4/26/2013. Sarawak s Timber Legality Verification System and. Outline of Briefing. Introduction to STA. Introduction to STA.

Transcription

1 Sarawak s Timber Legality Verification System and Timber Trade Statisticsti ti Annie Ting Senior Manager Sarawak Timber Association Malaysia Outline of Briefing STA Philosophy An overview of forestry in Sarawak Timber Resources Natural Forests Plantation Forests Definition of legal logs in Sarawak context Legality verification process of logs in Sarawak Sarawak s logs and timber products export for 01 Challenges Work Towards Mutual Benefits STA s commitment The Sarawak Timber Association (STA) is a trade association formed on 7 August 1971 by 3 timber associations in Sarawak STA represents over 450 member companies, some are multinational companies dealing with forest industry and timber trade, including forest plantations STA member companies are involved in logs and timber products which include sawntimber, plywood, mouldings/dowels, furniture, furniture parts, laminated boards and other panel products Only one association in State for both upstream and downstream activities Among the objectives of STA are:- To promote, foster and enhance the relations between all members of the Association; To promote and uphold as prudently as possible the interests and well being of all members of the Association; To promote, ascertain and protect the continuous well being of the timber trade and industry in the State of Sarawak and so on; 3 4 STA Philosophy Objectives (Con t) To promote and encourage the practice of sustainable forest management and forest conservation; To promote and improve the welfare of those communities in the vicinity of the licence area; to provide scholarships and financial contributions for the advancement of education and training; and To encourage and promote scientific and industrial research useful to the timber and forestry industries. In implementing its objectives, STA has the philosophy of :- adopting a consultative, constructive and pragmatic approach to address all the issues concerning timber industry for the benefits of all parties 5 6 1

2 An Overview of Forestry in Sarawak SARAWAK is one of the 13 States in Malaysia and located on the island of Borneo with a landmass area of 1.4 million hectares Systematic management of Sarawak s forest existed as early as 1919 when the Forest Rules was gazetted and with the establishment of Forest Department Sarawak Land and forests are under the jurisdiction of the State, as stipulated by the Federal Constitution of Malaysia (Article 74()) ( the Legislature of a State may make laws with respect to any of the matters enumerated in the State List ) All natural forests are owned by the State Government 7 Natural Forests Timber harvesting is presently carried out in the designated areas with total annual log production of 9,610,434m³ for 011 and 9,458,563m³ for 01 There are some,500 tree species, of which about 300 are used commercially Main tree species harvested are Meranti (Shorea spp.), Kapur (Dryobalanops spp.), Keruing (Dipterocarpus spp.) Selangan Batu (Shorea spp.), Bindang(Agathis spp.), and Nyatoh(Palaquium spp.) Timber Resources Planted Forests Approximately 300,000 hectares had been planted with fast growing indigenous and exotic timber species Expected yield is around m³ per hectare Main species planted is Acacia (Acacia mangium), kelampayan (Neolamarckia cadamba), batai (Paraserianthes falcataria) and Eucalyptus spp. 8 Definition of Legal Logs in Sarawak Context Logs harvested by licensed persons from approved areas and verified by the relevant authorities in accordance with the laws, regulations and procedures pertaining to forestry and trade in Sarawak 9 Main governing laws and regulations in the implementation of LEGALITY VERIFICATION SYSTEM of logs in Sarawak Forests Ordinance, 1958 (Cap 16) Forest Rules, 196 Land Code, 1958 Natural Resources and Environment Ordinance, 1993 (Cap. 84) Wild Life Protection Ordinance, 1998 (Cap 6) Sarawak Forestry Ordinance, 1995 (Cap 17) Sarawak Timber Industry Development Corporation Ordinance, 1973 Malaysian Customs Act, Regulating Authorities (Forestry) Ministry of Resource Planning and Environment (MRPE) Formulate policies on land, forests and minerals 4 agencies dealing with forestry and timber industry under the Ministry: Forest Department Sarawak (FDS) 1 Established in 1919 Sarawak Forestry Corporation (SFC) Incorporated in 1995 Sarawak Timber Industry Development Corporation 3 (STIDC) Incorporated in 1973 Harwood Timber Sdn Bhd (HTSB) 4 (wholly-owned subsidiary of STIDC) Incorporated in rd Party Certified Work Processes 1

