plan.
Clarity of laws	Score	Regulations on stakeholder involvement in forest management activities (planning, licensing, inventory, etc)
Level of enforcement	Score	Government staff and management staff involvement in soliciting stakeholder involvement FMP clearly defines
Level of knowledge	Score	Knowledge of forest management activities by local stakeholders Knowledge of government staff on stakeholders rights in respect to forest management and operations
3.1.2 Proceedings of public consultations with each affected community are documented and publicly available.
Clarity of laws	Score	Requirements for public consultation by forest management companies and government agencies regarding forest activities.
Level of enforcement	Score	System for verification of public consultation by government staff. Penalties for non-compliance
Level of knowledge	Score	Records of meetings, Knowledge of stakeholders on consultation requirements and forestry activities
3.1.3 System to reach a consensus concerning implementation of its planned activities in the Forest management Unit with each community affected by those activities in the Forest Management Unit are defined and implemented.
Clarity of laws	Score	Requirements or regulations for agreements between the stakeholders and the government or forest management company
Level of enforcement	Score	System to monitor agreements and consensus Use of government sponsored village leaders
Level of knowledge	Score	Copies of any agreements between stakeholders and the government or forest management company Level of knowledge on the rights of stakeholders and the obligations of the government or forest management company
Criterion 3.2: Traditional rights of communities affected by activities in the Forest Management Unit are documented, recognized and respected.
3.2.1 Traditional rights claimed by each community affected by activities in the Forest Management Unit are clearly documented and recognized based on consultation with each community.
Clarity of laws	Score	Recognition on traditional rights of each community by appropriate government agency
Level of enforcement	Score	Penalties for violations of traditional rights Documented penalties issued by government agency
Level of knowledge	Score	Documentation of traditional rights for each local community. Details on process for recognition of those rights
3.2.2 Plans are developed in association with affected communities that describe how the areas/or resources covered by traditional rights within the Forest Management Unit are to be managed, detailing use, access and any compensation arrangements.
Clarity of laws	Score	Recognition on traditional rights of each community by appropriate government agency that is incorporated into the approval of the forest management plan
Level of enforcement	Score	Monitoring of implementation of management plan, social impacts and mitigation measures
Level of knowledge	Score	Knowledge of forest management plans and traditional rights by communities and government staff and forest management
Criterion 3.3: Agreements with local communities that clearly specify social benefits (such as health and community development) that will be provided are clearly defined, scheduled and honored.
3.3.1 Documented agreements with local communities clearly describe social welfare and community development projects.
Clarity of laws	Score	Regulations or requirements by government for documented agreements between communities and forest management / government agency for community development
Level of enforcement	Score	Penalties for non-compliance Monitoring of agreements by government agencies & forest management
Level of knowledge	Score	Copies of the formal agreement Clarity of agreement and level of knowledge of communities on details of the agreement.
3.3.2 Agreements and social projects are clearly scheduled, budgeted and honored.
Clarity of laws	Score	Regulations on non-compliance to agreements on community development
Level of enforcement	Score	Penalties for non-compliance to agreements on community development Monitoring of implementation by government agency
Level of knowledge	Score	Projects are clearly scheduled and budgeted for implementation Documentation on implementation of agreements by all parties
Criterion 3.4: Workers rights to organize and voluntarily negotiate with their employers are in accordance with International Labour Organization (ILO) conventions 87 and 98.
3.4.1 The Company permits workers to join recognized labor unions
Clarity of laws	Score	ILO treaties recognized by government agency Provisions for labor unions in forest industry
Level of enforcement	Score	Penalties for management that abuse rights to form or join unions
Level of knowledge	Score	Existence of unions, membership records Knowledge of staff regarding unions
3.4.2 Negotiations with unions over workers’employment conditions are documented and agreements reached are honored.
Clarity of laws	Score	Regulations / requirements for negotiation with unions
Level of enforcement	Score	Role of government in negotiations with unions
Level of knowledge	Score	Copies of agreements and meetings with unions and forest management company
Criterion 3.5: Manpower regulations regarding; worker safety & health, benefits in kind, minimum salary, termination, contractor agreements are specified in government regulations.
