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Document 22015D1382
Decision No 3/2015 of the Joint Implementation Committee set up by the Voluntary Partnership Agreement between the European Union, of the one part, and the Republic of Indonesia, of the other part of 8 July 2015 adopting amendments to the Annexes I, II, and V of the Agreement [2015/1382]
Decision No 3/2015 of the Joint Implementation Committee set up by the Voluntary Partnership Agreement between the European Union, of the one part, and the Republic of Indonesia, of the other part of 8 July 2015 adopting amendments to the Annexes I, II, and V of the Agreement [2015/1382]
Decision No 3/2015 of the Joint Implementation Committee set up by the Voluntary Partnership Agreement between the European Union, of the one part, and the Republic of Indonesia, of the other part of 8 July 2015 adopting amendments to the Annexes I, II, and V of the Agreement [2015/1382]
OJ L 213, 12/08/2015, p. 11–64
(BG, ES, CS, DA, DE, ET, EL, EN, FR, HR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
In force
12.8.2015 |
EN |
Official Journal of the European Union |
L 213/11 |
DECISION No 3/2015 OF THE JOINT IMPLEMENTATION COMMITTEE SET UP BY THE VOLUNTARY PARTNERSHIP AGREEMENT BETWEEN THE EUROPEAN UNION, OF THE ONE PART, AND THE REPUBLIC OF INDONESIA, OF THE OTHER PART
of 8 July 2015
adopting amendments to the Annexes I, II, and V of the Agreement [2015/1382]
THE JOINT IMPLEMENTATION COMMITTEE,
Having regard to the Voluntary Partnership Agreement between the European Union and the Republic of Indonesia (hereinafter referred to as the ‘Agreement’), which following ratification by the Parties entered into force on 1 May 2014,
Whereas:
(1) |
The Agreement provides in Article 22, paragraph 3 that the Joint Implementation Committee may adopt amendments to the Annexes to this Agreement, |
(2) |
The Parties have agreed that there is a need to update the Annexes I, II, and V to the agreement in order to reflect changes made after the conclusion of the Agreement in the relevant Indonesian legislation and guidelines concerning the application of the Indonesian Timber Legality Assurance System. |
(3) |
The proposed changes are aimed at further strengthening the TLAS and facilitate participation in the system by all economic operators. |
HAS DECIDED AS FOLLOWS:
Article 1
The Annexes I, II and V to the Agreement are replaced by amended version as set out in the Annex to this Decision.
Article 2
This Decision shall be drawn up in duplicate in the Bulgarian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish, Swedish and Indonesian (Bahasa Indonesia) languages, each of these texts being authentic. In case of divergence of interpretation the English text shall prevail.
Article 3
This Decision shall enter into force on 1 August 2015.
Done in Jakarta, Indonesia, 8 July 2015.
For the Republic of Indonesia
Dr Ir. Ida Bagus Putera PARTHAMA, M.Sc
DG Sustainable Forest Management, MOEF
For the European Union
Colin CROOKS
Acting Head of the EU Delegation to the Republic of Indonesia
ANNEX
‘ANNEX I
PRODUCT COVERAGE
The list in this Annex refers to the Harmonised Commodity Description and Coding System established by the International Convention on the Harmonised Commodity Description and Coding System of the World Customs Union.
‘ANNEX IA
THE HARMONISED COMMODITY CODES FOR TIMBER AND TIMBER PRODUCTS COVERED UNDER THE FLEGT LICENSING SCHEME
Chapter 44:
HS CODES |
DESCRIPTION |
||
|
Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms. |
||
4401.21 |
|
||
Ex. 4401.22 |
|
||
4403 |
Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared. (Prohibited from export under the Indonesian law. In line with Article 3(3) of the VPA, products under this HS code may not be FLEGT licensed and therefore may not be imported into the Union). |
||
Ex. 4404.10 |
Chipwood and the like - coniferous |
||
Ex. 4404.20 |
Chipwood and the like - non-coniferous - - Chipwood |
||
Ex. 4404 |
Hoopwood; split poles; piles, pickets and stakes of wood, pointed but not sawn lengthwise; wooden sticks, roughly trimmed, but not turned, bent or otherwise worked, suitable for the manufacture of walking-sticks, umbrellas, tool handles or the like. (Prohibited from export under the Indonesian law. In line with Article 3(3) of the VPA, products under this HS code may not be FLEGT licensed and therefore may not be imported into the Union). |
||
4406 |
Railway or tramway sleepers (cross-ties) of wood. (Prohibited from export under the Indonesian law. In line with Article 3(3) of the VPA, products under this HS code may not be FLEGT licensed and therefore may not be imported into the Union). |
||
Ex.4407 |
Wood sawn or chipped lengthwise, sliced or peeled, planed, sanded or end-jointed, of a thickness exceeding 6 mm. |
||
Ex. 4407 |
Wood sawn or chipped lengthwise, sliced or peeled, not planed, not sanded or not end-jointed, of a thickness exceeding 6 mm. (Prohibited from export under the Indonesian law. In line with Article 3(3) of the VPA, products under this HS code may not be FLEGT licensed and therefore may not be imported into the Union). |
||
|
Sheets for veneering (including those obtained by slicing laminated wood), for plywood or for similar laminated wood and other wood, sawn lengthwise, sliced or peeled, whether or not planed, sanded, spliced or end-jointed, of a thickness not exceeding 6 mm |
||
4408.10 |
Coniferous |
||
4408.31 |
Dark Red Meranti, Light Red Meranti, and Meranti Bakau |
||
4408.39 |
Other, except coniferous, Dark Red Meranti, Light Red Meranti, and Meranti Bakau |
||
Ex. 4408.90 |
Other, except coniferous and tropical wood specified in Subheading Note 2 to this chapter (not from bamboo nor rattan) |
||
|
Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sanded or end-jointed. |
||
4409.10 |
|
||
Ex. 4409.29 |
|
||
|
Particle board, oriented strand board (OSB) and similar board (for example, waferboard) of wood or other ligneous materials, whether or not agglomerated with resins or other organic binding substances |
||
Ex. 4410.11 |
|
||
Ex. 4410.12 |
|
||
Ex. 4410.19 |
|
||
Ex. 4411 |
Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other organic substances (not from bamboo nor rattan) |
||
|
Plywood, veneered panels and similar laminated wood |
||
4412.31 |
|
||
4412.32 |
|
||
4412.39 |
|
||
Ex. 4412.94 |
|
||
Ex. 4412.99 |
|
||
Ex. 4413 |
Densified wood, in blocks, plates, strips or profile shapes (not from bamboo nor rattan) |
||
Ex. 4414 |
Wooden frames for paintings, photographs, mirrors or similar objects (not from bamboo nor rattan) |
||
Ex. 4415 |
Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums of wood; pallets, box pallets and other load boards, of wood; pallet collars of wood (not from bamboo nor rattan) |
||
Ex. 4416 |
Casks, barrels, vats, tubs and other coopers' products and parts thereof, of wood, including staves (not from bamboo nor rattan) |
||
Ex. 4417 |
Tools, tool bodies, tool handles, broom or brush bodies and handles, of wood; boot or shoe lasts and trees, of wood (not from bamboo nor rattan) |
||
Ex. 4418 |
Builders' joinery and carpentry of wood, including cellular wood panels, assembled flooring panels, shingles and shakes (not from bamboo nor rattan) |
||
Ex. 4419 |
Tableware and kitchenware, of wood (not from bamboo and rattan) |
||
|
Wood marquetry and inlaid wood; caskets and cases for jewellery or cutlery, and similawr articles, of wood. |
||
Ex. 4420.90 |
|
||
|
Other articles of wood |
||
Ex. 4421.90 |
|
||
Ex. 4421.90 |
|
Chapter 47:
HS CODES |
DESCRIPTION |
|
Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard: |
4701 |
Mechanical wood pulp |
4702 |
Chemical wood pulp, dissolving grades |
4703 |
Chemical wood pulp, soda or sulphate, other than dissolving grades. |
4704 |
Chemical wood pulp, sulphite, other than dissolving grades |
4705 |
Wood pulp obtained by a combination of mechanical and chemical pulping processes |
Chapter 48:
HS CODES |
DESCRIPTION |
Ex. 4802 |
Uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes, and non-perforated punch-cards and punch tape paper, in rolls or rectangular (including square) sheets, of any size, other than paper of heading 4801 or 4803 ; hand-made paper and paperboard (not from non-wooden nor recycled material) |
