ANNEX IISupplementary provisions
ANNEX II DEFINITION OF LEGALLY PRODUCED WOOD Introduction This definition is given in the form of a ‘legality matrix’ comprising indicators grouped around 10 main themes: 1. The company has a legal existence; 2. Legal access rights to forest resources in its area of operation; 3. Compliance with environmental legislation; 4. Rights of workers, local and indigenous communities; 5. Legislation on forest logging; 6. Processing of forest products; 7. General and forest taxation; 8. The transport and traceability of timber forest products is in accordance with the regulations; 9. Compliance with contractual obligations; 10. Relations with sub-contractors in activities other than timber production. The different logging concessions in the CAR that are concerned by this definition are the following: — exploitation and land-use permits (PEAs) that are allocated to companies legally established in the CAR for industrial logging in accordance with a land-use plan; — logging authorisations for areas of reforestation also known as ‘plantations’. In addition, the Central African Republic’s Forest Code also establishes other logging concessions: — artisanal permits, which are permits for an area of 10 ha or less, intended for award to private individuals of CAR nationality or local communities; — community forests of no more than 5 000 ha, which will need to be covered by a management agreement between the Ministry responsible for forests and an organised village and/or indigenous community. PEAs, artisanal permits and community forests are allocated in production forests within the State’s permanent forest domain, located in the south-west of the country. Plantations may be situated throughout the whole country. Since the enactment of the new Forest Code, namely Law No 08.022 of 17 October 2008 on the CAR’s Forest Code, timber exported by the CAR has been primarily from PEAs. To this must be added timber originating under operating licences for old teak plantations. Given the practical difficulties in implementing and monitoring community forests and artisanal permits, these concessions are not yet operational in the CAR. In 2010, there are no concessions relating to community forests or artisanal permits. Consequently, the legality matrix used under this Agreement applies only to concessions that are currently operational, namely PEAs and plantations. The legality definition will be completed to take account of community forests and artisanal permits under the conditions given in Annex V, paragraphs 1.2 and 2.1. The desire to negotiate a VPA along participatory lines entails respect for all those involved in the discussions. Three groups were thus formed, namely the public sector, the private sector and civil society. In order to best build a gradual understanding of the FLEGT process and best formulate proposals for negotiating it, two different kinds of consultations were held on the matrix, namely, consultation by group and a joint consultation of the three groups together. Consultation by group took place internally within the different actors. The joint consultation enabled a comparison of the positions of each group in order to find a national position to serve as a basis for the team negotiating with the Union. Given that the legality matrix needs to provide operational support to the process of issuing FLEGT licences, the CAR and the Union agreed on the need to test the applicability and relevance of the draft legality matrix on the ground before implementing it in the context of the VPA. During the negotiations, an international organisation called ‘The Forest Trust’ was therefore appointed by the European Forest Institute (EFI) to conduct field tests involving Central African Republic representatives. Given that the wood coming from teak plantations is currently exported to the Union market in the form of logs, it was essential to consider these plantation products in the legality matrix. The regulations governing plantations are less developed. This matrix was produced on the basis of existing regulatory texts. Other texts will subsequently be produced to improve the regulations governing plantations. The legality definition will then, consequently, be updated. Clarification regarding the matrix indicators Some indicators have no regulatory reference. These indicators are included subject to the publication and content of the necessary references. For this reason, the references that need to be created are given in Annex IX. The regulatory texts that will finally be adopted may entail amendments to the way in which these indicators are currently drafted. Some indicators apply to all shipments, whatever the origin of the timber. Others apply only to shipments coming from PEAs or shipments coming from permits to log State reforested areas (State plantations) or to shipments coming from authorisations to log in a private domain (community or private plantations). The last column ‘Concessions concerned’ specifies the concession (that a shipment has come from) the indicator in