3.5.1 Employees’ salary and benefits in kind are clearly defined based on a minimum legal requirement.
Clarity of laws	Score	Employment regulations: minimum payments, benefits, etc
Level of enforcement	Score	System to verify minimum salary, payments and benefits are provided by forest management
Level of knowledge	Score	Knowledge of workers rights by staff and forest management
3.5.2 Safety equipment and emergency first aid are available and readily accessible for use at each work site within the Forest Management Unit and defined by regulations or Code of Practice. Implementation of safety procedures and health is monitored by government agencies.
Clarity of laws	Score	Employment regulations: health and safety
Level of enforcement	Score	System to verify health facilities and safety equipment are adequately provided by forest management to meet regulations.
Level of knowledge	Score	Knowledge of workers rights for health and safety by staff and forest management Training on safety and health related issues
3.5.3 All its employees are above the minimum age limit as prescribed by government regulations.
Clarity of laws	Score	Employment regulations: minimum age,
Level of enforcement	Score	System to verify minimum age of staff
Level of knowledge	Score	Knowledge of minimum age by staff and forest management
3.5.4 Employees are not required to work more than the regulated man-hours and are provided time off for holidays, sickness and vacation as defined by government labor regulations.
Clarity of laws	Score	Employment regulations: work hours, benefits, holidays sick leave, etc
Level of enforcement	Score	System to verify regulations are met by forest management Penalties for non-compliance to labour regulations and system to report non complaince
Level of knowledge	Score	Knowledge of workers rights by staff and forest management on work hours, holidays and sick leave
PRINCIPLE 4. TIMBER HARVESTING LAWS AND REGULATIONS Harvest planning and forestry operations are in compliance with harvesting and silvicultural regulations.
Clarity of laws	Avg score	Comments for each principle is a brief summary of the general strengths / weaknesses
Level of enforcement	Avg score	Also comments should provide brief basis for average score
Level of knowledge	Avg score	Average score for level of knowledge = total score / number of applicable indicators
Criterion 4.1: Harvest plans for the Forest management Unit have been approved by the appropriate government authority and have clearly defined boundaries delineated that show areas where harvesting is allowed and areas that must be protected.
4.1.1 Harvest plans have been developed in accordance to government regulations or Code of Practice.
Clarity of laws	Score	Code of Practice or governmental guidelines for forest harvesting
Level of enforcement	Score	System to verify quality and approval of harvest plans by government agency
Level of knowledge	Score	Government staff and forest management know the key elements that need o be addressed in the harvesting plan
4.1.2 Harvest plans have boundaries clearly delineated and are formally approved by the appropriate government authority.
Clarity of laws	Score	Requirements / process for delineation and demarcation of harvest boundaries for licensing
Level of enforcement	Score	Responsibility of government agency to mark or verify harvest block boundaries
Level of knowledge	Score	Copies of harvest plans with clear boundaries approved by government agency
4.1.3 Harvest plans show areas to be excluded from harvesting such as buffer zones, steep slopes, critical habitats and areas of cultural or religious significance.
Clarity of laws	Score	Requirements / process for delineation and demarcation of areas for protection for approval of harvest licensing
Level of enforcement	Score	Responsibility of government agency to mark or verify protection areas and net production area with in harvest blocks and licenses.
Level of knowledge	Score	Copies of harvest plans with clear defined areas of protection and boundaries approved by government agency
Criterion 4.2: Harvesting operations are implemented in accordance with legally prescribed silvicultural system codes of practice for harvesting or conditions for land clearing as applicable.
4.2.1 Forestry harvesting operations comply with the requirements listed in appropriate regulations, Codes of Practice or conditions on land clearing licensed areas.
