COUNTRY GUIDE TO TIMBER LEGALITY: SURINAME

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INTRODUCTION

Introduction 2

1 Suriname background 3

1.1 Overview of Suriname forest resource 3

1.2 Forest Estate and Ownership 5

1.3 Administrative & legislative context 6

1.4 National traceability system 7

1.5 Timber Production and Processing 9

1.6 Exports 10

1.7 Key challenges to verifying legal harvest 12

ACTIONS

2 Actions 14

2.1 Actions for timber producers in Suriname 15

2.2 Actions for timber processors 18

2.3 Actions for exporters 20

ADDITIONAL RESOURCES

3 Additional resources 22

COUNTRY GUIDE TO TIMBER LEGALITY: SURINAME CONTENTS

1COUNTRY GUIDE TO TIMBER LEGALITY: SURINAME

ABOUT TFTEstablished in 1999, TFT is a global non-profit that helps businesses bring responsible products to market. Responsible products improve people's lives and respect the environment at all stages of the product lifecycle. TFT helps more than 90 members worldwide build responsible supply chains by identifying and addressing embedded social and environmental issues. having established a strong record of achievement in timber supply chains, TFT has expanded its work into palm oil, leather and stone. TFT has offices in 15 countries and an on-the-ground presence in many more.

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ABOUT TTAPThe Timber Trade Action Plan (TTAP) is a private sector initiative of the EU’s Forest Law Enforcement Governance and Trade (FLEGT) Action Plan, managed by TFT and its partner Timber Trade Federations of Europe (ETTF), the UK (TTF), Netherlands (VVNh), Belgium (FBCIB) and France (LCB). The project delivers a practical approach by supporting European buyers and their suppliers in producer countries towards legality verification as a means to promote responsible management of tropical forests.

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The TTAP project receives funding from the European Union. This publication has been produced with the financial assistance of the European Union. The contents of this publication are the sole responsibility of TFT and can in no way be taken to reflect the views of the European Union.

Internationally Suriname is known as “a high forest cover with low rates of deforestation” (hFLD) country and the country has made efforts to conserve and protect the forest through promoting sustainable forest management2. To date primary forest cover is relatively stable and the deforestation rate very low, around 9,000 hectares per year, though planned development and infrastructure projects together with illegal and legal mining, agriculture, including slash and burn will likely place more pressure on forest conversion.

Laws have recently been introduced by the USA, EU and Australia that ban illegally harvested timber from their markets. Importers and buyers that place timber products on those markets must be able to demonstrate that timber was harvested legally. Failure to do so could imply prosecution though fines, seizure of products or imprisonment and could therefore affect businesses in producer countries.

Buyers rely on their suppliers in producer countries to provide information and evidence to demonstrate timber has been legally harvested. without adequate information and evidence of legal harvest, it will not be possible to sell to these markets.

This guide gives practical advice to timber producers, processors and exporters in Suriname on how to demonstrate timber legality to their customers. Buyers can also use this as a guide to complement their understanding of the wood products industry in Suriname and legal requirements such as the types of documentation and information needed by Surinamese timber businesses.

The guide comprises three main sections:

1. Suriname background, primarily for buyers importing timber-based products from Suriname. It summarises Suriname’s forest resource, the timber processing industry, and official regulation of timber production and processing.

2. Actions for timber producers, processors and exporters. wherever you operate in the supply chain it is recommend that you read all three sets of actions to understand what information and documents may be needed. Communication and exchange of information between supply chain partners about timber legality requirements is critical.

3. Further information provides links and sources of information about the laws in the USA, EU and Australia to better understand the requirements and how to demonstrate legality.

2 COUNTRY GUIDE TO TIMBER LEGALITY: SURINAME

INTRODUCTION

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Suriname’s forest resource covers 14 7 million hectares, which is roughly 90% of the country (16.3 million hectares)1 and includes tropical rainforest, seasonal forest, dry evergreen forest, marsh forest and mountain forest. Suriname’s forests form part of the wider Guiana Shield Rainforest that also covers Guyana, French Guiana, Venezuela and Brazil and is one of the largest expanses of untouched tropical rainforest in the world.