Ex. 4803 |
Toilet or facial tissue stock, towel or napkin stock and similar paper of a kind used for household or sanitary purposes, cellulose wadding and webs of cellulose fibres, whether or not creped, crinkled, embossed, perforated, surface-coloured, surface-decorated or printed, in rolls or sheets (not from non-wooden nor recycled material) |
Ex. 4804 |
Uncoated kraft paper and paperboard, in rolls or sheets, other than that of heading 4802 or 4803 (not from non-wooden nor recycled material) |
Ex. 4805 |
Other Uncoated paper and paperboard, in rolls or sheets, not further worked or processed than as specify in Note 3 to this chapter (not from non-wooden nor recycled material) |
Ex. 4806 |
Vegetable parchment, greaseproof papers, tracing papers and glassine and other glazed transparent or translucent papers, in rolls or sheets (not from non-wooden nor recycled material) |
Ex. 4807 |
Composite paper and paperboard (made by sticking flat layers of paper or paperboard together with an adhesive), not surface-coated or impregnated, whether or not internally reinforced, in rolls or sheets (not from non-wooden nor recycled material) |
Ex. 4808 |
Paper and paperboard, corrugated (with or without glued flat surface sheets), creped, crinkled, embossed or perforated, in rolls or sheets, other than paper of the kind described in heading 4803 (not from non-wooden nor recycled material) |
Ex. 4809 |
Carbon paper, self-copy paper and other copying or transfer papers (including coated or impregnated paper for duplicator stencils or offset plates), whether or not printed, in rolls or sheets (not from non-wooden nor recycled material) |
Ex. 4810 |
Paper and paperboard, coated on one or both sides with kaolin (China clay) or other inorganic substances, with or without binder, and with no other coating, whether or not surface-coloured, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size (not from non-wooden nor recycled material) |
Ex. 4811 |
Paper, paperboard, cellulose wadding and webs of cellulose fibres, coated, impregnated, covered, surface-coloured, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size, other than goods of the kind described in heading 4803 , 4809 or 4810 (not from non-wooden nor recycled material) |
Ex. 4812 |
Filter blocks, slabs and plates, of paper pulp (not from non-wooden nor recycled material) |
Ex. 4813 |
Cigarette paper, whether or not cut to size or in the form booklets or tubes (not from non-wooden nor recycled material) |
Ex. 4814 |
Wallpaper and similar wall covering; window transparencies of paper (not from non-wooden nor recycled material) |
Ex. 4816 |
Carbon paper, self-copy paper and other copying or transfer papers (other than those of heading 4809 ), duplicator stencils and offset plates, of paper, whether or not put up in boxes (not from non-wooden nor recycled material) |
Ex. 4817 |
Envelopes, letter cards, plain postcards and correspondence cards, of paper or paper board; boxes, pouches, wallets and writing compendiums, of paper or paperboard, containing an assortment of paper stationary (not from non-wooden nor recycled material) |
Ex. 4818 |
Toilet paper and similar paper, cellulose wadding or webs of cellulose fibres, of a kind used for household or sanitary purposes, in rolls of a width not exceeding 36 cm, or cut to size or shape; handkerchief, cleansing tissues, towels, tablecloths, serviettes, napkins for babies, tampons, bed sheets and similar household, sanitary or hospital articles, articles of apparel and clothing accessories, of paper pulp, paper, cellulose wadding or webs of cellulose fibres (not from non-wooden nor recycled material) |
Ex. 4821 |
Paper or paperboard labels of all kinds, whether or not printed (not from non-wooden nor recycled material) |
Ex. 4822 |
Bobbins, spools, cops and similar support of paper pulp, paper or paper board whether or not perforated or hardened (not from non-wooden nor recycled material) |
Ex. 4823 |
Other paper, paperboard, cellulose wadding and webs cellulose fibres, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibres (not from non-wooden nor recycled material) |
Note: Paper products originating from non-wooden or recycled material are accompanied by a formal letter from the Indonesian Ministry of Industry validating the use of non-wooden or recycled materials. Such products will not be FLEGT licensed. |
Chapter 94:
HS CODES |
DESCRIPTION |
||
|
Seats (other than those of heading 94.02 ), whether or not convertible into beds, and parts thereof |
||
9401.61 |
|
||
9401.69 |
|
||
|
Other furniture and parts thereof |
||
9403.30 |
|
||
9403.40 |
|
||
9403.50 |
|
||
9403.60 |
|
||
Ex. 9403.90 |
|
||
|
Prefabricated buildings |
||
Ex. 9406.00 |
|
Chapter 97:
HS CODES |
DESCRIPTION |
|
Original engravings, prints and lithographs. |
Ex. 9702.00 |
Wood in the form of logs or squared logs with simple process in the surface, carved or finely threaded or painted, does not have significant added-value and no significant change in shape (HS Ex. 9702.00.00.00 in Indonesia) (Prohibited from export under the Indonesian law. In line with Article 3(3) of the VPA, products under this HS code may not be FLEGT licensed and therefore may not be imported into the Union). |
‘ANNEX IB
THE HARMONISED COMMODITY CODES FOR TIMBER PROHIBITED FROM EXPORT UNDER INDONESIAN LAW
Chapter 44:
HS CODES |
DESCRIPTION |
||
4403 |
Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared. |
||
Ex. 4404 |
Hoopwood; split poles; piles, pickets and stakes of wood, pointed but not sawn lengthwise; wooden sticks, roughly trimmed, but not turned, bent or otherwise worked, suitable for the manufacture of walking-sticks, umbrellas, tool handles or the like. |
||
4406 |
Railway or tramway sleepers (cross-ties) of wood. |
||
Ex. 4407 |
Wood sawn or chipped lengthwise, sliced or peeled, not planed, not sanded or not end-jointed, of a thickness exceeding 6 mm. |
||
|
Wood marquetry and inlaid wood; caskets and cases for jewellery or cutlery, and similar articles, of wood. |
||
Ex. 4420.90 |
|
||
|
Other articles of wood. |
||
Ex. 4421.90 |
|
||
|
Original engravings, prints and lithographs. |
||
Ex. 9702.00 |
Wood in the form of logs or squared logs with simple process in the surface, carved or finely threaded or painted, does not have significant added-value and no significant change in shape (HS Ex. 9702.00.00.00 in Indonesia). |
‘ANNEX II
LEGALITY DEFINITION
INTRODUCTION
Indonesian timber is deemed legal when its origin and production process as well as subsequent processing, transport and trade activities are verified as meeting all applicable Indonesian laws and regulations.
Indonesia has five legality standards articulated through a series of principles, criteria, indicators and verifiers, all based on the underlying laws, regulations and procedures. These standards can be further divided into sub-standards as described in the TLAS Guidelines.
The Indonesian legal framework also includes sustainable forest management standards defined for permit holders operating within production forest zones on state-owned land. All permit holders must comply with the criteria of legality as stipulated in the legality standards. Not later than the date when their first legality certification expires, permit holders operating within production forest zones on state-owned land must comply with both the legality standard and the sustainable forest management standard, as stipulated in the TLAS Guidelines.
Indonesia is committed to regularly review and improve the legality standards through a multistakeholder process.
The five legality standards are:
— Legality Standard 1: the standard for concessions within production forest zones on state-owned lands: Natural Forests, Plantation Forest, Ecosystem Restoration, Forest Management Right (Hak Pengelolaan);
— Legality Standard 2: the standard for community plantation forests and community forests within production forest zones on state-owned lands;
— Legality Standard 3: the standard for privately-owned forests;
— Legality Standard 4: the standard for timber utilisation rights within non-forest zones or from convertible production forest on state-owned lands;
— Legality Standard 5: the standard for primary and downstream forest based industries and traders.