Clarity of laws	Score	Code of Practice or governmental guidelines for forest harvesting Regulations on land clearing
Level of enforcement	Score	System to verify implementation of approval of harvest plans by government agency Penalties for non-compliance to regulations or requirements
Level of knowledge	Score	Forest management staff and contractors know the key elements of the code of practice or government guidelines Formal training records of staff and contractors
4.2.2 All boundaries of licensed harvesting areas are demarcated on the ground based on approved harvest plan maps.
Clarity of laws	Score	Requirements / process for demarcation of harvest boundaries for licensing
Level of enforcement	Score	Responsibility of government agency to mark or verify harvest block boundaries
Level of knowledge	Score	Staff forest management and contractors know and can identify all boundaries
4.2.3 All equipment used in the forestry operations are defined and complies with government regulations or Code of Practice.
Clarity of laws	Score	Regulation or Code of Practice (Guidelines) on equipment that can or must be used in forestry operations
Level of enforcement	Score	Monitoring of forest management and contractors on equipment
Level of knowledge	Score	Training of working staff on equipment use Knowledge on appropriate equipment for various forestry operations and maintenance
4.2.4 Data for all trees harvested are recorded as per government requirements.
Clarity of laws	Score	Required records of trees harvested to be submitted to forestry agency for taxation or other uses.
Level of enforcement	Score	System for monitoring by government staff on recording and measuring trees harvested from a licensed area
Level of knowledge	Score	Staff and workers knowledge on recording
4.2.5 No operations have been carried out in any Exclusion Areas shown on the Harvesting Plan.
Clarity of laws	Score	Requirements (Code of Practice) on maintaining protected areas, buffer zones. (Example water crossings, forest road alignment on steep slopes etc.)
Level of enforcement	Score	Monitoring protection and mitigation measures for areas excluded from logging.
Level of knowledge	Score	Staff / contractors know restrictions on protected areas, buffer zones, steep slopes. Contract agreement for operations that includes mitigation measures and defines protected areas
PRINCIPLE 5. FOREST TAXES Legally prescribed fees, royalties, taxes and other legal charges shall be clearly defined and collected in a transparent manner.
Clarity of laws	Avg score	Comments for each principle is a brief summary of the general strengths / weaknesses
Level of enforcement	Avg score	Also comments should provide brief basis for average score
Level of knowledge	Avg score	Average score for level of knowledge = total score / number of applicable indicators
Criterion 5.1: Payments of concession fees and taxes for current license and timber extracted are clearly defined and collected.
5.1.1 A register of all prescribed fees, taxes and other legal charges applicable to forest operations are available.
Clarity of laws	Score	List of taxes, fees and other charges, payable to government agencies
Level of enforcement	Score	System of payment and penalties for non-payment
Level of knowledge	Score	Forest management has list of taxes, fees and other charges payable
5.1.2 Records that demonstrate current payments for all fees taxes and other legal charges are maintained.
Clarity of laws	Score	List of taxes, fees and other charges, payable to government agencies
Level of enforcement	Score	System of payment and penalties for non-payment
Level of knowledge	Score	Documented proof of payment of taxes, fees and other charges, payable to government agencies
PRINCIPLE 6. LOG IDENTIFICATION, TRANSFER AND DELIVERY All logs extracted shall have adequate physical identification and documentation to provide traceability of the material to a licensed harvest area within a commercial Forest Management Unit.
Clarity of laws	Avg score	Comments for each principle is a brief summary of the general strengths / weaknesses
Level of enforcement	Avg score	Also comments should provide brief basis for average score
Level of knowledge	Avg score	Average score for level of knowledge = total score / number of applicable indicators
Criterion 6.1: All logs extracted from the licensed harvest area within the FMU have required physical identification.
6.1.1 All logs extracted from the licensed harvest areas are adequately marked (using prescribed tags, paint or chisel marks) and contain sufficient information to trace each log back to the licensed harvest area or tree stump as defined in government regulations or Code of Practice.
Clarity of laws	Score	Regulations, requirements Code of Practice, for identification and marking of trees and or logs within harvest licensed areas.
Level of enforcement	Score	Monitoring of identification and marking of logs by government staff
Level of knowledge	Score	Staff, contractors, forest management have a clear system to identify logs to be traceable to the harvest licensed area.