the line applies to: all, PEA, plantations (covering reforested area authorisations, so-called State plantations, and private reforested authorisations for communities and individuals, so-called private plantations). PRINCIPLE 1: THE COMPANY HAS A LEGAL EXISTENCE Criterion 1.1: The company is duly registered with the competent authorities, following a valid procedure. Indicator Verifiers Legislative or regulatory text Concessions concerned Indicator 1.1.1: Registration with an economic administration: Ministry of Trade and Industry. Verifier 1.1.1.1: Ministerial decision authorising forest operations Ordinance No 83.083 of 31.12.1983 (Articles 7 and 8) All (PEA and Plantations) Verifier 1.1.1.2: Professional trader’s licence Decree No 83.550 of 31.12.1983 (Articles 1 to 7) Law No 08.022 of 17.10.2008 on the Forest Code (Article 176) Indicator 1.1.2: Registration with the tax administration (Ministry of Finances and Budget, General Department of Taxation). Verifier 1.1.2.1: Valid taxpayer’s card Registration Guide All Verifier 1.1.2.2: Slip bearing tax registration number (NIF) General Tax Code v. 2009 (Article 334) Order No 004/MEFPCI/DFB/CAB/SGF/DGID establishing the requirement to use an NIF (Articles 1 and 2) Indicator 1.1.3: Registration with the National Social Security Office (CNSS). Verifier 1.1.3.1: Proof of CNSS registration Law No 06.035 of 28.12.2006 on the Social Security Code (Article 31) All Decree No 09.116 of 27.4.2009 Indicator 1.1.4: Registration with the forest administration following a valid award procedure. Verifier 1.1.4.1: Report of the PEA award committee under the responsibility of the Ministry responsible for forests Law No 08.022 of 17.10.2008 on the Forest Code (Article 31) PEAs Verifier 1.1.4.2: Report of the independent observer under the responsibility of the Ministry responsible for forests Decree 09.118 of 28.4.2009 (Article 17.6) Verifier 1.1.4.3: Decree allocating exploitation and land-use permits (PEAs) Indicator 1.1.5: Registration with the judicial administration (Ministry of Justice, Trade Court). Verifier 1.1.5.1: Trade and Secured Loans Register (RCCM) Ordinance No 83.083 of 31.12.1983 (Article 12) All Verifier 1.1.5.2: Minutes of notarised formation Law No 08.022 of 17.10.2008 on the Forest Code (Article 93) Verifier 1.1.5.3: Clerk to the Trade Court notifies registration number Indicator 1.1.6: Registration with the labour and employment administration (Ministry of Work and Employment, Labour Inspectorate). Verifier 1.1.6.1: Employer records numbered and signed off by the labour inspector for the administrative district Law No 09.004 on the Labour Code (Article 331) All Indicator 1.1.7: Registration with the consular chambers: Chamber of Commerce and Industry. Verifier 1.1.7.1: Consular attestation Refer to Annex IX: legal reference to be created All Indicator 1.1.8: Registration with the Central African Agency for Vocational Training and Employment (ACFPE). Verifier 1.1.8.1: Numbered and stamped request for employer’s registration Law No 99.008 of 19.5.1999 (Articles 1 to 7) All Criterion 1.2: The company is up-to-date with payment of its contributions. Indicator 1.2.1: Payment of CNSS contributions. Verifier 1.2.1.1: CNSS certificate or receipt Copy of contribution payment receipts All Indicator 1.2.2: Payment of ACPFE contributions. Verifier 1.2.2.1: Quarterly declaration of salaries paid Decree 00.068 establishing the system for employer contributions to ACFPE (Articles 2 and 4) All Verifier 1.2.1.2: Proof of payment of employer contributions Criterion 1.3: The company is not subject to any judicial sentence or administrative sanction leading to the temporary or permanent suspension of its activities. Indicator 1.3.1: The company’s activities have not been suspended following a court ruling. Verifier 1.3.1.1: Records of court rulings Law No 08.022 of 17.10.2008 on the Forest Code, (Articles 209 and 204(2)) All Verifier 1.3.1.2: Registers of infringements held by the Ministry responsible for forests Order No 09.020 of 30.4.2009 (Articles 92(2) and 93) Indicator 1.3.2: The company’s activities have not been suspended following an administrative sanction. Verifier 1.3.2.1: Registers of infringements held by the Ministry responsible for forests Law No 08.022 of 17.10.2008 on the Forest Code (Article 204(2)) Verifier 1.3.2.2: Suspension decision of the Minister for the Environment Order No 09.020 of 30.4.2009 (Articles 92(2) and 93) Law No 07.018 of 28.12.2007 on the Environment Code (Article 114) Criterion 1.4: The company complies in case of judicial sentence or administrative sanction. Indicator 1.4.1: The company is up-to-date with payments of fines and penalties for the noted infringements. Verifier 1.4.1.1: Receipt for payment of transaction or fine/penalty amount Law No 08.022 of 17.10.2008 on the Forest Code (Articles 208 to 233) All Law No 07.018 of 28.12.2007 on the Environment Code (Articles 114 to 143) PRINCIPLE 2: LEGAL ACCESS RIGHTS TO FOREST RESOURCES IN ITS AREA OF OPERATION Criterion 2.1: The company holds the necessary concessions authorising