ANNEX IIISupplementary provisions
ANNEX III LEGALITY VERIFICATION SYSTEM (LVS) CHAPTER 1 INTRODUCTION The Legality Verification System (LVS) of the Republic of Congo is based on various legislation, regulations, directives and standards. There are two main aspects of the LVS: — administrative checks, and — on-site checks. The LVS developed here is based on monitoring, checking and verification currently carried out as part of governmental supervision of the management and use of forest resources, but is enhanced to guarantee the reliability of the FLEGT licensing scheme introduced under this Agreement. The LVS consists of the following elements: 1. two legality matrices; 2. a traceability system; 3. verification of the legality of the forestry entity; 4. verification of checking of the supply chain; 5. issuing of FLEGT licences; 6. independent audit. The LVS is operated by: — two (02) Head Offices under the supervision of the General Forest Economy Office (DGEF): the Forestry Office and the Office for the Use of Forest Resources, — three (03) Divisional Inspectorates under the supervision of the General Forest Economy Inspectorate (IGEF): the Forest Inspectorate, the Inspectorate of Fauna and Protected Areas and the Administrative and Judicial Inspectorate, — twelve (12) Departmental Offices represented in all Departments of the country (Brazzaville, Pointe-Noire, Kouilou, Niari, Lékoumou, Bouenza, Pool, Plateaux, Cuvette-Ouest, Cuvette, Sangha, Likouala), along with their teams and control stations, — two (02) independent bodies: the Department for the Control of Forestry Products for Export (SCPFE) and its subsidiary offices and the National Centre for the Surveying and Management of Forestry and Fauna (CNIAF), — the departments of the trade authorities, — the departments of the legal authorities, — the departments of the customs authorities, — the departments of the tax authorities, — the departments of the labour authorities, — the departments of the environmental authorities, — the departments of the health authorities, — the departments of the social security authorities (the National Social Security Fund, CNSS), — forestry companies. Moreover, a civil society structure is set up to monitor the activities of the forestry companies and help develop verification procedures. In addition, the LVS is audited by the Independent Auditor of the System. The responsibilities of the various entities involved in operating the LVS system will be described in the following chapters. However, the powers described of the various entities involved and the human resources needed, including the skill levels required for each post, will be detailed during the system development phase. Similarly, in the organisation of control and verification functions, special attention will be paid to mechanisms for the management and control of potential conflicts of interest. CHAPTER 2 COVERAGE The LVS is applied to ALL national sources of timber and to imported products. All timber sold in Congo is therefore included in the legality verification system. The verification of legality therefore covers the national market and export markets for all products defined in Annex I, irrespective of the country exported to. The system also covers requirements with respect to timber of Congolese origin passing through other countries (in particular Cameroon). CHAPTER 3 3.1. Legality matrices The Congo LVS includes two legality matrices: (i) Matrix for Assessing the Legality of Timber Produced in Natural Forests in Congo and (ii) Matrix for Assessing the Legality of Timber Produced in Forest Plantations in Congo (cf. Annex II). The matrices contain indicators and verifiers concerning the following aspects: — the existence of the forestry company, — the legal rights of access to forest resources and the granting of periodic licences, — compliance with management rules, — compliance with certain provisions on harvesting and processing, — compliance with environmental rules, — the conformity of tax returns and payment of duties and social security contributions within the stipulated deadlines, — the provision of information to and the involvement of civil society and local and indigenous populations in the management of the forestry concession, — respect for the rights of local and indigenous populations and workers, — the meeting of commitments with respect to contributing to socioeconomic development. The legality matrices define the requirements imposed on companies carrying out forestry activities and producing or processing timber and derived products. The indicators and verifiers in the matrix are divided into two categories: (i) those that are not linked to the traceability chain; and (ii) those that are verified within the framework of the traceability chain. Sub-chapter 3.2 looks at the first of these categories, while Chapter 4 deals with the indicators and verifiers in the second category. 3.2. Verification procedures The verification of legality is based on documentary evidence (checking of documents) and/or on-site visits. Certain indicators and verifiers can be verified just once during the company’s existence (validity of the certificate of exploitation and of the provision of the management plan). Other indicators and verifiers need to be verified periodically (every month or quarter) or once a year. Table No 1 outlines the responsibilities, methods and frequency of verification of activities for timber produced in natural forests. The verification strategy can be summarised as follows: 3.2(a) First level: checks carried out by authorised departments — The existence of the forestry company is checked by the trade, labour and tax authorities. — Where the company holds a management and processing agreement (CAT) or an industrial processing agreement (CTI), the forestry permit request file approved by the forestry Commission contains the key information relating thereto, as required under the forestry code (Articles of association, trading licence, commercial registration number, approval, licence, etc.). This also enables the Forestry Authority to check certain facts relating to the existence of the forestry company. — Periodic licences (company licence, annual harvest licence, annual harvest management licence, timber clearing licence) are granted by the Departmental Forest Economy Office on the basis of the files containing documents required under applicable regulations, in particular the annual harvest survey report. Copies of licences issued and the files relating thereto are sent to the General Forest Economy Office. — Other licences are issued and checked by the tax and customs authorities. — On-site inspections enable the local Forestry Authority to check compliance with rules on the harvesting and processing of timber. — As far as drawing up, approving and monitoring implementation of the forestry concession management plan are concerned, this work is carried out on the basis of management standards and directives. — Ground work is checked and assessed by the Forest Department and the National Centre for the Surveying and Management of Forestry and Fauna through work carried out on the ground, reports on which are sent to the General Forest Economy Inspectorate (IGEF). — Multi-resource inventory reports, socioeconomic and ecological studies, and the breakdown of the Forest Management Unit (UFA) into management blocks are examined and approved by an interministerial committee consisting of the Water and Forest, Agriculture, Land Management and Environment Authorities. — Before it is approved, information about the management plan is disseminated to the local populations. — It should be pointed out that the management plan is approved at the end of a meeting of the Forestry Authority, local authorities (prefecture, subprefecture, departmental council, village committees), the departmental services, NGOs and representatives of indigenous peoples. — As far as compliance with environmental rules is concerned, checks are carried out by the Departmental Office for the Environment (compliance with legal and regulatory provisions) and the Departmental Forest Economy Office (when monitoring implementation of forestry concession management plans). — The committee monitoring and reviewing the forestry concession management plan, consisting of all those involved in managing the forestry concession, can also check compliance with provisions and measures associated with conservation and environmental protection. — Providing information to and involving local and indigenous populations and the respecting of their rights are checked through minutes of meetings between the forestry company and the latter. During worksite inspections, the Forestry Authority can also speak to the people concerned. — Minutes of meetings of committees monitoring and reviewing management plans can also be used to check that these commitments are being met by the forestry company. — As far as respecting workers’ rights is concerned, checks are carried out by the Departmental Labour Office and the Departmental Office for the National Social Security Fund (CNSS). — The Transport Authority will organise documentary checks to ensure that the means of transport used and the products transported comply with the relevant regulations. — Inspection reports by those structures (Departmental Labour Office and Departmental Office for the CNSS), the minutes of union meetings or meetings between unions and the forestry company are appropriate inspection documents. Detailed terms for the communication of first level inspection results to the IGEF will be defined in the development phase of the system. These terms will also set out the way in which an authority informs the IGEF of an infringement. 