GUIDELINES FOR DIRECT IMPORTS OF WOOD FROM MYANMAR

Transcription

1 GUIDELINES FOR DIRECT IMPORTS OF WOOD FROM MYANMAR 2017 M i P A A F V i a X X S e t t e m b r e, n. 2 0 R o m a

2 Rome, 25 august 2017 Authors: D.ssa Maria Vittoria Briscolini Head of Unit DISR III/Competent Authority FLEGT/EUTR - Ministry of Agriculture, Food and Forestry Policies Avv. Gianluca Cicchiello Head of Legal Affairs DISR III/ Competent Authority FLEGT/EUTR - Ministry of Agriculture, Food and Forestry Policies 1

3 Disclaimer In the event of inconsistency or discrepancy between the English version and the Italian version of this publication, the Italian language version shall prevail. Preamble This document is intended to assist Wood Operators and Control Authorities in the proper interpretation of EUTR regulations and its due diligence to import timber from Myanmar. It has been emphasized, from now on, that the contents of this document are informative and general in nature, therefore derogatory and expandable in some respects. Therefore, the documents referred to below for the purpose of proper due diligence to import timber imports from Myanmar do not constitute a compulsory list. Indeed, wood operators may indicate documents issued by the Burmese authorities other than those contained in these guidelines, demonstrating that they have carried out an appropriate risk analysis with respect to the single concrete case as far as wood traceability is concerned. Such exceptions shall be duly substantiated and documented in accordance with Regulation (EU) No 995/

4 INTRODUCTION The Myanmar Government has recently provided further indications and clarifications to improve the traceability of its wood-derived products. In particular, the Ministry of Natural Resources and the Conservation of the Burmese Environment (MONREC) issued a "Statement of Progress in Timber Legality Assurance in Mvanmar" on March 16, 2017, which mentions the recent actions taken. In April 2017, the Ministry submitted to the Commission, through a FLEGT program advisor, a document (PROPOSAL FOR INCREASED TRACEABILITY AND TRANSPARENCY IN THE TIMBER CHAIN OF CUSTODY) in which the current structure of the legality chain, highlighting improved solutions according to two short and medium term scenarios. This last document was a useful point of reference for the organization of a working paper (Update EUTR LAW - May 8, 2017) in MIPAAF offices in May to provide national operators with a more comprehensive picture of the elements useful for the analysis of the risk of illegality. The aforementioned works have taken place: the competent authority FLEGT / EUTR, FederlegnoArredo and the Italian Monitoring Organizations. From the working table it has emerged that the drafting of appropriate guidelines may be a useful and clear reference to companies importing wood or its products derived from Myanmar. LEGALITY OF TIMBER Timber products may only be exported legally through Yangon port: Any timber product exported from other locations in Myanmar, including that via third countries, is illegal Log export ban in place since 1 April 2014: Any round-log exports (HS 4403), including those to third countries, after 31 March 2014 are illegal. SUBJECTS. IDENTIFICATION AND REFERENCE DOCUMENTS For the purposes of understanding the legality processes described in this document it is of fundamental importance to define the following terms: COUPLE SUBJECTS - MONREC: Ministry of Natural Resources and Environmental Conservation (Myanmar) - FD: Forest Department. It is a Department of MONREC that has the responsibility for the conservation of forests and its management. Control activities are implemented in most cases by local offices providing legal documents. - MTE: Myanmar Timber Enterprise. State enterprise identified by MONREC as the sole responsible person for the cutting, transport and sale of logs. Sometimes it may also be involved in the subsequent processing (at state-run sawmills managed by private parties) and in the sale of finished products. Offices operating at the first levels of the chain are involved in the extraction of logs, while those operating downstream of the deposits have specific functions dedicated to the export. 3

5 - SUBCONTRACTOR: Private companies to which the MTE uses as subcontractor for the cutting of forests. IDENTITY It should be noted that the following numbers can be engraved multiple times on the log to prevent loss of such references as a result of damage or wear. This procedure will probably be avoided in the future thanks to the use of possible alternative marking systems in the process of being defined. STANDING TREE NUMBER (STN): number attributed by the FD to each "standing" tree that is cut. This reference remains to the base (on the trunk) of the cut tree and is useful for verifying the traceability through the documents provided by the legislative framework. Once the tree is cut and the trunk is cut into logs, each of the latter holds the reference to the original tree as well as the progressive logs obtained (eg / 305-2). REVENUE MARK: a triangular mark in each log obtained from the trunks that are cut by the following information: cutting region, forest district, cutting year. ROYALTY (REVENUE) NUMBER: Unique serial number assigned to the single log entered on the market (eg 4419 which corresponds to log 305-1, or the first log obtained from tree 305). DEPOT ENTRY NUMBER: unique number (replacing the reference tree at standing tree number 305-1) assigned by the MTE to each log at the time of entry into the local MTE deposit. After entering the deposit, this number assumes the reference role for traceability. REFERENCE DOCUMENTS MONREC AAC: Annual established cut-off plan between FD, MTE and MONREC. The plan includes annual withdrawal amounts for each forest district, specifying the type of timber (teak / other hardwood) and any cutting prohibitions. To date, this document is not public, but there is a conciliation between the various stakeholders so that it may become. MARKING BOOK: a document drawn up by the FD that contains the list of trees to which an STN has been assigned and a map on which they are located. This document is sent to the MTE with the AAC. HARVESTING PERMIT: document by which the local FD authorizes the MTE to access the forest to start cutting operations. FORM B: document compiled by the MTE during the cutting operations in which all the felled trees and those that have been rejected are annotated. FORM C: document compiled by MTE following the cut in which the size of individual logs obtained is reported. 4