it to log the forest resources Indicator 2.1.1: All stages (informing the population, tender, application for concession, award committee, including the independent monitor) leading to the allocation of a logging concession have been properly followed by the company, observing the deadlines set by the laws and regulations of the CAR, before and after enactment of Law No 08.022 on the Forest Code. Verifier 2.1.1.1: Report of the PEA award committee under the responsibility of the Ministry responsible for forests Law No 08.022 of 17.10.2008 on the Forest Code (Articles 31, 41 and 48) PEAs Verifier 2.1.1.2: Report of the independent monitor under the responsibility of the Ministry responsible for forests Decree 09.118 of 28.4.2009 (Article 17(6)) Verifier 2.1.1.3: Decree on the award of exploitation and land-use permits (PEAs) Order No 019 of 5.7.2006 approving national rules for producing land-use plans (Volume 1) Verifier 2.1.1.4: Provisional agreement in the three months following the signing of the decree Order No 09.026 of 28.7.2009 approving national rules for producing land-use plans (Volume 2) Verifier 2.1.1.5: Final agreement in the three years following the signing of the provisional agreement Decree No 09.118 (Articles 13 to 17) Indicator 2.1.2: The company has paid all the costs involved in each stage of the award process. Verifier 2.1.2.1: Proof of payment of the application’s administrative costs Decree 09.118 of 28.4.2009 (Articles 22 and 44) PEAs Verifier 2.1.2.2: Proof of payment of the pre-recognition fee Law No 08.022 of 17.10.2008 on the Forest Code (Articles 179 to 189) Verifier 2.1.2.3: Receipt for payment of three years’ rental within 15 days of notification of award (for permits allocated after 2003) Indicator 2.1.3: In the case of plantations belonging to a private individual or community, the individual or community has a property title. Verifier 2.1.3.1: Land title in the name of the individual or community Law No 08.022 of 17.10.2008 on the Forest Code of the CAR (Article 131) Private plantations Criterion 2.2: The company has all recurring regulatory authorisations enabling it to exercise its activities. Indicator 2.2.1: The company has an annual felling authorisation duly issued by the Forests Administration. Verifier 2.2.1.1: Approval note for PEA management plans with final agreement. Law No 08.022 of 17.10.2008 on the Forest Code (Articles 107, 109 and 110, Article 114) PEAs Verifier 2.2.1.2: Approval note for PEA annual operational plans with final agreement Decree 09.118 of 28.4.2009 (Article 17(4)) Verifier 2.2.1.3: Provisional felling agreement signed by the relevant authority Indicator 2.2.2: In the case of State-owned plantations, the company has authorisation from the Ministry responsible for forests to log a plantation Verifier 2.2.2.1: Agreement of the Ministry responsible for forests Law No 08.022 of 17.10.2008 on the Forest Code (Articles 62 and 64) Plantations Verifier 2.2.2.2: Exploration authorisation Order No 09.021 of 30.4.2009 (Articles 72 to 75) Verifier 2.2.2.3: Exploration report Refer to Annex IX: General Conditions need to be created Verifier 2.2.2.4: Simple management plan for plantations of 50 ha or more in compliance with the General Conditions Indicator 2.2.3: In the case of plantations belonging to a private individual or community, the individual or community has felling authorisations Verifier 2.2.3.1: Felling authorisation issued to the operator (owner or contracted operator) by the Ministry Law No 08.022 of 17.10.2008 on the Forest Code of the CAR (Article 131) Private plantations Verifier 2.2.3.2: Simple management plan for plantations of 50 ha or more in compliance with the General Conditions Refer to Annex IX: General Conditions need to be created Verifier 2.2.3.3: Where appropriate, a contract between the individual or community and logging company. Criterion 2.3: After award of its logging concession, the company helps to inform all forest-resource management stakeholders in the area in question of this award. Indicator 2.3.1: The company informs the local and indigenous communities, local authorities and all interested parties of the signing of the provisional agreement and the opening up of the provisional cutting area. Verifier 2.3.1.1: Reports of awareness raising meetings written by the company and jointly approved by the different stakeholders. Order No 09.026 of 28.7.2009 approving national rules for producing land-use plans (Volume 2) PEAs PRINCIPLE 3: COMPLIANCE WITH ENVIRONMENTAL LEGISLATION Criterion 3.1: The company has conducted all impact assessments in line with the legal requirements. Indicator 3.1.1: Environmental impact assessments have been conducted. Verifier 3.1.1.1: Records of environmental impact assessments approved for each production site (PEA + sawmill (including living quarters)) Law No 07.018 of 28.12.2007 on the Environment Code (Article 87 and Article 93(2)) PEAs Verifier 3.1.1.2: Environmental compliance certificate issued by the competent authority Refer to Annex IX: implementing regulations need to be