3 Venue/ activities Organisation Licensing Forest/Forest Landing Forest Checking Station Mill Export Point Process & Approve General Harvesting Plan (GP) Forest Department Sarawak Process Application for Timber Licence Issue Timber Licence Process & Approve General Harvesting Plan For export For local processing Shifting Agriculture (SA) Sarawak Forestry Corporation Harwood Timber Sdn Bhd (wholly-owned subsidiary of STIDC) Sarawak Timber Industry Development Corporation Royal Malaysian Customs Department Approve Detailed Harvesting Plan Issue Permit to Enter Coupe (PEC) 1-5 Monitor Harvesting, LPI Tagging & Property Mark Verify and Issue Removal Pass (Transit/Export) Royalty Issue Removal Assessment Pass (Transit) Inspect Log Inspection & Physical Physical Tallying & & Verify Issue Export Inspection & Issue Transportation/ Clearance Milling Issue ECC Shipping Pass Certificate Logs (ExCC) Issue Export Licence Provide Clearance for 13 Export Sample of GP Terrain IV A plan to ensure that harvesting operations in a Timber Licence area will be carried out in accordance with the prescriptions of the Forest Management Plan 14 Approve Detailed Harvesting Planning (DP) Sample of DP DP practices at the coupe level. It contains prescriptions for harvesting block layout, harvesting method to be used, surveyed road network, conservation areas for the protection of totally protected plants, critical resources and sites 15 Issue Permit to Enter Coupe (PEC) 1-5 The PEC operational stages Operation Hill Forest 1 Cut, demarcate and survey coupe boundary Preparation of topographical work map 3 Alignment and survey of proposed road on the ground 4 Start road construction as planned on the map approved, demarcate and survey logging block boundaries and carry out tree enumeration 5 Fell and extract timber The objective of PEC is to manage the orderly execution of approved harvesting activities. 16 Monitoring Harvesting, Log Production Identity (LPI) Tag, and Property Mark Daily Production Return (DPR) Registered Property Mark Every licensee is assigned with a Registered Property Mark to denote the ownership of the logs Log Production Identity (LPI) number tag Objectives (i) To ensure that the harvesting operations are within the approved areas and comply with the terms and conditions of Timber Licence (ii) To ensure only approved LPI tag is used by licensee and information contained in this tag is captured in ForestNet: WAN built to host Sarawak s own Log Tracking System (LoTS) through the submission of Daily Production Return (DPR) to Forest Checking Station Office Daily record on logs production within the approved licence area Sample of Daily Production Report (DPR) with LoTS reference no

4 Royalty Assessment Issue Endorsement Clearance Certificate (ECC) FOR EXPORT (Yellow) FOR LOCAL PROCESSING (Orange) Sample of Endorsement Clearance Certificate (ECC) Royalty Assessment Tag fixed at the place of royalty assessment (Forest Checking Station) To ensure that trees felled and extracted as logs under Timber Licence are assessed for Royalty, Premium and Cess due to the State Government in an orderly and timely manner Conduct physical inspection to ensure logs are royalty assessed before being removed from Forest Checking Station As a pre-requisite for SFC to issue Removal Pass (Transit) 19 0 Issue Transportation/ Shipping Pass Issue Removal Pass (Transit) Sample of Removal Pass (Transit) To monitor and control all royalty assessed logs are removed from the Forest Checking Station to the designated mill/export point Sample of Transportation Pass Sample of Shipping Pass 1 Inspect & Verify Milling Logs Log Inspection & Issue Export Clearance Certificate (ExCC) Sample of Inspection Report E To monitor and control all royalty assessed logs are removed from the Forest Checking Station to the designated mill/export point Sample of Export Clearance Certificate (ExCC) To ensure that export logs do not form part and parcel of the reservation quota logs under Section 67A of Forest Ordinance Sample of Log Verification Check Form 3 4 4

