Part A Introduction - An Overview of Forestry in Sarawak

Transcription

Second Edition, October 2012
Copyright © Ministry of Resource Planning and Environment
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without the prior permission of the copyright owner.
Printed in Kuching, Sarawak, Malaysia.
Legality Verification
of Logs in Sarawak
Ministry of Resource Planning and Environment
in collaboration with
Sarawak Timber
Industry Development
Corporation
Forest Department
Sarawak
SARAWAK FORESTRY
Corporation
Harwood Timber
Sdn Bhd
Preamble
This information booklet is jointly compiled by Forest Department
Sarawak, Sarawak Forestry Corporation, Sarawak Timber Industry
Development Corporation and Harwood Timber Sdn Bhd under the
auspices of the Ministry of Resource Planning and Environment. It
serves to explain the legality verification of logs as currently conducted
in Sarawak in terms of the tracking and traceability of log movement
along the chain of custody from the forest to the mill or export point. The
prescribed verification activities are based on the Inter-Agency Standard
Operating Procedures for Performance of Forestry Function that has
been adopted in 2010 by the then Ministry of Planning and Resource
Management. In line with the desire for continuous improvement, the
verification activities and associated procedures described herein are
subject to periodic revision or enhancement.
Table of Contents
Messages
i
Part A: Introduction - An Overview of Forestry in Sarawak
1
Introduction to Forestry in Sarawak................................................................................2
Sarawak’s Forest Policy..................................................................................................10
Part B: Definition of Legal Logs
13
Part C: Legal Framework
16
RegulatingAgencies......................................................................................................17
i.
ii.
iii.
iv.
v.
Ministry of Resource Planning and Environment (MRPE).............................19
Forest Department Sarawak (FDS).................................................................20
Sarawak Forestry Corporation (SFC).............................................................21
Sarawak Timber Industry Development Corporation (STIDC).......................22
Harwood Timber Sdn Bhd (HTSB)................................................................23
Governing Legislations.................................................................................................24
Part D: Legality Verification Processes
28
Legality Verification Processes......................................................................................29
i.
ii.
iii.
iv.
v.
vi.
Licensing........................................................................................................32
Forest/ Forest Landing Area...........................................................................36
Forest Checking Station.................................................................................38
Mill................................................................................................................44
Export Point....................................................................................................45
Continuous Auditing of Work Processes........................................................48
Part E: Verification Activities and Indicators
49
Contact Addresses
55
Abbreviations and Acronyms
58
Acknowledgement
59
Messages
Message from
The Right Honourable Chief Minister of Sarawak
T
he publication of this information booklet is both apt and timely.
Legality verification of logs, being an integral part of Sustainable Forest
Management, has always been high on the Sarawak Government’s forestry
agenda.
We have enacted various policies, laws and regulations for this purpose. In
addition to the legal and policy frameworks, we have also formulated various
systems and procedures and assigned different agencies to implement these.
What we have hitherto not done is to put in plain words and in one cohesive
document how we verify the legality of timber harvesting, royalty assessment,
log movement and related activities in Sarawak.
I wish to put on record my appreciation to the Ministry of Resource Planning
and Environment as well as the forestry agencies for this commendable effort.
YAB Pehin Sri Haji Abdul Taib Mahmud
i
Messages
Foreword from
Second Minister of Resource Planning and Environment
Minister of Public Utilities
Minister of Industrial Development, Sarawak
E
ffective legality verification of logs is one of several challenges in
regulating timber industry in Sarawak. Timber resources typically occur
in remote and widely scattered locations with difficult terrain and this makes
verification activities a logistical challenge.
As such credit must be given to the forestry agencies concerned for the
development and implementation of innovative systems and processes for this
purpose. An important milestone was the state-wide deployment in 2009 of LoTS
(Log Tracking System) that leverages on ICT (Information and Communication
Technology) and other modern technologies to facilitate tracking along the
chain of custody. With the introduction of LoTS, each log reaching the timber
mill or export point could be verified for royalty assessment and could also be
traced back to the felling site in the forest.
Another important innovation is the Inter-Agency Standard Operating
Procedures for Performance of Forestry Functions. These SOPs formalise
the streamlining the activities of the various agencies and the introduction of
elements of check-and-balance.
Hopefully this booklet will serve to inform and enlighten interested parties as to
how we conduct the legality verification of logs in Sarawak.
YB Datuk Amar Haji Awang Tengah Ali Hasan
ii
Part A:Introduction - An Overview of Forestry in Sarawak
Part A
Introduction - An
Overview of Forestry in
Sarawak
1
2
Introduction to Forestry in Sarawak
S
SA
RA
W
A
K
arawak is second to Peninsular Malaysia in terms of a landmass covering 12.4 million
hectares, and is located on the island of Borneo. Sarawak’s population in 2011 was 2.5
million1. About half of the population is concentrated in the State’s four major towns (Kuching,
Miri, Sibu and Bintulu). 2009 satellite imagery shows that more than 80% of the State is under
forest (as defined by FAO2) cover. Forest land in Sarawak is classified as the Permanent Forest
Estate (PFE) (Forest Reserves, Protected Forests and Communal Forests), Totally Protected
Areas (TPAs) (National Parks, Wildlife Sanctuaries and Nature Reserves) and State Land forest.
The State is in the process of achieving its target of being an advanced industrial State by the
year 2030. Infrastructure and services are not fully developed in the challenging rugged terrain of
much of the State’s interior.
Equator
Figure A.1
SARAWAK has a landmass of 12.4 million hectares. 2009 satellite imagery shows that more than 80% of
Sarawak’s total land area is under forest cover. (Based on FAO’s definition of ‘forest’)
Sarawak’s latitude (N 0.500 - 5.00) results in a hot and humid equatorial monsoon climate.
Temperatures range diurnally from 220C to 330C with little seasonal variation. Annual rainfall is
high and varies from 2,400 mm to 5,000 mm depending on the location. Some parts of Sarawak
experience spells of heavy rain during the northeast monsoon (December to March) while rainfall
tends to be lowest from June to August.