SURINAME BACKGROUND 1.1 OVERVIEw OF SURINAMESE FOREST RESOURCE

1 FAO. (2010). Global forest Resources Assessments 2010: Suriname Country Report2 FAO. (2010). Global forest Resources Assessments 2010: Suriname Country Report

Of the 14.7 million hectares of Suriname’s forest resource, 99% (14.68 million ha) is allocated to the state with the rest privately controlled4. 3.92 million hectares of state forest, equivalent to around 26% is classified for production purposes. These unallocated lands are principally the south of the country and due to lack of ready access and long distances to market the commercial harvesting of these forests is not economically feasible at present.

harvesting licenses are issued in the form of:

- Forest concessions under Article 25 of the Forest Law are issued to concessionaires that hold the rights to harvest and transport timber. These vary in size and duration – they can be extended once for the same duration as the concessions have been granted5 - and include:

- Short term: issued for concessions of less than 5 000 hectares for a period of 1 to 5 years;

- Medium term: issued for concessions between 5 000 and 50 000 hectares for a period of 5 to 10 years; and,

- Long term: issued for concessions of between 50 000 and 150 000 hectares for a period of 10 to 20 years.

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SURINAME BACKGROUND 1.2 FOREST ESTATE AND OwNERShIP

3 FAO. (2010). Global forest Resources Assessments 2010: Suriname Country Report

FIGURE 1: MAp oF SURINAME'S FoREST RESoURCE3

4 FAO. (2010). Global forest Resources Assessments 2010: Suriname Country Report5 SBB (2011) Information sheet: Forestry in Suriname 6 SBB (2011) Information sheet: Forestry in Suriname

- Communal Wood Cutting permits (HKV) are allocated under Article 58 of the Forest Law and were originally issued to villages for their own use. Commercial logging undertaken in these areas is becoming more common and in these instances must follow the requirements for forest concessions;

- Incidental Cutting Licences (ICL) under Article 38 of the Forest Law are issued for forest conversion and should be felled in entirety in a single operation. No concession fees are paid but other charges applied based on the cutting register.

As of 2011, 64 logging concessions had been allocated covering a total area of 1.35 million hectares6. 80 communal forests had also been allocated accounting for 0.58 million hectares and a further 3 Incidental Cutting Licenses (ICL) covering 0.17 million hectares.

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“kapregister” to control production and retribution payments to the government. Log numbers are also registered on the waybill for transportation and these are controlled at road checkpoints by SBB to ensure that all produce harvested leaves the forest.

Supply chains vary in Suriname with some companies being vertically integrated - allocated forest land though concessions that supply their sawmilling and factory sites - whereas others are more complex with sawmills and factories sourcing raw material from numerous forest sites from smallholders and traders, as seen in Figure 2. Processors, exporters and buyers alike should be aware of this and should take action to trace their supply chains back to source and secure strong evidence of legal harvest.

SBB has developed a comprehensive computerized log-tracking system, known as LogPro, to monitor harvesting operations, the payment of forest fees and forest planning at the FMU level. Although this system is still under development it has already proved useful in promoting SFM9.

The requirements for Chain of Custody (CoC) which is enforced by SBB, provides a system that allows logs and piles (squared logs) to be traced back to the concession and stump through the cutting register. This is achieved given that all logs leaving the forest gate carry an official tag that bears a unique number, which corresponds to the second half of the tag that is affixed or in some cases painted on the stump and carries the same number. All stumps are inspected by SBB and hammer marked. These log numbers are registered on the

The Forest Management Act (1992)7 covers the sustainable and rational use of forest resources in Suriname. It takes into account the interests of forest-dwellers and the conservation of nature and biological diversity. It provides rules governing timber production and export as well as covering the various licenses for forest harvesting – see above. A national forest policy was adopted in 2003 after an extensive process of consultation with stakeholders.

The government institutions responsible for the management and protection of Suriname’s forest resources are the Ministry of Physical Planning, Land and Forestry Management, the Foundation for Forest Management and Forest Control (Stichting voor Bosbeheer en Bostoezicht – SBB), and NB (Nature Conservation Division of the old Suriname Forest Service – Jachtwet en BosBeheer, LBB).