The five legality standards apply to different types of timber permits as set out in the following table:
Permit type or Right |
Description |
Land ownership/resource management or utilisation |
Applicable legality standard |
IUPHHK-HA/HPH |
Permit to utilise timber from natural production forests |
State owned/company managed |
1 |
IUPHHK-HTI/HPHTI |
Permit to establish and manage industrial plantation forest |
State owned/company managed |
1 |
IUPHHK-RE |
Permit for forest ecosystem restoration |
State owned/company managed |
1 |
Forest management right (Perum Perhutani) |
Right to manage plantation forest |
State owned/company managed (state company) |
1 |
IUPHHK- HTR |
Permit for community or private forest plantation |
State owned/community or privately managed |
2 |
IUPHHK-HKM |
Permit for community forest management |
State owned/community managed |
2 |
IUPHHK-HD |
Permit for village forest management |
State owned/managed by a single village |
2 |
IUPHHK-HTHR |
Permit to utilize timber from reforestation areas |
State owned/community or privately managed |
2 |
Private Land |
No permit required |
Privately owned/privately utilised |
3 |
IPK/ILS |
Permit to utilise timber from non-forest zones or from convertible production forest |
State owned/privately utilised |
4 |
IUIPHHK |
Permit for establishing and managing a primary processing company |
Not applicable |
5 |
IUI Lanjutan or IPKL |
Permit for establishing and managing a secondary processing company |
Not applicable |
5 |
TPTs (TPT, TPT-KB, TPT-KO) |
Registered timber/processed-timber depots |
Not applicable |
5 |
IRT |
Household industry |
Not applicable |
5 |
ETPIK Non-Producer |
Non-producer registered exporters |
Not applicable |
5 |
LEGALITY STANDARD 1: THE STANDARDS FOR CONCESSIONS WITHIN PRODUCTION FOREST ZONES
No |
Principles |
Criteria |
Indicators |
Verifiers |
Related Regulations (1) |
||||||
1 |
|
|
|
Forest concession right certificate. |
Government Regulation PP72/2010 Regulation of the Minister for Forestry P12/2010 Regulation of the Minister for Forestry P.30/2014 Regulation of the Minister for Forestry P.31/2014 Regulation of the Minister for Forestry P.33/2014 Regulation of the Minister for Forestry P.76/2014 |
||||||
Proof of payment for the timber forest product utilisation permit. |
|||||||||||
Proof of other legal area utilization permit (if any) |
|||||||||||
2. |
|
|
|
The approved master plan & attachments (drawn up based on a comprehensive forest inventory conducted by technically competent staff) |
Regulation of the Minister for Forestry P62/2008 Regulation of the Minister for Forestry P56/2009 Regulation of the Minister for Forestry P60/2011 Regulation of the Minister for Forestry P.33/2014 |
||||||
The approved annual work plan (drawn up based on the master plan) |
|||||||||||
Maps (drawn up by technically competent staff, which describe the layout and boundaries of the areas covered by the plan of work) |
|||||||||||
Map indicating logging exclusion zones within the Annual Work Plan and evidence of implementation on the ground. |
|||||||||||
Harvesting locations (blocks or compartments) on the map are clearly marked and verified on the ground. |
|||||||||||
|
|
Timber forest product utilisation master plan document & attachments (on going applications are acceptable). |
Regulation of the Minister for Forestry P62/2008 Regulation of the Minister for Forestry P56/2009 Regulation of the Minister for Forestry P60/2011 |
||||||||
The location and extractable volumes of natural forest logs within areas to be harvested correspond with the work plan. |
|||||||||||
3. |
|
|
|
Approved Timber Production Report documents |
Regulation of the Minister for Forestry P41/2014 Regulation of the Minister for Forestry P42/2014 |
||||||
|
Valid transport documents and attachments accompany logs from the log yard to primary forest products industry or registered log trader, including via intermediate log yards |
Regulation of the Minister for Forestry P41/2014 Regulation of the Minister for Forestry P42/2014 |
|||||||||
|
Timber administration marks/barcode (PUHH) on logs |
Regulation of the Minister for Forestry P41/2014 Regulation of the Minister for Forestry P42/2014 |
|||||||||
The application of the timber administration marks/barcode. |
|||||||||||
|
Valid transport document |
Regulation of the Minister for Forestry P41/2014 Regulation of the Minister for Forestry P42/2014 |
|||||||||
|
|
Payment Orders for Reforestation Funds and/or Forest Resources Fee. |
Government Regulation PP22/1997 Government Regulation PP51/1998 Government Regulation PP59/1998 Regulation of the Minister for Forestry P18/2007 Regulation of the Minister for Trade 22/2012 |
||||||||
Proof of Deposit made for the Payment of Reforestation Fund and/or Forest Resources Fee and the Payment Slips. |
|||||||||||
Payment of the Reforestation Funds and/or Forest Resources Fee is consistent with log production and the applicable tariff. |
|||||||||||
|
|
PKAPT documents |
Regulation of the Minister for Industry and Trade 68/2003 Joint Regulation of the Minister for Forestry, Minister for Transportation, and Minister for Industry and Trade 22/2003 |
||||||||
|
Registration documents which show the identity of the vessel and valid permit. |
Regulation of the Minister for Industry and Trade 68/2003 Joint Regulation of the Minister for Forestry, Minister for Transportation, and Minister for Industry and Trade 22/2003 |
|||||||||
|
|
V-Legal marking is applied accordingly |
Regulation of the Minister for Forestry P43/2014 |
||||||||
4. |
|
|
|
Applicable EIA documents |
Government Regulation PP27/2012 Regulation of the Minister for Environment 05/2012 |
||||||
|
Environmental management plan and environmental monitoring plan documents |
Government Regulation PP27/2012 Regulation of the Minister for Environment 05/2012 |
|||||||||
Proof of implementation of the environmental management plan and monitoring of significant environmental and social impacts |
|||||||||||
5. |
|
|
|
Implementation of OSH procedures |
Government Regulation PP50/2012 Regulation of the Minister for Manpower & Transmigration 8/2010 Regulation of the Minister for Manpower & Transmigration 609/2012 |
||||||
OSH equipment |
|||||||||||
Accident records |
|||||||||||
|
|
Workers belong to workers unions or company policies allow workers to establish or get involved in union activities |
Act 13/2003 Regulation of the Minister for Manpower & Transmigration 16/2011 |
||||||||
|
Collective labour agreement documents or company policy documents on labour rights |
Act 13/2003 Regulation of the Minister for Manpower & Transmigration 16/2011 |
|||||||||
|
There are no underage workers |
Act 23/2002 Act 13/2003 |
LEGALITY STANDARD 2: THE STANDARD FOR COMMUNITY PLANTATION FORESTS AND COMMUNITY FORESTS WITHIN PRODUCTION FOREST ZONES
No |
Principles |
Criteria |
Indicators |
Verifiers |
Related Regulations |
||||||
1. |
|
|
|
Forest concession right certificate |
Regulation of the Minister for Forestry P37/2007 Regulation of the Minister for Forestry P49/2008 Regulation of the Minister for Forestry P12/2010 Regulation of the Minister for Forestry P55/2011 |
||||||
Proof of payment for the timber forest product utilisation permit. |
|||||||||||
|
|
Deed or proof of establishment. |
Regulation of the Minister for Forestry P43/2014 |
||||||||
2. |
|
|
|
Approved annual work plan document. |
Regulation of the Minister for Forestry P62/2008 |
||||||
Map indicating logging exclusion zones in the annual work plan and evidence of implementation on the ground. |
|||||||||||
Harvesting block location are clearly marked and can be verified on the ground. |
|||||||||||
|
|
Timber Forest Product Utilisation Master Plan document and attachments (on-going applications are acceptable) |
Regulation of the Minister for Forestry P62/2008 |
||||||||
The location and extractable volumes of logs within the area to be established to timber estate are to correspond to the work plan. |
|||||||||||
|
|
Approved Timber Production Report documents |
Regulation of the Minister for Forestry P41/2014 Regulation of the Minister for Forestry P42/2014 |
||||||||
|
Legal transport documents and relevant attachments from the Log Yard to the Intermediate Log Yard and from Intermediate Log Yard to primary industry and/or registered log trader. |
Regulation of the Minister for Forestry P41/2014 Regulation of the Minister for Forestry P42/2014 |
|||||||||
|
Timber administration marks/barcode (PUHH) on logs. |
Regulation of the Minister for Forestry P41/2014 Regulation of the Minister for Forestry P42/2014 |
|||||||||
Permit holder applies timber marking consistently. |
|||||||||||
|
|
Log Transport Document to which is attached a log list document. |
Regulation of the Minister for Forestry P41/2014 Regulation of the Minister for Forestry P42/2014 |
||||||||
|
|
Payment Order for Forest Resources Fee |
Regulation of the Minister for Forestry P18/2007 Regulation of the Minister for Trade 22/2012 |
||||||||
Proof of Payment of Forest Resources Fee |
|||||||||||
Payment of the Forest Resources Fee is consistent with log production and the applicable tariff. |
|||||||||||
|
|
V-Legal marking is applied accordingly |
