Guyanas Timber Legality Assurance System GTLAS Kenny David
Guyana’s Timber Legality Assurance System (GTLAS) Kenny David Head, FLEGT Secretariat Guyana Forestry Commission
What is the purpose of a Legality Assurance System (LAS)? Ø The purpose of a legality assurance system (LAS) is to provide a reliable means to distinguish between Legal and illegally produced forest products Ø Issuance of licenses by Partner Countries requires a system for ensuring that only legally-produced timber is licensed for export.
Components of a LAS A definition of legally-produced timber Control of the supply chain/Co. C Verification Issuance of licences Independent monitoring of the systems by a third party
Guyana’s TLAS will: 1. cover all products including those intended for both local and export markets; imports are also addressed 2. be based on our existing systems of harvesting, tracking, processing and selling timber; minor adjustments will seek to improve system 3. be based on local legislation and Sustainable Forest Management Principles 4. ensure all timber and timber products follow those guidelines which are established in law
Verification Supply chain and LD Verification is based on the use of source documents in order to manage and control the verifiers in the LD and at critical control points These verifiers can be either: v Static; not likely to change in a given period eg legal status of FSO v Dynamic; likely to change per consignment eg volume of timber or tag numbers.
Verification of FSOs involve: Routine verification – which covers compliance of both static and dynamic verifiers included in Annex II and the WTS Consolidated verification- carried out by the GFC’s MISU to ensure that all static verifiers (from GFC and other Government Agencies) have been verified. FLEGT licence- carried out by the GFC (Timber Legality and Trade Unit) based on each consignment of timber
Annual audits and routine verification Annual audits are conducted for static verifiers relating to the legal status of FSOs which are not likely to change during the course of a year e. g. Certificate of Registration for Cooperative Societies Routine verification are conducted for dynamic verifiers relating to the legal status of FSOs that are likely to change during the course of the year e. g. NIS contributions 1. In the case of “non-compliances”, these will be stored in the electronic datafile; a FLEGT license will not be issued unless these non compliances are rectified.
The Wood Tracking System (WTS) What is a Wood Tracking System? Response: a system for tracking wood, potentially from harvesting in the forest (or from import) to processing at a sawmill or to export. What does it do? It ensures the integrity of the wood flow How does it work? Wood flow is monitored at critical control points within the supply chain
Guyana’s Wood Tracking System the WTS monitors timber as it transforms and flows through the supply chain reconciliation data is gathered at each of the individual control points. information gathered at all the supply chain control points are processed and automatically reconciled with data gathered at previous control points.
Critical Control Points and the Wood Tracking System Source of timber and allocation of logging rights Stock Inventory • Tree Felling • Log Production
Source of Timber and Allocation of Logging rights Wood is sourced from Legally designated areas: o State Forest (large Concession and Small Concessions) o Amerindian Villages o Mining Licenses and Permits o Agricultural Leases o Other Private lands
Log Production TSA Letter of Approval to harvest is issued Small Concessions Other source Areas Tag numbers are affixed to the stump and corresponding produce When logs are scaled the required information is recorded on the Production Register, Removal Permits, Private Property Removal Declaration ü GFC conducts POST HARVEST INSPECTIONS AND Monitor TAG USAGE from Removal Permits and PP Removal Declaration
Tagging
Log Transportation of logs outside concessions is accompanied by and declared on a Removal Permit which is attached to a Production Register. The two documents lists: All logs with GFC tags Inventory Number (Large concessions) Source Block (Large concessions)
Log Transport In some cases Trip Sheets or Transshipment Permits, linked to a Removal Permit, are used to accompany logs in transit.
Log Transport Removal of wood products from non state forest concessions are accompanied by a Private Property Removal Declaration. LOG TRANSPORT ü Inspection of Removal documents are conducted at Forest Stations (Produce is checked against declaration and GFC tag numbers) ü Unannounced Spot Checks are also conducted
Confiscated Timber Produce suspected to be in breach of the regulations Seizure Form Issued Produce is in GFC’s custody Custody Form Issued Produce is in the accused/Agent or another person's custody Payment of Necessary Compensation Produce enters Legality Chain Supply Issuance of Clearance Pass
Primary Processing and sale of timber Processing at a static sawmill Processing in - Forest - Logs entering sawmill are recorded on the Sawmill Record of Produce Received - Primary Processing Leaves forest Accompanied by Removal Permit ü GFC can calculate conversion factors and make reconciliations of input and output volumes, from records submitted and those kept at processing facilities. Sales of sawn lumber are recorded on the Sawmill Sales Form and a monthly declaration made - Volumes of inputs and outputs must also be recorded on the monthly Return of Lumber Sawn and Lumber Produced.