3.2(b) Second level: verification by the IGEF The IGEF has overall second level responsibility in verifying: — the legality of the forestry entity, and — inspection of the supply chain. As far as verifying the legality of the forestry entity, the various checks mentioned under 3.2(a) enable the General Forest Economy Inspectorate to carry out its verification work through: — discussions with the local/regional Forestry Authority (Departmental Forest Economy Office and Forest Economy Team), the other public authorities concerned and forestry companies, — verification of various documents of the local Forestry Authority (Departmental Forest Economy Office and Forest Economy Team), the other public authorities concerned and forestry companies, — on-site checks, if applicable. Civil society representatives may, if applicable, attend on-site checks and prepare an independent inspection report. For that purpose, the IGEF is responsible for ensuring that the other institutions involved in carrying out checks (Trade, Labour, Tax, Agriculture, Land Management, Environment, CNSS, etc.) have carried out their tasks and received the results required for checking purposes. It does this of course through visits to the institutions concerned, documentary checks and verification of available databases. The various data resulting from the first level check will be verified by the IGEF, then approved. A written record of this second level verification process and approval will be retained and archived in accordance with the terms defined during the system development phase. This verification process results in the issuing of a legality certificate which is given to the applicant. The legality of a company will be based on compliance with indicators and verifiers using a combined system, in other words the indicators and verifiers for the year preceding the legality certificate application have indeed been met and attest to the company’s legality and, on the other hand, no infringement has been reported in respect of the current year. The legality certificate is valid for one year. Before expiry of the certificate, a new IGEF check is scheduled and carried out to enable the issuing of a legality certificate for the following year. If, for reasons outside the company’s control, this new check cannot be carried out by the deadline set, the certificate can be extended for a maximum of six months. 3.3. Verification of legality in certified forestry concessions The various standards taken into account by the private bodies for the certification of forestry concessions in Congo (FSC, OLB, TLTV) have fully incorporated the main criteria, indicators and verifiers relating to: — the legal existence of the company, — the holding of periodic licences permitting the activities, — compliance with legal and regulatory provisions relating to forestry, — compliance with regulations relating to management, forestry, timber processing and tax, — compliance with environmental rules, — subcontracting work in accordance with the regulations. A formal assessment of the standards for the private certification of forestry concessions in Congo (FSC, OLB, TLTV currently used in Congo and any other standards) with respect to the legality matrix will be carried out by the IGEF during the system development phase. Following this assessment, a report is drawn up that will be published and publicly accessible. If this assessment is favourable, the private certification system will be approved by the IGEF. This approval will be published. It will hence allow the IGEF to grant a legality certificate to companies certified under such a system, without the IGEF having to carry out any specific assessment itself, avoiding double verification of legality in these certified forestry concessions. However, the forestry company receiving this approved certification has to send the General Forestry Economy Inspectorate all certification audit reports drawn up under the private certification system to enable it to monitor compliance with legality in this process and thus enable the issuing of the legality certificate in respect of the company concerned. It also has to inform the IGEF immediately of any suspension or withdrawal of the private certificate. The terms for carrying out the corrective actions required under private certification systems will be laid down during the system development phase. 3.4. Failure to comply with matrix requirements Under the LVS, any failure to comply with legality requirements will be handled in accordance with legal and regulatory provisions applicable in the country concerned. Current provisions will be supplemented by a series of supplementary measures. If matrix requirements are not complied with, all measures will be taken to withdraw the legality certificate and, if applicable, seize any shipments for which a FLEGT licence application is pending. The legality certificate may then be cancelled by the IGEF in the event of practices breaching requirements with respect to the FLEGT system duly identified by the IGEF and/or by the Joint Implementation Committee of the Agreement. A manual outlining how to deal with any failure to comply with indicators in the legality matrix and/or in the traceability system will be developed during the system development period. It will explain, amongst other things, how to deal with these breaches, including failure to meet prescribed deadlines, any corrective action required, and the liability of the various parties concerned in this respect. Terms regarding the management and dissemination of information relating to these breaches will also be defined during the system development phase. Table 1: Checking and verification of verifiers not linked to the traceability chain for timber produced in natural forests Aspect of legality Indicator/verifier Responsibility for the 1st level check Verification means Verification frequency — Registration of the company with the competent authorities (1.1): — Trading licence (1.1.1) Trade Authority Documentary verification Once a year — Certificate of registration with the national social security fund (CNSS) (1.1.2.1) Labour Authority Documentary verification Once a year — Consent (1.1.3.1) DDEF/Teams Documentary verification Once a year — Licence (1.1.3.2) DDEF/Teams Documentary verification Once a year — Judicial decision (1.2.1.1) Judicial Authority Documentary verification Once a year — Suspension note (1.2.2.1) Judicial Authority Documentary verification Once a year — Declaration of existence (1.1.2.2) Labour Authority Documentary verification Once a year — Business, credit and real estate register (1.1.1.2) Trade Authority Documentary verification Once a year Legal rights of access to forestry resources (2) — compliance with the steps leading up to the granting of a certificate of exploitation (2.1.1) — area permit (call for tenders order (2.1.1.1), minutes of the meeting of the forestry Commission (2.1.1.2), notification of consent (2.1.1.3), negotiation of agreement (2.1.2.1), special permit (2.1.2.2) DDEF Teams Verification of documents Once during the validity of the CTI/CAT — periodic licences for carrying out activities (2.2): — Installation, annual harvest, completion and clearing licence (2.2.2.1) DDEF Teams Verification of documents and on-site verification of the Departmental Forest Economy Office Once a year — verification reports on the annual harvest, the completion harvest and the checking of non-evacuated timber (2.2.1.2) DDEF Teams Verification of documents and on-site verification of the Departmental Forest Economy Office Once a year — trading licence (2.2.3.1), consent of the authorised customs inspector. (2.2.3.2) Customs Authority, Tax Authority Verification of documents Once a year — Consent (2.2.3.3) DDEF/Teams Verification of documents Once a year Compliance with management rules — compliance of inventory reports, supplementary studies and the management plan with standards and directives for the management of forestry concessions (4.3.1) (supplementary study reports (4.3.3.2), inventory report (4.3.3.1), management plan (4.3.3.3)) DDEF Teams Verification of documents (examination of reports) Once during the management plan drafting period — validation of inventory reports, supplementary studies and the plan by the Forestry Authority and the stakeholders in the management of the concession (Annual harvest licence (4.3.3.2), minutes of the meeting validating inventory reports, supplementary studies and the management plan (4.3.2.1/4.3.2.2), minutes of the meeting validating the administrative plan) (4.3.3.1) DDEF Teams Verification of documents (examination of minutes) Once during the management plan drafting period Compliance with provisions on timber harvesting and processing (4) — forest maps drawn up in accordance with standards (4.4.1) forest maps (4.4.1.1) Inspection reports of the Departmental Forest Economy Office and the Central Office (4.4.1.2) DDEF Teams Verification of documents and on-site verification Once a year — The company carries out all of its timber exploitation activities within its concession and within the boundaries of its annual harvesting sites (4.4.2) (Annual harvest licence (4.4.2.1), Inspection reports of the Departmental Forest Economy Office and the Central Office (4.4.2.2), Activity reports of the Departmental Forest Economy Office and the Central Office (4.4.2.3)) DDEF Teams On-site verification