Chain of Custody Checklist & Assessment Report

Transcription

1 Chain of Custody Checklist & Assessment Report Organization Ganda Deras Sdn. Bhd. ( U) Reference # G Contact Person Office Address Sawmill Address Ms. Karen (Office CoC MR) Mr. Tuang (Admin Manager) Mr. Liew Kim Fa (Sawmill Manager) No. 2-2, Lot 33, Block E, Lintas Square, Jalan Lintas, Kota Kinabalu, Sabah, Malaysia. Sg. Tiagau Luasong, Tawau, Sabah, Malaysia. Proposal # Assessment # MYP Assessment Date 13/11/2014 Date of Report Date of close out 22/11/ Telephone Lead Assessor Jessie Ooi Fax Assessor - runlongkk@yahoo.com, ganda.runlong@yahoo.com Approved By Dr. Kevin Grace Statement of Participation GFS WTP # GFS 025 WTP Issuance Date 8 th January 2013 Expiration Date 7 th January 2018 Scope of Assessment Company Type Scope of Assessment Product Group Source of Material Species Sawmill Ganda Deras Sdn. Bhd. Sawn timber Verified Legal: Kalabakan, Sabah, Malaysia. White Seraya (Parashorea spp), Dark Red Seraya [Obah Suluk, Heavy Majau, Red seraya](shorea spp Rubroshorea) Limitations of Assessment The information presented in this report is based on documentation and other information presented by the client and observations made during the field verification under the assessment. GFS reporting of information presented by the client are taken as accurate, unless evaluated differently through the observations made during the assessment. All information presented in the report is accurate and complete to the best of knowledge of GFS.

2 Background Information: Ganda Deras Sdn. Bhd. (Ganda Deras) is registered in Sabah, Malaysia with the company registration #: U. Ganda Deras has intended to obtain Verified Legal (VL) timber status for White Seraya, Red Seraya and Selangan Batu sawn timber for export purpose. Ganda Deras is a Global Forestry Services Wood Tracking Program participant under statement # GFS 025 WTP since Associated Organizations & Subcontractors: Ganda Deras is associated to Runlong Sdn. Bhd. which is a timber trading in Kota Kinabalu. Runlong has voluntarily suspended in year Ganda Deras is also associated to Data Jadi Sdn. Bhd. that receives logs and produces sawn timber at the same premise with Ganda Deras. Description of the Supply Chain: Ganda Deras purchases raw material (logs) from Yayasan Sabah Area (SFMLA 09/97) FMU20 with 2 approved suppliers: Eramewa and Top Merchant. Common species used are White Seraya, Red Seraya, Dark Red Seraya, Obah Suluk, Heavy majau, and Selangan Batu. # Supplier License # Coupe # 1 Eramewa Sdn. Bhd. SFMLA 09/97 Coupe: SDK 06/08, SDK 15/09 YS #: YS 3/07 (2), YS 3/07 (3) 2 Top Merchant Sdn. Bhd. SFMLA 09/97 Coupe: SDK 06/08, SDK 16/09, SDK 13/09 YS#: YS #/07 (5), YS 3/07 (6) A-C 2538 Sales market includes local and local traders that export sawn timber to Europe and United Kingdom. Highlights of Assessment 1.0 Legal Requirements Ganda Deras maintains license and permits for all wood processing activities. List of regulations are updated. Five out of nine foreign workers at Ganda Deras do not have evidence of insurance coverage. GAP 010/2014 (Minor) Outstanding Yayasan Sabah conducts the health & safety inspection at Ganda Deras to fulfil their DOSH requirements. In year 2013, Yayasan Sabah visited the mill three times; 21 st April and 24 th October In regards to YSG recent OSHA report, Ganda Deras has provided the updated health and safety committee and sent the letter to Yayasan Sabah for request to attend the external training in year Documented Policy & Procedures Ganda Deras has a formal signed policy dated 2 nd December 2009, which defined that the company will work in compliance to legal requirements, purchase verified legal raw material & products and also support Sustainable Forest Management. Ganda Deras has formal COC procedures for purchasing, receiving, planning & production control, as well as administration & sales. All raw materials purchased from approved suppliers are based on Supplier Evaluation and Risk Assessment. Currently, the company has 2 approved raw material suppliers. Ganda Deras practices COC system as according to the procedure. All related and associated documents such as SFD Timber Disposal Permits, Removal Passes and Royalty Payment Receipts are maintained.

