Chain of Custody Checklist & Assessment Report

Transcription

1 Chain of Custody Checklist & Assessment Report Organization Macro Aim Sdn. Bhd. ( K) Reference # G Contact Mr. Lam Mew Ching Assessment Date 27 December 12 Address Lot # 832, Jalan Telok Mengkuang, Telok Panglima Garang, Port Klang, Selangor. Report Date 14 Jan 13 Address Not Applicable (NA) Lead Assessor Jessie Ooi Telephone / Assessor NA Fax Close out Date - Macroaim02@yahoo.com Approved Kevin Grace Scope of Assessment Company Type Scope of Assessment Product Group Source of Material Species Trading Macro Aim Sdn. Bhd., office in Port Klang, Selangor, Malaysia. Subcontractors : Macro Aim (Moulding) Sdn. Bhd. ( K) moulding processing mill in Port Klang, Selangor, Malaysia. Futurewood Products Sdn. Bhd. ( X). There were no logs available on site for verification. Solid wood products (sawn timber, S4S mouldings, decking, truck flooring) Verified Legal Origin (VLO): Uni-Lumber Sdn. Bhd., Sabah, Malaysia (GFS 018 WTP). MTCS : Lengkap Arif (FCOC 003) Bukit Benum Timber Sdn. Bhd., Hutan Simpan Ulu Jelai, Pahang and Uni-Lumber Sdn. Bhd., Perak, Malaysia (SGS-MTCS COC-0127). Keruing (Dipterocarpus spp), Selangan Batu (Shorea spp), Seraya (Shorea spp), Dark Red Seraya (Majau spp) 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: Macro Aim Sdn. Bhd. is a trading company that has wood processing facilities under Macro Aim Moulding Sdn Bhd located at No. 832, Jalan Telok Mengkuang, Telok Panglima Garang, Port Klang, Selangor. Macro Aim has their registered office at Lot B1323, 13th Floor, Wisma Merdeka, Phase II, Jalan Tun Razak, Kota Kinabalu, Sabah, Malaysia but has since moved their operations in January 2012 to Port Klang, Selangor, Malaysia. The main products are S4S sawn timber and moldings made from tropical hardwood species from Peninsular Malaysia. At present, Macro Aim focuses to purchase only Keruing specie from their VLO supply chain (Bukit Benum, Pahang, Uni-Lumber Sdn. Bhd. (GFS 018 WTP), Perak, Malaysia. Macro Aim Sdn. Bhd. has recently been audited by SCS for MTCS PEFC certification. Associated organizations: Macro Aim has two associated companies, Macro Aim (Moulding) Sdn. Bhd ( K) for molding process and Futurewood Products Sdn. Bhd. ( X) for saw mill services. Macro Aim also uses Supreme Sdn. Bhd. associate with Futurewood for kiln dry services. Futurewood Products Sdn. Bhd. is certified under PEFC in association with the MTCS system (PEFC / ). Description of the Supply Chain: From January to September 2012, Macro Aim purchased Verified Legal Origin (VLO) logs from Bukit Benum Sdn. Bhd., Pahang and sawn timber from Uni-Lumber (GFS 018 WTP) from Sabah, Malaysia. Bukit Benum is a logging contractor that supplies logs under harvesting licenses in Pahang that are part of the MTCS PEFC certification system (SGS MTCS/FM 0104) Issued on 5 July The logs are tagged and identified using Removal Passes issued by the State Forestry Department to register and transport the logs for the forest checking station to the mill. During that period of time, Macro Aim has claimed VLO sawn timber stocks that have been verified under GFS WTP from the forest license area in Sabah, Malaysia. From October to December 2012, Macro Aim has decided to go for PEFC/MTCS certification, where the timber materials are sourced from Lengkap Arif (FCOC-003) and Bukit Benum Sdn. Bhd.. There are no outstanding VLO sawn timbers stocks from Sabah (no further claim allowed after this surveillance visit) or other new VLO sawn timber supplier identified. Sales markets include Finland, UK, Hong Kong, Middle East, Korea, Thailand, China, South Africa, Taiwan, India and others.