created. Criterion 3.2: The company is implementing the environmental impact mitigation measures given in the assessments. Indicator 3.2.1: The measures set out in the approved impact assessments to protect biodiversity are being implemented. Verifier 3.2.1.1: Monitoring reports of the environmental administration Law No 07.018 of 28.12.2007 on the Environment Code (Article 87) PEAs Refer to Annex IX: implementing regulations need to be created. Criterion 3.3: The company is taking measures to safeguard the quality of the environment at its site, in line with legal provisions. Indicator 3.3.1: Waste (as defined in Article 3 of the CAR’s Environment Code and implementing regulations) resulting from the company’s activities is treated in line with the legal requirements. Verifier 3.3.1.1: Monitoring reports from the environmental administration Law No 07.018 of 28.12.2007 on the Environment Code (Articles 3, 19 and 20, 43 to 45) PEAs Refer to Annex IX: implementing regulations need to be created. Indicator 3.3.2: Legal provisions with regard to air and water pollution are being observed. Verifier 3.3.2.1: Environmental audit report from the environmental administration Law No 07.018 of 28.12.2007 on the Environment Code (Articles 15, 102 and 106(2)) PEAs Refer to Annex IX: implementing regulations need to be created. PRINCIPLE 4: RIGHTS OF WORKERS, AND LOCAL AND INDIGENOUS COMMUNITIES Criterion 4.1: The company helps to inform and educate its workers and fully respects their employment rights. Indicator 4.1.1: Freedom of union organisation is guaranteed within the company. Verifier 4.1.1.1: Briefing note on the guarantee of freedom of union organisation stamped by the relevant authority and displayed Law 09.004 of 29.1.2009 on the Labour Code (Articles 12, 17, 18, 30, 31, 33) All Verifier 4.1.1.2: Minutes of union meetings displayed (if employees are union members) Indicator 4.1.2: Staff delegates, elected in accordance with current legislation, have the necessary skills to fulfil their role. Verifier 4.1.2.1: Report of the general assembly at which staff delegates were elected, stamped by the labour inspector of the administrative district Law 09.004 of 29.1.2009 on the Labour Code (Articles 58, 60, 67) All Verifier 4.1.2.2: Training certificates stamped by the labour inspector of the administrative district Indicator 4.1.3: The company’s employees are informed of documents relating to employment rights. Verifier 4.1.3.1: Briefing notes displayed Law 09.004 of 29.1.2009 on the Labour Code (Articles 63 and 129) All Verifier 4.1.3.2: Report of meetings between staff delegates and employees The collective agreement for logging companies in the Central African Republic (Article 10(4)) Verifier 4.1.3.3: Internal regulations displayed Criterion 4.2: The company respects workers’ rights as defined in current regulations. Indicator 4.2.1: Relations between the company and its staff are formally established according to the legal requirements. Verifier 4.2.1.1: Copy of the collective agreement held by the logging company and by the staff delegates Law 09.004 on the Labour Code (Articles 197 to 201 and 331) All Verifier 4.2.1.2: Employer records numbered and signed off by the labour inspector of the administrative district Indicator 4.2.2: The company’s staff are paid in accordance with current regulations for their sector of activity, and without discrimination. Verifier 4.2.2.1: Pay slips and salary reports Law 09.004 on the Labour Code (Articles 221 to 230 and 94 to 99) All Verifier 4.2.2.2: Employment contract signed by all parties Collective agreement for logging companies Indicator 4.2.3: Workers’ health and safety conditions are in line with current legislation. Verifier 4.2.3.1: Records of health and safety committee meetings Law No 09.004 on the Labour Code (Articles 82 to 87) All Verifier 4.2.3.2: Provision of staff healthcare and safety equipment Order 005/MFPESSFP/CAB/DGTEFP of 11 July 2004 on the establishment and functioning of health and safety committees in the CAR (Articles 1 to 3; Articles 9 to 17) Collective agreements for logging companies International Labour Office, C155 Occupational Safety and Health Convention 1981 (Article 12(a)(b), Article 16), ratified by the CAR on 5.6.2006 Indicator 4.2.4: The working hours applied by the company are in accordance with legal provisions. Verifier 4.2.4.1: Workers’ timekeeping system Law 09.004 on the Labour Code (Articles 247 to 251) All Verifier 4.2.4.2: Workers’ timesheets Verifier 4.2.4.3: Company service notes displayed Verifier 4.2.4.4: Pay slips Indicator 4.2.5: Staff recruitment is in line with the age restrictions established by national legislation and the International Labour Organisation (ILO). Verifier 4.2.5.1: Employment contracts signed by all parties Law 09.004 on the Labour Code (Articles 247 to 249, Article 97) All Collective agreements for logging companies Criterion 4.3: The company respects the rights of local and indigenous communities Indicator 4.3.1: Local and indigenous communities’ customary rights of access to and use of forest