Development of Ghana’s Legality Assurance System

(GhLAS)

Richard Gyimah & George Kuru

Antigua- March 8, 2016

Presentation Outline

• Brief description of Ghana’s Legality Assurance System & Scope

• Chain of custody system driven by Wood Tracking System = how Traceability works;• Source of timber and forest control system• Mill, Sale & Export control system

• Verification system = Audit and quality control

• Challenges

• Next steps

The Ghana’s Legality Assurance System Components: Systems, Institutions & Legislation

• Legality Standard• Chain of Custody System• Verification System• Licensing Authority• Independent Monitor

Legality Verification Protocols

Wood Tracking System

Timber Validation

Department

Timber Validation Committee

LI 2184

Systems development2009 to date

Institutions LegislationPassed in 2012

Timber Industry Dev. Div.

Settings for Verification & Validation – In Context of VPA(the Layers)

FSD TIDD

OperatorsRMSC

Application of Statutory Requirements within the Sector

1

Inspection/Enforcement of Controls existing within the FC Divisions [Quality Control]

2

Verification & Validation of implementation of Operational Procedures + Divisional Outputs against Legal Standard – Internal Audit Functions

3

FSD TIDD

OperatorsRMSC

TVD(Timber Validation Department)

External Mechanism that aims to evaluate entire control system

4

IM

• Preparation of reserve management. Plan

• Registration of Timber Companies• Preparation of operational plan• Harvesting regulation

• Check on fiscal regime compliance• 10% stock survey checks • Post-harvest checks• Timber inspection and grading• Input/Output data capture

• Verifies completeness and Validates listed criteria of Legality Requirements (Legality Definition)

Legal/Regulatory Environment Interventions Eg. Institutions

Requirement under bilateral agreement - VPA

Factory Inspectorate

Ghana Police

Customs

GcNet

Judiciary

Non- Forest Institutions

TVC• Independent Monitoring of

GhLAS• Complaints & dispute resolution

A LEGALITY (FLEGT) LICENSING SYSTEM

Exports

FLEGT License

ALL destinations must satisfy full legality qualities

Timber Sales

Domestic EXPORTPERMIT

Sources – Forests / plantations / imports / recovered

Processes – Transformation / movement of products

Reconciliation – Monitoring changes through the supply chain

Legality audit – Monitoring legal compliance through the supply chain

GWTS Forest

Source Documentation

Forest Measurement

Log production

Log transport

GWTS Industry

Wood Fiber

Sawn timber

Plywood

Joinery

Finished Products

GWTS Sales

Domestic Trade

Export Trade

Customs

GWTS Audit

Legality standards

Audit planning

Reconciliation & Legality checks

FLEGT Licensing

CHAIN OF CUSTODY & GhLAS CORE MODULES UNDER DEVELOPMENT BY ATA MARIE GROUP GH.LTD

Source of Timber & Forest Control System

Use of Technology in Tracking

GHANA’S WOOD TRACKING SYSTEM

SEMI-AUTOMATION/ELECTRONICFROM PAPER-BASED

GWTS Sources

Natural Forest – On reserve

Natural Forest – Off reserve

Plantations

Salvage

Confiscated / Abandoned

Imports

G W T S S o u r c e D o c u m e n t s

GWTS ForestSource Documents

GWTS Forest Measurements-1

Manual data captureElectronic data capture and repatriation to a central database for quick report generation

GWTS Forest Measurements-2: Map preparation

Manual map preparation= 4-7 weeks to complete

Electronic map preparation= 4-7 days to complete with Arc GIS

Before VPA Now under VPA Implementation

LOG PRODUCTION AND TRANSPORT

HHC/Smart phones-(Android) for data transmission

Mill, Sale & Export Control System

Use of Technology in Tracking

GWTS IndustryWood Processing

G W T S W o o d P r o c e s s i n g

GWTS SalesSales Consignment and Export Permits

G W T S S a l e s a n d E x p o r t s

GWTS Product traceability & Reconciliation functionalities

Use of Technology in Traceability

GWTS AuditProduct Traceability using Tree Number- Current Functionality

G W T S P r o d u c t T r a c e a b i l i t y

Natural Forest Log Traceability using Tree Number & Barcode labelling- Near Future

Forest plantations logs will be traced to the stand level and not to the stump level.

For natural forest timber, logs can be traced to the tree stump through barcode label and tree stock numbers because of selective logging

GPS of stand taken before harvest Total volume of stand assessed

before harvest Harvested volume matched with

total volume and geographical location

Wood Product Traceability in the Mills using GWTS

Mass balance approach

Use of product conversion ratios as guides [Lumber = 30-40%; Boules = 60-80%; Sliced Veneer = 55-65%; Rotary Veneer = 55-70%; Plywood = 50-60%]

Millers keep records of material input & product out for audit

GWTS AuditProduction Reconciliation

G W T S A c t i v e S u p p l y C h a i n R e c o n c i l i a t i o n

GWTS Legality Compliance Audit functionalities

GWTS Audit Legality Definition

GWTS Audit Legality Auditing

Updates on Development of the Legality Assurance Systems

• Wood Tracking System (WTS) in final stage of roll-out• Over 90% of system development complete• 37 out of 100 active companies sensitised

and rolled on to the WTS• 15 out of 30 productive FSD offices rolled

on to the system• 3 out of 8 TIDD Area offices

• Legality Audits operational and Functioning• 2 audit cycles were completed in 2015• 32 FSD district offices and 8 TIDD Area office were

covered in the audit• 42 Timber firms audited• 69 CARs issued to FC

• 78 CARs issued to Timber Companies

CARs covered harvesting, social responsibility, fiscal obligations, health and safety non-compliances /infractions

Some Challenges with respect to Traceability

• Internet connectivity has slowed down the rate of roll-out of the WTS

• Deciding on appropriate and affordable portable digital assistance/HHC for data capture and transmission

• Procurement of HHCs in adequate numbers

• Complexity of traceability in mills, especially tertiary products/engineered wood products (e.g. finger-jointed products, moldings, furniture parts, )

• Cost implications on the Timber Companies operation

Next Steps Planned• Introduction of barcode and changes in business process:

• To reduce the number of physical control points for checking logs from forest to processing/transformation points

• Strengthened supply chain controls by removing some human interventions

• Procure adequate and affordable portable digital assistance/HHC for data capture and transmission

• Implement the final phase roll out of the Ghana Legality Assurance from April

• Implement a comprehensive ICT and infrastructure solution to address current internet connectivity and occasional power challenges

• Firm up traceability and verification system for the domestic timber market supply chain

Issue FLEGT License

By end of 2016?

Timelines Implications for full Deployment of GhLAS

Thank You