1
2
Yearbook of Statistics Sarawak 2011. Department of Statistics Malaysia, Sarawak
FAO. 2005. Global Forest Resources Assessment 2005. FAO Forestry Paper 147. FAO, Rome, Italy
3
Sarawak’s terrain ranges from flat coastal plains occupied by vast peat swamps with peat soils that
can reach many metres deep, through foothills to the rugged interior, sharply dissected by parallel
narrow interior ridges and valleys, where soils are generally shallow and nutrient-poor.
Several different forest or vegetation types are generally recognised. These include Mixed
Dipterocarp Forest (MDF), Peat Swamp Forest (PSF), Mangrove Forest, Each type develops in
response to a particular combination of soil factors and climatic conditions and thus comes to
occupy different locations. MDF, PSF, Mangrove Forest and others (Kerangas Forest, Montane
Forest and Limestone Forest) cover 85%, 12% ,1% and 2% of Sarawak’s forests respectively.
Figure A.2
Mixed Dipterocarp Forest
Mixed Dipterocarp Forest is the most widespread and arguably the most complex of Sarawak’s
forest types. It occurs from the inland limit of the coastal peat swamps to the lower limit of
the Montane Forest in the interior (c. 1,500 m above sea level) and is characterised by a great
diversity of species and life forms. Trees, shrubs, herbs and climbers occupy the space from the
forest floor up to the main canopy (at about 45m). Some trees emerge from the main canopy and
can reach 60m tall. A high proportion of the trees in this forest type belong to the Dipterocarp
family (e.g. Meranti, Selangan Batu, Kapur, Keruing and Mersawa) and produce valuable logs
owing to their large size, cylindrical shape and excellent timber properties. MDF is currently the
most important forest type economically due to its wide extent and its composition.
Peat Swamp Forest is also extensive and is located chiefly on low-lying coastal plains and inland
along the lower reaches of most river systems where the water table is usually at or near the soil
surface. It is less diverse than MDF but contains valuable and economically important timber tree
species.
4
Photo by SARAWAK FORESTRY
Figure A.3
Mangrove Forest
Mangrove Forest covers a comparatively small area as it occurs only in tidal and estuarine areas
from coastal mudflats as far upriver, and landward, as the limits of saline influence. It includes
only those few species that can survive periodic exposure to wave action and inundation by tidal
or brackish water. Its composition varies from place to place depending on the frequency of
inundation and the salinity of the water. Pure Bakau stands occur in some parts of the mangrove
and these are an important source of poles for scaffolding and piling and wood for charcoal
production. Mangrove forest is rich in other resources that local communities harvest (crabs,
nipah sugar, atap) and is where prawns and fish breed, so is vital to local fisheries. The other forest
types in Sarawak are neither extensive nor economically important.
Figure A.4
The dense mangrove roots help stabilise
the coastline and protect it from erosion.
Sarawak’s natural forests have high plant diversity due to
the great variety of habitats. There are about 3,000 known
tree species. About 40% of Sarawak’s plant species are
endemic to (found only in) Borneo. There are about 185
mammal species, 530 bird species, 166 snake species, 104
lizard species and 113 amphibian species in the State. A
large proportion of Sarawak’s animals are unique to Borneo
and do not occur in mainland South-east Asia. Sarawak
addresses the conservation of the State’s biodiversity by
gazetting Totally Protected Areas (TPAs) (National Parks,
Wildlife Sanctuaries and Nature Reserves). TPA status
protects a number of biologically important ecosystems
and a wide range of animal and plant habitats ranging from
marine and coastal habitats to lake environments, cave
habitats, mangroves, Peat Swamp, Mixed Dipterocarp,
Montane Forest etc.
Figure A.5
Proboscis monkey (Nasalis larvatus) : endemic to Borneo Island; seen in Bako National Park
Figure A.6
Sarawak’s rainforest is home to the Asian Fairy
Bluebird (Irena puella)
Figure A.7
Rafflesia tuan-mudae, in bloom at Gunung Gading
National Park near Lundu
5
6
Figure A.8
A picturesque scenery of a legendary lake at Loagan Bunut National Park, Miri
Sarawak’s forests provide its people
with ecosystem services that include
climate regulation, catchment protection,
clean water and control of erosion,
sedimentation and flooding.
Ecosystem services are commonly taken
for granted but are costly to repair or
restore when breakdowns (e.g. floods,
landslides) occur. Tropical forests play
an essential role in the Earth’s carbon
cycle, absorbing about a quarter of CO2
emissions generated by human activity3.
Their contribution to global climate
regulation and climate change mitigation
is vital to the global ecosystem and
essential for human well-being and the
planet’s health.
Figure A.9
One of the many waterfalls found in Gunung Gading National
Park - the home of the biggest flower in the world, Rafflesia
3
International Tropical Timber Organization. 2011. Status of Tropical Forest Management 2011. ITTO Technical Series # 38
7
Figure A.10
Mat-weaving with rattan: a common rural handicraft
Forest goods and values are very important to the State and in the lives of the people of Sarawak.
Rural populations obtain food (wild meat, fish and vegetables), materials to construct houses
and make handicrafts (palm leaves, cordage, bark etc.), traditional medicines and cash income
from collecting and selling non timber forest products (wild fruits and vegetables, rattans, oils,
dammar, gaharu etc.). The forest’s cultural, recreational, spiritual and aesthetic values have
significance for urban as well as rural populations and are the foundation of the eco-tourism
industry. The wealth of Sarawak’s forest biodiversity has as yet untapped potential as the basis for
a biotechnology industry that could produce products ranging from nutritional supplements and
spices to cosmetics, perfumes and ornamental plants. Sarawak’s forests store genetic resources
that are among the richest in the world.
8
Sarawak needs to consider the stakeholders’ interest in its forests and forestry activities in any
decision that affects the State’s forests. Briefly the stakeholders are the Sarawak Government,
government agencies responsible for regulating forestry activities, forest industry investors,
businesses and employees, those who live or work in the neighbourhood of forestry activities,
consumers of timber, environmental services and ecotourism products (local or global), special
interest groups (e.g. educators, researchers) and the public with concerns for environmental,
social or economic issues.