concessions are recognised and respected by the company. Verifier 4.3.1.1: Land-use plan approved by the competent authority (the socio-economic report in particular) Order No 0.19 of 5.7.2006 on approving national rules for producing land-use plans (Volume 1) PEAs Verifier 4.3.1.2: Provisional agreement signed by the competent authority (PEA provisional agreement) Order No 09.026 of 28.7.2009 on approving national rules for producing land-use plans (Volume 2) Verifier 4.3.1.3: Report of findings of the forest administration, countersigned by the parties Law No 08.022 of 17.10.2008 on the Forest Code (Articles 14 to 22, 107) Decree 09.118 of 28.4.2009 (Articles 17(4 and 5)) Indicator 4.3.2: If assets belonging to local or indigenous communities are destroyed by the company, compensation is provided in accordance with current regulations. Verifier 4.3.2.1: Official report read and approved by the parties Order No 005/Ministry of Rural Development of 9.7.1973 PEAs Verifier 4.3.2.2: Proof of compensation PRINCIPLE 5: TIMBER HARVESTING LEGISLATION Criterion 5.1: The company has been involved in informing all forest-resource management stakeholders AFTER the award of its logging concession in the area in question. Indicator 5.1.1: The local communities, local authorities, non-governmental organisations (NGOs), decentralised State structures and other development partners interested in forest resource management in the area in question are informed of the award of the PEA. Verifier 5.1.1.1: Minutes of awareness-raising meetings written by the company and jointly approved by the stakeholders. Law No 08.022 of 17.10.2008 on the Forest Code (Article 14) PEAs Order No 09.026 of 28.7.2009 approving national rules for producing land-use plans (Volume 2) Criterion 5.2: The provisional agreement is adhered to. Indicator 5.2.1: The company adheres to the provisions of the provisional agreement during its period of validity (three years). Verifier 5.2.1.1: Administration’s monitoring report Law No 08.022 of 17.10.2008 on the Forest Code (Articles 102 and 107) PEAs Provisional land-use agreement Order No 0.19 of 5.7.2006 approving national rules for producing land-use plans (Volume 1) Criterion 5.3: The land-use plan is designed and implemented according to the regulations. Indicator 5.3.1: The prior studies have been conducted according to the rules set out by the forest administration. Verifier 5.3.1.1: Land-use inventory report(s) Law No 08.022 of 17.10.2008 on the Forest Code (Articles 102 to 105 and Article 107) PEAs Verifier 5.3.1.2: Socio-economic study report Provisional land-use agreement - logging Indicator 5.3.2: The land-use plan has been produced according to the rules set out by the forest administration. Verifier 5.3.2.1: Final exploitation and land-use agreement Law No 08.022 of 17.10.2008 on the Forest Code (Article 103) PEAs Order No 0.19 of 5.7.2006 on approving national rules for producing land-use plans (Volume 1) Order No 09.026 of 28.7.2009 on approving national rules for producing land-use plans (Volume 2) Indicator 5.3.3: The management plan complies with the regulations. Verifier 5.3.3.1: Letter officially approving the management plan Law No 08.022 of 17.10.2008 on the Forest Code (Articles 94, 103 and 114) PEAs Order No 0.19 of 5.7.2006 on approving national rules for producing land-use plans (Volume 1) Order No 09.026 of 28.7.2009 approving national rules for producing land-use plans (Volume 2) Indicator 5.3.4: The annual operating plan (PAO), including maps, complies with the regulations. Verifier 5.3.4.1: Letter submitting annual operating plan to the office of the Minister for Forests Order No 0.19 of 5.7.2006 on approving national rules for producing land-use plans (Volume 1) PEAs Verifier 5.3.4.2: Letter officially approving the PAO Order No 09.026 of 28.7.2009 on approving national rules for producing land-use plans (Volume 2) Law No 08.022 of 17.10.2008 on the Forest Code (Articles 94, 103 and 114) Indicator 5.3.5: A plantation or reforested area of 50 ha or more has a simple management plan in line with current regulations. Verifier 5.3.5.1: Simple management plan for plantations of 50 ha or more, and this is in line with the General Conditions Article 64 of Law No 08.022 of 17.10.2008 on the Forest Code of the CAR Plantations Verifier 5.3.5.2: Letter approving the simple management plan Articles 72 to 75 of Order No 09.021 of 30.4.2009 Refer to Annex IX: General Conditions need to be created Criterion 5.4: The company has clearly defined the different forest sub-divisions and adheres to them. Indicator 5.4.1: The boundaries of the annual cutting area (AAC) or provisional areas anticipated on the maps are concretely mapped out and adhered to, in accordance with the regulations. Verifier 5.4.1.1: Reports of forestry administration inspection visits Law No 08.022 of 17.10.2008 on the Forest Code (Article 105) PEAs Order No 09.026 of 28.7.2009 on approving national rules for producing land-use plans (Volume 2) Criterion 5.5: The company is building service roads in accordance with current