6 FORM D: document compiled by the MTE in the presence of the FD following the transport in the forest where references are made to each log, to the measurements verified jointly with the FD, and to the grade (grade). At the same time as the document is compiled, all the logs will accompany the log in the next steps. FORM S-18: document compiled by the FD in the presence of the MTE at the same time as the Form D, which contains the same references. TRACKING NOTE: document compiled by MTE acting as a letter and accompanying logs from the marketplace to the local MTE deposit. Such transport can only be carried out by truck. The document shows the name of the species, revenue number, STN, measurements, grade, region / district, date and vehicle license plate. AGENCY DEPOT REGISTER: register of logs entry into the local MTE store in which each log is assigned a Depot Entry Number (ID) in addition to the features of the log. EXTRACTION TRANSPORT NOTE: document prepared by MTE for logs transfers from local MTE deposit to Yangon MTE deposit. REMOVAL PASS: a document drawn up by the FD authorizing a private entity to handle logs purchased at MTE deposits (both local and Yangon) to the processing site. Trunks that are handled under the responsibility of MTE at Yangoon's store do not have this document but an Extraction Transport note. SPECIFICATION LIST (SPECS): document issued by the Yangoon MTE deposit for the material for export processing where the single log is identified through the Depot Entry Number. In the recent revision of the document, for better traceability, the Royalty (Revenue) Number is also reported, with which the origin of timber can be uniquely identified. PERMIT TO CUT AND PROCESSING: permission issued by FD authorizing a private subject to submit a match of logs to sawing / processing. This authorization is not adimitted for the material processed under the direct responsibility of MTE at state sawmills. CERTIFICATE OF LEGALITY: a document issued by MONREC that testifies to the legality of the timber trade subject to export by a private person. This document does not accompany the supplies of material purchased directly from the MTE. GREEN BOOK: dossier issued by MTMA (Myanmar Timber Merchant Association) for timber processed by private association members holding various documents, in addition to information about the cutting region. On the basis of the above, the table below lists the documents that can serve as a useful reference for the analysis of legality for EUTR purposes: PURCHASING FROM PRIVATE SUBJECT Certificate of legality Permit to cut (and other documents possibly collected in the Green Book) Removal pass (from the MTE Yangoon deposit to the sawmill) Specification list Removal pass* (from local MTE deposit to sawmill) PURCHASING FROM MTE Specification List Extraction Transport note* (from local MTE deposit to Yangon MTE deposit) 5

7 Extraction Transport note* (from local MTE deposit to Yangon MTE deposit) Form D* o Trucking note Certificate of Conformity of Form D to the Form S-18 (from the cutting year 2017/2018)** * If the sales match originates from more upstream pipes (ie in the case of timber from different forests) you need to have multiple documents for the single lot. To date, "Form D" is not always available, however, the "Trucking" notes are provided with the relevant information contained in Form D. ** This document, which is not yet available, should constitute a further guarantee for operators as it certifies the correspondence of documents issued by the FD with those issued by the MTE and which can be obtained from the operator. CONCLUSION While Myanmar remains a high risk of illegality, including the CPI value, or the Perceived Corruption Index (28/100), the recent actions taken by local institutions aim at a better and more transparent management of the chain forest. In view of the identified risk, in accordance with the positions expressed by other European Competent Authorities, it is considered necessary, for the sake of proper due diligence, to collect detailed information on the supply chain that will allow it to reach the identification of the forest of origin of the timber. Therefore, the documents highlighted in the summary contained in these guidelines can be a valuable aid in the documentary collection provided for by Regulation (EU) No 995/2010 as well as an easier identification of reference documents for imports of wood from Myanmar for the competent authority FLEGT / EUTR. The analysis of the collected documents, through specific references in the same, should allow the operator to verify the necessary correspondence. It may also be useful to undertake a number of risk minimization measures such as on-the-spot checks and/or audits by third parties, as defined in art. 6 (c) of Regulation (EU) No 995/2010. Finally, it is noted that these indications refer only to imports from Myanmar. Imports of Burmese timber through triangles from third countries involve complex supply chains, which increase the risk of illegality. In such cases, it is certainly necessary to take specific action to verify the actual reclassification of the imported material to the previously identified legality documents. In the event that all the documentary evidence is not available, importing is undoubtedly a disadvantage. This document will be subject to periodic reviews. 6