The rule of law in forestry was in existence as early as 1919, the year the Forest Rules was
gazetted and the Forest Department Sarawak (FDS) was established. These Rules were followed
by an Order, providing for the constitution and maintenance of reserved forests, which was
gazetted as the Forest Reservation Order, 1920. In 1954, Sarawak adopted a Statement of Forest
Policy, Colony of Sarawak. The three major ordinances that govern forests administration and
forestry activities in Sarawak are the Forests Ordinance 1954, the National Parks Ordinance
1956 and the Wild Life Protection Ordinance 1958.
Sarawak’s statutes cover the whole gamut of forestry activities, from provision of legal access and
rights to harvest to approval of management plans and compliance with all codes of practice for
harvesting operations. The statutes cover all logs, including those from Planted Forest.
Figure A.11
The main forestry ordinances in Sarawak
9
Figure A.12
Sarawak Logs and Timber Products Export by Destination for Year 2011
Destination
Value (MYR)
Asia1
758,604,609
Japan
2,925,366,525
China
322,811,371
India
1,150,765,266
Taiwan
769,428,693
Korea
449,437,122
Middle East2
427,242,382
Europe3
34,362,123
USA
125,159,140
Other Countries
119,967,451
Total
7,083,144,682
Asia1 :Bangladesh, Brunei, Cambodia, Hong Kong, Indonesia,
Peninsular Malaysia and Sabah, Maldives, Nepal, Pakistan,
Philippines, Singapore, Sri Lanka, Thailand, Timor Leste,
Vietnam
Middle East2 :Algeria, Bahrain, Egypt, Iran, Iraq, Jordan,
Kuwait, Lebanon, Libyan Arab Jamahiriya, Oman, Qatar, Saudi
Arabia, Sudan, Syrian Arab Republic, Turkey, United Arab
Emirates, Yemen
Europe3 :Belgium, Cyprus, Czech Republic, Denmark, Finland,
France, Germany, Greece, Ireland, Italy, Lithuania, Luxembourg,
Macedonia, Malta, Netherlands, Poland, Romania, Slovenia,
Spain, Sweeden, United Kingdom, Georgia, Kyrgyzstan,
Norway, Russian Federation, Switzerland, Ukraine
Includes: Logs, Sawntimber, Plywood, Veneer, Mouldings,
Dowels, Particle Board, Medium Density Fibreboard (MDF),
Laminated Board/Flooring, Woodchips, Blockboard, and Other
Timber Products*
*Other Timber Products include railway sleepers, finger-jointed,
laminated veneer lumber, densified wood, door and their frames
Sarawak’s forests and the forest industry sector are important to the State and have played,
and continue to play, a significant role in Sarawak’s socio-economic development. The timber
industry remains a major contributor to the State’s revenue (after oil and gas, palm oil) and foreign
exchange, through the export sector. Sarawak is also one of the major suppliers of tropical logs
and timber products in the global market. Sarawak logs and timber products are exported to over
50 countries worldwide with Japan, Korea, China, Taiwan, India, the Middle East and the United
States among the major importing countries. Logs, sawn timber, plywood, veneer and medium
density fibreboard are the major timber products exported from Sarawak. In 2011, the total export
value for timber and timber products recorded an amount of RM 7.1 billion (US $2 billion) which
was 7.7% of Sarawak principal exports.
The forestry sector accounted for 3.0% to 3.5% of Sarawak’s GDP annually. State Revenue
collected from the forestry sector amounts to RM 600-700 million annually.
10
Sarawak’s Forest Policy
Land and forests are under the jurisdiction of the State, as stipulated by the Federal Constitution
of Malaysia (Article 74(2)) (‘…the Legislature of a State may make laws with respect to any of
the matters enumerated in the State List ...’).
S
arawak first enacted a Statement of Forest Policy, Colony of Sarawak (approved by the
Governor-in-Council) in 1954, in accordance with Commonwealth Forestry Conference
recommendations. The Statement ‘is to be read as the official policy of the Government of Sarawak
in matters pertaining to forestry, …’. It sets out the State’s general policy in forestry matters and
how the Forest Policy is to be realised and touches on issues underpinned by legislation, namely
forest revenue and an export trade in forest produce.
The Policy is stated thus:
It is the policy of the Government of Sarawak:a.
To reserve permanently for the benefit of the present and future inhabitants of the country,
forest land sufficient
i.
for the assurance of sound climatic and physical conditions of the country; the
safeguarding of soil fertility and of supplies of water for domestic and industrial
use, irrigation and general agricultural purposes; and the prevention of damage by
flooding and erosion to rivers and to agricultural land
ii.
for the supply in perpetuity and at moderate prices of all forms of forest produce
that can be economically produced within the country, and that are required by the
people for agricultural, domestic and industrial purposes under a fully developed
national economy
b.
To manage productive forests of the Permanent Forest Estate with the object of obtaining
the highest possible revenue compatible with the principle of sustainable yield and with the
primary objectives set out above
c.
To promote, as far as may be practicable, the thorough and economical utilisation of forest
products on land not included in the Permanent Forest Estate, prior to the alienation of such
land
d.
To foster, as far as may be compatible with the prior claims of local demands, a profitable
export trade in forest produce.
11
Sarawak, North Borneo, Singapore and Federation of Malaya formed Malaysia in 1963. Land
and forests are under the jurisdiction of the State, as stipulated by the Federal Constitution of
Malaysia (Article 74(2)) (‘…the Legislature of a State may make laws with respect to any of the
matters enumerated in the State List ...’). Land and forests come under the State List so each State
government has complete jurisdiction over its respective forest resources, formulates its own
forest policy, enacts its own laws and deposits forest revenues into its state treasury.
Figure A.13
Statement of Forest Policy, Colony of Sarawak, circa 1954
12
Part A:Introduction -toAn
Forestry
Overview
in Sarawak
of Forestry in Sarawak
Part A:Introduction - An
Part
Overview
B: Defiof
nition
Forestry
of Legal
in Sarawak
Logs
Part B
Definition of
Legal Logs
13
13
14
Definition of Legal Logs
I
n the Sarawak context ‘Legal Logs’ are logs harvested by licensed persons from approved
areas and verified by the relevant authorities in accordance with the laws, regulations and
procedures pertaining to forestry and trade in Sarawak.
