Chain of Custody Checklist & Assessment Report

Transcription

1 Chain of Custody Checklist & Assessment Report Organization Forescom Plywood Sdn. Bhd. ( P) Reference # GFSS Contact Person Office Address Mill Address Alvin Yii / Wee Ing Kiong (MR) Lot 515, Piasau Industrial Estate, Jalan Datuk Edward Jeli, P.O.Box 1599, Miri, Sarawak, Malaysia. Lot 430 Block 38 Kemena Industrial Estate, Bintulu, Sarawak. Proposal # Assessment # GFSS P Assessment Date 01 Nov 2016 Date of Report Date of close out 01 Nov 2016 NA Telephone HP Wee: Lead Assessor Lai Jia Woei Fax Assessor NA alvinyii@shinyang.com.my ikwee@shinyang.com.my Statement of Participation GFS WTP # GFS 077 WTP Issuance Date 18 May 2015 Expiration Date 17 May 2020 Scope of Assessment Company Type Scope of Assessment Product Group Source of Material Species Limitations of Assessment Manufacturing Approved By Dr. Kevin Grace Forescom Plywood Sdn. Bhd. ( P) Plywood & Veneer Verified Legal: Sarawak, Risk Assessment: LPF 0018, LPF 0019 and LPF 0017 planted Albizzia falcataria; PEFC certified mixed tropical hardwood species from Shin Yang Trading Sdn. Bhd. (Anap Muput License T/4317), Eucalyptus from OJI Forest & Products Co. Ltd., Radiata Pine from Yuasa Trading Co. Ltd., and Acacia mangium from KTS Lumber Sdn. Bhd. Planted species: Eucalyptus spp; falcata: Molucca albizia (Adenanthera falcataria, Albizia falcataria, Paraserianthes falcataria, Falcataria moluccana); Pinus spp. Natural Forest Species: Mixed tropical hardwoods (Shorea spp & Dipterocarpus spp.) 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: Shin Yang Group is registered in Sarawak, Malaysia with both forestry concessions (timber licenses and Licensed to Plant Forests / LPF) and several associated production mills in Miri and Bintulu, Sarawak. This exercise involves office and factory of Forescom Plywood Sdn Bhd ( P) based in Bintulu, Sarawak. The mill produces plywood that mainly sold to Japan buyers. Forescom Plywood has obtained PEFC Chain of Custody certificate, certificate #: SIRIM-COC-0096 for their products (plywood) with expiry on 06 th November 2019 and FSC Chain of Custody certificate, certificate #: SCS-COC for their products (plywood) with expiry on 24 th October Associated Organizations & Subcontractors: Shin Yang Group is associated to Forescom Plywood Sdn. Bhd., which is involved in processing plywood and veneer in Bintulu. The Shin Yang group also has 2 plywood mills in Miri & 2 mills in Bintulu, Sarawak: Shin Yang Plywood Sdn. Bhd. Mill in Miri, Sarawak. Shin Yang Laminated Board Sdn. Bhd. - Mill in Miri, Sarawak. Zedtee Plywood Sdn. Bhd. Mill in Bintulu, Sarawak. Shin Yang Plywood (Bintulu) Sdn. Bhd. Mill in Bintulu, Sarawak. Description of the Supply Chain: Forescom Plywood Sdn. Bhd. (Forescom Plywood) purchases low risk raw material (logs / veneer) from Shin Yang Timber License and LPF areas within Sarawak; about 20-30% comes from Shin Yang concession areas while other logs are purchased from local suppliers. Shin Yang Forest Area License # Total Area (ha) Expiry Risk Assessment Shin Yang Trading Sdn. Bhd. (Anap Muput) Logging contractor: Zedtee Plywood Sdn. Bhd. OJI Forest & Products Co. Ltd. Yuasa Trading Co. Ltd. Shin Yang Forestry Sdn. Bhd. KTS Lumber Sdn. Bhd. T/ , Feb 2068 LPF 0018 LPF 0019 LPF 0017 Total: 195,126 Planted: NA Total: 36,840 Planted: NA 18 Nov Nov 2059 PEFC/MTCS Certified FMC 0006 Expiry 24 July 2019 Low Risk (sourced from Australia: Eucalyptus) Low Risk (sourced from New Zealand: Radiata Pine) Low Risk planted species: Albizia falcataria PEFC/MTCS Certified Masama Forest Plantation Management Unit (Coupe 1 to 5) 11,946 ha - Acacia & Albizia FPMC 0003 Expiry 11 August 2019 Acacia & Albizia FSC Certified: SGS-COC , SGS-CW with expiry 09 th March 2019 Low Risk: Acacia mangium