regulations. Indicator 5.5.1: The service road network is planned and created in accordance with current regulations. Verifier 5.5.1.1: Annual operating plan approved by the forest administration Law No 08.022 of 17.10.2008 on the Forest Code (Articles 94, 103 and 114) PEAs Verifier 5.5.1.2: Plan for the network of service roads for the provisional area Provisional logging agreement Verifier 5.5.1.3: Administrative authorisation to open up access roads (if access roads required outside the AAC) Final agreement Verifier 5.5.1.4: Reports of forestry administration inspection visits Verifier 5.5.1.5: Authorisation to open up paths for an AAC Criterion 5.6: The company chooses the trees to fell according to the rules set out in the Forest Code, the Development Plan and data from the Annual Operating Plan (PAO) Indicator 5.6.1: The minimum managed diameters (DMA) for final agreements or the minimum administrative logging diameters (DME) for provisional agreements are respected during felling operations. Verifier 5.6.1.1: Worksite books Law No 08.022 of 17.10.2008 on the Forest Code (Article 105) PEAs Verifier 5.6.1.2: Inspection visit reports Final logging agreement Provisional logging agreement Indicator 5.6.2: The species logged are authorised in the land-use plan, the PAO and the order applying the Forest Code or the Forest Code itself. Verifier 5.6.2.1: Land-use Plan Order No 09.021 of 30.4.2009 (Article 53) PEAs Verifier 5.6.2.2: Worksite books Final agreement Verifier 5.6.2.3: ‘Timber movement’ form Law No 08.022 of 17.10.2008 on the Forest Code (Articles 186 and 190) Verifier 5.6.2.4: Special authorisation for unauthorised species Criterion 5.7: The company adheres to all the provisions of the Forest Code on abandoning waste timber from logging. Indicator 5.7.1: Timber that is felled and abandoned in the forest is in line with current regulations. Verifier 5.7.1.1: Worksite books Final logging agreement PEAs Verifier 5.7.1.2: Official reports on abandoned timber from the forest administration Provisional logging agreement Verifier 5.7.1.3: Inspection reports from the forest administration Law No 08.022 of 17.10.2008 on the Forest Code (Articles 201, 202 and 204) PRINCIPLE 6: PROCESSING OF FOREST PRODUCTS Criterion 6.1: The company establishes at least one processing facility in accordance with the provisions of the Forest Code. Indicator 6.1.1: The company has at least one processing facility in accordance with the regulatory provisions, three years after award of the PEA. Verifier 6.1.1.1 Processing facility licence Law No 08.022 of 17.10.2008 on the Forest Code (Article 39) PEAs Provisional exploitation and land-use agreement Indicator 6.1.2: The company has proof that it is respecting the minimum annual processing quota (70 %) set by the State. Verifier 6.1.2.1: ‘Timber movement’ form or statistics yearbook Law No 08.022 of 17.10.2008 on the Forest Code (Article 44) Criterion 6.2: The company ensures the legality of purchased timber or derived products, even when imported. Indicator 6.2.1: Logs and timber products imported for processing are registered in line with regulatory provisions. Verifier 6.2.1.1: Commercial import declaration Reference to be created: refer to Annex IX PEAs Verifier 6.2.1.2: ‘Timber movement’ form Indicator 6.2.2: Logs and timber products purchased for processing, including when imported, are of known and legal origin. Verifier 6.2.2.1: A FLEGT authorisation from the country of origin accompanies the imported products Reference to be created: refer to Annex IX PEAs Verifier 6.2.2.2: Sustainable management certificate or certificate of legal origin PRINCIPLE 7: GENERAL AND FOREST TAXATION Criterion 7.1: The company makes forest tax declarations that are in accordance with its actual activity. Indicator 7.1.1: The declaration of timber production is held in line with the regulatory provisions of the Forest Code. Verifier 7.1.1.1: ‘Timber movement’ form Law No 08.022 of 17.10.2008 on the Forest Code (Article 190) All Indicator 7.1.2: The declaration of timber processing is in accordance with the ‘timber movements’ forms. Verifier 7.1.2.1: ‘Timber movement’ form Law No 08.022 of 17.10.2008 on the Forest Code (Article 190) All Indicator 7.1.3: Declarations of timber sales and export of products are kept in accordance with the regulatory provisions. Verifier 7.1.3.1: ‘Timber movement’ form Law No 08.022 of 17.10.2008 on the Forest Code (Article 190) All Verifier 7.1.3.2: Customs declarations Finance Law for each financial year Verifier 7.1.3.3: Commercial export declaration (DEC) Decree 86.328 of 20.11.1986 (Article 2) Indicator 7.1.4: Tax/customs declarations are made in line with the regulatory provisions. Verifier 7.1.4.1: Receipt for licence payment Finance Law for each financial year All Verifier 7.1.4.2: Receipt for IMF (minimum set tax) payment General Tax Code (Articles 120, 125, 140, 204, 247, 248 and 257) Verifier 7.1.4.3: Receipt for IS/IR (corporation/income tax) payment Verifier 7.1.4.4: Receipt for VAT (value added tax) payment Criterion 7.2: The company pays all