Figure B.1
Affixing the Jabatan Hutan (JH) hammer mark
Figure B.2
A sample of JH hammer mark
15
16
Part C
Legal Framework
17
Regulating Agencies
T
he State Government has a fully co-ordinated institutional basis to effectively and efficiently
regulate and optimise Sarawak’s forest resource potential.
Ministry of Resource Planning and
Environment (MRPE)
Forest Department
Sarawak (FDS)
SARAWAK FORESTRY
Corporation (SFC)
Sarawak Timber
Industry Development
Corporation (STIDC)
Harwood Timber
Sdn Bhd (HTSB)
Figure C.1
Institutional framework for regulating and managing Sarawak’s forests and forest industry
The four agencies; FDS, SFC, STIDC and HTSB, are directly involved in activities to implement the
legally-based control processes that encourage and enforce compliance with statutory requirements
and ISO-certified procedures. Each agency has a specific role to play. Together they developed
and implemented the Inter-agency Standard Operating Procedures (SOPs) for Performance of
Forestry Functions in Sarawak that covered a range of forestry operations, including compliance
with harvesting (licence) conditions, revenue collection and log movement. The SOPs established
clarity of roles and responsibilities, standardised, streamlined and improved work flow and enhanced
operational cost-effectiveness. They thus eliminate overlapped of jurisdiction and execution as
well as maintained elements of check-and-balance. The agencies are mutually independent but
18
communicate and work closely together according to the precepts of these Inter-Agency SOPs to
track timber from the forests to the point of issue of the export permit. A further (Federal) agency,
the Royal Malaysian Customs Department, Sarawak, undertakes customs clearance for logs that
are to be exported.
The four agencies collaborate with the Royal Malaysian Police Department and the Royal
Malaysian Customs Department to effectively enforce forest-related legislations and to curb
illegal activities.
Third-party certified work processes under SFC include: ISO9001:2008 and ISO 14001:2004
from the Department of Standards Malaysia, United Kingdom Accreditation Service and Moody
International Certification as well as the international standard OHSAS 18001:2007. Third-party
certified work processes under STIDC include registration of companies; and electronic issuance
of export and import licences for logs under ISO 9001:2008 (Moody International) and BS EN
ISO 9001:2008. Certified work processes under HTSB include log endorsement; shipping and
land transportation administration; and inspection of export logs under ISO 9001:2008 (SIRIM).
19
Ministry of Resource Planning and
Environment (MRPE)
M
inistry of Resource Planning and Environment, MRPE is the umbrella organisation for a
number of government agencies including the principal agencies involved in regulating
forestry activities in Sarawak.
The Ministry formulates the State’s policies on land, forests, minerals, timber, environment and
other natural resources.
20
Forest Department Sarawak (FDS)
F
orest Department Sarawak (FDS) was established in 1919 to manage and conserve the
State’s forest resources wisely and efficiently. One of the Department’s earliest actions was
to draft the earliest piece of forestry-related legislation to be enacted in Sarawak - a code of rules,
gazetted as the Forest Rules, 1919.
FDS also organized a system to collect royalties. Following the Great Depression and WWII,
Sarawak introduced the Permanent Forest Estate (PFE) (Statement of Forest Policy) and
enacted three major forestry-related ordinances: Forests Ordinance, 1954, the National Parks
Ordinance, 1956 and the Wild Life Protection Ordinance, 1958. These ordinances brought FDS
new responsibilities: to protect and manage Sarawak’s forests, including its TPAs and protected
wildlife, regulate forest produce harvesting and undertake enforcement. The State has revised and
amended the three ordinances over the years as deemed fit and FDS has continued to protect and
manage Sarawak’s forests and forest resources under the ordinances.
FDS’ role focuses on statutory function including implementation of policy and enforcement of
forest laws and regulations.
21
Sarawak Forestry Corporation (SFC)
S
arawak Forestry Corporation (SFC) owes its origin to a suggestion by the ITTO Mission to
Sarawak, which was tasked with conducting a case study in Sarawak of the promotion of
Sustainable Forest Management in 1989/90. The Mission concluded that there were constraints
on the existing FDS that severely affected the State’s ability to achieve Sustainable Forest
Management; hence a new model was required to improve efforts to manage and conserve
Sarawak’s rainforests.
SFC, was duly incorporated through the enactment of the Sarawak Forestry Corporation
Ordinance, 1995. This Ordinance empowers SFC to carry out enforcement, revenue collection
and conservation functions. SFC is also the operational arm for certain forest management
functions prescribed by the three major forestry-related ordinances and acts as a government
agent to perform various functions that these ordinances confer.
22
Sarawak Timber Industry Development
Corporation (STIDC)
S
arawak Timber Industry Development Corporation (STIDC) also known as PUSAKA was
established in June 1973 under the Sarawak Timber Industry Development Corporation
Ordinance, 1973. Its incorporation was initiated following the recommendation of the Food and
Agriculture Organization (FAO) of the United Nations, which conducted a comprehensive forest
inventory in the state from 1968 to 1972.
The functions of the Corporations were laid down in Section 5(1) of the said Ordinance. Amongst
others, the function are to regulate and control the establishment of mills except sawmills,
manufacture of timber and timber products, sale, distribution and marketing of timber as well
as to set or determine the manufacturing standards and quality, and trade practices of the timber
industry in Sarawak.
The Ordinance was revised and amended in 1999 and 2006. In 1999, amendments were made
to strengthen the role of STIDC in monitoring and regulating the timber industry. In 2006, the
laws was again revised and amended and this time STIDC was to take over the registration of
mills except sawmill from Forest Department. The amendment of the law also saw an increase in
penalty for non registration from RM2,000.00 to RM300,000.00 to show the State Government’s
commitment in curbing illegal activities.
23
Harwood Timber Sdn Bhd (HTSB)
H
arwood Timber Sdn Bhd (HTSB) was incorporated on 3 January 1985 under Company Act
1965. It is a wholly owned subsidiary of STIDC.
In 1994 the State Government of Sarawak, through the Director of Forests, with the approval of
the Minister for Resource Planning and Environment, has appointed HTSB to be an authorized
agency for the purpose of discharging such functions as are prescribed under Section 67A(5) and
Section 67A(7)(a) of Forests Ordinance including the issuance of Export Clearance Certificate.