SBB is responsible for the enforcement of the Forest Management Act (1992) and, consequently, for the management of production forests. NB is responsible for the enforcement of the Nature Conservation Act (1954) and the Game Act (1954) and, consequently, for the management of nature reserves and other protected areas. There has been an ongoing process to establish a single authority for the management of production and protection forests though the Forest and Nature Management Authority (Bosnas), but this is still pending8.

SURINAME BACKGROUND 1.3 ADMINISTRATIVE & LEGISLATIVE CONTExT

SURINAME BACKGROUND 1.4. NATIONAL TRACEABILITY SYSTEM

7 http://db.natlaw.com/interam/sr/ag/sp/spsrag00005.pdf 23.03.2013 8 ITTO (2011): Status of Tropical Forest Management: Suriname 9 ITTO (2011): Status of Tropical Forest Management: Suriname

VERTICALLy INTEgRATEd SUppLy CHAIN

BUyER(EU/USA/oz)

BUyER(EU/USA/oz)

pRoCESSoR

FoREST (Smallholder)

EXpoRTER(Factory)

FoREST(private)

pRoCESSoR(Sawmill)

FoREST(Smallholder)

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purchase at least some or all logs from third parties. This implies that the most sawmills purchase large volumes of raw material from concessions without a sawmill or from hKVs or ICL where management plans are predominately not required.

Key commercial species in Suriname include:•Gronfolo (Ruizterania albiflora)•Basralocus (Dicorynia guinansis)•Purperhart (Peltogyne paniculata)•Kopi (Goupia glabra)•Wana (Ocotea rubra)•Bolletrie (Manilkara bidentata) •Walaba (Eperua spp)•Gele kabbes (Vatairea guianensis)•Kimboto (Pradosia ptychandra)•Wanakwari (Vochysia tomentosa) •Bruinhart (Voucapoua Americana)

A number of trees species are restricted for harvesting and trade, these being:

•Bolletrie (Manilkara bidentata) – permitted by SBB on a case by case basis•hoepelhout (Copaifera guianensis)•Inginoto (Bertholletia exclesia)•Man Rozenhout (Aniba spp.)•Rozenhout (Aniba spp.)•Sawari (Caryocar nuciferum) •Tonka (Dipteryse oderata & punctata).

In 2011 the total roundwood production (industrial as well as non-industrial roundwood) was 366,395 m3.10 representing an average production increase of 7% per year between 2000 and 2011. Roundwood production based on an area of 59,100 hectares of active cutting compartments in 2011 indicates a utilization rate of 6 m3 per hectare. This is significantly lower than the authorised annual allowable cut of 25 m3 per hectare and represents 24% of the available timber potential utilized in this period. had the full potential been utilized this could represent an annual production of approximately 1.4 million m3.11

The wood processing industry in Suriname is composed of a single plywood mill and around 70 sawmills, most of which are located in and around Paramaribo. Sawmilling capacity ranges between 5,000 and 15,000 m3 of round log input with most producing less than 2,000 m3 of finished product annually. The current installed capacity of the sawmill industry of Suriname is estimated at 340,000 m3 per year and with production in 2011 at 100,000 m3 only around 30% of the available capacity was utilized12.

Approximately a third of the sawmills source their raw material from their own concessions, while a large majority

10 Lawson, S., and MacFaul, L. (2010). Illegal Logging and Related Trade: Indicators of the Global Response

10 SBB. (2012). Surinamese Forest Sector 2011: Department of Forestry Economics Service 11 SBB. (2012). Surinamese Forest Sector 2011: Department of Forestry Economics Service12 SBB. (2012). Surinamese Forest Sector 2011: Department of Forestry Economics Service

FIGURE 2: EXAMpLE oF A VERTICAL ANd NoN-VERTICAL INTEgRATEd SUppLy CHAIN

SURINAME BACKGROUND 1.5.TIMBER PRODUCTION AND PROCESSING

FoREST(Smallholder)

TRAdER

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There is clear division between emerging Asian markets, which mainly import logs from Suriname and European markets that principally import sawn wood. Chinese owned companies have become increasingly active in the Suriname forest sector and this is reflected in China’s emergence as their leading trading partner, which accounted for around 69% of all exports in 2011.