Regulation of the Minister for Forestry P43/2014 |
||||||||
3. |
|
|
|
Applicable EIA documents |
Government Regulation PP27/2012 Regulation of the Minister for Environment 05/2012 |
||||||
|
Relevant environmental management and monitoring documents |
Government Regulation PP27/2012 Regulation of the Minister for Environment 05/2012 |
|||||||||
Proof of implementation of environmental management and monitoring of significant environmental and social impacts |
|||||||||||
4 |
|
|
|
Implementation of OSH procedures |
Government Regulation PP50/2012 Regulation of the Minister for Manpower & Transmigration 8/2010 Regulation of the Minister for Manpower & Transmigration 609/2012 |
||||||
OSH equipment |
|||||||||||
|
|
There are no underage workers |
Act 23/2002 Act 13/2003 |
LEGALITY STANDARD 3: THE STANDARD FOR PRIVATELY-OWNED FORESTS
No. |
Principles |
Criteria |
Indicators |
Verifiers |
Related Regulations |
||||||
1. |
|
|
|
Valid land ownership or land tenure documents (land title documents recognized by competent authorities) |
Act 5/1960 Regulation of the Minister for Forestry P33/2010 Government Regulation PP12/1998 Regulation of the Minister for Trade 36/2007 Regulation of the Minister for Trade 37/2007 Act 6/1983 Regulation of the Minister for Forestry P43/2014 |
||||||
Land Cultivation Right. Deed of Establishment of the Company Business licence for companies engaging in trading business (SIUP) Company registration (TDP) Tax payer registration (NPWP) OSH Document Collective labour agreement documents or company policy documents on labour rights |
|||||||||||
Map of the area of private forest and boundaries delineated on the ground. |
|||||||||||
|
Log Transport Document |
Regulation of the Minister for Forestry P30/2012 |
|||||||||
|
Proof of payment of Reforestation Fund and/or Forest Resources Fee and compensation to the state for the value of stumpage cut. |
Regulation of the Minister for Forestry P18/2007 |
|||||||||
|
|
Deed or proof of establishment |
Regulation of the Minister for Forestry P43/2014 |
||||||||
|
|
V-Legal marking is applied accordingly |
Regulation of the Minister for Forestry P43/2014 |
||||||||
2. |
|
|
|
Implementation of OSH procedures |
Government Regulation PP50/2012 Regulation of the Minister for Manpower & Transmigration 8/2010 Regulation of the Minister for Manpower & Transmigration 609/2012 |
||||||
OSH equipment |
|||||||||||
Accident records |
|||||||||||
|
|
Workers belong to workers unions or company policies allow workers to establish or get involved in union activities |
Act 13/2003 Regulation of the Minister for Manpower & Transmigration 16/2001 |
||||||||
|
Collective labour agreement documents or company policy documents on labour rights |
Act 13/2003 Regulation of the Minister for Manpower & Transmigration 16/2011 |
|||||||||
|
There are no underage workers |
Act 23/2002 Act 13/2003 |
|||||||||
3 |
|
|
|
Applicable EIA documents |
Government Regulation PP27/2012 Regulation of the Minister for Environment 05/2012 |
||||||
|
Environmental management plan and environmental monitoring plan documents |
Government Regulation PP27/2012 Regulation of the Minister for Environment 05/2012 |
|||||||||
Proof of implementation of the environmental management plan and monitoring |
LEGALITY STANDARD 4: THE STANDARD FOR TIMBER UTILISATION RIGHTS WITHIN NON-FOREST ZONES OR FROM CONVERTIBLE PRODUCTION FOREST
No. |
Principles |
Criteria |
Indicators |
Verifiers |
Related Regulations |
||||||
1. |
|
|
|
ILS/IPK permits for harvesting operations in the lease area (including applicable environmental impact assessment/EIA document of non forestry business) |
Government Regulation PP27/2012 Regulation of the Minister for Forestry P18/2011 Regulation of the Minister for Forestry P59/2011 Regulation of the Minister for Environment 05/2012 |
||||||
Maps attached to the ILS/IPK permits of the lease area and evidence of compliance on the ground. |
|||||||||||
|
|
Business permit and maps attached to the permit (including applicable environmental impact assessment/EIA document of non forestry business). |
Government Regulation PP27/2012 Regulation of the Minister for Forestry P33/2010 Regulation of the Minister for Forestry P14/2011 Regulation of the Minister for Forestry P59/2011 Regulation of the Minister for Environment 05/2012 |
||||||||
IPK in conversion areas |
|||||||||||
Maps attached to IPK |
|||||||||||
Documents authorising changes in the legal status of the forest (this requirement applies to both IPK permit holders and business permit holders) |
|||||||||||
|
IPK in conversion areas |
Regulation of the Minister for Forestry P14/2011 |
|||||||||
Maps attached to IPK |
|||||||||||
|
|
Planning document of IPK |
Government Regulation PP27/2012 Regulation of the Minister for Forestry P14/2011 Regulation of the Minister for Environment 05/2012 |
||||||||
Business permit and maps attached to the permit (including applicable environmental impact assessment/EIA document of non forestry business). |
|||||||||||
IPK in conversion areas |
|||||||||||
Maps attached to IPK |
|||||||||||
|
IPK in conversion areas |
Regulation of the Minister for Forestry P14/2011 |
|||||||||
Maps attached to IPK |
|||||||||||
2. |
|
|
|
IPK/ILS work plan documents |
Regulation of the Minister for Forestry P62/2008 Regulation of the Minister for Forestry P53/2009 |
||||||
|
Forest inventory documents |
Regulation of the Minister for Forestry P62/2008 Regulation of the Minister for Forestry P41/2014 |
|||||||||
Timber Production Report documents (LHP) |
|||||||||||
|
|
Payment Order for Forest Resources Fee |
Regulation of the Minister for Forestry P18/2007 |
||||||||
Proof of payment of Forest Resources Fee |
|||||||||||
Payment of the Forest Resources Fee is consistent with log production and the applicable tariff. |
|||||||||||
|
Logs Transportation Invoice (FAKB) and log list for small diameter logs |
Regulation of the Minister for Forestry P41/2014 |
|||||||||
Log Legality Document (SKSKB) and log list for large diameter logs |
|||||||||||
|
|
V-Legal marking is applied accordingly |
Regulation of the Minister for Forestry P43/2014 |
||||||||
3. |
|
|
|
OSH procedures |
Government Regulation PP50/2012 Regulation of the Minister for Manpower & Transmigration 8/2010 Regulation of the Minister for Manpower & Transmigration 609/2012 |
||||||
OSH equipment |
|||||||||||
Accident records |
|||||||||||
|
|
There are no underage workers |
Act 23/2002 Act 13/2003 |
LEGALITY STANDARD 5: THE STANDARD FOR PRIMARY AND DOWNSTREAM FOREST-BASED INDUSTRIES AND TRADERS
No. |
Principles |
Criteria |
Indicators |
Verifiers |
Related Regulations |
||||||||||
1. |
|
|
|
The deed of establishment of the company and latest amendments to the deed (the Company's Establishment Deed) |
Act 6/1983 Act 3/2014 Government Regulation PP74/2011 Government Regulation PP27/2012 Regulation of the Minister for Law & Human Rights M.01-HT.10/2006 Regulation of the Minister for Trade 36/2007 Regulation of the Minister for Trade 37/2007 Regulation of the Minister for Industry 41/2008 Regulation of the Minister for Home Affairs 27/2009 Regulation of the Minister for Trade 39/2011 Regulation of the Minister for Environment 05/2012 Regulation of the Minister for Trade 77/2013 Regulation of the Minister for Forestry P9/2014 Regulation of the Minister for Forestry P55/2014 |
||||||||||
Permit to engage in trading business (Business Licence/SIUP) or trading permit, which may be Industrial Business Permit (IUI) or Industrial Registration Certificate (TDI) |
|||||||||||||||
Nuisance/disturbance permit (permit issued to the company for affecting the environment around which it operates its business) |
|||||||||||||||
Company Registration Certificate (TDP) |
|||||||||||||||
Tax Payer Identification Number (NPWP) |
|||||||||||||||
Availability of applicable environmental impact assessment documents |
|||||||||||||||
Availability of Industrial Business Permit (IUI) or Permanent Business Permit (IUT) or Industrial Registration Certificate (TDI) |
|||||||||||||||
Availability of Raw Materials Stock Planning (RPBBI) for primary industry. |
|||||||||||||||
|
The exporters have the status of Registered Exporters of Forestry Industry Products (ETPIK). |
Regulation of the Minister for Trade 97/2014 |
|||||||||||||
|
|
ID card |
Regulation of the Minister for Forestry P.43/2014 |
||||||||||||
|
|
The importers have the status of Registered Importers. |
Regulation of the Minister for Trade 78/2014 |
||||||||||||
|
The importers have the due diligence guidelines/procedures and proof of its implementation. |
Regulation of the Minister for Forestry P.43/2014 |
|||||||||||||
|
|
Permit document from Head of Provincial/District Forestry office. |
Regulation of the Minister for Forestry P30/2012 Regulation of the Minister for Forestry P41/2014 Regulation of the Minister for Forestry P42/2014 |
||||||||||||
|
The deed of establishment of the company and latest amendments to the deed (the Company's Establishment Deed) |
Act 6/1983 Government Regulation PP74/2011 Regulation of the Minister for Law & Human Rights M.01-HT.10/2006 Regulation of the Minister for Trade 36/2007 Regulation of the Minister for Trade 37/2007 Regulation of the Minister for Trade 39/2011 Regulation of the Minister for Trade 77/2013 Regulation of the Minister for Forestry P43/2014 Regulation of the Minister for Trade 97/2014 |