HTSB roles include inspection of logs at source, transit point, mill and export point and endorse
legal logs (milling and export logs) movement in Sarawak. The objectives are as follows:•
•
•
•
•
To certify that the logs inspected are royalty assessed.
To certify that the logs inspected are produced from Licensed Timber areas.
To certify that the logs inspected are as per Forest Department documents.
To ensure the Sarawak logs endorsed at source has reached the designated point.
To ensure that the logs destined for export at the export points do not form part of the
reservation quota log referred to under Section 67A 1(b) of the Forests Ordinance.
Apart from endorsement of logs, HTSB also monitor the movement of vessels and land vehicles
transporting logs from one destination to another within Sarawak by issuing Shipping Pass and
Transportation Pass.
HTSB’s endorsement activities reinforce the assurance that logs inspected in either legal
processing mill or export point are the same logs that have been inspected earlier at the timber
license areas.
24
Governing Legislations
Malaysia is a signatory to the International Tropical Timber Agreement, a legally binding
agreement that promotes the expansion and diversification of international trade in legally
harvested tropical timber from sustainably managed forests and also promotes the sustainable
management of tropical timber-producing forests by policy work and project activities.
Sarawak State legislation relevant to timber legality dates back to 1919, before the formation of
Malaysia. The legislation comprises ordinances, orders, regulations, rules and legal instruments
(such as the State of Sarawak Forest Timber Licence (FTL) and Director of Forests (DF)
Circulars issued from time to time) that broadly cover timber harvesting, royalty collection,
timber transportation and compliance with import and export requirements. The State periodically
revises and amends the legislation in order to address changing circumstances.
Three major forestry-related ordinances govern the protection
and management of Sarawak’s forest resources The Forests
Ordinance (Laws of Sarawak Chapter 126) is the principal
law regulating the taking of timber and timber produce from
Sarawak’s forests. It regulates inter-alia the issue of timber
licenses, logging in concession areas and payment of royalty
and other statutory contributions by licensees. An amendment
in 2003 made provisions to strengthen enforcement powers and
introduce severe penalties for infringement of the Ordinance.
The Ordinance was most recently reviewed in 2006.
The Wild Life Protection Ordinance (Laws of Sarawak Chapter
26) provides for the establishment of Wildlife Sanctuaries and
protection of both plant and animal wildlife. The Ordinance
names 49 wildlife species and several species groups as Totally
Protected Animals.
25
The National Parks and Nature Reserves Ordinance (Laws of
Sarawak Chapter 27) provides for the constitution, maintenance
and control of National Parks and Nature Reserves in Sarawak.
The ‘Forest Rules’ was established to ensure that the forest resources
would be utilised according to plan and with minimum waste. The
Rules provide for licensing the taking of timber, firewood, charcoal
and certain other forest products, fix royalties, establish minimum
girths below which certain specified trees cannot be felled and
impose penalties for infractions. The State issued new Forest Rules
in1954 and amends the Rules periodically.
Sarawak Timber Industry Development Corporation Ordinance,
1973 was introduced to provide for the establishment of Sarawak
Timber Industry Development Corporation and matters connected
therewith and incidental thereto. The functions of the Corporation
were laid down in Section 5(1) of the Said Ordinance.
Sarawak Timber Industry (Registration) Regulations, 2008
is made pursuant to Section 24 of Sarawak Timber Industry
Development Corporation Ordinance, 1973. It provides provisions
for registration of timber industry with STIDC.
The said Regulation was recently amended in 2008 whereby the 1999 Regulation was revoked and
replaced with the new Regulation. The amendments were made in view of the new responsibility
assumed by STIDC to register mills except for sawmill. Previously, mill licenses was issued
by Forest Department. With these new amendments, STIDC plays a bigger and wider role in
regulating the development of timber industry in Sarawak.
26
The State requires each forest
concession area to hold a
FTL. This document sets
out the Licensee’s (or his
approved
representative’s)
responsibilities, the role of
FDS and SFC officers, royalty
assessment and collection,
payment of damages and so
on. First Schedule to the FTL
is the Forest Management
Plan (FMP) which sets out
Figure C.2
management and harvesting
Sample of Forest Timber Licences
prescriptions (species to be
removed, minimum cutting limits, Annual Allowable Coupe, logging road specifications, preharvesting activities and the harvesting operation).
Figure C.3
Plastic tags for logs and pole size timber cover aspects of log traceability
27
28
Part D
Legality Verification
Processes
29
Legality Verification Processes
L
og traceability in the context of Sarawak refers to the path taken by logs from the forests to
the mills or export points, including critical stages and mechanisms for log identification,
recording of production, royalty assessment and control of log movement. It is very much an
involved process due to the remoteness of many licensed areas, the great distances over which
consignments of logs must travel from forests to mills or export points, and the various road and
river transportation systems used.
Repeated layers of checking help ensure that the chain of custody for each log remains unbroken
and that illegal logs do not enter the supply chain.
Figure D.1
A typical rugged terrain in Sarawak
30
LoTS (Log Tracking System) is a custom-built ICT tool as well as network application used in
Sarawak to monitor and control the movement of logs. LoTS was first tried out in central Sarawak
in 1999 and was deployed State-wide in 2009. ForestNet is a purpose-built Wide Area Network
(WAN) that provides the necessary ICT infrastructure to operate LoTS in Sarawak. This WAN
now covers 44 locations throughout the State that includes 11 major administrative centres and
14 Forest Checking Stations.
In brief, LoTS is used to capture, record and monitor the details of logs felled by licensed operators
or their contractors, the volume of logs that have been royalty-assessed and movement of logs.
LoTS makes available data in real time to authorized stakeholders such as FDS, SFC, licensees
and auditors. It is possible through LoTS to detect irregularities such as tag/Log Production
Identity (LPI) duplication and false declarations. Therefore, it can be surmised that LoTS is
critical to the legality verification of logs in Sarawak.
