LEGALITY LEARNING SESSION

October 2013

WWF GFTN/TRAFFIC

COMMON LEGALITY FRAMEWORK FOR ASSESSING LEGALITY OF FORESTRY

OPERATIONS, TIMBER PROCESSING AND TRADE

Legality  and  the  Trade  Chain  

Legal  activity   Illegal  activity  

ANY  ILLEGAL  ACTIVITY  anywhere  along  the  Trade  Chain    =  Illegal  Product  at  the  end  of  the  Trade  Chain  

Legal  product   Illegal  product  

Harvest  Forest     Processing   Export/Import   Point  of  sale  

Legality    The  Problem  

What  is  Legal?  

No  generally    agreed  definition  

More  focus    on  legality  

Capacity  in    multi-­‐stakeholder    

processes  

Business  demand    for  clarity  

GFTN  need      a  common  approach  

Legal  Framework  

What is the Legal Framework?

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-Forestry-Operations-Timber-Processing-and-Trade

WWF-­‐GFTN/TRAFFIC  Legality  Framework  -­‐  Goals  

Support  target    countries  

Provide  sub-­‐set  of    forest  focused  laws  

Help  regulators  understand      what  is  legal  

Support  the    development  of  a  more    consistent  framework  

Provide  a  tool  covering    the  whole  supply  chain  

Legality  Framework  -­‐  purpose  

Goals  

A  broad  set  of  principles  &  criteria  

Indicators  and  guidance  notes/  verifiers  are  based  on    

national  legislative  base    

WWF-­‐GFTN/TRAFFIC        Common  Legality  Framework  

Common  Legality  Framework  

Six  part  process  

WWF-­‐GFTN/TRAFFIC  Framework  -­‐  Development  Process  

Legality  Framework    development  process  

                 Compiling  the  legal  base  1

                 Initial  stakeholder  consultation  2

Drafting  the  national  framework  

Preparing  a  common  framework  

More  stakeholder  consultation    and  revise  national  framework  

Legal  and  audit  expert  review  

3

4

5

6

   

7.  Conservation    regulations  

8.  Social  regulations  

9.  Taxes,  fees    and  royalties  

1.  Access,  Use  Rights    and  Tenure  

2.  Harvesting    regulations  

 3.  Transportation  of  logs    

&  wood  products    

4.  Processing    regulations  

5.  Import  and    export  regulations  

6.  Environmental    regulations  

Common  Legality  Framework  -­‐  Principles  

Principles  

WWF-­‐GFTN/TRAFFIC  Framework  -­‐  Principles  

Advice  for    producer  and    consumer  

Strengthening    GFTN  processes  

   legality  verification    

Schemes  

Certification    standards    

development  

Capacity  building  for  stakeholders  

A  tool  for  addressing    EU,  Australian  and    

US  legislation  

Common  Legality    

Framework  As  a  universal    framework  

Common  Legality  Framework  -­‐  Use  

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  

   

Common  Legality  Framework    Due  Care/Due  Diligence  

Possible  Principles  to  meet  requirements  of  Due  care  and  Due  diligence  through  WWF-­‐GFTN/TRAFFIC  Framework:  

Due  Care  

Harvest  /  Forest  

Processing  

Shipping  

Export  

Import  

Transport  

Transport  

 Legality  Framework  and  Due  Care/Due  Diligence  

What  documents  should  I  have?  

Harvest  /  Forest  

Processing  

Shipping  

Export  

Import  

Transport  

Transport  

Licence  Records  

Removal  pass  Transport  pass  

License  Management  Plans  Harvesting  Plans  Timber  Removal  Pass    

Land  use  planning  

Allocation  of  logging    permit/concessions  

Due  Care  Legality  Framework  and  Due  Care/Due  Diligence  

Legal  verifier  

Harvest  /  Forest  

Processing  

Shipping  

Export  

Import  

Transport  

Transport  

Licence  Records  

Removal  pass  Transport  pass  

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

Example  documents  needed  

Due  Care  Legality  Framework  and  Due  Care/Due  Diligence  

-­‐  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  

-­‐  Import  license  -­‐  Customs  import  declaration  form  1  -­‐  Removal  pass  

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

-­‐  Records  of  gazettement  -­‐  Records  of  classification  -­‐  Concessionaire  agreements  

Legal  verifier  

Fees

Environm

ental/C

onservation  

Domestic  sa

les  

Due  Care  -­‐  Guidance  for  Establishing  Legality  

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

This document is for educational and informational purposes only and is not intended and should not be construed as legal advice. 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.)  

Help  regulators  and  companies  understand      

what  is  legal    Australia  Act  

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  

Tanzania    develop  audit  checklist  for  government  

officials  along  the  supply  chain  

Viet  nam    VPA  legality  definition  development  uses  

the  Viet  Nam  Legality  Framework  as  source  

reference  

Practical  examples  

Thank  you    

Chen  Hin  Keong  Forest  Trade  Programme  Leader  

TRAFFIC  hk.chen@traffic.org