|||||||||||||
Permit to engage in trading business (Business Licence/SIUP) or trading permit. |
|||||||||||||||
Company Registration Certificate (TDP) |
|||||||||||||||
Tax Payer Identification Number (NPWP) |
|||||||||||||||
Registration of the traders as Non-Producer Exporters of Forestry Industry Products (ETPIK Non-Produsen). |
|||||||||||||||
Supply agreement or contract with non-ETPIK small-scale industry which has timber legality certificate (S-LK) or Supplier's Declaration of Conformity/SDoC (DKP) |
|||||||||||||||
|
Applicable EIA documents |
Government Regulation PP27/2012 Regulation of the Minister for Environment 13/2010 Regulation of the Minister for Environment 05/2012 |
|||||||||||||
|
|
Deed or proof of establishment |
Regulation of the Minister for Forestry P.43/2014 |
||||||||||||
Tax Payer Registration (NPWP) in the case of cooperatives |
|||||||||||||||
|
Cooperative decision on organizational structure |
Regulation of the Minister for Forestry P.43/2014 |
|||||||||||||
|
Documents of the cooperative business plan or document that shown the cooperative type |
Regulation of the Minister for Forestry P.43/2014 |
|||||||||||||
|
ID cards |
Regulation of the Minister for Forestry P.43/2014 |
|||||||||||||
2. |
|
|
|
Sales and purchase documents and or contract of supply of materials and or proof of purchase. |
Regulation of the Minister for Forestry P30/2012 Regulation of the Minister for Forestry P.9/2014 Regulation of the Minister for Forestry P41/2014 Regulation of the Minister for Forestry P42/2014 Regulation of the Minister for Trade P78/2014 |
||||||||||
Approved report on the transfer of timber and/or proof of transfer and or official report on the examination of timber; letter of attestation of the legality of forest products |
|||||||||||||||
Imported timber is accompanied by Supplier's Declaration of Conformity or legality certificate (S-LK). Note: Only applicable in the case of artisan/household industry. |
|||||||||||||||
Timber transport documents |
|||||||||||||||
Transport documents (Nota) with corresponding official reports from the officer of the local authority with respect to used timber from demolished buildings/structures, unearthed timber and buried timber. |
|||||||||||||||
Transport documents in the form of Nota for industrial waste wood |
|||||||||||||||
Documents/reports on changes in the stock of logs/timber/products. |
|||||||||||||||
Legality certificate (S-PHPL/S-LK) or suppliers declaration of conformity (DKP) |
|||||||||||||||
Supporting documents for, Raw Materials Stock Planning (RPBBI) for primary industry |
|||||||||||||||
|
Import Notification (PIB) |
President Decree 43/1978 Regulation of the Minister for Trade 78/2014 |
|||||||||||||
Packing list |
|||||||||||||||
Invoice |
|||||||||||||||
B/L (bill of lading) |
|||||||||||||||
Import Declaration and Import Recommendation |
|||||||||||||||
Proof of payment of import duty. |
|||||||||||||||
Other relevant documents (including CITES permits) for types of wood whose trade is restricted |
|||||||||||||||
Proof of utilization of imported timber |
|||||||||||||||
|
Tally sheets on the use of raw materials and on production outputs. Note: Not applicable for artisan/household industry. |
Regulation of the Minister for Industry 41/2008 Regulation of the Minister for Forestry P30/2012 Regulation of the Minister for Forestry P41/2014 Regulation of the Minister for Forestry P42/2014 Regulation of the Minister for Forestry P55/2014 |
|||||||||||||
Output reports on the production of processed products. |
|||||||||||||||
The production of the unit does not exceed the permitted production capacity. Note: Not applicable for artisan/household industry. |
|||||||||||||||
Segregation/separation of produced products from impounded timbers. |
|||||||||||||||
|
Legality certificate (S-LK) or suppliers declaration of conformity (DKP) |
Regulation of the Minister for Forestry P48/2006 Regulation of the Minister for Trade 36/2007 Regulation of the Minister for Industry 41/2008 Regulation of the Minister for Forestry P.43/2014 Regulation of the Minister for Forestry P55/2014 |
|||||||||||||
Service contract for product processing with another party |
|||||||||||||||
Letter of attestation of the raw material |
|||||||||||||||
Segregation/separation of produced products. |
|||||||||||||||
Documentation of raw materials, production processes, and where applicable if export is conducted through service agreement with other company. |
|||||||||||||||
|
|
Products are purchased from listed non-ETPIK industries partners that have legality certificate (S-LK) or SDoC (DKP). |
Regulation of the Minister for Forestry P.43/2014 |
||||||||||||
Transport document. |
|||||||||||||||
Documents/reports on changes in the stock of products. |
|||||||||||||||
3. |
|
|
|
Transport document |
Joint Regulation of the Minister for Forestry22/2003, Minister for Transportation KM3/2003, and Minister for Industry and Trade 33/2003 Regulation of the Minister for Forestry P30/2012 Regulation of the Minister for Forestry P41/2014 Regulation of the Minister for Forestry P42/2014 |
||||||||||
|
|
Products for export |
Act 17/2006 (Customs) Presidential Decree 43/1978 Regulation of the Minister for Forestry 447/2003 Regulation of the Minister for Finance 223/2008 Regulation of the Directorate-General for Customs P-40/2008 Regulation of the Directorate-General for Customs P-06/2009 Regulation of the Minister of Trade P50/2013 Regulation of the Minister for Trade P97/2014 |
||||||||||||
PEB |
|||||||||||||||
Packing list |
|||||||||||||||
Invoice |
|||||||||||||||
B/L (bill of lading) |
|||||||||||||||
Export licence documents (V-Legal) |
|||||||||||||||
Results of technical verification (Surveyor's Report) for products for which technical verification is mandatory |
|||||||||||||||
Proof of payment of export duty, where applicable. |
|||||||||||||||
Other relevant documents (including CITES permits) for types of wood whose trade is restricted |
|||||||||||||||
|
|
V-Legal marking is applied accordingly |
Regulation of the Minister for Forestry P43/2014 |
||||||||||||
4. |
|
|
|
OSH procedures or In the case of artisan/household industry, first aid and safety equipment |
Government Regulation PP50/2012 Regulation of the Minister for Manpower & Transmigration 8/2010 Regulation of the Minister for Manpower & Transmigration 609/2012 |
||||||||||
Implementation of OSH procedures. |
|||||||||||||||
Accident records Note: Not applicable for artisan/household industry. |
|||||||||||||||
|
|
Trade union or a company policy that allows employees/workers to establish a trade union or get involved in trade union activities |
Regulation of the Minister for Manpower & Transmigration 16/2001 |
||||||||||||
|
Availability of collective labour agreement or company policy documents on labour rights |
Act 13/2003 Regulation of the Minister for Manpower & Transmigration 16/2011 |
|||||||||||||
|
There are no underage workers |
Act 23/2002 Act 13/2003 |
‘ANNEX V
INDONESIAN TIMBER LEGALITY ASSURANCE SYSTEM
1. Introduction
Objective: To provide assurance that harvesting, transportation, processing and selling of round logs and processed timber products comply with all relevant Indonesian laws and regulations.
Known for its pioneering role in combating illegal logging and the trade in illegally harvested timber and timber products, Indonesia hosted the East Asia Ministerial Conference on Forest Law Enforcement and Governance (FLEG) in Bali, in September 2001, which resulted in the Declaration on Forest Law Enforcement and Governance (Bali Declaration). Since then, Indonesia has continued to be at the forefront of international cooperation in combating illegal logging and associated trade.
As part of international efforts to address these issues, a growing number of consumer countries have committed themselves to take measures to prevent trade in illegal timber on their markets, whilst producer countries have committed themselves to provide a mechanism assuring the legality of their timber products. It is important to establish a credible system to guarantee the legality of harvesting, transportation, processing and trade of timber and processed timber products.
The Indonesian Timber Legality Assurance System (TLAS) provides assurance that timber and timber products produced and processed in Indonesia come from legal sources and are in full compliance with relevant Indonesian laws and regulations, as verified by independent auditing and monitored by civil society.
1.1. Indonesian laws and regulations as foundation of the TLAS
The Indonesian regulation on the “Standards and Guidelines on the Assessment of Performance of Sustainable Forest Management and the Verification of Timber Legality in the State and Privately-owned Forests” (Forestry Minister's Regulation P.38/Menhut-II/2009) establish the TLAS. The TLAS also includes the Indonesian sustainability scheme and targets to improve forest governance, to suppress illegal logging and the associated timber trade to ensure credibility and to improve the image of Indonesia's timber products.