Once a year — roads built in accordance with the rules (4.5) (Management plan (4.5.1.1), Exploitation plan (4.5.1.2), Road network map (4.5.1.3), Inspection reports of the Departmental Forest Economy Office (4.5.1.4) DDEF Teams On-site verification Once a year — The company complies with the species and volumes to be taken as laid down in the regulations and the management plan. (4.6.1) (Management plan, Annual exploitation plan, Annual harvest licence, Worksite book, Inspection reports of the Departmental Forest Economy Office) DDEF Teams Verification of documents, on-site verification, SIGEF consultation Once a month — The company complies with the felling diameters laid down in the regulations and the management plan (4.6.1) (Management plan (4.6.1.1), Exploitation plan (4.6.1.2), Annual harvest licence (4.6.1.3), Worksite book (4.6.1.4), Inspection reports of the Departmental Forest Economy Office (4.6.1.5)) DDEF Teams Verification of documents, on-site verification, SIGEF consultation Once a year — non-abandonment of timber (4.7) (Inspection reports of the Departmental Forest Economy Office 4.7.1.1/4.7.1.2), Worksite book (4.7.1.3)) DDEF Teams Verification of documents and on-site verification Once a year — The company complies with the processing quota laid down under the applicable regulations. (4.8.1) (Annual production reports (4.8.1.1), Report of the Inspectorate of Forestry Products for Export (4.8.1.2), Verification report on annual production of the DDEF (4.8.1.3) DDEF Teams Verification of documents, on-site verification, SIGEF consultation Once a year — compliance of the industrial unit with the provisions of the special terms and conditions of the agreement (4.8.2) (Agreement (4.8.2.1), Inspection report of the Departmental Forest Economy Office (4.8.2.2)) DDEF Teams On-site verification Once a year — subcontracting for recovery of abandoned timber and by-products of processing encouraged (4.12.2) (Contract (4.12.2.1)) DDEF Teams Verification of documents and on-site verification Once a year — the company ensures that all of its subcontractors have the necessary licences and pay their employees in accordance with legal requirements (4.12.1) (licences granted by the competent authorities (4.12.1.1) Company contract (4.12.1.2) DDEF Teams Verification of documents and on-site verification Once a year — contribution made to local socioeconomic development (4.9.1) (special terms and conditions of the agreement (4.9.1.1), Inspection reports of the Departmental Forest Economy Office (4.9.1.2), Inspection and activity reports of the Departmental Forest Economy Office (4.9.1.3) Verification of documents and on-site verification Verification of documents and on-site verification Twice a year — financing of the local development fund (4.9.2) (Copies of cheques (4.9.2.1), Minutes of meetings of the fund management committee (4.9.2.2) DDEF Teams Verification of documents and on-site verification Twice a year — social and cultural infrastructures built up in accordance with the adopted plans and national standards. (4.9.3) (Terms and conditions (4.9.3.1), Inspection reports of the Departmental Forest Economy Office (4.9.3.2/4.9.3.3), Town Planning and Housing Inspection Reports (4.9.3.4)) DDEF Teams On-site verification Once a year Conformity of tax returns and payment of taxes and social security contributions. — conformity of tax returns (4.10) — income tax return (4.10.1.1) Tax Authority Verification of documents Once a year — customs declaration (4.10.2.1) Customs Authority Verification of documents Once a month — export declaration (4.10.2.2) Customs Authority Verification of documents Once a year — import declaration (4.10.2.3) Customs Authority Verification of documents Once a year — company balance sheet (4.10.3.1) Tax Authority and DDEF Verification of documents Once a year — annual salary statement (4.10.3.2) Teams Labour Authority Verification of documents Once a year — payment in good time of any dues and taxes relating to forestry (4.11.1) (copies of cheques (4.11.1.1), tax register/payment receipt (4.11.1.2) DDEF Teams — Verification of documents Once a month — On-site verification Twice a year — The company duly pays all taxes and fees associated with importation (4.11.2) (statement of payment of fees and taxes (4.11.2.1), copies of cheques (4.11.2.2), payment receipt (4.11.2.3), Establishment agreement (4.11.2.4) Tax Authority and Customs Authority — Verification of documents Once a month — On-site verification Twice a year — The company pays in good time all taxes, fees and duties from which it is not exempt and which are applicable in national territory (4.11.3) (Copies of cheques (4.11.3.1), Payment receipts (4.11.3.2) Tax Authority — Verification of documents Once a month — On-site verification Twice a year — The company pays its contributions in arrears (4.11.4) (Payment certificate (4.11.4.2) Copies of cheques/payment slips (4.11.4.2) Tax Authority — Verification of documents Once a month — On-site verification Twice a year — The company carries out, within the prescribed deadlines, its transactions relating to customs, tax, trade and social security (4.11.5) (Infringement reports (4.11.5.1), Transaction certificate (4.11.5.2), Copies of cheques (4.11.5.3), Payment receipt (4.11.5.4)) Tax Authority, DDEF, Teams — Verification of documents Once a month — On-site verification Twice a year Compliance with environmental legislation and regulations — Procedures for drawing up environmental impact studies (4.1.1) (approval of the office carrying out the study (4.1.1.1), impact study report (4.1.1.2), Minutes of the meeting approving the impact study report (4.1.1.3)) Environmental Authority — Verification of documents Once while the study is being carried out — biodiversity (4.1.2) (on-site inspection and audit reports (4.1.2.1), DDEF activity reports, DDEF inspection report (4.1.2.2) report of the committee monitoring and reviewing the management plan (4.1.2.3) Environmental Authority — On-site verification Once a year — Reports of the committee monitoring the plan Once a year — health and cleaning-up of base camps and industrial sites (4.1.3) (Order approving the personnel of the company’s socio-sanitary centre (4.1.3.1), Order authorising performance of the Ministry in charge of health (4.1.3.2), minutes of meetings of the health and safety committee (4.1.3.3), Report of the committee monitoring and reviewing the management plan (4.1.3.4)) Health Authority Environmental Authority — On-site verification Once a year — compliance with rules on: — disposal of waste (4.2.1) (Inspection report of the Departmental Forest Economy Office and the Central Office (4.2.1.1), Report of the committee monitoring and reviewing the management plan (4.2.1.2) Health Authority Environmental Authority — On-site verification Once a year — protection of fauna (4.2.1) (Company’s internal rules (4.2.2.1), Inspection report of the Departmental Forest Economy Office and the Central Office (4.2.2.2), Report of the committee monitoring and reviewing the management plan (4.2.2.3)) Forestry Authority — USLAB reports Twice a year — Reports of the committee monitoring the management plan Once a year Provision of information to and the involvement of civil society and local and indigenous populations in the management of the forestry concession — Involvement of civil society and local populations (3.1) — Minutes of meeting of the committee monitoring and reviewing the management plan (3.1.1.1) DDEF Teams Verification of documents Once a year — Minutes of information meetings (3.1.2.1) DDEF Teams On-site verification, verification of documents Once a year — monitoring and resolving disputes (3.3): — Minutes of consultative meetings between the company and local populations (3.3.1.1/3.3.2.1) DDEF Teams On-site verification, verification of documents Once a year Respect for the rights of local and indigenous populations and workers — The company respects the customs, practices and rights of local and indigenous populations (3.2.1) — Report of the committee monitoring and reviewing the management plan (3.2.1.1) DDEF Teams Verification of documents Once a year — On-site inspection report of the Departmental Forest Economy Office (3.2.1.2) DDEF Teams Verification of documents Once a year — The company meets its commitments with respect to local and indigenous populations (3.2.2): — Report of the committee monitoring and reviewing the management plan (3.2.2.3) DDEF Teams Verification of documents Once a year — Terms and conditions/Memorandum of understanding (3.2.2.1) DDEF Teams Verification of documents Once a year — Inspection report of the Departmental Forest Economy Office (3.2.2.2) DDEF Teams Verification of documents Once a year — If property belonging to local and indigenous populations is destroyed by the company, compensation meets the requirements of applicable legislation and regulations. (3.2.3): — Compensation register and minutes (3.2.3.1) DDEF Teams Verification of documents Once a year — Compensation receipt (3.2.3.2) DDEF Teams Verification of documents Once a year — The social partners of the company are sufficiently well informed of their rights (3.4 includes indicators 3.4.1/3.4.2/3.4.3) DDEF Teams Verification of documents Once a year — Existence of staff representatives and union branches (3.4.1.1) Labour Authority Verification of documents Once a year — Existence of union premises (3.4.1.2) Forestry Authority, Labour Authority On-site verification Once a year — Existence of records of complaints and claims (3.4.1.3) Forestry Authority, Labour Authority