6.1.2 All logs to be transported from the licensed harvest area have valid government clearance as appropriate.
Clarity of laws	Score	Requirements for approval for extraction and transport of logs from licensed harvest area
Level of enforcement	Score	System to inspect logs extracted from a licensed forest harvesting area.
Level of knowledge	Score	Contractors, forest managers and government staff have clear understanding on the clearance / approval process
Criterion 6.2: All logs transported from a FMU are documented according to government regulations.
6.2.1 Records of all material extracted from the harvest licensed area are in accordance to government requirements or Codes of Practice. Government forms are used as appropriate.
Clarity of laws	Score	Government documents that must be used to identify trees felled and logs extracted from a forest harvesting area
Level of enforcement	Score	System to check that logs extracted from a licensed forest harvesting area are properly recorded on appropriate government forms.
Level of knowledge	Score	Records of logs extracted are recorded appropriately on government forms
6.2.2 Records for the transport of logs are maintained in accordance to government requirements or Codes of Practice. Government forms are used as appropriate.
Clarity of laws	Score	Government documents that must be used to identify and transport logs from the forest to wood processing facilities
Level of enforcement	Score	System to check that logs to be transported from a licensed forest harvesting area to a wood processing facility are properly recorded on appropriate government forms.
Level of knowledge	Score	Records of logs for transport are recorded appropriately on government forms
6.2.3 Contractors used to extract or transport the material are monitored to comply to government requirements or Codes of Practice. Government forms are used as appropriate
Clarity of laws	Score	Regulations / requirements or Code of Practice on harvesting and transport of material is obligatory to any subcontractor.
Level of enforcement	Score	Forest management company / government agency monitors activities of contractors based on licensing agreements
Level of knowledge	Score	Contractors and staff are trained and knowledgeable on government requirements or Code of Pratice
Criterion 6.3: Licenses / permits for transportation of logs shall be clearly defined and documented.
6.3.1 Organizations operating vessels or trucks for transporting forest products outside of the Forest Management Unit have appropriate licenses
Clarity of laws	Score	Licenses for transport of logs (Road, Barge, Ship, Rafting, etc)
Level of enforcement	Score	Monitoring of transportation of logs (forestry or Police)
Level of knowledge	Score	Contractors can show valid licenses for all vehicles used.
PRINCIPLE 7. TIMBER PROCESSING, SALES AND SHIPPING The Company shall demonstrate compliance to legal requirements of its operations and provide a means to identify that all material purchased and used in production and sold is traceable to licensed harvest areas within commercial Forest Management Units.
Clarity of laws	Avg score	Comments for each principle is a brief summary of the general strengths / weaknesses
Level of enforcement	Avg score	Also comments should provide brief basis for average score
Level of knowledge	Avg score	Average score for level of knowledge = total score / number of applicable indicators
Criterion 7.1: Wood Processing Companies maintain a current register of regulations applicable to its operations.
7.1.1 The company has a list of regulations applicable to its operations
Clarity of laws	Score	List of regulations applicable for wood processing facilities
Level of enforcement	Score	System to enforce regulations
Level of knowledge	Score	Wood Processing company knowledgeable on regulations
7.1.2 The company has the required and valid permits to operate its business
Clarity of laws	Score	Permits required to operate a wood processing facility
Level of enforcement	Score	Inspection of facility to verify valid permits
Level of knowledge	Score	Company has copies of valid permits
7.1.3 The company can demonstrate compliance to the regulations
Clarity of laws	Score	Regulations are clearly defined to allow demonstration of compliance
Level of enforcement	Score	System to monitor compliance to regulations by government staff
Level of knowledge	Score	Company staff is trained on regulations
Criterion 7.2: All material purchased shall have adequate physical identification and records to trace the material to a licensed harvest area within a commercial Forest Management Unit.
7.2.1 Purchase documents are available that define the material to be purchased and indicate the origin of material
Clarity of laws	Score	Regulations on purchasing illegal material
Level of enforcement	Score	Penalties for purchasing illegal material
Level of knowledge	Score	Company purchasing staff know what documents are required to transport material and can verify origin to a licensed harvesting area
7.2.2 All logs received are accompanied by valid log transportation documents that detail origin of the material and correspond to the physical identification of each log as applicable.