taxes due within the deadline. Indicator 7.2.1: All forest taxes and fees are paid within the stipulated deadlines. Verifier 7.2.1.1: Receipt for rental tax payment Law No 08.022 of 17.10.2008 on the Forest Code (Articles 179 to 193) PEAs Verifier 7.2.1.2: Receipt for felling tax payment Finance Law for each financial year All Verifier 7.2.1.3: Receipt for reforestation tax payment All Verifier 7.2.1.4: Notification stipulating exceptional measures relating to payment of company taxes and fees All Indicator 7.2.2: All fees and taxes related to timber exports are paid on time. Verifier 7.2.2.1: Receipt for DS (exit fees) payment Law No 08.022 of 17.10.2008 on the Forest Code (Article 198) All Verifier 7.2.2.2: Receipt for IMF (minimum set tax) payment Finance Law for each financial year Verifier 7.2.2.3: Receipt for REIF (Ministry of Finance tax on provision of computer tools) payment Instrument No 1/92-UDEAC-CD-SE1 Articles 12 and 22 of the CEMAC Customs Code Instrument No 1/93-UDEAC-573-CD-SE1 Instrument No 7/93-UDEAC-556-CD-SE1 Instrument No 16/96-UDEAC-556-CD-57 Instrument No 5/89-UDEAC-491 Indicator 7.2.3: All fees and taxes related to imports of equipment used by the company are paid. Verifier 7.2.3.1: Receipt DD (import customs duty) payment Finance Law for each financial year All Verifier 7.2.3.2: Receipt for value added tax (VAT) payment Instrument No 1/92-UDEAC-CD-SE1 Verifier 7.2.3.3: Receipt for TCI (community integration tax) payment Articles 12 and 22 of the CEMAC Customs Code Verifier 7.2.3.4: Receipt for CCI (community integration contribution) payment Instrument No 1/93-UDEAC-573-CD-SE1 Verifier 7.2.3.5: Receipt for REIF (tax on provision of financial computer tools) payment Instrument No 7/93-UDEAC-556-CD-SE1 Verifier 7.2.3.6: Receipt for OHADA payment (OHADA fee) Instrument No 16/96-UDEAC-556-CD-57 Verifier 7.2.3.7: Receipt for CMF payment (Central Africa Forests Commission fee) Instrument No 5/89-UDEAC-491 Indicator 7.2.4: The company has repatriated the ‘free on truck’ (FOT) values of products declared for export outside of CEMAC to a local bank within 30 days of the deadline stipulated in the contract. Verifier 7.2.4.1: Certificate of bank debit order Law No 08.022 of 17.10.2008 on the Forest Code (Article 200) All Verifier 7.2.4.2: Fund transfer document PRINCIPLE 8: THE TRANSPORT AND TRACEABILITY OF TIMBER FOREST PRODUCTS ARE IN ACCORDANCE WITH THE REGULATIONS Criterion 8.1: The company may have its own means of transport Indicator 8.1.1: The lorries and other vehicles for transporting timber products are correctly registered and licensed. Verifier 8.1.1.1: Vehicle registration documents — Decree No 88.151 of 25.4.1988 (Article R138, R138(1) and R 134(4)) — CIMA Insurance Code (Article 200) — 2009 General Tax Code (Article 204) All Verifier 8.1.1.2: Technical data sheet Verifier 8.1.1.3: Insurance Verifier 8.1.1.4: Transport licence When transporting forest products for export, there is an additional reference: Decree No 90.043 of May 1990 organising road transport in the CAR Verifier 8.1.1.5: Haulier’s authorisation Indicator 8.1.2: Transport documents for timber and derived products for export are in line with current regulations. Verifier 8.1.2.1: Waybill or route map Law No 08.022 of 17.10.2008 on the Forest Code (Article 93) All Verifier 8.1.2.2: Dispatch note, accompanied by: specifications, D15, commercial export declaration, invoice, certificate of origin CEMAC Customs Code (Articles 133 and 134) Indicator 8.1.3: The company is implementing measures to apply the ban on the transportation of persons. Verifier 8.1.3.1: Company’s internal regulations Decree No 90.043 of May 1990 organising road transport in the CAR All Verifier 8.1.3.2: Service note Criterion 8.2: The company is marking felled trees for monitoring and traceability according to recognised forest regulation methods. Indicator 8.2.1: The logs and stumps of felled trees are hammered and marked in line with regulatory requirements. Verifier 8.2.1.1: Inspection visit report from the forestry administration Law No 08.022 of 17.10.2008 on the Forest Code (Articles 93 and 96) All Indicator 8.2.2: In forest depots, logs are hammered and marked according to current regulations. Verifier 8.2.2.1: Inspection visit report from the forestry administration Law No 08.022 of 17.10.2008 on the Forest Code (Articles 93 and 96) All Interministerial Order No 82 of 13.7.2004 Indicator 8.2.3: Log transport documents are filled in prior to leaving the worksite. Verifier 8.2.3.1: Waybill (also known as a delivery note or removal note) Refer to Annex IX: reference needs to be created for the National Tracking System All Indicator 8.2.4: Log and log bundle documents are filled in prior to leaving the log depot or factory. Verifier 8.2.4.1: Waybill (also known as a delivery note or removal note) Interministerial Order No 82 of 13.2.2004 All PRINCIPLE 9: RESPECT FOR CONTRACTUAL OBLIGATIONS Criterion 9.1: The company respects the formal commitments made in the management plan (PG), the annual operating plan (PAO) and/or the provisional