Figure D.2
Monitoring LoTS data on real-time basis
Figure D.3
ForestNet layout comprising IPVPN and VSAT stations
31
32
Licensing
T
he log traceability system in Sarawak starts with the licensing process, initiated in response
to a prospective licensee’s application for a FTL. The Licensing process is underpinned by
the Forests Ordinance which requires workers of forest produce to be licensed and provides power
to issue licenses and permits for the taking of forest produce. The licensee must comply with the
FMP prescriptions contained in the FTL. Licensing involves several sequential activities under
the purview of basically two agencies, namely FDS and SFC. FDS processes the application then
issues the FTL in conjunction with an approved General Harvesting Plan (GP) (Figure D.4). The
GP is an important document as it provides for the layout and size of coupes, harvesting sequence,
proposed road network, camp-sites, dumping points and other general planning particulars for the
entire licensed area.
Subsequently SFC takes over and processes and approves the Detailed Harvesting Plan (DP)
(Figure D.5). The DP contains operational prescriptions at the coupe level, the layout of logging
blocks, surveyed road network, protected or conservation areas as well as the proposed harvesting
method. Further pre-harvesting safeguards to ensure compliance with the approved GP and
DP are provided by the need for logging operators to apply for Permit to Enter Coupe (PEC)
(Table D.1). The PEC process is also multi-stage and requires verification of satisfactory ground
compliance in terms of boundary demarcation, road construction, tree enumeration etc. before
any block can be endorsed for logging.
Figure D.4
A sample of the General Harvesting Plan (GP) map
33
34
Figure D.5
A sample of the Detailed Harvesting Plan (DP) map
35
Permit to Enter Coupe (PEC) operations
Operation
Hill Forest
Swamp and Mangrove Forest
1
Cut, demarcate and survey coupe Cut rentis for rail line(s) provisional
boundary
annual coupe and logging block
boundaries
2
Preparation of topographical work map Carry out 100% Enumeration
provisional annual coupe
3
Alignment and survey of proposed Construct rail line
road on the ground
4
Start road construction as planned Construct Kuda2, fell and extract timber
on the map approved, demarcate and
survey logging block boundaries and
carry out tree enumeration
5
Fell and extract timber
Table D.1
Permit to Enter Coupe (PEC) operational stages
Figure D.6
Tree Enumeration
Figure D.7
Main Road construction
of
36
Forest/ Forest Landing Area
S
FC inspects and monitors the progress of harvesting and block closure. The next stage
in the log traceability system occurs at the Forest Landing, a temporary log storage area
within the licensed area. This is the point of commencement for entry of log data into LoTS. At
the Forest Landing the licensee marks both ends of each log with his registered Property Mark,
affixes a unique pre-approved Log Production Identity (LPI) tag to each log. The licensee then
scales and grades each log (determines the log volume) and submits log details in the Daily
Production Return (DPR). SFC then checks to ensure that harvesting operations have taken place
within approved areas in compliance with FTL terms and conditions and that licensees have used
only approved LPI numbers. SFC checks the DPR information and uploads this into LoTS. After
this the licensee moves the logs from the licensed area to the Forest Checking Station.
LPI captured on tag is
unique to each and every
logs with pre-approved
running number and detailed
information i.e property
mark, camp, coupe, block
and species code
Property Mark denotes
ownership of the logs
Figure D.8
Log with Property Mark and LPI Tagging
Figure D.9
Log scaling in progress
37
38
Forest Checking Station
L
og traceability activities continue at the Forest Checking Station, where logs are royalty
assessed and physically inspected.
Two agencies, namely SFC and HTSB, are involved with the issuance of various documents
before allowing log removal and transportation. SFC is responsible for royalty assessment of all
logs while HTSB has been entrusted with conducting physical inspection of logs to ensure that
logs to be removed from the Forest Checking Station have been royalty assessed. There is a strong
element of check-and-balance in this arrangement.
Figure D.10
Affixing the JH hammer mark - part of the
Royalty Assessment process
Figure D.11
Log inspection by HTSB officer
39
Resulting from the assessment and inspection activities, SFC issues a Removal Pass (Royalty)
(Figure D.17) while HTSB issues an Endorsement Clearance Certificate (ECC) (Figure D.12) as
well as Transportation Pass (Figure D.14) or Shipping Pass (Figure D.16), both pre-requisites to
SFC’s issuance of a Removal Pass (Transit) (Figure D.18).
Figure D.12
A sample of Endorsement Clearance Certificate (ECC)
40
Figure D.13
A transportation pass and removal pass are required before movement of logs from forest checking station
Figure D.14
A sample of transportation pass
Figure D.15
A shipping pass is required for riverine transportation of logs
Figure D.16
A sample of shipping pass
41
42
Figure D.17
A sample of Removal Pass (Royalty)
Figure D.18
A sample of Removal Pass (Transit)
43
44
Mill
U
pon arrival of the
log
consignment
at the mill, the
Removal Pass (transit) will
be surrendered to SFC and
SFC requires HTSB to
conduct a cross inspection to
ensure that illegal logs have
not entered the supply chain
(Figure D.19).
Figure D.19
A sample of Inspection Report - E2
Export Point
L
og
traceability
continues at the
export point. Four agencies
are
involved:
HTSB,
SFC, STIDC and the
Royal Malaysian Customs
Department.
First HTSB physically
inspects the logs to ensure
that (i) export consignments
do not include any logs
supposed to be reserved for
milling and (ii) royalty has
been paid on them.
HTSB then issues an Export
Clearance
Certificate
(ExCC) (Figure D.20) as
a pre-requisite to SFC’s
issuance of a final Removal
Pass (Transit).
STIDC issues an Export
Licence.
Finally the Royal Malaysian
Customs
Department
undertakes
customs
clearance for logs to be
exported. The verifiers of
legality for log export are
the Removal Pass (Transit)
(Figure D.21) and Custom
Declaration Form 2 (Figure
D.22).
Figure D.20
A sample of Export Clearance Certificate (ExCC)
45
46
Figure D.21
A sample of Removal Pass (Transit)
Figure D.22
A sample of Custom Declaration Form 2
47
48
Continuous Auditing of Work Processes
S
arawak has implemented ISO certification to ensure its log traceability process is reliable.