5 Verify and Issue Removal Pass (Transit/Export) Issue Export Licence Sample of Removal Pass (Export) After checking and verifying the parcel of logs deemed for export, a Removal Pass (Transit) will be issued to allow the logs to be removed from the transit log pond to the vessel 5 Sample of Custom Declaration Form 6 Issue Export Licence Sample of K Form K Form is an electronic export declaration form endorsed with export licence issued by STIDC Consignor details Strength of the System Forest laws has been enacted since 1919 e-permit Container details STIDC export permit no Consignee details Forwarding Agent details Value in USD and MYR Freight Rate (MYR) Unit Value FOB (MYR) Volume (cubic metre) Gross Weight (kg) Four agencies (Forest Department Sarawak, Sarawak Forestry Corporation, Sarawak Timber Industry Development Corporation, Harwood Timber Sdn Bhd) - Check and balance Tariff Code Measurement (cubic metre) Gross Weight (kg) Unit Value (MYR) FOB Applicant details 7 8 Contribution from the Forestry and Timber Industry Sarawak Logs and Timber Products Export for Year 01 In 01, total export value from the forestry and timber amounted to 7.45 MYR billion (.41 USD billion) to the State Particle Board 0.84% Dowels Moulding 0.06% 0.9% Veneer 3.6% Woodchips (tonne/kgm) Laminated Board/ 0.66% Blockboard Flooring Medium Density 0.01% 0.65% Other Timber Products Fibreboard (MDF) 1.64% 3.94% Logs 4.15% Sarawak export value: 7.45 MYR billion/.41 USD billion Collectively, forestry and timber industry employ some 100,000 workers in Sarawak Sawntimber 10.53% Plywood 53.60%