3 Ganda Deras should revise the existing procedures to change the timber status from Verified Legal Origin (VLO) to Verified Legal (VL). (Observation) 3.0 Organisation & Training Ganda Deras has appointed five staff as COC management personnel and the organization understands their responsibilities. A GFS WTP refreshment course was conducted to the management key personnel and ground staff on 19 November Record of training was made available upon document review. Ganda Deras has conducted refresher training in regards of COC procedures (VL) with Mr. Liew Kim Fa (COC Management Representative) on 22 nd April 2014, 08 th July 2014 and 13 th October GAP 007/2014 (Minor) Closed 4.0 Purchasing, Importing & Receiving The auditor observed that there is physical identification (painting or signage) for VL logs at the log yard (receiving point) as prescribed in the Receiving procedure. However, the COC representatives know which batches those logs belong to and samples taken are traceable to TDP and Removal Pass. Ganda Deras do not import logs or sawn timber for their timber production. 5.0 Process Controls Ganda Deras is using batch number system for production planning (i.e. VL 07/ ). Batch number is issued based logs received at the log yard, and the company segregates VL by species (WS, RS, DRS, OS, HM, SB). Batch number, environmental status and species are identified on sawmill standard forms such as log breakdown record, tally sheet (sorting), bundling list and packing list. Work in progress material and end products are identified with batch number, environmental status and species. There were no VL sawn timber production and stock at Ganda Deras during the October assessment. 6.0 Sales, Exports & Customs Ganda Deras has formal COC procedures for sales. All the sales documents such as sales invoice, packing list, and product declaration form have reference to the batch number and environmental status. Sales of VL claimed finished goods for export shall fill in Product Declaration Form. Ganda Deras did not provide export documents for sawn timber exported during the assessment (17 th April 2014). GAP 009/2014 (Minor) Outstanding 7.0 Records & Data Ganda Deras COC procedures for purchasing, log receiving, sawmill and admin & sales clearly prescribed all key documents relevant to VLO logs / sawn timbers shall be kept for at least 5 years. Gaps 2014 GAP # Type Checklist # 007/2014 Minor 3.2, 3.3 Description 1. The assessor observed there is no evidence of annual refresher training in regards to health and safety with workers in the mill or office. 2. The assessor observed there is no evidence of annual

4 009/ /2014 Minor (Outstanding) Minor (Outstanding) 6.3.2, refresher training in regards to COC procedures with the new COC Management Representative, Mr. Liew Kim Fa in the mill or office. Ganda Deras did not provide a set of sawn timber export documents approved by forestry and custom departments for previous shipments or non-vl shipments to Thailand and Middle East. Five out of nine foreign workers name sampled on 17 th April 2014 do not have foreign workers insurance coverage. Gaps 2014 GAP # Type Status Description 007/2014 Minor Closed 1. Ganda Deras has conducted refresher training in regards of 2. Ganda Deras has provided the letter in October requesting to participate DOSH external training in year COC procedures (VL) with Mr. Liew Kim Fa (COC Management Representative) on 22 nd April 2014, 08 th July 2014, and 13 th October Highlights of Close out visit (if applicable) Date: Recommendations Ganda Deras Sdn. Bhd. has demonstrated compliance to the Wood Tracking Program requirements (WTP-005 v08 Jan 2014) and is recommended to maintain the Statement of Participation. Minor gaps identified in this assessment should be addressed before the next surveillance visit. The next surveillance visit is scheduled in May End of Summary Report

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