On-site verification Once a year — Memorandum of placement on leave for worker education (3.4.2.1) Labour Authority Verification of documents Once a year — Documents available (3.4.3.1) Labour Authority Verification of documents Once a year — The company respects workers’ rights (3.5 includes indicators 3.5.1 – 3.5.5) — Minutes of meetings (3.5.1.1) Labour Authority Verification of documents Once a year — Record of complaints Labour Authority Verification of documents Once a year — Employer register (3.5.2.1) Labour Authority Verification of documents Once a year — Employment contract (3.5.2.2) Forestry Authority, Labour Authority Verification of documents Once a year — Internal rules displayed (3.5.2.3) Labour Authority Verification of documents Once a year — List of workers registered with the CNSS (3.5.2.4) Labour Authority, Forestry Authority Verification of documents Once a year — Pay registers signed (3.5.3.1) Labour Authority Verification of documents Once a year — Pay slips (3.5.3.2) Labour Authority Verification of documents Once a year — Health and safety committee reports (3.5.4.1) Health Authority Verification of documents Once a year — Medical check-up registers (3.5.4.2) Labour Authority Verification of documents Once a year — Accident in the workplace register (3.5.4.3) Labour Authority Verification of documents Once a year — Social security register (3.5.4.4) Labour Authority Verification of documents Once a year — Report of the committee monitoring and reviewing the management plan (3.5.4.5) DDEF Teams Verification of documents Once a year — Working hours displayed (3.5.5.1) Labour Authority Verification of documents Once a year — Authorisation of overtime by the Departmental Labour Office (3.5.5.2) Labour Authority Verification of documents Once a year — Copy of the offer sent to National Office of Employment and Labour (ONEMO) (3.5.6.1) Labour Authority Verification of documents Once a year — Employment contract (3.5.6.2) Labour Authority Verification of documents Once a year — The company subcontracts work to other companies in accordance with the rules (4.12 includes indicators 4.12.1-4.12.3) — Licences granted by the competent authorities (4.12.1.1) Labour Authority, DDEF Verification of documents Once a year — Company contract (4.12.1.2/4.12.3.1) Labour Authority, DDEF Verification of documents Once a year — Contract (4.12.2.1) Labour Authority, DDEF Verification of documents Once a year — staff secondment agreement (4.12.3.2) Labour Authority, DDEF Verification of documents Once a year The company complies with regulations regarding timber transportation and marketing — Timber is transported in accordance with applicable legislation and regulations (5.1 includes indicators 5.1.1-5.1.4) T — Vehicle registers (5.1.1.1) Transport Authority Verification of documents Once a year — Vehicle registration document (5.1.1.2) Transport Authority Verification of documents Once a year — Insurance (5.1.1.3) Transport Authority Verification of documents Once a year — Transport authorisation (5.1.2.1) Transport Authority Verification of documents Once a year — Seaworthiness certificate (5.1.2.2) Transport Authority Verification of documents Once a year — Consent (5.1.2.3/5.1.2.4) Transport Authority Verification of documents Once a year — Certificate of physical capability of the vehicle (5.1.3.1) Transport Authority Verification of documents Once a year By analogy, during the system development phase, a similar table will be drawn up for special permits and timber from plantations. CHAPTER 4 4.1. Principles for checking the supply chain/traceability system Congo has a timber traceability system based on the following four (04) main aspects: — the origin or provenance of the product, — the identification of the product by marking, — the registration of basic information relating to these products in a medium that itself has well-established traceability, — the monitoring of products. This system was established in law 16-2000 of 20 November 2000 setting out the forestry code and its main implementing provisions, in particular decree 2002-437 of 31 December 2002 laying down the conditions of forest management and use. Regulations on traceability relate to four (04) main aspects (origin or provenance, identification of the product by marking, registration of basic information, monitoring of products). They state that: — the forestry operator is obliged to take, from a clearly specified area referred to as the annual harvest, a volume of timber corresponding to the Maximum Annual Volume (MAV) allowed by the Forestry Authority. This area, which is geographically referencable using the GIS geographic information system, is the starting point for products authorised for felling. This annual harvest consists of areas in which a full count of harvestable trees has been carried out, these trees being marked beforehand with white paint at the base during counting. The results of counting given on a 1/20 000 map and a 1/50 000 map or sketch show all of the depots, roads and tracks already opened and those yet to be opened. Based on the declaratory information provided by forest operators, the Forestry Authority verifies the accuracy of the counts and the boundaries set for the annual harvest before granting the harvest licence, — for each tree felled, the operator must: — indicate the place of felling: map showing the annual harvest count, — record the trees counted that are included in the MAV in the cartography documents: map of the count showing tree populations by species in each parcel, — mark the trunk, the stump, rootstock, logs and blocks from said trunk with the mark registered by the company: triangular mark indicating the initials of the company, the tariff area and the felling number, — register the trunks and the logs in the worksite, factory and export documents (worksite book, waybill book, register of timber entering the plant, specification sheet), — the forestry operator has to provide the Forestry Authority, each month, with a statement indicating the production carried out in terms of species and destination. At the end of the year, he is obliged to file with the Forestry Authority an annual summary statement indicating the volume of production in terms of species and destination, — monitoring and checks are carried out by the authorised departments of the Forestry Authority, namely: — The General Forest Economy Office through: — Head Offices (Forestry Office and Office for the Use of Forest Resources), — twelve (12) Departmental Offices (Brazzaville, Pointe-Noire, Kouilou, Niari, Lékoumou, Bouenza, Pool, Plateaux, Cuvette-Ouest, Cuvette, Sangha, Likouala), along with their teams and control stations, — The General Forestry Economy Inspectorate with three divisional inspectorates, — The Department for the Control of Forestry Products for Export and its departmental agencies. The civil society structure can also accompany the IGEF on its on-site inspections and carry out its own on-site monitoring. 4.2. Architectural structure: Steps for the tracing of timber from natural forests 4.2(a) Agreements Tracing timber from natural forests resulting from concessions covered by an agreement (management and processing agreement or industrial processing agreement) involves eight (8) steps: — Step 1 : Preparation and annual harvest application file (count map, road network map, etc.), — Step 2 : Verification of the boundaries and the results of the count, then granting of the annual harvest licence, — Step 3 : Cutting of the timber (felling, cutting off top and bottom, extraction, sawing or preparation of logs), — Step 4 : Storage of logs at various production depots (forest depot, export depot, plant depot), — Step 5 : Transportation of products: logs from forest depots to processing units/ports for export/local market; processed timber from processing units to the port for export/local market, — Step 6 : Local processing of logs (first, second, etc.), — Step 7 : Export of products from the port (port of Pointe-Noire to Congo or port of Douala to Cameroon), — Step 8 : Local trade networks in national markets. Improvements will be made to the existing system under the LVS in the following steps: — Step 1 : The marking of trees will be supplemented by a prospection number for each tree which must then be put on a map. Registration will be improved by setting up a file or a register of the numbering of prospected trees and by files and/or maps showing the allotment of felling areas with the geo-referenced positioning of trees, — Step 2 : Management teams and/or subsidiary offices of the CNIAF will lend their expertise to improve Forestry Authority procedures for verifying the accuracy of systematic inventory results for the annual harvest, — Step 3 : The marking of trunks will be improved by adding the date or year of felling and the annual harvest number. Management teams and/or subsidiary offices of the CNIAF will lend their expertise to improve Forestry Authority procedures for monitoring and checking the annual harvest. In addition, daily production reports (felling, cutting off top and bottom, haulage and extraction, etc.), files or maps showing the allotment of felling areas with the positioning of trees in the MAV and worksite reports will be included in the list of compulsory worksite documents. The verification of stumps will only be possible in specific disputes. In such cases, members of the Team will verify stumps to establish the stump count, — Step 4 : The marking of logs will be improved by adding a code indicating the destination (plant or