Between 2004 and 2012, the value of Suriname’s wood products exports increased dramatically from $ 3.3 million to $14.3 million – see Figure 313. In 2011, around 75% of logs were consumed domestically with 89,953m3 exported. Suriname’s top export destinations are China, India, Netherlands, Taiwan and South Korea followed by Germany and Belgium – see Figure 4. Three of these countries have illegal logging legislation in place and demonstrate the need for Surinamese exporters to provide buyers in these countries with the supply chain information required of them to maintain market access through assurances of legality.

SURINAME BACKGROUND 1.6 ExPORTS

13 Forest Industries Intelligence (2013)

Exports are almost entirely comprised of logs and represent five times the value of exports to the EU14.

Given the different types of products, species, origin of timber and supply chain complexity it is of paramount importance that exporters provide supply chain transparency to their buyers to manage risk and maintain trade flows.

FIGURE 3: $ VALUE oF SURINAME'S EXpoRTS 2004-12 FIGURE 4: SURINAME'S Top 5 EXpoRT MARKETS By VALUE

other

sawn

logs

14 Oliver, Rupert (2013)

This section provides some key issues and complexities in Suriname for companies to demonstrate legal harvest in Suriname and actions to manage these risks.

•The 2012 Corruption Perception Index (CPI) developed by Transparency International, scored Suriname with 37 indicating weak governance and unreliable official documentation.

Action: As a processor, exporter or buyer you should use a variety of approaches of risk assessment, documentation checks, site visits either internal or external e.g. service providers to demonstrate evidence of legally harvested timber.

•Manipulation and misrepresentation of species data at the inventory phase can be a deliberate approach to overstate the stock of certain tree species and gain additional harvesting quota for that particular species. Prohibited species could also be misnamed to represent a permitted species.

Action: checks by SBB field staff could pick up some of these issues of misnaming tree species though this might not always be the case. You should use only recognised companies offering inventory services. where issues arise,

12 COUNTRY GUIDE TO TIMBER LEGALITY: SURINAME

SURINAME BACKGROUND 1.7. KEY ChALLENGES TO vERIfYING LEGAL hARvEST

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inform other forestry companies so that blacklisted companies offering inventory services are not used and promoted.

•Under-declaration of volume harvested is a potential approach taken by forest operators to intentionally reduce the payment of fees and royalty royalties to the SBB.

Action: checks by SBB field staff should identify these issues in the field, though this might not always be the case. You should contact SB to determine whether the company is up to date with all royalty and fee payments and whether any court proceedings are in process. where this is the case further investigation should be undertaken to identify the reason and mitigate the risk.

• Incorrect tagging of timber products and manipulation of the chain of custody process could be measures taken by some operators to attempt to demonstrate illegally harvested timber is from a forest with approval for legal harvest.

Action: the chain of custody system could be manipulated e.g. using tags allocated to timber licenses for use on logs from another concession, however, in reality this should not possible to achieve on a

significant scale given that this should be picked up by SBB during routine inspections. Nonetheless, your upstream suppliers throughout the supply chain should exercise due diligence and only purchase products from their known and trusted suppliers. where doubts exist over the tag numbers you can cross check with SBB to determine whether the numbers correspond to the approved concession of your supplier. You should also undertake due diligence of new suppliers to understand their supply chains and documentation to support how they are sourcing their raw material and provide this information to you to cross check with official documentation.

•Instances could occur where timber has been illegally harvested in neighbouring concessions and passed off from another concession.

Action: You should identify the forest origins of the timber you buy, and assess and mitigate the risks of illegal harvest though internal and external audits. This information together with associated documentation of traceability should be provided to downstream customers. You should complement the collection of documentation from upstream suppliers with field and site visits to understand the sourcing and production methods, and evaluate performance against local law and legislation and take necessary action.