The TLAS comprises the following elements:
1. |
Legality Standards, |
2. |
Control of Supply Chain, |
3. |
Verification Procedures, |
4. |
Licensing Scheme, |
5. |
Monitoring. |
TLAS is the basic system used to assure the legality of timber and timber products produced in Indonesia for export to the Union and to other markets.
1.2. Development of the TLAS: a multi-stakeholder process
Since 2003, a wide range of Indonesian forestry stakeholders have been actively engaged in developing, implementing and evaluating the TLAS, thereby providing better oversight, transparency and credibility in the process. In 2009, the multi-stakeholder process resulted in the issuance of Forestry Minister's Regulation P.38/Menhut-II/2009, followed by DG Forest Utilization Technical Guidelines No 6/VI-SET/2009 and No 02/VI-BPPHH/2010, which were revised by Forestry Minister's Regulation P.68/Menhut-II/2011, P.45/Menhut-II/2012, P.42/Menhut-II/2013, DG Forest Utilization Technical Guidelines P.8/VI-SET/2011 and P.8/VI-BPPHH/2012.
Based on lessons learned from initial TLAS implementation, the results of the joint assessment in accordance to Annex VIII of this Agreement, and recommendations from various stakeholders, the regulations were again revised through a multi-stakeholder process to become Forestry Minister's Regulation P.43/Menhut-II/2014 in June 2014 and P.95/Menhut-II/2014 in December 2014, followed by DG Forest Utilization Technical Guidelines No.P.14/VI-BPPHH/2014 in December 2014 and No.P.1/VI-BPPHH/2015 in January 2015 (hereinafter referred to as the TLAS Guidelines).
The process of engagement with all stakeholders will be continued during implementation of the TLAS.
2. Scope of the TLAS
Indonesian production forest resources can broadly be divided into two types of ownership: state forests and privately owned forests/lands. State forests consist of production forests for long-term sustainable timber production under a variety of permit types and forest areas that can be converted for non-forestry purposes such as for settlement or agricultural plantations. The application of TLAS on state forests and privately owned forests/lands is set out in Annex II.
The TLAS covers timber and timber products from all permit types as well as the operations of all timber traders, downstream processors, exporters and importers.
The TLAS covers timber products destined for domestic and international markets. All Indonesian producers, processors, and traders will be verified for legality, including those supplying the domestic market.
The TLAS requires that imported timber and timber products are cleared at customs and comply with Indonesia's import regulations. These regulations require that imported timber and timber products must be accompanied by documents and other pieces of evidence providing assurance of the legality of the timber in its country of harvest. All timber and timber products imported into Indonesia must be included in a supply chain whose controls comply fully with all relevant Indonesian regulations.
Certain timber products may contain recycled materials. Specific legality requirements for recycled timber are described in the legality standards and TLAS Guidelines.
Impounded timber may be sold for use exclusively on the domestic market, with the exception of impounded timber that was harvested in conservation forest, which must be destroyed. Any industry receiving impounded timber must implement measures to segregate that timber from other supplies and duly inform a conformity assessment body (CAB), which will promptly conduct a special audit to ensure that this timber does not enter the export supply chain. No impounded timber may be covered by an export licence.
Changes in the procedures for utilization and/or administration of timber from Customary Forests, to address implementation of Constitutional Court Decision (MK) No 35/PUU-X/2012, shall be introduced after the adoption of related implementing legislation.
Timber and timber products in transit are strictly kept outside the gazetted Principal Customs Areas (PCA). Thus, such transit timber does not enter the PCA and furthermore will not be included in the timber supply chains of Indonesia. No transit timber will be issued with an export licence.
2.1. TLAS legality standards
The TLAS is based on specific timber legality standards covering all types of timber sources (permits and operators) and all operators' activities. These standards and their verification guidelines are set out in Annex II.
The TLAS also incorporates the “Standard and Guidelines on Assessment of Performance in Sustainable Forest Management (SFM)”. The assessment of sustainable forest management using the SFM standard also verifies that the auditee complies with the relevant legality criteria of the TLAS. Permit holders operating within production forest zones on state-owned lands (permanent forest domain) must adhere to both relevant legality and SFM standards. They can opt for complying with the legality standard at first, but they must comply with both the legality standards and the sustainable forest management standards not later than the date when their initial legality certification expires.
3. Control of the Timber Supply Chain
The permit holder (in the case of concessions) or landowner (in the case of private land) or company (in the case of traders, processors and exporters) shall demonstrate that every node of their supply chain is controlled and documented as set out in the Minister for Forestry Regulations P.30/Menhut-II/2012, P.41/Menhut-II/2014 and P.42/Menhut-II/2014 (hereinafter referred to as the Regulations). These Regulations require provincial and district forestry officials to undertake field verification and validate the documents which are submitted by permit holders, landowners, or processors at each node of the supply chain.
The key documents for operational controls at each point in the supply chain are summarised in Diagram 1.
All consignments in a supply chain must be accompanied by relevant transport documents indicating whether the material is covered by a valid SVLK certificate, or declared legal by use of Suppliers' Declaration of Conformity (SDoC), or originates from impounded sources. The owner or custodian of any consignment of timber or timber products at each point in a supply chain must record whether that consignment is SVLK certified, declared legal by use of Suppliers' Declaration of Conformity, or from an impounded source. If a consignment includes any impounded timber, the owner or custodian of that consignment must apply an effective system to segregate timber or timber products from verified legal sources, from impounded timber or timber products, and maintain records that distinguish between these sources.
Operators in the supply chain are required to keep complete records on received, stored, processed and delivered timber and timber products. These records must be sufficient to enable subsequent reconciliation of quantitative data between and within nodes of the supply chain. Such data shall be made available for provincial and district forestry officials to carry out reconciliation. Main activities and procedures, including reconciliation, for each stage of the supply chain and the role of the CABs in assessing the integrity of the supply chain, are further explained in the Appendix of this Annex.
Diagram 1
Control of the supply chain which shows the required key documents at each point in the supply chain where data reconciliation takes place
4. Institutional set-up for Legality Verification and Export Licensing
4.1. Introduction
The Indonesian TLAS is based on an approach known as “operator-based licensing” which has much in common with product or forest management certification systems. The Indonesian Ministry of Forestry nominates a number of conformity assessment bodies (Lembaga Penilai/LP and Lembaga Verifikasi/LV) which it authorizes to audit the legality of operations of timber producers, traders, processors, and exporters (“operators”).
The conformity assessment bodies (CAB) are accredited by the Indonesian National Accreditation Body (KAN). CABs are contracted by operators who want their operations to be certified as legal. CABs are required to operate according to the ISO/IEC 17065 guideline. They report the outcome of the audits to the auditee and to the Ministry of Forestry. Summaries of reports are made publicly available.
A CAB checks that the operator that is audited is operating in compliance with the Indonesian legality definition as contained in Annex II, including effective implementation of controls to prevent material from unknown sources entering its supply chains. When an auditee operating in state forests or a large industry (primary industry with a capacity above 6 000 m3/year, secondary industry with an investment above IDR 500 million) is found to be compliant, an SVLK legality certificate with a validity of 3 (three) years is issued. During this period, the CAB conducts annual surveillance visits to check that compliance is being maintained. For auditees operating small industries (primary industry with a capacity below 6 000 m3/year, secondary industry with an investment below IDR 500 million) the validity of the legality certificate is 6 (six) years, and 10 (ten) years for operators in privately owned forests/lands. In these cases CAB surveillance visits take place every second year (biennial).
Operators in privately owned forests/lands, household industries, craftsmen/artisans, primary industry that exclusively processes timber from privately-owned forests/lands and cannot directly export, registered depots (trading timber or processed timber that is exclusively sourced from privately owned forests/lands or from SVLK certified operations under Perum Perhutani), and importers can use Suppliers' Declaration of Conformity to demonstrate the legality of their timber and timber products and are therefore not audited by the CABs (refer to section 5.3).
LVs also act as export Licensing Authorities. They check the validity of the exporters' SVLK certificate and export registration, and the consistency of exporters' data declarations (monthly balance sheets) before issuing export licences in the form of V-Legal Documents or FLEGT licences. Thus exports of timber products covered by Annex I without an export licence are prohibited. Exports to the European Union that meet these conditions are issued with FLEGT licences, while exports to other destinations are issued with V-Legal Documents.
The TLAS Guidelines specify that Indonesian civil society groups, individuals and communities have the right to monitor the implementation of the TLAS on the ground. Such Independent Monitors are allowed to assess the compliance of operations against the requirements of the legality definition and also the conformity of the auditing and licensing processes against TLAS requirements and file complaints to CABs, Licensing Authorities, KAN and the Ministry of Forestry.
Diagram 2
Relationship between different entities involved in implementing the TLAS
4.2. Conformity assessment bodies and Licencing Authorities
The conformity assessment bodies (CABs) play a key role in the Indonesian system. They are authorized by the Ministry of Forestry and contracted by individual operators to verify the legality of the production, processing and trade activities of individual operators in the supply chain, including the integrity of the supply chain.