3 Highlights of Assessment Documented Policy & Procedures Macro Aim has demonstrated adequate implementation of the COC procedures to meet the Global Forestry Services Wood Tracking Program (GFS WTP) requirements with addressing 3 minor gaps issued from the previous assessment. However, the company was found to be inconsistent in several areas that resulted in 6 minor gaps. All Minor GAPs are to be corrected before the renewal of Macro Aim Statement of Participation by 22 nd April Macro Aim has formal policy and procedures for purchasing of logs, monitoring sub contractor sawmill and kiln dry services for VLO logs, receiving of sawn timbers, molding and sales of VLO sawn timbers. Organization & Training Macro Aim has an organization chart in place. Ms. Suganthi A/P Vellayan & Ms. Hadrawati Bt. Sakur have been appointed as the Chain of Custody Management Representative and identified key personnel for the roles and responsibility for the critical control points (Purchasing, Sawmill, Receiving, Molding & Sales) that support Macro Aim chain of custody system (CAR 02/2012 Closed). Ms. Suganthi, Ms. Hadrawati Bt Sakur and Ms. Lam have attended the chain of custody training from 30 th July to 01 August 2012 at Macro Aim office in Teluk Mengkuang, Port Klang. Purchasing & Receiving The company has a supplier risk assessment for sawn timber purchased from Sabah suppliers registered under the GFS WTP as well as VLO log purchasing from Bukit Benum Sdn. Bhd.. Bukit Benum produces logs from harvesting license #: LT 020/2010 (KP), LT 015/2011 (KP) and LT 019/2011 (KP) in Pahang that are part of the MTCC / PEFC certification system (SGS MTCS/FM 0104) Issued on 5 July Purchase Contracts observed during the assessment were not up to date and did not define the timber environmental status (CAR 11/2012 Minor-Outstanding). Unclear marking for sawn timber received inside Macro Aim storage area as the tags are blurred that can result in poor identification between VLO and MTCS material (CAR 15/2013 Minor). Planning & Process Controls Macro Aim has demonstrated allocation of raw material (logs) into a defined production order # (e.g.: MA 03/2012) which is based on customer purchase order #. Macro Aim has consistent records for total VLO logs sent into production at the sawmill and total VLO sawn timbers sent into molding production. However, inconsistency of referencing lot # and environmental status on key documents used in the moulding section was observed (CAR 16/2013 Minor). Observed inconsistent identification of environmental status on sawn timbers received from approved suppliers and subcontractor (CAR 17/2013 Minor). Sales Macro Aim has provided supplier invoices and packing list against the stock list developed that is consistent to total VLO sawn timbers sold from January to August Macro Aim has developed a Product Declaration Form (MA AS-006) for selling VLO products, however did not correctly specify the VLO status of the timber sold. (CAR 13/2012 Minor-Outstanding) Records & Data Macro Aim has prepared monthly summary for total VLO logs purchased, issued into production by batch # and total sales of non VLO from January to date (CAR 14/2012 Minor-Closed).

4 Legal Requirements The existing Temporary Business license is expired. Macro Aim has applied for extension of the Temporary Business License dated 27 December 2012 (CAR 18/2013 Minor). No list of legal regulation was presented during the assessment (Observation 006). All Minor GAPs are to be corrected by 22 nd April Non-Conformance : (GAPs) GAP # Type Checklist # Description 11/2012 Minor 3.3 Purchase Contracts observed during the assessment were not up to date and did not define the timber environmental status. 12/2012 Minor 4.5 The production order logbook did not indicate the environmental status and production order # / lot #. 13/2012 Minor 5.1 Macro Aim has developed a Product Declaration Form (MA AS- 006) for selling VLO products, however did not correctly specify the VLO status of the timber sold. 15/2013 Minor 3.4 Unclear marking for sawn timber received inside Macro Aim storage area as the tags are blurred that can result in poor identification between VLO and MTCS material. The existing monthly log and sawn-timber receiving summary does not indicate total unclassified material received. 16/2013 Minor 4.3 Inconsistency of referencing lot # and environmental status on key documents used in the moulding section was observed. 17/2013 Minor 4.4 Observed inconsistent identification of environmental status on sawn timbers received from approved suppliers and subcontractor. 18/2013 Minor The existing Temporary Business license is expired. Macro Aim has applied for extension of the Temporary Business License dated 27 December Observations: Obs # Checklist # Description The current environmental policy did not reference the non-use of CITIES species unless there is a valid CITIES certificate There is lack of evidence that key production personnel have been trained in the newly revised COC system The current approved supplier list incorrectly indicate the VLO timber suppliers as Verified Legal Compliance and Runlong is no longer a valid GFS WTP to trade VLO sawn timbers The Admin and Sales procedure did not clearly state how the sales invoice can be traceable to the production order #. The Invoice and Packing Lists from Macro Aim are revised to include the Production Order number No list of legal regulations was presented during the assessment.

5 Non-Conformance : (GAPs) Closed Out : GAP # Type Checklist # Description 02/2012 Minor Closed Macro Aim identified key personnel for the roles and responsibility for the critical control points (Purchasing, Sawmill, Receiving, Molding & Sales) that support Macro Aim chain of custody system. 08/2012 Minor Closed Macro Aim COC sawmill and moulding procedures states that Macro Aim shall maintained the log list to record logs going into the breakdown and Stock Receiving for sawn timbers going into the moulding mill with a lot #. 14/2012 Minor Closed Macro Aim has provided the monthly summary record from total sales of non-vlo from August to date. Highlights of Close out visit (if applicable) Not applicable Date Recommendations All the gaps should closed before the renewal of GFS WTP statement. Some actions are required in order to close the minor gaps identified: Copies of Purchase Contracts need to be available for all purchases from approved suppliers. The production order log book must indicate the environmental status and production order # / lot #. Consistent physical marking of lot # & environmental status on sawn timbers and key documents. Correct environmental status Product Declaration Form must be used for ALL exported products. End of Summary Report