• HKV and ICL license holders are not required to have a management or annual operation plans instead manage their forests on an extensive control basis. They are not monitored to the same extent as regular concessions by SBB staff.

Action: if you are sourcing from hKV or ICL license holders or sawmills purchasing raw material from them, then you should undertake internal and external audits to determine whether the DBh and distance limits as well as buffer zones, harvesting on slopes and other environmental and social aspects are being respected. Ensure log and product tags are not being fraudulently used.

• Gold-mining is a significant cause of forest degradation and environmental pollution and could increase the risks of illegally harvested timber entering your supply chain.

Action: mining claims supersede forestry rights and where claims overlap forest companies and their operations can be negatively affected. Care should be taken that where forest is cleared in anticipation of mining activities, that illegally harvested timber is not mixed with this and laundered as legal conversion timber.

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within Suriname, regulations vary with the type of concession as do the degrees of risk of illegal harvest. The following ‘actions’ therefore indicate the types of information, documentation and activities that are likely to be needed for a) timber producers, b) processors and c) exporters within the supply chain. They do not provide a comprehensive and definitive list of exactly what will be needed for every product type, wood species and region of harvest, but they provide guidance as to the type of approach you are likely to need for your specific wood sources.

A timber supply chain as represented in Figure 5 below generally comprises a:

Timber producer: this could be forest owner or manager, a farmer growing trees,

The timber producer is critical – everyone else depends on you to demonstrate evidence of legal harvest! You need to ensure that you:

• Show evidence that you have the Legal right to harvest your forest resource;

• Provide information that you have paid all applicable fees and taxes;

• Take into account third party rights;

• Demonstrate that you comply with all required timber harvesting regulations; and,

• Respect all requirements for trade and transport of timber.

Your customers may ask for documentary evidence that your timber was harvested legally. If you operate in an area where illegal harvest is significant or timber from unknown forest sources is commonly traded, or if you sell higher risk commercially valuable species, you are likely to be asked for specific evidence of legal harvest. however, you may be asked for such evidence wherever you operate, and which ever species you sell.

ACTIONS ACTIONS2.1 ACTIONS FOR TIMBER PRODUCERS IN SURINAME

a community forest group, or a timber buyer who buys timber standing and harvests it.

processor: this could be a company engaged in any stage of processing between the raw logs and the finished product - for example, a small sawmill or log-peeling operation, a component maker, or a large factory that assembles furniture. Raw material could either originate from domestic sources in Brazil or imported from a third country.

Exporter: this could be a company engaged in exports products to the USA, EU and Australia, or to other countries for processing, manufacture or assembly before shipment to the USA, EU or Australia.

Table 1 shows the types of documents that may be requested, depending on which regulations apply to your specific context. Often not all of these documents will be requested - the most frequently requested are likely to be; harvest permission, compliance with harvest codes of conduct/regulations, evidence of stumpage payment, and transport licences (shown in bold in the table overleaf) and you should therefore be ready to provide these to your customer.

Securing the documentation presented below represents a first step towards decreasing the likelihood of illegal timber being used in the supply chain. Undertaking regular internal audits to determine that all legal requirements are being met should be practiced in parallel to collating the documentation and help build credibility in the process. Build an open and transparent relationship with your buyers so that they understand the systems in place for responsible forest management and traceability. Together this will help to develop strong working relationships and maintain market access for your products.

FIGURE 5: REpRESENTATIoN oF A TIMBER SUppLy CHAIN

TIMBER pRodUCERS > TIMBER pRoCESSoRS > EXpoRTERS > BUyERS

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LEgAL REqUIREMENT doCUMENTARy EVIdENCE ISSUINg AUTHoRITy

LEGAL RIGhT TO hARVEST

BUSINESS IS REGISTERED AND PAYS TAxES

COMPANY REGISTRATION ChAMBER OF COMMERCE AND INDUSTRY

TAX REgISTRATIoN ANd RECEIpTS FoR CoMpANy TAX

TAx DIRECTORATE (DIRECTORAAT BELASTINGEN)

ThE BUSINESS OPERATES ON AN OFFICIAL FMU AND hAS ThE RIGhT TO DO SO.