export). In addition, logs will have to be stored/packaged according to the allocated use (local plant or export). Management teams and/or subsidiary offices of the CNIAF will lend their expertise to improve Forestry Authority procedures for monitoring and checking the annual harvest. In addition, daily production reports (felling, cutting off top, extraction, etc.), files or maps showing the allotment of felling areas with the positioning of trees in the MAV and worksite reports will be included in the list of compulsory worksite documents, — Step 6 : the registration of timber will be improved by the introduction of daily production files and a register of processed timber leaving the plant. The new structure of the traceability chain to be introduced for timber from natural forests exploited on the basis of an agreement is as follows: Table 2: Structure of the traceability chain for timber exploited on the basis of an agreement Steps Operations Party responsible for the operation Data to be encoded Party responsible for encoding/Existing documents Verification (physical and documentary check) and frequency Reconciliation of data 1. Preparation and annual harvest application — Preparation of the exploitation inventory — Production of the inventory report and maps relating to the annual harvest — Compilation and submission of annual harvest application files — Marking of trees with a prospection number — Geo-referencing of prospected trees The forestry company carries out systematic counts of exploitable trees and marks them with white paint — Area of the AAC — Tree population to be exploited (average volume based on the volume table, and species) — Number of parcels of the AAC — Geographical position of the trees to be exploited — Average volume based on the volume table (indicative volume) — The forestry company encodes and sends the data used in monitoring the traceability of trees to be felled to the SIGEF database via the Internet — The main documents relating to this step will be the count reports, the annual harvest survey reports and the annual harvest cartography — Team via expert inspections of the annual harvest/Forestry companies and updated SIGEF database — IGEF via checking/inspection reports, SIGEF database and traceability system The test of correspondence with the management inventory is carried out on closure of the last harvesting site of the Forestry Production Unit (FPU). The FPU is a subdivision of the management plan covering 5 AACs 2. Verification and granting of the annual harvest licence Verification of systematic counting — Verification of the forestry operator’s production capacity — Production of the annual harvest survey report The DDEF/Team ensures that the results of the count are accurate by recounting 5 % of the parcels counted — Results (populations and species) of the recounts of trees to be exploited — Geographical position of the trees — The results are submitted to the IGEF by the Teams in survey reports — The main documents relating to this step will be the annual harvest licence and the annual harvest cartography — DDEF via inspections/on-site inspection reports and updated SIGEF database — IGEF via inspection reports, SIGEF database and traceability system Test of correspondence of data by comparing the number of trees in the counting phase with those in the recounting phase 3. Cutting of timber — Carrying out sorting operations/counting prior to felling — Timber production (felling, cutting off top and bottom, haulage, extraction, sawing into logs) — Marking of trunks, stumps and logs with a felling number with a bar code label and company stamp — Recording of trunks and logs in worksite documents — Marking of the year of felling and the annual harvest number The forestry company measures each log and marks it using a bar code The bar code number differs from the prospection number — Species — Length — Diameter — Volume — Cutting area — Tree felling number/bar codes The bar code will be linked to the following information: AAC No, name of the operator, year of exploitation, AAC area, No of parcels concerned, in particular to allow the correspondence test — The company encodes and sends the data used in monitoring the traceability of trees exploited to the SIGEF database via the Internet — The main documents relating to this step will be the SIGEF, the annual harvest cartography and the production/checking/inspection reports — Team/DDEF via production reports/checking reports/on-site inspections and SIGEF database — IGEF via inspection reports, SIGEF database and traceability system Test of correspondence of data by comparing the number of trees felled per species category with that stated in the annual harvest licence in step 1 The MAV (m3) is not a relevant indicator in that the annual harvest licence is granted on the basis of an indicative volume established using the volume table 4. Storage of logs Sawing and allocation of logs (logs for local plants or for export) — Drawing up specification sheets — Drawing up AVEs — Marking logs with bar codes linked to the bar code put on the trunk — Storage of logs according to the allocation (local plant or export) The forestry company scans all of the bar codes — Log/bar code number — The company encodes and sends the data used in monitoring the traceability of logs prepared to the SIGEF database via the Internet — The main documents relating to this step will be the SIGEF and the production/checking/inspection reports — Team/DDEF via on-site inspections and updated SIGEF database — IGEF via inspection reports, SIGEF database and traceability system — SCPFE subsidiary offices via reports on the checking of log dimensions and volumes Test of the correspondence of data by comparing tree numbers/bar codes from step 3 (cutting) with tree numbers/bar codes from step 4 (storage) 5. Transportation of products (logs and products after processing in step 6) — Drawing up the waybill — Transportation of logs — Transportation of planks, beams and other exposed timber The transport company scans all of the bar codes — Number of logs/bar codes (same number) (no need to re-encode) — Vehicle number plate — Place of departure — Destination — The Team/Company (forestry, transportation, etc.) sends the data used in monitoring the traceability of processed products to the SIGEF database via the Internet — The main documents relating to this step will be the SIGEF and the production/checking/inspection reports — Team/Control station/SCPFE subsidiary offices via production/checking reports and updated SIGEF database — IGEF via inspection reports, SIGEF database and traceability system At control stations, verification of transported timber (species and marks) 6. Local processing (primary, secondary, etc.) — Measuring the volume in the following four steps: (1) on entry into the plant depot, (2) on entry into the processing unit, (3) on exit from the processing unit, (4) volumes exiting the plant — Performance of timber processing operations — Marking of products/packages The company notes the volumes and scans all of the bar codes on their arrival at the company’s plant depot It draws up daily production reports The company has to monitor/check stocks of logs and finished products — Log/bar code number (no need to re-encode) — Volume on entry to the plant — Volume on entry into the production line — Volume on exit from the production line — Dimensions and volume/bar code numbers of finished products/packages leaving the company — The company sends the data used in monitoring the traceability of processed products to the SIGEF database via the Internet — The main documents relating to this step will be the SIGEF and the production/checking/inspection reports — Team/DDEF via checking reports, production reports and updated SIGEF database — IGEF via inspection reports, SIGEF database and traceability system Checking of timber yields on the basis of the daily reports Test of correspondence of data by comparing: — tree numbers/bar codes from step 6 (processing) with tree numbers/bar codes from step 5 (transportation) for timber to be processed Test of correspondence between the following three steps: — material yields (volume on entry into the production line and on exit from the production line) — inventories of processed products — volume of merchandise delivered (leaving the plant) 7. Export of products Compilation of timber export files: Waybills, Specification sheets, AVEs, EX1 (formerly D6), EX8 (formerly D15), certificate of origin, dispatch note, phytosanitary certificate, shipment note, manifest/bill of lading Pro forma of the commercial invoice, Customs declaration and Delivery note The company responsible for exporting scans all of the bar codes The SCPFE verifies correspondence between the statements and the physical checks. In addition, on the basis of the validation of the IGEF, the SCPFE verifies the correspondence of statements with the data recorded in the SIGEF and grants an FLEGT licence Bar code number (logs or packages of finished products) — The SCPFE sends the data used in monitoring the traceability of processed products to the SIGEF database via the Internet — The main documents relating to this step will be the SIGEF and the production/checking/inspection reports — SCPFE/Customs via checking reports, production reports and updated SIGEF database — IGEF via inspection reports, SIGEF database and traceability system Test of correspondence of data by comparing: (a) for exported logs: — tree numbers/bar codes from steps 3 (cutting), 4 (storage) and 5 (transportation) with tree numbers/bar