Clarity of laws	Score	Required documents to transport logs
Level of enforcement	Score	Approval of transportation documents by government staff at checking stations Signatures of government officer, dates and stamps on documents
Level of knowledge	Score	Log numbers on logs match the log numbers and species listed on transport document. Weaknesses of system (corruption, forged documents, etc)
7.2.3 The Company shall maintain adequate records of raw material received and allocated to production.
Clarity of laws	Score	Requirements for companies to maintain a log register of incoming material
Level of enforcement	Score	Checks on records by government staff
Level of knowledge	Score	Records of incoming material adequately maintained to verify traceability to licensed harvest area
Criterion 7.3: The Company shall maintain adequate records of use of raw material in production to confirm traceability to legal licensed harvesting areas in commercial FMUs
7.3.1 The Company shall provide for a defined unit of production (work order) and maintain records for the allocation of raw material used in that unit (log cutting list).
Clarity of laws	Score	List of appropriate regulations if available
Level of enforcement	Score	System of approval as appropriate
Level of knowledge	Score	Valid documents with appropriate approvals
7.3.2 The Company shall identify all work in progress according to the production unit (Work Order).
Clarity of laws	Score	List of appropriate regulations if available
Level of enforcement	Score	System of approval as appropriate
Level of knowledge	Score	Valid documents with appropriate approvals
7.3.3 The Company shall maintain adequate records and identification of material transferred from one production unit to another unit
Clarity of laws	Score	List of appropriate regulations if available
Level of enforcement	Score	System of approval as appropriate
Level of knowledge	Score	Valid documents with appropriate approvals
7.3.4 The Company shall maintain records and identify all finished goods produced under the production unit (Work Order).
Clarity of laws	Score	List of appropriate regulations if available
Level of enforcement	Score	System of approval as appropriate
Level of knowledge	Score	Valid documents with appropriate approvals
Criterion 7.4: The Company shall maintain appropriate records of all finished products sold and shipped
7.4.1 The Company shall maintain records and physically identify all finished goods produced under the production unit (Work Order).
Clarity of laws	Score	List of appropriate regulations if available
Level of enforcement	Score	System of approval as appropriate
Level of knowledge	Score	Valid documents with appropriate approvals
7.4.2 The company shall maintain records of sales of finished goods produced under each production unit (Work Order).
Clarity of laws	Score	List of appropriate regulations if available
Level of enforcement	Score	System of approval as appropriate
Level of knowledge	Score	Valid documents with appropriate approvals
7.4.3 The Company shall provide for valid shipping documents (Invoice, Packing List, BL, etc) that detail finished goods in respect to the sales order and production unit (Work Order) to provide traceability to legal licensed harvesting areas in commercial FMUs.
Clarity of laws	Score	List of appropriate regulations regarding sales and export of wood products
Level of enforcement	Score	System to approve export as appropriate
Level of knowledge	Score	Valid shipping documents with appropriate approvals

Forest Management Unit refers to the defined area of land that is zoned by the government for commercial management, which the Company claims to have right to harvest timber and is subject to evaluation.　

PDF version (whole report) [size 164 KB]

Comparison of Schemes on Legality

Matrix - Peninsular Malaysia [PDF, size 86 KB]
Matrix - Sabah Malaysia [PDF, size 73 KB]
Matrix - Sarawak Malaysia [PDF, size 120 KB]
Matrix - Forest Stewardship Council, Controlled Wood [PDF, size 38 KB]
Matrix - Global Forest & Trade Network [PDF, size 38 KB]
Matrix - Global Forestry Services [PDF, size 41 KB]
Matrix - Malaysian Timber Certification Council [PDF, size 70 KB]
Matrix - Tropical Forest Trust, CoC system [PDF, size 37 KB]
Matrix – Technology [PDF, size 208 KB]
DNA as a management and forensics tool in the tropical timber trade [PDF, size 24 KB]

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