Primary Processing and sale of timber Though lumber leaving a sawmill is not accompanied by an official document, a Bill of Sale is utilized. Lumber entering a lumberyard is recorded on the Record of Produce Received with sales recorded as for sawmills on the Sales Form; both are submitted monthly to GFC
Export of Wood Products Exporter completes an application for export of forest produce (Declares wood source, indicates RP and /or receipt numbers). GFC uses this information for verifying whether the timber was legally obtained. Exporter also applies for a Timber Marketing Certificate. All produce to be exported are graded by a GFC licenced Independent Grader. GFC Grading Inspector conducts a 100% verification of the grades assigned by the Independent Grader. Once satisfied, the Grading Inspector affixes brand complete the relevant sections of the document. The Exporter does likewise (complete document)
Export of Wood Products Exporter applies for an Export Certificate (EC) for products inspected and certified by GFC Exporter completes the customs declaration (C 72) and other forms required by Customs and Trade Administration and attaches the TMC, Commercial Invoice and the application for the Timber Export Certificate. GFC stamps the C 72 and EC with approval for shipment. 2 GFC officers sign authorizing export of a specific batch. CT A
In transit Wood Products This simply refers to timber or timber products which have been shipped from one country (outside Guyana), has arrived at a shipping port in Guyana (temporarily) and will be shipped to another country (outside Guyana) at a later date as the final destination. Produce must be first approved by the Commissioner General of GRA. Ø 1) Produce by sea - This produce is securely kept at the shipping port (until schedule for departure) in a sanitized corner of the transit shed and is not allowed to move beyond this point. This ensures that the produce does not enter the local supply chain.
In transit Wood Products Ø 2) Produce by road - It will be moved via escort and the transit shed owner or shipping agent must have a monetary bond in place to cover the shipment. The relevant information on the produce is kept by the Shipping Agent as well as the GRA. Again, this produce is not allowed to enter the supply chain and as such, is not covered by the Wood Tracking System.
Imported Wood Products Main Documents required for imports; Bill of Lading (BOL)/Airway Bill with the Freight Certified Stamp Original invoice with the company's stamp or signature, certified invoice or Form C 21 Freight certified airway bill or delivery order Bills or receipts (original) Form C 32 A or B For CARICOM goods, a CARICOM Certificate of Origin Import Permit
Imported Wood Products In the context of a due diligence system, Guyana will recognise the legal origin of imported timber and timber products if the imported products are accompanied by any of the following: FLEGT License from a VPA partner country; certificates issued under internationally-recognised forest management and wood products certification schemes such as the FSC or PEFC, or other legality of origin verification schemes provided they are supported by a due diligence system similar to the EUTR; and Due diligence assessment report completed by the importer based on the EUTR principles
Tracking GFC tag numbers provide a robust means of verifying legal source for tracking export logs. For TSAs tracking back to stumps is possible. For processed wood products the Application for Export of Forest Produce provides the means to identify relevant RPs and sales receipts to track to a batch of potential source logs. Using the GFC tag numbers identified it is possible to track to source concession (or private/ agricultural/mining property).
FLEGT Licencing Scheme FLEGT Licences will be issued per shipment(consignment) Will be issued by the TLTU (housed within the GFC) Applications for FLEGT licenses can be made at the GFC Forest Stations or electronically (on line) A FLEGT License or GFC Legal Origin Certificate (optional) is not issued to an FSO until the GCTA has confirmed in writing (via Email) that the FSO and the consignment of timber and timber products have met all customs requirements Reports of all licenses issued will be prepared and made available to the JMRC
Other agencies and the GTLAS Other agencies involved in the GTLAS include: 1. the Guyana Lands and Surveys Commission 2. The Ministry of Indigenous Peoples Affairs 3. the Ministry of Social Protection 4. Guyana Registrar of Companies 5. Guyana National Insurance 6. Guyana Revenue Authority 7. The Environmental Protection Agency 8. Guyana Geology and Mines Commission These agencies will feed information into the MISU ( central database) and will be used in establishing compliance of FSO with GTLAS
Independent Forest Monitoring and Independent Audit IFM audit 1 - under Norway Agreement (2012) IFM audit 3 -(2016) IFM audit 2 - under Norway Agreement (2014) IA (one audit to meet both requirements) IA further developed (more robust than IFM) and will ultimately subsume requirements IA under VPA being designed – (IFM forms the base for indicators/verifiers)
THANK YOU
- Slides: 30