Third parties have certified all work processes involved in the chain of custody in Sarawak
under ISO 9001:2008.
Independent auditing is an integral part of log traceability that helps ensure that all parties carry
out their legal and moral obligation to comply with laws and improves traceability reliability.
Internal and third-party auditors are involved.
The four agencies continuously conduct internal audits of their work processes using the LoTS
application.
Third party audits are made of all four agencies’ work processes. FDS makes spot checks of LPI
and log-movement documents against the LoTS database at points between felling site and export
point.
The Internal Audit Department of the Chief Minister’s Office, Sarawak, conducts audits at
State-level and also makes spot checks of LPI and log-movement documents against LoTS. The
National Audit Department conducts audits at Federal level. Independent External Auditors check
to see that ISO certified processes are implemented according to specifications.
Part E
Verification Activities
and Indicators
49
50
Verification Activities and Indicators
P
articulars of the agency responsible, procedures or guidelines used, applicable legal
instruments and indicator outputs are tabulated for each Verification Activity in sequence,
as follows:
ACTIVITY: Process Forest Timber Licence Application
AGENCY RESPONSIBLE
PROCEDURE/ GUIDELINE/ CHECKLIST
Procedure for processing of Forest Timber Licence (FTL)
LEGAL INSTRUMENT
Forests Ordinance Cap. 126 (Sections 49, 51, 55)
INDICATOR/ OUTPUT(S)
Recommendation for issuance of FTL
REMARKS
---
ACTIVITY: Issue Forest Timber Licence (FTL)
AGENCY RESPONSIBLE
Procedure for processing of FTL
LEGAL INSTRUMENT
Forests Ordinance Cap. 126 (Sections 49, 51, 55)
Valid FTL
REMARKS
Licence exceeding one year needs approval by the
Minister of Resource Planning and Environment
ACTIVITY: Process and Approve General Harvesting Plan (GP)
AGENCY RESPONSIBLE
i. Guidelines for Forest Road Planning and Construction
ii. Forest Engineering - Its role in the Management of
Mixed Dipterocarp Forest of Sarawak
iii. Checklist for processing of GP
LEGAL INSTRUMENT
i. Forests Ordinance Cap. 126 (Section 95, Clauses 1(a)
& (t))
ii. Management Plan in Forest Timber Licence issued
under Forests Ordinance Cap. 126 (Sections 49, 51,
55)
Approved GP
REMARKS
---
51
ACTIVITY: Process Detailed Harvesting Plan (DP) or Detailed Harvesting Plan/ Road Plan (DP/
Road Plan)
AGENCY RESPONSIBLE
i. Guidelines for Forest Road Planning and Construction
ii. Guidelines/ Procedures for Planning, Aligning and
Construction of Skid Trails and Landings
iii. Guidelines/ Procedures for Tree Felling and Log
Extraction Under Various Harvesting System
iv. Forest Engineering - Its role in the Management of
the Mixed Dipterocarp Forest of Sarawak
LEGAL INSTRUMENT
& (t))
55, 65B)
Valid DP or DP/Road Plan
REMARKS
---
ACTIVITY: Process Application for Permit to Enter Coupe (PEC)
AGENCY RESPONSIBLE
i. Processing of Road Survey Data, Road Plan and
Profile Drawing (ISO Ref: SFC-PR-SF&C-012)
ii. Processing, Endorsing, Issuing and Monitoring of PEC
Application for TL, LPF & OT Licence (ISO Ref: SFC-PRSF&C-103)
iii. Pre-harvesting Inspection (ISO Ref: SFC-PR-SF&C-014)
iv. Monitoring of Harvesting Progress and Block Closing
(ISO Ref: SFC-PR-SF&C-016)
LEGAL INSTRUMENT
&(t))
55)
i. Approved DP or DP/Road Plan PEC endorsed to 1-4
ii. Approved Pre-harvesting Inspection
iii. PEC with endorsement of Operation 5
REMARKS
---
52
ACTIVITY: Monitoring Harvesting, LPI Tagging and Property Mark
AGENCY RESPONSIBLE
i. Monitoring of Harvesting Progresss and Block
Closure (ISO Ref: SFC-PR-SF&C-016)
ii. Registration of Log Production Identity (LPI) and Daily
Log Production (ISO Ref: SFC-PR-SF&C-004)
LEGAL INSTRUMENT
i. Forest Rules: Rule 22 (1); Rule 25 (2)
ii. Forest Department Sarawak; Instructions for the
inspection of logging areas 1982
iii. Wild Life Protection Ordinance 1998 (Cap 26)
(Second Schedule)
i. Daily Production Return (DPR) Specification approved
ii. LPI and coupe and block tag affixed to logs
iii. Licensee Property Mark embossed
REMARKS
---
ACTIVITY: Royalty Assessment
AGENCY RESPONSIBLE
Royalty Assessment under LoTS (ISO Ref: SFC-PRSF&C-005)
LEGAL INSTRUMENT
i. Forests Ordinance Cap. 126 (Section 52 (2))
ii. Forest Rules: Rule 22 (5)
i. Removal Pass (Royalty) issued
ii. Log Specification (Royalty) approved and LoTS
Reference Number generated
iii. Log embossed with Government hammer number
iv. Royalty assessment tag affixed to logs
REMARKS
---
ACTIVITY: Physical Inspection at Forest Checking Station (Place of Royalty Marking)
AGENCY RESPONSIBLE
HTSB Endorsement Manual
a. Endorsement at source of Reservation Quota logs
and Export Logs (Section 2.3 and 4.3)
b. Tally logs during loading onto vessel (Section 3.2)
LEGAL INSTRUMENT
Inter Agency Standard Operating procedure for
Performance of Forestry Functions in Sarawak (SOP)
i. Issuance of Endorsement Clearance Certificate (ECC)
by HTSB (prerequisite for issuance of RPT by SFC)
ii. Issuance of Shipping/ Transportation Pass by HTSB