codes from step 7 (export) (b) for processed products: — export volumes with step 6 — step reports with SIGEF data — with SCPFE information 8. Local trade networks for the products Local sale of processed products (planks, beams, rafters and other exposed timber) The company keeps accounts of local sales Number of packages/package number — The company sends the data used in monitoring the traceability of processed products to the SIGEF database via the Internet — The main documents relating to this step will be the SIGEF and the inspection/production/checking reports — SCPFE/Customs via checking reports, production reports and updated SIGEF database — IGEF via inspection reports, SIGEF database and traceability system Test of correspondence of data by comparing production reports from steps 6 (processing) and 8 (local trade) NB: Through use of a (unique) felling number, the identity of the product is guaranteed right along the chain. All timber entered will be saved on the traceability system and will be used for charitable activities to help local authorities and socio-sanitary structures (schools, hospitals, etc.). The General Forest Economy Office will ensure that it is appropriately codified. Semi-finished products (sawn products, veneered products, rotary process products, etc.) are marked according to lots established on the basis of the product and/or the client. The method of dealing with ‘material yield’ still has to be enhanced in order to improve monitoring of timber at the plant. The Department for the Control of Forestry Products for Export (SCPFE) sends, in accordance with the provisions of Article 130 of Decree No 2002-437 of 31 December 2002 laying down the conditions of forest management and use, a monthly report to the office of the Minister responsible for forests, to the General Forest Economy Office and to the General Forestry Economy Inspectorate (this report must state the volumes or quantities of timber exported and the timber in transit by species, by merchantable quality, by recipient (timber for export) or sender (timber in transit) and by supplier. Details relating to timber in transit are given in paragraph 4.4. Companies that have their own traceability system will be linked to the national traceability system to enable data transfer. For any timber not exported directly from the port of Pointe-Noire, the methods of reconciling data with that produced by the timber depot company in Douala and bodies verifying legality in neighbouring countries will be laid down in the system development phase. 4.2(b) Special permits Timber from natural forests cut on the basis of special permits must follow the traceability chain consisting of the following five (05) main steps: — Step 1 : Application for and granting of the certificate of exploitation (special permit), — Step 2 : Cutting of the timber (felling, cutting off top and bottom, extraction, sawing or preparation of logs), — Step 3 : Product processing, — Step 4 : Transportation of processed timber, — Step 5 : Local market for processed timber. Improvement will be made in the following steps: — Step 1 : Registration of counted and marked trees in a working document (inventory report or report on the identification of marked trees and map showing the location of marked trees). The marking report must be included on the list of compulsory worksite documents, — Step 2 : Registration of felled trees in worksite documents (production report, worksite book). Production reports and the worksite book must be included on the list of compulsory worksite documents, — Step 3 : Registration of processed timber in a processed-product register. Production reports and the processed-timber register or register of timber entering the plant must be included on the list of compulsory worksite documents, — Step 4 : Registration of transported products in a waybill. The special permit relates to the number of trees or trunks. It must be supplemented by the waybill indicating the number, volume, origin, destination and date of production of transported products, — Step 5 : Registration of products placed on the local market in a waybill. It should be pointed out that, under the provisions of Article 186 of Decree No 2002-437 of 31 December 2002 laying down the conditions of forest management and use, the special permit for the exploitation of tree species for commercial purposes is, according to Article 70 of the Forestry Code, only granted in areas where populations have difficulty obtaining manufactured timber. These products are sold exclusively in the areas concerned, as determined by an order of the minister responsible for the forest economy. By law, products found outside the areas concerned are in breach and are therefore seized and used for charitable activities to help local authorities and socio-sanitary structures (schools, hospitals, etc.). The General Forest Economy Office will ensure that it is appropriately codified. If the verifiers of the legality of products exploited on the basis of trees felled under special permits are verified, the structure of the traceability chain to be put in place can be described as follows: Table 3: Structure of the traceability chain for timber exploited on the basis of special permits Steps Operations Party responsible for the operation Data to be encoded Party responsible for encoding/existing documents Verification (physical and documentary check) and frequency Reconciliation of data 1. Application for and granting of the special permit — Carrying out marking inspection of trees to be felled — Production of the marking inspection report — Marking the standing trees with a marking number — Geo-referencing of marked trees The DDEF and the special permit applicant mark the requested trees — Tree population to be exploited — Geographical position of trees to be exploited — Marking number — The DDEF encodes and sends the data used in monitoring the traceability of trees to be felled to the SIGEF database via the Internet — The main documents relating to this step will be the marking reports and the harvest area cartography — Team via marking inspections and updated SIGEF database — IGEF via checking/inspection reports, SIGEF database and traceability system 2. Cutting of timber — Timber production (felling, cutting off top and bottom) — Marking of trunks, stumps and logs with a felling number — Recording of trunks in worksite documents — Marking of the year of felling and the annual harvest number The holder of the special permit measures each log, its volume and the marking of a number — Species — Length — Diameter — Volume — Cutting area — Tree felling number — The holder of the special permit encodes and sends the data used in monitoring the traceability of exploited trees to the DDEF which adds it to the SIGEF database via the Internet — The main documents relating to this step will be the SIGEF, the harvest cartography and the production reports — Holder of the permit via production reports — DDEF via production reports and SIGEF database — IGEF via production/inspection reports, SIGEF database and traceability system Test of correspondence of data by comparing the number of trees felled per species category with that stated in the marking report 3. Processing of logs on-site in the forest Performance of timber processing operations — Marking of products The holder of the special permit measures the volume of products obtained — Volume of processed products — Types of products obtained — The holder of the special permit sends the production report to the DDEF for compilation of the data used in monitoring the traceability of processed products in the SIGEF database via the Internet — The main documents relating to this step will be the SIGEF and the production reports — DDEF via production reports and updated SIGEF database — IGEF via marking reports and SIGEF database Test of the correspondence of data by comparing product quantities in terms of trees from step 3 (processing) with the volume of trees from step 2 (cutting) 4. Transportation of processed timber — Drawing up the waybill — Transportation of logs — Transportation of planks, beams and other exposed timber The holder of the special permit records any products resulting from the processing of felled trees — Volume of processed products — Types of products transported — Vehicle number plate — Place of departure — Destination — The DDEF sends the data used in monitoring the traceability of processed products to the SIGEF database via the Internet — The main documents relating to this step will be the SIGEF and the production reports — DDEF via production reports and updated SIGEF database — IGEF via marking reports, SIGEF database and traceability system Test of the correspondence of data by comparing product quantities in terms of trees from step 3 (processing) with the number of trees/tree number from step 2 (cutting) 5. Local trade networks for processed timer Local sale of processed products (planks, beams, rafters and other exposed timber) The holder of the special permit keeps accounts of local sales Number of products obtained by category (planks, beams, rafters, boards) — The DDEF sends the data used in monitoring the traceability of processed products to the SIGEF database via the Internet — The main documents relating to this step will be the SIGEF and the production reports — DDEF via production reports and updated SIGEF database — IGEF via inspection reports, SIGEF database and traceability system Test of the correspondence of data by comparing product quantities in terms of trees from step 3 (processing) with the number of trees/tree number from step 2 (cutting) What is referred to as small-scale production falls within the scope of special permit requirements. It relates to the use of the bottoms of trees authorised by the Forestry Authority on the basis of special permits. However, it is still necessary to ensure that the database is complete through worksite documents and the SIGEF. The applicability of this provision requires: — the marking of trees in accordance with applicable rules (marking of standing trees and marking of felled trees), — the registration of trunks and logs in accordance with applicable rules (worksite book), — the declaration of processed products (timber exploited on the basis of special permits is systematically processed at the harvest site. This relates to sawn timber (planks, rafters, beams, boards), means of transport (canoe), etc.), — This system, which increases timber traceability, requires the stump and trunk to be marked in order to provide comprehensive traceability. 