There are two types of CABs: (i) assessment bodies (Lembaga Penilai/LP) which audit the performance of Forest Management Units (FMUs) in state forests against the sustainability standards as well as the requirements of the legality standard; and (ii) verification bodies (Lembaga Verifikasi/LV), which audit FMUs, forest-based industries, traders and exporters against the legality standards.
In order to ensure that those audits that verify the legality standards as set out in Annex II are of the highest quality, the LP and LV are required to develop the necessary management systems addressing competency, consistency, impartiality, transparency, and assessment process requirements as outlined in ISO/IEC 17065. These requirements are specified in the TLAS Guidelines. The conformity assessment bodies (CAB) are accredited by the Indonesian National Accreditation Body (KAN).
LVs can also act as Licensing Authorities. In this case the LVs issue export licences to cover timber products destined to international markets. For non-Union markets, the Licensing Authorities will issue V-Legal Documents, and for the Union market, FLEGT licences will be issued in accordance with the requirements as outlined in Annex IV. Detailed procedures for the V-Legal Document and FLEGT licensing of export consignments are described in the TLAS Guidelines. LPs cannot act as Licensing Authorities and do not issue export licences.
All auditors working for CABs or Licensing Authorities must be registered and hold a valid certificate of competence from the Profession Certification Body (Lembaga Sertifikasi Profesi — LSP). The LSP will assess any alleged misconduct by an auditor brought to its notice, and may revoke the certificate of competence of that auditor.
4.3. Accreditation body
The Indonesian National Accreditation Body (Komite Akreditasi Nasional — KAN) is an independent accreditation body established through Government Regulation (Peraturan Pemerintah/PP) 102/2000 concerning National Standardisation and Presidential Decree (Keputusan Presiden/Keppres) 78/2001 regarding the National Accreditation Committee. It operates under the guidance of ISO/IEC 17011 (General Requirements for Accreditation Bodies Accrediting Conformity Assessment Bodies). It has developed internal TLAS-specific supporting documents for the accreditation of LPs and LVs.
KAN is internationally recognised by the Pacific Accreditation Cooperation (PAC) and the International Accreditation Forum (IAF) to accredit certification bodies for Quality Management Systems, Environmental Management Systems and Product Certification. KAN is also recognised by the Asia Pacific Laboratory Accreditation Cooperation (APLAC) and the International Laboratory Accreditation Cooperation (ILAC).
On 14 July 2009, the KAN signed a Memorandum of Understanding with the Ministry of Forestry to provide accreditation services for the TLAS. This makes it responsible for the accreditation of CABs to ensure their continued compliance with ISO/IEC 17065.
Complaints concerning the performance of a LP or LV can be submitted by any interested party, including operators and independent monitors, to the KAN.
4.4. Auditees
Auditees are operators which are subject to legality verification. They include forest management units (concessionaires or timber utilization permit holders, community-based or village based forest permit holders, private forest/land owners), registered timber depots, forest-based industries, non-producer registered exporters. The forest management units and forest-based industries must comply with the applicable legality standard. For export purposes, the forest-based industries and non-producer registered exporters must comply with export licensing requirements. The TLAS allows auditees to submit appeals to the LP or LV on the conduct of or results of audits.
4.5. Independent monitor
Civil society plays a key role in the Independent Monitoring (IM) of the TLAS. Civil society groups, individuals and communities acting as Independent Monitors have the right to assess and report on the compliance of operations against legality requirements, as well as on accreditation, verification and licensing activities. Findings from an Independent Monitor can also be used as part of the Periodic Evaluation (PE) which is required under this Agreement (Annex VI).
In the event of an irregularity related to the legality of an operator, complaints by an Independent Monitor shall be submitted directly to the concerned LP or LV. If they consider the response to a complaint by the LP or LV to be unsatisfactory, an Independent Monitor may file a report to the KAN and to the government. In case of complaints about the issuance of export licences, the Independent Monitor may directly file complaints with the Licensing Authority or with the Ministry of Forestry.
4.6. The Government
The Ministry of Forestry (as of October 2014, the Ministry of Forestry was merged with the Ministry of Environment to become the Ministry of Environment and Forestry) regulates the TLAS and authorises the accredited LPs to undertake SFM assessment and LVs to undertake legality verification.
The Ministry of Forestry also authorises the LVs to issue export licences (V-Legal Documents or FLEGT licences).
The Ministry of Forestry has issued a set of Guidelines providing the requirements related to verification and licensing activities. These Guidelines also include provisions for Ministry of Forestry's control over LVs verification, and specify the Ministry's procedures to authorize and oversee their licensing activities.
Furthermore, the Ministry of Forestry shall establish an ad-hoc follow-up team in charge of investigating on a case-by-case basis any reported violation in relation to the issuance of a legality certificate and/or V-Legal Document/FLEGT licence. The composition of the follow-up team depends on the nature of the violation reported. It can comprise different government agencies and civil society actors. Based on the follow-up team findings and recommendations, the Ministry of Forestry may revoke the authorization of the CAB resulting in an immediate cessation of their verification and licensing activities.
The Minister of Forestry will also immediately revoke their authorization of a CAB based on a KAN decision on withdrawal of its accreditation (e.g. resulting from KAN's annual surveillance activities of the CABs). CABs can appeal to KAN but not to the Ministry.
The Ministry of Forestry also regulates the Licence Information Unit (LIU) as an information management unit which validates information concerning V-Legal Document/FLEGT licence issuance. The LIU is also responsible for general information exchange on the TLAS, and receives and stores relevant data and information on the issuance of certificates of legality and V-Legal Documents/FLEGT licences. It also responds to queries from competent authorities of trading partners and stakeholders. The LIU also manages the due diligence based import recommendation process through its SILK online system.
In addition, the Ministry of Forestry controls the registration of technical governmental field supervisors (Wasganis) and technical company field staff (Ganis). Wasganis are tasked to carry out the supervision and control of log measurements. They also terminate the mandatory transport documents and carry out data reconciliation (for further details refer to the Appendix of this Annex). Ganis prepare the production and transport documents from all production in state forests. Ganis can also terminate the mandatory transport documents in the case of Wasganis' absence for more than 48 hours. Both Wasganis and Ganis are registered with the Ministry of Forestry. On a yearly basis, they are evaluated by the Ministry of Forestry through an official examination.
5. Legality Verification
5.1. Introduction
Indonesian timber is deemed legal when its origin and production process as well as subsequent processing, transport and trade activities are verified as meeting all applicable Indonesian laws and regulations, as set out in Annex II. CABs carry out conformity assessments to verify compliance. To reduce the burden on private forest owners, as well as traders and household industries/craftsmen/artisans fully depending on timber from privately owned/privately utilized forests (private land permit), such operators are allowed in clearly described cases to issue a Supplier's Declaration of Conformity as an alternative to obtaining an SVLK certification (see paragraph 5.2 below for more detail).
5.2. Legality verification process by CABs
In accordance with ISO/IEC 17065 and the TLAS Guidelines, the legality verification process consists of the following:
Application and contracting: The operator submits to the CAB an application that defines the scope of verification, operator's profile and other necessary information. A contract between the operator and the CAB, setting out the conditions for verification, is required prior to the commencement of the verification activities.
Verification plan: After the signing of the verification contract, the CAB prepares a verification plan, which includes nomination of the audit team, verification programme and schedule of activities. The plan is communicated to the auditee, to the relevant Provincial Forestry Authority and other relevant authorities at provincial and regional levels, and the dates of verification activities are agreed upon. This information shall be made available in advance for the independent monitors and to the public through the websites of the CABs and the Ministry of Forestry, and/or mass media or letters.
Verification activities: The verification audit consists of three stages: (i) opening audit meeting and coordination, (ii) document verification & field observation and (iii) closing audit meeting.
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Opening audit meeting and coordination: coordinate with relevant regional, provincial and district offices to inform about audit plans and to gather initial information from those offices. The CAB may also disseminate information and build communication with relevant CSOs to add to the initial information. The CAB discusses the audit's objective, scope, schedule and methodology with the auditee in the opening audit meeting, so as to allow the auditee to raise questions on methods and conduct of verification activities; |
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Document verification and field observation stage: in order to collect evidence on the auditee's compliance with the Indonesian TLAS requirements, the CAB checks the auditee's systems and procedures, relevant documents and records. The CAB then carries out field checks to verify compliance, including cross-checking their findings with the findings of official inspection reports. The CAB also checks the auditee's timber traceability system to ensure that there is evidence that all timber entering the supply meets the legality requirements. |
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Closing audit meeting: the verification results, in particular any non-compliances that may be detected, are presented to the auditee. The auditee may raise questions on the verification results and provide clarification on the evidence presented by the CAB. |
Reporting and decision making: The audit team draws up a verification report, following a structure provided by the Ministry of Forestry. The report, which includes a description of any findings of non-compliances and the decision on certification taken, is shared with the auditee within fourteen calendar days after the closing audit meeting and submitted by the CAB to the Ministry of Forestry.