FoREST CoNCESSIoN AgREEMENT

MINISTRY OF SPATIAL PLANNING. LAND AND FOREST MANAGEMENT MINISTRY OF REGIONAL DEVELOPMENT

REGISTRATION wITh ThE FOUNDATION FOR FOREST MANAGEMENT AND CONTROL

ID NUMBER ISSUED BY ThE FOUNDATION FOR FOREST MANAGEMENT AND FOREST CONTROL (STIChTING VOOR BOSBEhEER EN BOSTOEzIChT – SBB)

A FOREST MANAGEMENT PLAN IS IN PLACE

FoREST MANAgEMENT (EXpLoITATIoN) PLAN APPROVAL LETTER

SBB

ANNUAL hARVESTING RIGhTS APPROVED

ANNUAL opEERATIoNAL pLAN APPROVAL LETTER

SBB

TIMBER hARVESTING REGULATIONS

ENVIRONMENTAL IMPACT ASSSESSMENT (EIA)

NOT A REqUIREMENT - IN FUTURE LIKELY TO BE SUPERVISED BY NIMOS

ENVIRONMENTAL PROTECTION CODE OF CONDUCT FOR hARVESTING IN PLACE

DRAFT CODE OF PRACTICE FOR FORESTRY IN PLACE BUT NOT CURRENTLY IN EFFECT. LIKELY TO BE SUPERVISED IN FUTURE BY SBB.

SBB

LEgAL REqUIREMENT doCUMENTARy EVIdENCE ISSUINg AUTHoRITy

SOCIAL IMPACT ASSESSMENT (SIA)

NOT A REqUIREMENT - IN FUTURE LIKELY TO BE SUPERVISED BY NIMOS

FORMAL EMPLOYMENT CONTRACTS & SOCIAL SECURITY IN PLACE

CONTRACTS NOT COMMON BUT NATIONAL ACCIDENT INSURANCE (SOR) OBLIGATORY FOR ALL EMPLOYEES

INSURANCE COMPANY

OCCUPATIONAL hEALTh & SAFETY RESPECTED

NO DOCUMENT AVAILABLE TO VERIFY ThIS ThOUGh MINISTRY OF LABOUR ENCOURAGE COMPLIANCE

MINISTRY OF LABOUR

ThIRD-PARTY RIGhTS

FREE, PRIOR AND INFORMED CONSENT

ThERE ARE NO TITLED INDIGENOUS LANDS IN SURINAME AND TO DATE NO FORMAL ISSUE OF OVERLAPPING LEGAL RIGhTS UNTIL ThIS hAS BEEN RESOLVED wITh AMERINDIAN AND MAROON

DISTRICT COMMISSIONER

CUSTOMARY RIGhTS OF INDIGENOUS PEOPLES

FEES & TAxES FEES AND TAxES hAVE BEEN PAID FOR ThE PRODUCTS CONCERNED

NO OFFICIAL DOCUMENT BUT SBB PROVIDE A COMPLIANCE LETTER ON REqUEST FOR PAYMENT OF ROYALTIES AND CONCESSION FEE. TAx RECEIPTS ISSUED BY ThE TAx DIRECTORATE.

SBB

TRANSPORT & TRADE

DOCUMENTATION RELATED TO TRANSPORT AND TRADE IS AVAILABLE FOR ThE PRODUCTS CONCERNED

oFFICIAL SBB WAyBILL (VBB) SBB

ACTIONS2.1 ACTIONS FOR TIMBER PRODUCERS IN SURINAME

TABLE 1: doCUMENT TypES FoR TIMBER pRodUCERS To dEMoNSTRATE LEgAL HARVEST TABLE 1: doCUMENT TypES FoR TIMBER pRodUCERS To dEMoNSTRATE LEgAL HARVEST

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• Your customers’ requirements for information and evidence of timber legality:

Action: understand your customers’ requirements whether domestic or international (your domestic customers might be selling to USA, EU or Australia) and secure that information and evidence from your up-stream suppliers. Find more information in the generic guide to Legality.