REMARKS
---
53
ACTIVITY: Issue Removal Pass
AGENCY RESPONSIBLE
Issuance of Removal Pass (Transit) - LoTS (ISO Ref: SFCPR-SF&C-006)
LEGAL INSTRUMENT
Forest Rules: Rule 22 (5)
i. Log Specification (Transit) approved and LoTS
security number generated
ii. Removal Pass (Transit)
REMARKS
---
ACTIVITY: Physical Inspection (Mill or Export Point)
AGENCY RESPONSIBLE
HTSB Endorsement Manual
a. Inspection of Incoming Logs at Mill and Export Point
(Section 2.4 and 4.2)
b. Inspection of Outgoing Export logs at Export Point
(Section 4.3)
LEGAL INSTRUMENT
Inter Agency Standard Operating procedure for
Performance of Forestry Functions in Sarawak (SOP)
Issuance of Export Clearance Certificate (ExCC) by HTSB
(prerequisite for issuance of RPT by SFC)
REMARKS
---
ACTIVITY: Verify and Issue Removal Pass (Transit/ Export)
AGENCY RESPONSIBLE
Outgoing logs (ISO Ref: SF&C-PR-SAPD-004)
LEGAL INSTRUMENT
i. Forest Rules: Rule 22 (5)
ii. Forests Ordinance Cap. 126 (Section 67(A))
i. Endorsement Export Clearance Certificate (ExCC)
ii. Removal Pass (Transit)
iii. Log Specification (Transit) approved and LoTS
security number generated
REMARKS
---
54
ACTIVITY: Register Companies and Electronic Issuing of Export Licence (Log Export)
AGENCY RESPONSIBLE
Sarawak Timber Industry Development Corporation
(STIDC)
i. Procedure for Processing Registration Application
(ISO Ref: 9001:2008)
ii. Issuance of Export and Import Licence of Logs and
Timber Products (ISO Ref: BS EN ISO 9001:2008)
LEGAL INSTRUMENT
i. Sarawak Timber Industry Development Corporation
Ordinance, 1973 Cap. A58 (Section 5A (1) & 5 (1))
ii. Sarawak Timber Industry (Registration) Regulations
2008, Regulation 3
iii. Customs Act 1967 (Section 10)
iv. Customs Act 1967, Customs (Prohibition of Export)
Order 2008
v. Customs Duties (Exemption) Order 1988
vi. Forests Ordinance Cap. 126 [Section 67A (7) (a)]
vii. Forests Ordinance Cap. 126, The Ramin Logs
(Prohibition) of Export Order 1980
viii.Wild Life Protection Ordinance 1998 (Cap 26)
Second Schedule
i. Registration Certificate
ii. Export Licence
REMARKS
STIDC is fully authorised by the Royal Malaysian
Customs Department under Customs Act 1967 (Section
10) to issue Export Licence electronically
ACTIVITY: Spot Check Inspection
AGENCY RESPONSIBLE
i. Revenue Audit and Control of Log Movement
Procedure
ii. Investigation Officer’s Manual
iii. Prevention and Protection Activities Guidelines
LEGAL INSTRUMENT
i. Forests Ordinance Cap. 126 (Section 2A (2), 52 (2),
68 and 69)
ii. Forest Rules: Rule 21 (1-3), Rule 22 (1-5), Rule 25
(1-3)
iii. Forest Timber Licence conditions
i. Revenue Audit Report
ii. Fieldwork Report
iii. First Information Report
iv. Investigation Paper
REMARKS
---
Contact Addresses
Contact Addresses
55
56
Contact Addresses
Contact Addresses
Ministry of Resource Planning and Environment (MRPE)
The Minister of Resource Planning and Environment
Wisma Sumber Alam
Jalan Stadium, Petra Jaya
93050 Kuching, Sarawak
Malaysia
Tel: +6082 313818 / 823 Fax: +6082 313810
Website: www.kpps.sarawak.gov.my
Director of Forests
Wisma Sumber Alam
Malaysia
Tel: +6082 442180 Fax: +6082 441377
E-mail: [email protected]
Website: www.forestry.sarawak.gov.my
SARAWAK FORESTRY Corporation (SFC)
Managing Director/ Chief Executive Officer
Lot 218, KCLD, Jalan Tapang
Kota Sentosa
Malaysia
Tel: +6082 610088 Fax: +6082 610099
Website: www.sarawakforestry.com
Contact Addresses
Contact Addresses
Sarawak Timber Industry Development Corporation
(STIDC)
General Manager
Wisma Sumber Alam
Malaysia
Tel: +6082 473000 Fax: +6082 442691
Website: www.sarawaktimber.org.my
General Manager
Sublot 4-6, Section 5, Lot 320
Wisma PTBS, Jalan Kulas
Malaysia
Tel: +6082 415520 Fax: +6082 255249
Website: www.harwoodtimber.com.my
57
58
DF
– Director of Forests
DP
– Detailed Harvesting Plan
DPR
– Daily Production Return
ECC
– Endorsement Clearance Certificate
ExCC
– Export Clearance Certificate
FAO
– Food and Agriculture Organization
FDS
– Forest Department Sarawak
FMP
– Forest Management Plan
FTL
– Forest Timber Licence
GDP
– Gross Domestic Product
GP
– General Harvesting Plan
HTSB
– Harwood Timber Sdn Bhd
ICT
– Information and Communications Technology
JH
– Jabatan Hutan (Forest Department)
LoTS
– Log Tracking System
LPI
– Log Production Identity
MDF
– Mixed Dipterocarp Forest
MRPE
– Ministry of Resource Planning and Environment
PEC
– Permit to Enter Coupe
PFE
– Permanent Forest Estate
PSF
– Peat Swamp Forest
SFC
– Sarawak Forestry Corporation
SOPs
– Standard Operating Procedures
STIDC
– Sarawak Timber Industry Development Corporation
TPAs
– Totally Protected Areas
Acknowledgement
59
Acknowledgement
T
he Ministry of Resource Planning and Environment would like to acknowledge the
Forest Department Sarawak, Sarawak Forestry Corporation, Sarawak Timber Industry
Development Corporation, Harwood Timber Sdn Bhd, Sarawak Timber Association and other
parties for their roles and contribution in the realisation of this Information Booklet.

Part A Introduction - An Overview of Forestry in Sarawak

Transcription

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