The audit team findings are used primarily to decide on the outcome of the verification audit by the CAB. The CAB takes the decision on whether to issue a legality certificate based on the verification report prepared by the audit team.
In cases of any non-compliance, the CAB will refrain from issuing a legality certificate, which will prevent the timber from entering the supply chain of verified legal timber. Once the non-compliance has been addressed, the operator may resubmit a request for legality verification.
Infringements, which are discovered by a CAB during the verification, are reported to the Ministry of Forestry and handled by the responsible authorities in accordance with administrative or judicial procedures. If an operator is suspected of breaching regulations, the national, provincial and district authorities may decide to halt the operator's activities.
Issuance of the legality certificate and recertification: the CAB will issue a legality certificate if an auditee is found to fully comply with all the indicators and verifiers in the legality standard, including the rules on control of the timber supply chain.
The CAB may report at any time to the Ministry of Forestry on issued, changed, suspended and withdrawn certificates and every three months shall issue a report. The Ministry of Forestry will then publish these reports on its website.
According to the type of permit held by the auditee, a legality certificate is valid for a period of three to 10 years, after which the operator is subject to a re-certification audit. The re-certification shall be done prior to the expiry date of the certificate.
Surveillance: According to the type of permit held by the auditee, operators with a legality certificate are subject to annual or biennial surveillance that follow the principles of the verification activities summarised above. The CAB may also carry out surveillance earlier than scheduled if the scope of the verification has been extended.
The surveillance team draws up a surveillance report. A copy of the report, including a description of any non-compliance found, is submitted to the Ministry of Forestry. Non-compliances detected by the surveillance will result in suspension or withdrawal of the legality certificate.
Special audits: Operators with a legality certificate are obliged to report to the CAB any significant changes in ownership, structures, management, and operations that may affect the quality of its legality controls during the period of validity of the certificate. The CAB may carry out special audits to investigate any complaints or disputes filed by the independent monitors, government institutions or other stakeholders or upon receipt of the operator's report on changes that affect the quality of its legality controls. CABs also carry out special audits if the operator reports that he intends to process impounded timber.
5.3. Legality verification using Supplier's Declaration of Conformity (SDoC) and internal checks
Supplier's declaration of conformity based on SNI/ISO 17050 is a “self-declaration” as defined in ISO/IEC 17000, i.e. first-party attestation following review that fulfilment of specific requirements has been demonstrated.
The SDoC can be used by (i) private forest owners, (ii) registered timber depots (only timber depots that exclusively receive timber from privately owned forests/lands or receive SVLK certified timber from Perum Perhutani), (iii) household industries/craftsmen/artisans, (iv) primary and secondary industries that exclusively process timber from privately owned forests/lands and hold no export permit. The SDoC applies to (a) timber from privately-owned forests/lands, (b) timber from regenerations of roadsides and graveyards, (c) recycled/demolished timber, and (d) imported timber or timber products.
The SDoC contains information about the supplier, products and their sources, transport document, recipient of the products, and date of issuance. The SDoC by private forest owners shall also include a proof of ownership of the land the timber comes from. The SDoC is attached to the transport document based on timber administration regulations. Detailed procedures for SDoC issuance and related checks are provided in the TLAS Guidelines.
The recipient of the SDoC from privately owned forest shall undertake and document internal checks on the validity of the information to be declared in the SDoC prior to signing of the purchase contract and at least once a year after the contract has been signed. Information contained in SDoCs issued by timber depots is checked by the recipient of the SDoC (primary or secondary industries) in intervals of three months for the traceability of log sources. This is verified by CABs when conducting an SVLK audit of the recipient through document review in case the recipient is certified. In addition, the Ministry of Forestry can carry out random inspections, which may be contracted to competent third parties. In indications of fraud and irregularities, the Ministry of Forestry can conduct special inspections of the operator which uses SDoC.
All timber products covered by a V-Legal Document or FLEGT licence must come from a SVLK certified and or SDoC supply chain. Timber and timber products covered by SDoC cannot directly access international markets. Such access is only possible through a SVLK certified operator.
5.4. Legality verification of imported timber and timber products
Minister for Trade regulation 78/M-DAG/PER/10/2014 states that imported timber and timber products require proof of legality in the country of harvest. In this context, the SDoC template is also used for imports. Only registered importers (traders) and processing operators can import timber and/or timber products into Indonesia. These operators must exercise due diligence on imported timber and/or timber products to minimize the risk of illegal timber entering the Indonesian supply chain. They are required to provide information such as HS codes of products, Bill of Lading, countries of harvest, country of origin, proof of timber legality, and port of export in the declaration template. The due diligence procedures encompass data collection, risk analysis and risk mitigation. Procedures are carried out using the SILK online system of the Ministry of Forestry. The Ministry issues an import recommendation to the Ministry of Trade after assessing each due diligence process conducted by an operator.
CABs when conducting audits of the importer carry out document review of the due diligence system applied. Detailed procedures for the due diligence system and related checks will be provided in the TLAS guidelines and related import regulations.
5.5. Government responsibility for enforcement
The Ministry of Forestry, as well as provincial and district forestry offices are responsible for the control of timber supply chains and checking of related documents (e.g. annual work plans, log felling reports, log balance-sheet reports, transport documents, logs/raw material/processed products balance-sheet reports and production tally sheets). In the event of inconsistencies, forestry officials may withhold approval of the control documents resulting in a suspension of operations.
Infringements detected by forestry officials or by independent monitors are communicated to the CAB, which upon verification may lead the CAB to suspend or withdraw the awarded legality certificate. Forestry officials may take appropriate follow-up action in accordance with the regulatory procedures.
The Ministry of Forestry also receives copies of the verification reports and subsequent surveillance and special audit reports issued by the CABs. Infringements discovered by the CABs, by forestry officials or by independent monitors are communicated between the involved actors and handled in accordance with administrative and judicial procedures. If an operator is suspected of breaching regulations, the national, provincial and district authorities may decide to suspend or halt the operator's activities. CABs immediately revoke the legality certificates if the requirements of the legality standard are no longer met.
The Ministry of Forestry shall establish an ad-hoc task force in charge of inquiring and investigating any reported violation in relation to the issuance of a legality certificate and/or V-Legal Document/FLEGT licence (follow up team) on a case-by-case basis.
6. FLEGT Licensing
The Indonesian export licence for legal timber products is known as the “V-Legal Document”. This is an export licence that provides evidence that the timber products exported meet the requirements of the Indonesian legality standard as set out in Annex II and were sourced from a supply chain with adequate controls against the inflow of timber from sources not verified as legal. The V-Legal Document is issued by the LVs who act as Licensing Authorities (LA) and will be used as a FLEGT licence for shipments to the Union once the parties have agreed to start the FLEGT licensing scheme.
The procedures for issuing FLEGT licences/V-Legal Documents are provided in the TLAS Guidelines.
The Ministry of Forestry has established a Licence Information Unit to maintain an electronic database with copies of all V-Legal Documents/FLEGT licences and LA non-compliance reports. The Licence Information Unit will grant on-line access to its database to the competent authorities of the Union. In the event of an inquiry concerning the authenticity, completeness, and validity of a specific FLEGT licence, the competent authority in the Union will be able to verify the licence information by using the SILK on-line database. For further information, the competent authorities of the Union can contact the Licence Information Unit, which will communicate with the relevant LA if needed.
The V-Legal Document/FLEGT licence is issued at the point at which the consignment is consolidated prior to export. The procedure is as follows:
6.1. |
The V-Legal Document/FLEGT licence is issued by the LA, which holds a contract with the exporter, for the consignment of timber products to be exported. |
6.2. |
The exporter's internal traceability system shall provide evidence on the legality of timber for export licensing. The previous stage of the supply chain shall be included in the exporter's internal traceability system. |
6.3. |
For a V-Legal Document/FLEGT licence to be issued, all suppliers in the exporter's supply chain that make up the consignment must have been covered by a valid legality or SFM certificate or a SDoC. |
6.4. |
To obtain a V-Legal Document/FLEGT licence, an operator must be a registered exporter (an ETPIK holder) who possesses a valid legality certificate. The ETPIK holder submits a letter of application to the LA and attaches the following documents to demonstrate that the timber raw materials in the product originate only from verified legal sources (SVLK certified or SDoC declared):
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6.5. |
The LA then carries out the following verification steps:
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6.6. |
Result of verification:
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