4.3. Architectural structure: Steps for the tracing of timber from forestry plantations Timber from plantations has to follow the traceability chain consisting of the following seven (07) main steps: — Step 1 : Application for and granting of the certificate of exploitation (plantation timber permit), — Step 2 : Cutting of the timber (felling, cutting off top and bottom, extraction, sawing or preparation of logs, posts and/or steres), — Step 3 : Storage of products (logs, posts and/or steres) in the various production depots, — Step 4 : Transportation of products (logs, posts, etc.) at processing units/ports of export, posts and/or steres to the local market, — Step 5 : Local processing of products (logs etc.), — Step 6 : Exporting of products (logs, posts, etc.) from the port of export (Pointe-Noire), — Step 7 : Local trade networks for by-products. It should be pointed out that improvements will be made during the implementation phase in the following steps: — Step 1 : The annual harvest must be a compulsory worksite document, — Step 2 : Production reports (felling reports etc.) and worksite books must be compulsory worksite documents, — Step 3 : Production reports (handling/classification reports etc.) and worksite books must be compulsory worksite documents, — Step 4 : Registration of transported products in waybills. The plantation timber harvest permit must be supplemented by the waybill indicating the number, volume, origin, destination, date of production etc. of transported products, — The marking of logs will be improved by adding a code indicating the destination (plant or export). Management teams and/or subsidiary offices of the CNIAF will lend their expertise to improve Forestry Authority procedures for monitoring and checking the annual harvest. In addition, daily production reports (felling, cutting off top, extraction, etc.), files or maps showing the allotment of felling areas with the positioning of trees in the MAV and worksite reports will be included in the list of compulsory worksite documents, — Step 5 : The registration of timber will be improved by the introduction of a register of timber entering the plant depot, a register of timber entering the plant (logs in the plant depot entering the plant) and a register of processed products (products obtained from logs entering the plant). A control station will be set up in the plant depot, — Step 6 : The registration of exported products will be improved by waybills, specification sheets, AVEs, bills of lading and other documents included in the compiling of the file on timber for export. Under the framework of sustainable forest management, managed plantations will have administrative plans and annual operation plans. Each annual operation plan will be consolidated on the basis of an assessment (inventory). Monitoring products from this annual harvest can be carried out by marking packages. The structure of the traceability chain to be introduced for timber from forest plantations exploited on the basis of plantation timber harvest permits is as follows: Table 4: Structure of the traceability chain for timber harvested from forestry plantations Steps Operations Party responsible for the operation Data to be encoded Party responsible for encoding/Source of information for existing documents Verification (physical and documentary check) and frequency Reconciliation of data 1. Application for and granting of the certificate of exploitation Compilation and submission of plantation timber permit application files Company — Number of felling parcels and area concerned — Tree population to be exploited — Felling parcel number — Geographical position of the production area — The forestry company encodes and sends the data used in monitoring the traceability of trees to be felled to the SIGEF database via the Internet — The main documents relating to this step will be the plantation timber harvest permit application file — DDEF via plantation timber harvest permit application file and updated SIGEF database — IGEF via checking/inspection reports, SIGEF database and traceability system A full list of trees unsuitable for sale is drawn up (populations and reasons) 2. Cutting of timber — Timber production (felling, cutting off top and bottom, haulage, extraction, sawing into logs) — Recording of trunks and logs in worksite documents The company measures each log — Species — Length — Volume — Cutting area — Timber/package number — The company encodes and sends the data used in monitoring the traceability of trees exploited to the SIGEF database via the Internet — The main documents relating to this step will be the SIGEF, the harvest area cartography and the production reports — DDEF via production reports/checking reports/on-site inspections and SIGEF database — IGEF via inspection reports, SIGEF database and traceability system Test of correspondence of data by comparing the number of trees felled per species category with that stated in the harvest licence 3. Storage of logs Sawing and allocation of logs (logs for local plants or for export) — Drawing up specification sheets — Drawing up AVEs — Marking packages or products (posts, logs) with a bar code indicating the destination The forestry company scans all of the bar codes — package or product/bar code number — The company encodes and sends the data used in monitoring the traceability of logs prepared to the SIGEF database via the Internet — The main documents relating to this step will be the SIGEF and the production/checking/inspection reports — DDEF via on-site inspections, production reports and updated SIGEF database — IGEF via inspection reports, SIGEF database and traceability system Test of the correspondence of data by comparing tree numbers from step 2 (cutting) with tree numbers from step 3 (storage) Reconciliation on the basis of volumes 4. Transportation of products — Drawing up the waybill — Transportation of plantation products (logs, posts, etc.) The transport company scans all of the bar codes — package or product/bar code number — Vehicle number plate — Place of departure — Destination — The Team/Company (forestry, transportation, etc.) sends the data used in monitoring the traceability of processed products to the SIGEF database via the Internet — The main documents relating to this step will be the SIGEF and the production/checking/inspection reports — Team via checking reports, production reports and updated SIGEF database — IGEF via inspection reports, SIGEF database and traceability system At control stations, verification of transported timber 5. Local processing of products (logs) — Measuring the volume in the following four steps: (1) on entry into the plant depot, (2) on entry into the processing unit, (3) on exit from the processing unit, (4) volumes exiting the plant — Performance of timber processing operations — Marking of products/packages The company measures the volume in the following three steps: on entry into the plant depot, on entry into the production processing line and on exit from production at the end of the production line. It draws up daily production reports — Volume on entry to the plant — Volume on entry into the production line — Volume on exit from the production line — The company sends the data used in monitoring the traceability of processed products to the SIGEF database via the Internet — The main documents relating to this step will be the SIGEF and the production/checking/inspection reports — DDEF via checking reports, production reports and updated SIGEF database — IGEF via inspection reports, SIGEF database and traceability system Checking of timber yields on the basis of the daily reports Test of correspondence of data by comparing: — tree numbers from step 5 (processing) with tree numbers from step 4 (transportation) for timber to be processed Test of correspondence between the following three steps: — material yields (volume on entry into the production line and on exit from the production line) — inventories of processed products — volume of merchandise delivered (leaving the plant) 6. Export of products Compilation of timber export files: Waybills, Specification sheets, AVEs, EX1 (formerly D6), EX8 (formerly D15), certificate of origin, dispatch note, phytosanitary certificate, shipment note, manifest/ bill of lading, pro forma of the commercial invoice, Customs declaration and Delivery note The company responsible for exporting scans all of the bar codes The SCPFE verifies the correspondence of data on products for export and grants an AVE Bar code number (logs or