International Wood International Wood 2006

Sarawak: A cA s e s T u Dy I n leg A l e X P O r TAT I O n O f WO O D WhAT cAn I DO TO reAssure my cusTOmers ThAT my ImPOrTeD WOOD PrODucTs Are legAl? 1) Know the facts. Many efforts to combat illegal logging are justifi ed and legitimate; however, lawsuits generated for headlines and fundraising are not. 2) Participate actively in your industry trade asso- ciation. Associations exist to be a complementary resource to your business. 3) Buy from an IWPA importer. This is the best business practice to ensure that your product has followed the proper travel rules, regulations, and permits. These importers handle all documen- tation and logistics and are familiar with legal requirements of the country of export and in the United States. See page 63 for a list of leading importers. Being knowledgeable of the issues and the steps that suppliers are taking to support legal and sustainable forest management and trade is good business practice. Together we can play an active role in the future of people in developing countries who rely on forests for their livelihood while confi dently meeting the growing demand for high quality and affordable products. iw The state of Sarawak is located in East Malaysia (on the island of Borneo), and its forests are its most important resource and asset. From the time the fi rst log lands to the fi nish line at the U.S. port, logging companies, forest departments, and the government all par- ticipate in a marathon of well-documented checks and balances. STEP 1 – Logs are harvested in approved blocks, debarked, marked, tagged, and taken to a transit camp where they are measured, sorted and graded. The logging company involved must supply detailed internal records for documentation. STEP 2 – At the log pond, the logging company provides records of re-measurement, sorting for milling and export, and must prepare log specifi cation forms and apply for royal assessment. STEP 3 – The Sarawak Forestry Corporation (SFC) conducts a documentation pre-royalty assessment check of the company before carrying out the actual royalty assessment and will then stamp its own forest service mark on the assessed logs. This process includes signed log specifi cation forms and the royalty removal pass. (Royalty is a fee based on volume payable by the logging company to the government.) STEP 4 – The Harwood Timber Pte. Ltd. inspects logs destined for local processing. A report is issued to the logging company and an Endorsement Clearance Certifi cate (ECC) is issued to the SFC. In the case of logs destined for export, the Harwood Timber Pte. Ltd. will issue an Export Clearance Certifi cate (ExCC) after inspection. STEP 5 – SFC inspects the logs and issues a transit removal pass. The Harwood Timber Pte. Ltd. inspects and issues a shipping pass for logs transported by river systems to the mill. For exportation of logs, the process will skip to Step 8. STEP 6 –At the mill, both the Harwood Timber Pte. Ltd. and the SFC inspect the logs, issue reports, and update records. STEP 7 – Timber companies process the logs into timber products and must provide internal production records. STEP 8 – The Sarawak Timber Industry Development Corporation inspects all timber products or logs and issues an export permit. STEP 9 – The Royal Customs Department of Malaysia processes applications for Customs clearance to export timber products or logs. STEP 10 – An American importer must undergo several steps of documentation and regulations before legally importing wood including: • CF 5106 – registration with U.S. Customs as an importer • Customs Bond 301 – all imports must have a posted bond • Commercial invoice in English • Packing List • Bill of Lading • Certifi cate of Origin (when applicable) • CF 3461 – release document prepared by import broker • CF 7501 – fi led within 10 days of CF 3461 release and submitted with duties IWPA members personally visit many of their overseas supplier operations to ensure that these businesses are built upon sustainability and legality. • Insurance certifi cate • “Form A” required if claiming GSP (depending on country of origin and export) • USDA requirements and clearance • Solid Wood Packing requirements • Additional licensing and/or permits for certain types of woods 50 i m p o r t e d w o o d

International Wood International Wood 2006 | Page 50