WWF GFTN/TRAFFIC

COMMON LEGALITY FRAMEWORK FOR ASSESSING LEGALITY OF FORESTRY OPERATIONS, TIMBER PROCESSING AND TRADE LEGALITY LEARNING SESSION

November 2013

TRAFFIC

TRAFFIC works to ensure that trade in wild plants and animals is not a threat to the conservation of nature.

TRAFFIC
To encourage changes in behaviour (policy and practice) of specific target groups who are in a position to reduce that threat and, ensure that wildlife trade contributes to meeting human

needs. To Encourage Change

Policy Practice

Solutions linked to trade in wild animals and plants

TRAFFIC

TRAFFIC International TRAFFIC North America

TRAFFIC Europe

TRAFFIC South Asia

TRAFFIC East Asia TRAFFIC Southeast Asia

TRAFFIC TRAFFIC Central Africa South America

TRAFFIC East and Southern Africa

TRAFFIC Global marine program

Photo: Rail transport Suifenhe, China. Chen Hin Keong, TRAFFIC

Photo: land crossing, Russia-China. Chen Hin Keong, TRAFFIC

Photo: Small boats carrying logs. Chen Hin Keong, TRAFFIC

Photo: Loading logs onto ship, Indonesia. WCS

Photo: containers. WCS

Legality and the Trade Chain

ANY ILLEGAL ACTIVITY anywhere along the Trade Chain = Illegal Product at the end of the Trade Chain
Forest Harvest Processing
Export/Import

Point of sale

Legal activity

Legal product

Illegal activity

Illegal product

A recent hot media event in US

Sourcehttp://blogs.wsj.com/corporate-intelligence/2013/10/09/heres-thereport-that-may-have-prompted-the-lumber-liquidators-raid/

Where illegal logging usually happened

Legality The Problem

What is Legal?
No generally agreed definition GFTN need a common approach

More focus on legality

Capacity in multi-stakeholder processes

Business demand for clarity

Legal Framework What is the Legal Framework?

...a simple checklist developed by WWF/GFTN and TRAFFIC to enable governments and companies to access and understand relevant aspects of laws, regulations, administrative circulars and contractual obligations that affect forestry operations, timber processing and trade. When the Common Legality Framework is applied to a specific country, this is known as a National Legality Framework.
Visit the GFTN website for a guidance document and more detailed information on the Legal Framework and the countries where we have developed a National Legality Framework: http://gftn.panda.org/resources/tools/?202483/Framework-for-Assessing-Legality-of-ForestryOperations-Timber-Processing-and-Trade

Legality Framework - purpose

WWF-GFTN/TRAFFIC Legality Framework - Goals

Support target countries Provide a tool covering the whole supply chain

Goals
Provide sub-set of forest focused laws Support the development of a more consistent framework

Help regulators understand what is legal

Common Legality Framework

WWF-GFTN/TRAFFIC Common Legality Framework

A broad set of principles & criteria

Indicators and guidance notes/ verifiers are based on national legislative base

Legality Framework development process

WWF-GFTN/TRAFFIC Framework - Development Process
1 2
Compiling the legal base

Six part process

Initial stakeholder consultation

Drafting the national framework

Preparing a common framework

More stakeholder consultation and revise national framework

Legal and audit expert review

Common Legality Framework - Principles

WWF-GFTN/TRAFFIC Framework - Principles
1. Access, Use Rights and Tenure 2. Harvesting regulations 6. Environmental regulations 7. Conservation regulations

3. Transportation of logs & wood products

4. Processing regulations

Principles

8. Social regulations

9. Taxes, fees and royalties

5. Import and export regulations

Common Legality Framework - Use

WWF-GFTN/TRAFFIC Framework
Advice for producer and consumer A tool for addressing EU, Australian and US legislation

As a universal framework

Common Legality Framework

Certification bodies legality verification Schemes Certification standards development

Capacity building for stakeholders Strengthening GFTN processes

Common Legality Framework Due Care/Due Diligence

Possible Principles to meet requirements of Due care and Due diligence through WWF-GFTN/TRAFFIC Framework:
1. Access, use rights and tenure 2. Harvesting regulations
3. Transportation of logs and wood products 4. Processing regulations

5. Import and export regulations 6. Environmental regulations 7. Conservation regulations 8. Social regulations 9. Taxes, fees and royalties

Due Care Framework and Due Care/Due Diligence Legality

What documents should I have?

Import
Shipping

Export
Transport

Processing

Transport

Harvest / Forest

Due CareFramework and Due Care/Due Diligence Legality

Legal verifier Import
Shipping

Export
Transport

Licence Records

Processing

Removal pass Transport pass License Management Plans Harvesting Plans Timber Removal Pass
Land use planning

Transport

Harvest / Forest

Allocation of logging permit/concessions

Due CareFramework and Due Care/Due Diligence Legality

Legal verifier Example documents needed
- Import license - Customs import declaration form 1 - Removal pass

Import
Shipping

- License according to products and company type with FD - Register with relevant agencies - Record of cess paid - Export license - Customs export Form

Export
Transport

Removal pass Transport pass License Management Plans Harvesting Plans Timber Removal Pass Land use planning Allocation of logging permit/concessions

- Record of demarcated boundaries - Environmental impact assessments - Forest management plans - Records of timber products, species and quantity - Quarterly reports on areas harvested - Records of silvicultural treatments - Records of post-felling inventories - Records of gazettement - Records of classification - Concessionaire agreements

Transport

Harvest / Forest

Environmental/Conservation

Licence Records

Processing

Domestic sales

Fees

Due Care - Guidance for Establishing Legality

This document is for educational and informational purposes only and is not intended and should not b e construed as legal adv ice. Persons seeking legal advice on compliance with the Lacey Act or any other law, regulation, or requirement should consult with a qualified legal professional.

Due Care - Guidance for Establishing Legality (Cont.)

This document is for educational and informational purposes only and is not intended and should not b e construed as legal adv ice. Persons seeking legal advice on compliance with the Lacey Act or any other law, regulation, or requirement should consult with a qualified legal professional.

Due Care - Guidance for Establishing Legality (Cont.)

This document is for educational and informational purposes only and is not intended and should not b e construed as legal adv ice. Persons seeking legal advice on compliance with the Lacey Act or any other law, regulation, or requirement should consult with a qualified legal professional.

Due Care - Guidance for Establishing Legality (Cont.)

This document is for educational and informational purposes only and is not intended and should not b e construed as legal adv ice. Persons seeking legal advice on compliance with the Lacey Act or any other law, regulation, or requirement should consult with a qualified legal professional.

Legality Framework practical use

Malaysia FSC national steering Committee considering use of the Malaysian Legality Framework as a foundation for FSC national standard setting Namibia considering use of the Common Legality Framework to evaluate and assess the national legislation on forestry and supply chain Help regulators and companies understand what is legal Australia Act

Tanzania develop audit checklist for government officials along the supply chain

Practical examples
Viet nam VPA legality definition development uses the Viet Nam Legality Framework as source reference

Thank you
Chen Hin Keong Forest Trade Programme Leader TRAFFIC hk.chen@traffic.org