finished products) — The SCPFE sends the data used in monitoring the traceability of processed products to the SIGEF database via the Internet — The main documents relating to this step will be the SIGEF and the production/checking/inspection reports — SCPFE/Customs via checking reports, production reports and updated SIGEF database — IGEF via inspection reports, SIGEF database and traceability system Test of correspondence of data by comparing (logs): — tree numbers from steps 2 (cutting), 3 (storage) and 4 (transportation) with tree numbers from step 6 (export) — step reports and SIGEF Test of correspondence of data by comparing (processed products): Volume leaving the plant and volumes for export 7. Local trade networks for by-products Local sale of by-products (firewood, charcoal) The company keeps accounts of local sales Number of packages obtained by category (steres of firewood, bags of charcoal) — The company sends the data used in monitoring the traceability of processed products to the SIGEF database via the Internet — The main documents relating to this step will be the SIGEF and the production reports — DDEF via production reports and updated SIGEF database — IGEF via inspection reports, SIGEF database and traceability system Test of correspondence of data by comparing production reports from steps 5 (processing), 6 (export) and 8 (local trade) 4.4. Timber from abroad in transit through Congolese territory or imported for processing in Congo The transportation across Congolese territory of timber imported from other countries is controlled using the LVS. At present, no timber is imported into Congo from other countries for processing in Congolese plants. However, timber does pass through Congolese territory, in other words it is imported for re-exporting from the port of Pointe-Noire, for example. The legality of imported timber is always verified at the Republic of Congo border. The supply chain of timber in transit or imported timber before it enters Congolese territory cannot be controlled in the same way as timber from national forests. Border procedures for controlling timber in transit or imported timber, its marking and those responsible for carrying out checks will be specified in supplementary rules to be published and implemented during the system development phase. These procedures will take into account the existence or otherwise of legality verification systems in the country of origin. All timber imported and in transit will be entered on the traceability system in accordance with terms to be laid down during the system development phase. 4.5. Failure to meet the legality requirements linked to the traceability system The supply chain for each shipment of timber and derived products is controlled under the traceability system. Procedures to deal with any problems that may be identified will be developed in the LVS during the system development phase. If matrix requirements are not complied with, all measures will be taken to suspend the FLEGT licence grant procedure and, if applicable, seize shipments concerned. A manual outlining how to deal with any failure to comply with indicators in the legality matrix and/or in the traceability system will be developed during the system development phase. The traceability of timber will be monitored through a database (SIGEF) that has an auto-blocking system. If legality requirements linked with the traceability system are not complied with, the SIGEF database will be able to show the requirement that has not been complied with, which can be accessed in real time at the IGEF when the licence application is being examined. CHAPTER 5 5.1. Management of data for verification in accordance with the legality matrices Data for verification in accordance with the legality matrices will be managed by the IGEF using Microsoft Excel type electronic files or other databases. During the system development phase, detailed procedures are to be drawn up regarding the management of data for verification in accordance with the legality matrices, agreements on the accessing of data by the various parties, the consequences of a failure to meet one of the legality criteria (auto-blocking system) and the format of the legality certificate. 5.2. The management of data in the timber traceability chain The improved SIGEF is the traceability system developed on the basis of the SIGEF system existing in 2009 as an information system for data currently stored in the databases of the DDEF, CNIAF and SCPFE. It is referred to as SIGEF throughout this document. The basic data for monitoring the course of timber entered into the database will be sent by forestry companies, if possible every day via the Internet, to the central SIGEF database at the General Forest Economy Office. Moreover, validation by Departmental Forest Economy Offices (DDEFs) of data after analysis of monthly production reports will also be entered on the system, preferably over the Internet. Data in the supply chain will be managed with the aid of a centralised database (SIGEF) which will help provide synergies between the various parties. Management of this centralised database involves: — the creation of an information management structure within the ministry placed under the General Office. This structure will also deal with the production of bar codes, — the development of information management software capable of meeting the requirements of traceability, — the development of a ministry website with a window for accessing the database accessible to all those involved under certain conditions. The parties responsible for gathering information are: — The CNIAF, — Subcontractors (preparation for annual harvests), — Forestry companies (worksite books), — Departmental offices, — Control station on exit from worksites (Team), — Control station on entry to the plant (Team), — Entry into the production line and exit from the production line (Team), — Control station on exit from the plant (Team), — Control station on entry into the port (SCPFE), — Data entry station (Team/Departmental office), — Forestry companies (declaration). The General Forest Economy Office, which will house the SIGEF, will be the body responsible for maintaining and managing the traceability system. Data will be regularly verified by local structures (DDEF) on each approval of data entered into the SIGEF and the product traceability chain. A plan is currently being put together for this purpose. It will enable, during implementation (2009 to 2010), the improved traceability system of the Republic of Congo to be specified and implemented. The software and appropriate computer equipment for this and the data management agreements will be defined and approved when the said plan is put into practice. CHAPTER 6 ISSUING OF FLEGT LICENCES The granting of FLEGT licences only relates to timber and derived products exported to the Union. Timber and derived products in transit under the control of the Congolese customs authorities will not require a FLEGT licence for export to the Union. The Congolese authorities will provide the European customs authorities with documentation enabling them to establish that the timber and shipments concerned do not require a FLEGT licence. The nature and form of this documentation will be specified during system development. Each shipment of timber and derived products in Annex I produced in natural forests and forest plantations in the Republic of Congo requires a FLEGT licence. The FLEGT licence is issued by the SCPFE, on instruction by the IGEF, and is given to the applicant. The FLEGT licence is issued for a shipment of timber and derived products under the following conditions: 1. the company filing the application has a valid legality certificate; 2. the SIGEF database contains all of the data relating to this shipment. The IGEF will also have to ensure first of all that legality has been verified by the authorised departments, and in particular that: — a legality certificate has been issued in accordance with applicable procedures described in Chapter 3, — the supply chain is controlled by authorised departments in accordance with applicable procedures described in Chapter 4, — the FLEGT licence will be granted by the subsidiary offices of the SCPFE located near the production sites, on the basis of a document produced from the SIGEF, in accordance with the terms laid down during the system development phase. Electronic licences will not be dealt with under this Agreement. Information relating to issued licences will be kept in a paper file and a digital file at the IGEF. Licences are issued in paper form at a local level in accordance with Article 6 of Annex V. Local archiving is managed by the SCPFE which keeps copies for the authority granting FLEGT licences, in accordance with Article 6 of Annex V. A photocopy is made and sent to the IGEF for central archiving. This will enable the IGEF to reconcile licence applications with FLEGT licences duly granted. Information on licences will be published on a website by virtue of arrangements set out in Annex X. The specifications of FLEGT licences and procedures relating to issuing them are described in Annex V and will be developed further during the system development phase, in particular with respect to grant periods and authority to sign licences. Procedures for issuing the legality certificate will also be developed during the implementation phase. CHAPTER 7 INDEPENDENT AUDIT OF THE SYSTEM An independent audit of the system is planned. Separate terms of reference have been drawn up and are given in Annex VI.