3 Forescom Plywood also obtains Verified Legal material (veneer) based on the results of the Risk Assessment: Sojitz New Zealand Ltd. FSC Certified: SGS COC expiry on 17 May Sales markets mainly include Japan (90%), Australia, South Korea, Taiwan, Middle East, Thailand and India. Highlights of Assessment 1.0 Legal Requirements Forescom Plywood maintains permits for all their wood processing and export activities. There was no evidence of non-compliance to legal requirements. All permits and required fees were paid. 2.0 Documented Policy & Procedures Forescom Plywood has a policy statement for PEFC that avoids using controversial wood materials and implementation of a COC system. Forescom Plywood has a System manual and procedures for FSC, PEFC and GFS WTP. The COC procedures (FPB/PRO/COC/004; FPB/PRO/COC/005; FPB/PRO/COC/015) clearly define the key activities of the company from purchasing and receiving raw material (logs) from their own PEFC certified concession as well as through the formal risk assessment. The Processing procedure (FPB/PRO/COC/005) defines the identification of VL logs in the log yard and allocation to a manufacturing order (MAC / MO) that is often directly linked to a Sales Contract for export. It also defines the use of VL material under a MO# through the production process from rotary through drying, pressing, sizing, grading and packing of final products. Procedure (FPB/PRO/COC/008) recognizes the maintenance of key records from delivery through production while procedure (FPB/PRO/COC/007) describes the system for Sales Contracts and linkages to manufacturing orders. Forescom Plywood has also created work instructions from log pond through processing and warehousing of finished goods to enhance the procedures. 3.0 Organisation & Training Forescom Plywood has a system manual that includes an organizational structure that named Mr. Wee Ing Kiong as COC Management Representative. Key staff and mill workers that were interviewed randomly had adequate knowledge on the COC procedures and safety awareness during work. Records on training conducted were documented and maintained. 4.0 Purchasing, Importing & Receiving Shin Yang HQ arranges all purchasing, production orders based on sale contracts and sales of products on behalf of Forescom Plywood. The assessing team observed environmental status was not referenced in the internal transfer pricelist as per the procedures (Observation 001). Forescom Plywood has undertaken a risk assessment of key suppliers including their own concession areas, imported material and locally purchased logs using the GFS WTP 015 risk assessment format. The results of the risk assessment showed 6 suppliers were documented low risk and eligible to be classified as VL. Plantation logs received as VL are identified using a light green barcode tag that differentiates VL from other logs. Transport of logs is covered by Removal Pass (Royalty & Transit) issued by Sarawak Forestry Department. Plantation log # randomly sampled from the log cutting report and traceable through crosschecking to COC light green barcode number and further to Transit Removal Pass and Royalty Removal Pass.

4 5.0 Process Controls Forescom Plywood revised the Procedure for Production Process (FPB/PRO/COC/005) to include identification of the MAC# / MO# and corresponding Sales Contract # as applicable. Demonstration of the COC system was observed based on Manufacturing Order (MO# FPSB/16/0258) for plywood production with size 5.2mm x 910mm x 1820mm. The MO# identified the production as VL under Description of Goods. The VL material used was Albizia sp. that comes from Shin Yang Forestry Sdn. Bhd. (LPF0017 and LPF0018). Forescom Plywood consistently identified work in progress with signs at all machines and areas that handling VL material. The company also uses blue stack labels on each stack of material that references the manufacturing order (MO# FPSB/16/0258) & VL status. Finished goods are identified with a barcoded pack label that identified the MO# and the VL status. A Sales Contract was identified for the material in addition to the MO#. 6.0 Sales, Exports & Customs Sales procedures define the sales of verified legal products that include identification of the WTP number on invoices, packing lists and use of a product declaration form. Forescom Plywood has a valid import and export license. Forescom revised procedure for Sales (FPB/PRO/COC/007 that all VL products shall be identified with MAC# / MO# to clearly track the material to the production unit. Also all VL production and sales must include the correct GFS VL status. No sales of VL products, only demonstration of the COC system. 7.0 Records & Data COC procedures identify that CoC documents shall be maintained for a minimum of 5 years. Forescom Plywood has records for purchasing VL material but no records of production or sales of Verified Legal raw material or products as the company has only used VL material for demonstration of the CoC system. Summary results: Major Gap* = 0; Minor Gap = 0 GAPs: GAP # Type Checklist # Description of GAP * Major Gaps are considered as non-conformance Status of Outstanding GAPs: GAP # Type Checklist Status Description of close out Highlights of Close out assessment Not applicable. Date:

5 Recommendations Forescom Plywood Sdn. Bhd. has demonstrated continual compliance to the Wood Tracking Program requirements (WTP-005 v10 March 2015) based on the results of the assessment conducted on 01 November 2016 and is recommended to maintain the Statement of Participation. The next surveillance visit to be scheduled in April End of Summary Report