• Your legal timber supply is not mixed with other, potentially illegal, timber:

Action: if you have multiple sources of timber, ensure that those from assessed legal sources cannot be mixed with unknown sources at any point in the process. Implementing a Chain of Custody (CoC) system that tracks, records and segregates the different sources/species and volumes. It also enables you to demonstrate to your customers that no mixing is occurring.

Table 2 opposite documents the type of evidence to demonstrate that your mill or factory buys, processes and sells timber products legally – part of the requirements for the points above. Not all of these document types are always needed or applicable (for example no FLEGT licenses exist at the time of publication).

Additional guidance for processors can be found in the generic guide to Legality.

• Where in the sub-region of harvest the timber in your product was harvested:

Action: obtain country/forest of harvest from your suppliers. Request them to include this information in your invoice and also for all species comprising your products to your downstream customers. Develop a database as shown in Figure 6 (page 21) to collect this information.

• The risks of illegal harvest associated with the area of harvest and the timber species:

Action: once you know sub-region and forest of harvest assess the risks of illegality in the area. If you uncover evidence of potential illegality in a wood source then you should seek to verify legality or exclude this source from your raw material supply and locate other suppliers. You should maintain records of this and regularly monitor your suppliers to be able to inform your customers, as required.

• Your legal obligations as a processor when you purchase, process and sell timber products. These vary by region, processor type, product and species:

Action: establish a list/database of laws and regulations that apply to you and undertake internal audit to ensure you fulfil all of the requirements.

ACTIONS2.2. ACTIONS FOR TIMBER PROCESSORS

LEgAL REqUIREMENT doCUMENTARy EVIdENCE

ISSUINg AUTHoRITy

LEGAL RIGhTS TO OPERATE

BUSINESS IS REGISTERED AND PAYS TAxES

COMPANY REGISTRATION wITh MINISTRY OF TRADE AND INDUSTRY

MINISTRY OF TRADE AND INDUSTRY

COMPANY REGISTRATION wITh ChAMBER OF COMMERCE AND INDUSTRY

ChAMBER OF COMMERCE AND INDUSTRY AND SBB

REGISTRATION wITh ThE MINISTRY OF FINANCE

MINISTRY OF FINANCE

TAX REgISTRATIoN TAx DIRECTORATE

BUSINESS hAS ThE RIGhT TO PROCESS FOREST PRODUCTS

IN URBAN AREAS PERMISSION TO OPERATE IS NEEDED FROM ThE MUNICIPAL AUThORITIES

MUNICIPAL AUThORITIES

FEES & TAxES APPLICABLE TAxES hAVE BEEN PAID

TAx REGISTRATION

RETRIBUTIoN RECEIpT

TAx DIRECTORATE SBB

TRANSPORT & TRADE

APPLICABLE TRANSPORT AND TRADE LICENCES AND DOCUMENTS ARE IN PLACE

AppRoVEd WAyBILL MINISTRY OF SPATIAL PLANNING, LAND AND FOREST MANAGEMENT

PAYMENT OF TAxES & ROYALTIES (FOR ExPORTERS)

INTERNATIONAL TRADE TRANSACTION MINISTRY OF TRADE

TRANSPORT & TRADE (FOR ExPORTERS)

APPLICABLE TRANSPORT AND TRADE LICENCES AND DOCUMENTS ARE IN PLACE

SBB AppRoVAL FoR TIMBER EXpoRT SBB

SBB INSPECTION LOG LIST SBB

ENIG-DOCUMENT CUSTOMS

CUSToMS AppRoVAL FoR EXpoRT CUSTOMS

h-DOCUMENT MINISTRY OF TRADE

IT DOCUMENT INTERNATIONAL BANK TRANSACTION

TABLE 2: doCUMENT TypES To dEMoSNTRATE LEgAL TIMBER pURCHASE, pRoCESSINg ANd EXpoRT IN SURINAME

*while you might be asked for all or any of the documents listed in Table 2, you are more likely to be asked for those that are highlighted.