6 Sarawak Logs and Timber Products Export for Year 01 Year Timber Products Volume (m3) Value (RM) Value (USD) Volume (m3) Value (RM) Value (USD) Logs 3,089,713 1,844,305,66 595,705,184 3,301,814 1,800,137,05 581,438,859 Sawntimber 731, ,380,331 3,959,767 81, ,958,639 53,539,86 Plywood,67,156 3,794,760,815 1,5,696,359,641,487 3,995,848,55 1,90,646,999 Veneer 0,191 3,814,76 75,198,458 6,638 69,97,384 87,00,70 Moulding 6,33 14,417,396 4,656,776 8,91 1,353,35 6,897,060 Dowels 1,139 3,898,750 1,59,84 1,11 4,841,486 1,563,785 Particle Board 107,956 55,855,330 18,041,104 10,535 6,814,478 0,88,888 Medium Density Fibreboard (MDF) 190,90 5,19,34, 81,437,015, 184,761 93,996,915, 94,960,1, (tonne/kgm) 158,338 4,09,044 7,781,658 64,100 49,455,761 15,974,06 Woodchips Laminated Board/ Flooring 1,04 49,843,535 16,099,31 0,593 48,36,78 15,61,034 Blockboard 1,1 1,31, ,749 1, ,837 89,353 Other Timber Products 77,05 116,415,374 37,601,816 94,671 11,894,449 39,371,541 Total 7,083,144,68,87,834,483 7,454,531,337,407,791,58 Sarawak Logs and Timber Products Export by Destination for Year 01 Europe 3 USAOthers Asia Middle East 1 Sarawak export value: 0.4%.0% 1.40% 10.69% 7.45 MYR billion/ 8.79%.41 USD billion Korea 7.99% Japan 38.7% Taiwan 10.04% India 15.99% China 4.37% 31 3 Sarawak Logs and Timber Products Export by Destination for Year 01 Sarawak Logs and Timber Products Export to USA for Year 01 Year Destination Value (RM) Value (USD) Value (RM) Value (USD) Asia 1 758,604,609 45,07, ,198,530 57,49,734 Japan,95,366,55 944,884,611,853,14,701 91,556,533 China 3,811, ,67,104 35,84, ,46,04 India 1,150,765,66 371,693,79 1,19,157,80 385,063,399 Taiwan 769,48,693 48,53, ,779,857 41,853,647 Korea 449,437,1 145,166,84 595,30,48 19,80,840 Middle East 47,4,38 137,998, ,411,975 11,696,10 Europe 3 34,36,13 11,098,863 31,493,873 10,17,46 USA 15,159, ,46, ,560, ,630, Others 119,967,451 38,749,17 104,64,088 33,799,080 Total 7,083,144,68,87,834,483 7,454,531,337,407,791,58 Dowels 1.35% Moulding 1.9% Veneer 0.88% Middle East 8.79% Europe 3 0.4% Asia % Sawntimber 0.99% Sarawak export value to USA: MYR million/ USD million Plywood 75.15% Asia 1 :Bangladesh, Brunei, Cambodia, Hong Kong, Indonesia, Malaysia, Maldives, Nepal, Pakistan, Philippines, Singapore, Sri Lanka, Thailand, Timor Leste, Vietnam Middle Eas t :Algeria, Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libyan Arab Jamahiriya, Oman, Qatar, Saudi Arabia, Sudan, Syrian Arab Republic, Turkey, United Arab Emirates, Yemen Europe 3 :Belgium, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Lithuania, Luxembourg, Macedonia, Malta, Netherlands, Poland, Romania, Slovenia, Spain, Sweden, United Kingdom, Georgia, Kyrgyzstan, Norway, Russian Federation, Switzerland, Ukraine Includes: Logs, Sawntimber, Plywood, Veneer, Mouldings, Dowels, Particle Board, Medium Density Fiberboard (MDF), Laminated Board/Flooring, Woodchips, Blockboard, and Other Timber Products Other Timber Products include railway sleepers, finger-jointed, laminated veneer lumber, densified wood, door and their frames Sarawak Logs and Timber Products Export to USA for Year 01 Challenges Year (01) Sarawak Total Export Sarawak Export to USA Volume (m 3) Value Value Volume (m 3) Value Value Timber Products (RM) (USD) (RM) (USD) Logs 3,301,814 1,800,137,05 581,438, ,080,610 Sawntimber 81, ,958,639 53,539, ,489, ,041 Plywood,641,487 3,995,848,55 1,90,646,999 56, ,138,576 36,543,41 Veneer 6,638 69,97,384 87,00, ,39,717 49,495 Moulding 8,91 1,353,35 6,897, ,934,770 64,95 Dowels 1,11 4,841,486 1,563, ,037, ,079 Particle Board 10,535 6,814,478 0,88,888 Medium Density Fibreboard (MDF) 184,761 93,996,915 94,960,1 Woodchips (tonne/kgm) 64,100 49,455,761 15,974,06 Laminated Board/ Flooring 0,593 48,36,78 15,61,034 8,453 8,351,143 9,157,334 Blockboard 1, ,837 89,353 Other Timber Products 94,671 11,894,449 39,371, ,71, ,551 Total 7,454,531,337,407,791,58 150,560,08 48,630,455 Different legislative requirements by different importing countries for legal timber products Ever widening definition of legality and sustainability by different international ti organisations as well as Non-Governmental Groups -----Non Tariff Barrier

7 Work Towards Mutual Benefits STA s Commitments Urgent need to reach international consensus on the definition of legality and sustainability and verification method which can be adopted by all stakeholders Work closely with the forestry authorities of Sarawak to ensure the supply of timber and timber products is legal, based on the Legality Verification of logs in Sarawak (LVLS) All stakeholders including NGOs and the interest parties are required to play their part as well as to take effective actions for mutual benefit STA always support the trade of legal timber. This can be achieved through firm commitment from both timber producing and consuming countries We hope this presentation has provided a better understanding on our legality system. With this understanding, we hope IWPA members will increase the import of timber products from Sarawak into American and Canadian markets THANK YOU Sarawak Timber Association 11 th Floor, Wisma STA, 6, Jalan Datuk Abang Abdul Rahim, Kuching,Sarawak, MALAYSIA Tel: +(60) 8 33 Fax: +(60) /999 sta@sta.org.my Website: 7