agreement for a better contribution to local development. Indicator 9.1.1: The amounts allocated to community budgets are regularly paid by the company. Verifier 9.1.1.1: Proof of payment of revenue orders Law No 08.022 of 17.10.2008 on the Forest Code (Articles 177 to 192) PEAs Verifier 9.1.1.2: Administrative authorisation for staggered payment of taxes Indicator 9.1.2: The social actions planned by the company and appearing in the PAO and management plan or in the provisional agreements have been implemented. Verifier 9.1.2.1: PAO approved by the forest administration (each PAO includes a description of the social activities undertaken the previous year) Reference to be created: order approving forest management rules underway, refer to Annex IX. PEAs Verifier 9.1.2.2: Provisional agreement signed by the company and the Ministry responsible for forests Law No 08.022 of 17.10.2008 on the Forest Code (Articles 50, 51) Criterion 9.2: The company observes the additional commitments made to the forest administration with regard to biodiversity conservation in its concession. Indicator 9.2.1: The commitments made by the company in the management plan, the general conditions, the PAO or the provisional agreement in order to contribute to preventing poaching and illegal logging in its area of intervention are respected. Verifier 9.2.1.1: Worksite inspection reports from the forest administration Reference to be created: order approving forest management rules underway, refer to Annex IX. PEAs Verifier 9.2.1.2: Company reports on information, education and awareness raising campaigns Law No 08.022 of 17.10.2008 on the Forest Code (Article 90) Verifier 9.2.1.3: PAO approved by the forest administration Wildlife Protection Code Verifier 9.2.1.4: Internal regulations Order No 84.045 of 27.7.1984 (Articles 34, 111 and 112) PRINCIPLE 10: RELATIONS WITH SUB-CONTRACTORS IN ACTIVITIES OTHER THAN TIMBER PRODUCTION Criterion 10.1: The company (and, in the case of private plantations, the individual or community) ensures that all its sub-contractors are operating legally. Indicator 10.1.1: The company (and, in the case of private plantations, the individual or community) ensures that all its sub-contractors and suppliers are authorised to exercise their activity. Verifier 10.1.1.1: Accreditation of valid profession Code for the Registration of Stamps and Curatorship (Articles 2 and 13) All Verifier 10.1.1.2: Sub-contracts registered Criterion 10.2: The company is paying its debts to its contractors. Indicator 10.2.1: The company (and, in the case of private plantations, the individual or community) is settling payment for the services anticipated in the contract. Verifier 10.2.1.1: Invoices Civil Code (Articles 1101 and following) All Verifier 10.2.1.2: Transfer document or cheque or receipt proving payment of the corresponding invoices List of laws, principle regulatory texts, regional and international agreements to be considered in forest legality The texts noted in the context of this matrix are as follows: — Orders (83.083 of 31.12.83; 84.045 of 27.7.1984); — Law No 08.022 of 17.10.2008 on the Forest code of the Central African Republic and its different implementing regulations: decrees, orders, decisions and service notes; — Law No 07.018 of 28.12.2007 on the Environment Code; — Law No 09.004 on the Labour Code; — The Law on the Civil Code in the CAR; — The Law on the General Tax Code (including the law on the Code for Registration of Stamps and Trusteeship); — Finance Law for each financial year; — Law No 06.035 of 28.12.2006 on the Social Security Code; — Law No 99.008 of 19.5.1999; — CIMA Insurance Code; — CEMAC Customs Code, implementing regulations for CEMAC’s Customs Code: — Instrument No 1/92-UDEAC-CD-SE1; — Instrument No 1/93-UDEAC-573-CD-SE1; — Instrument No 7/93-UDEAC-556-CD-SE1; — Instrument No 16/96-UDEAC-556-CD-57; — Instrument No 5/89-UDEAC-491. — The agreements (collective agreements for logging companies in the CAR, International Labour Office Convention C155 of 1981 on workers’ health and safety, final exploitation and land-use agreements, provisional exploitation and land-use agreements); — Wildlife Protection Code, Order No 84.045 of 27.7.1984; — Code for Registration of Stamps and Trusteeship; — Civil Code; — Decrees: — Decree No 83.550 of 31.12.1983; — Decree No 09.116 of 27.4.2009; — Decree No 09.118 of 28.4.2009; — Decree No 00.068; — Decree No 88.151 of 25.4.1988; — Decree No 90.043 of May 1990 on road transport; — Decree 86.328 of 20.11.1986. — Ministerial and interministerial orders: — Order No 004/MEFPCI/DFB/CAB/SGS/DGID; — Order No 09.020 of 30.4.2009; — Order No 019 of 5.7.2006 on approving national rules for producing land-use plans (Volume 1); — Order No 09.021 of 30.4.2009; — Order No 005/MFPSSSFP/CAB/DGTEFP of 11.7.2004; — Interministerial Order No 82 of 13.2.2004; — Order 005/Ministry of Rural Development of 9.7.1973; — Order No 09.026 of 28.7.2009 on approving national rules for producing land-use plans (Volume 2); — Interministerial Order No 82 of 13.2.2004; — Registration Guide