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As an exporter, or a manufacturer of finished products, you must have the overview and control of all timber sources that feed in to your products. It is to your advantage to be able to demonstrate legality to your customers in the USA, Europe and Australia. They rely on you for the information and evidence that they need to import your products legally. Access to this information over your competitors could help to gain market share.

what you need to know and do:

Provide documents showing legal export;

Action: establish a list/database of laws/regulations that apply to you and undertake internal audit to ensure you fulfil all of the requirements.

Understand the risks of illegally harvested timber in your product;

Action: carry out supply chain mapping (see example database in Figure 6, opposite, to understand where your products originate. Collaborate closely with your upstream suppliers to collect information including

ACTIONS2.3. ACTIONS FOR ExPORTERS

invoices and accompanying sales documentation for species (trade and scientific name), forest of origin, complexity of supply chain, and volume.

If your supply chains are simple and timber in your product comes from a known forest source, it may be easy to demonstrate legal harvest. If your supply chains are long or complex and the harvest origins are unknown and potentially illegal, you will need to plan how to mitigate risk. The greater the risk of illegal harvest that you uncover, the more certain you need to be of the forest origins and legal harvest. Information will need to be more complete, and supporting documents checked.

Supply chain mapping and risk mitigation activities should be monitored on at least an annual basis or more often if you change suppliers and raw material sources.

FIGURE 6: EXAMpLE dATABASE To ASSIST IN MAppINg THE oRIgIN oF yoUR RAW MATERIAL SUppLy BASE

pRodUCT 'ACME KITCHEN TABLE'

TIMBER pRoCESSoR FINAL FURNITURE MAKER pRodUCT MANUFACTURER

NAME Fortune Furniture Corp

ADDRESS/LOCATION Street/city/country

ALL UNIqUE wOOD SOURCES A B C USED IN PRODUCT

MATERIAL TYPE Solid wood Veneer Fibre board

COMPONENT Table legs Table top face Table top core

SPECIES (SCIENTIFIC Fraxinus excelsior Acacia melanoxylon Populus deltoides & COMMON NAME) Common Ash Blackwood Poplar

TIMBER pRoCESSoR SAWMILL pEELER CoMpoNENT MAKER

NAME Super Sawmill Ltd Ideal Veneers Company Best Components Ltd

ADDRESS/LOCATION street/city/country street/city/country street/city/country

TIMBER pRoCESSoR MdF MILL

NAME qualityMDF Ltd

ADDRESS/LOCATION street/city/country

TIMBER pRoCESSoR Wood CHIp MAKER

NAME PopChip Company

ADDRESS/LOCATION street/city/country

TIMBER pRodUCER Natural Forest Concession Plantation forest Farming region management unit

NAME xYz Timbers New Eucalyptus Corp Farming Group

ADDRESS/LOCATION Address/Location Address/Location Address/Location

21

22 COUNTRY GUIDE TO TIMBER LEGALITY: SURINAME

For more information and details on the USA’s Lacey Act, Europe’s Timber Regulation and Australia’s Illegal Logging Act and how TFT can assist, please refer to the Generic guide to Legality as well as the TFT website.

fURThER INfORMATION3. ADDITIONAL RESOURCES

DISCLAIMERThis guide is intended as information only and does not constitute legal advice from TFT. Producers, processors and exporters who are seeking further clarity on legislative requirements should contact the legislative-making body or its nominated representative.

LACEy ACThttp://www.aphis.usda.gov/plant_health/lacey_act/index.shtml

Frequently asked questionshttp://www.aphis.usda.gov/plant_health/lacey_act/downloads/faq.pdf

EUTRRegulation (Eu) No 995/2010 of the European parliament and of The Council http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:295:0023:0034:EN:PDF

Commission Implementing Regulation (Eu) No 607/2012 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:177:0016:0018:EN:PDF

EC guidance document http://ec.europa.eu/environment/forests/pdf/guidance_document.pdf

http://www.euflegt.efi.int/portal/home/the_eu_timber_regulation_and_flegt-licensed_timber/

AUSTRALIAN ACThttp://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r4740

SERVICE pRoVIdERSTFT EUTR DDS Support: http://www.tft-forests.org/sure/

TTAP Guide to Service Providers http://tft-forests.org/ttap/page.asp?p=6228