Summary of the verification scheme
Name of the system
Related Area
General overview ofverification

Scheme to check forlegality at the time oflogging

Scheme of separative
custody management

Future Task andPerspectives

Reference Author

Name in English: Forest and Log Export Monitoring System in Papua New Guinea
Region /Country: Papua New Guinea
Party responsible for issuing verification
Name: SGS PNG Limited
Location: PNG Forest Authority Headquarters Building, Papua New Guinea
Communication: bruce.telfer@sgs.com (+675) 323 1433
Outline of issuing process
Companies affix official SGS bar-coded tags to all logs at time of harvest (each has a uniquenumber).
SGS notified of impending shipment 2 weeks in advance.
SGS inspectors complete scaling check (10%) and species check (100%) prior to loading.
Ship loading is monitored to produce an independent tally of loaded logs.
SGS Inspection Report is issued at the completion of loading and is used by all Govt.
authorities to clear the shipment for export.
Copies of all shipping and inspection documents are held by SGS.
All information is entered into a central database and monthly reports are provided to a widerange of Govt. authorities and other stakeholders.
The system shall verify legality only /or both sustainability
SGS PNG system verifies aspects of the legal origin of logs.
Definition of legality
No formal definition exists but SGS will not perform an inspection unless:
Official log tags have been affixed to he logs. These tags are not issued unless the Forest
Service has confirmed that the company is holding a legitimate operating permit of somekind for the forest area.
Shipment must have an Export Permit issued by the PNG Forest Service and an Export
Licence issued by the Department of Trade and Industry.
Logs are correctly measured and identified.
Both the export volume of a shipment and the prices for the logs have formal approval fromthe PNG Forest Service.
Export taxes are paid in the correct amount.
Relevant laws:
PNG Forest Act and Customs regulations.
Details of presumed illegal activities
Some examples: Species mis-declaration; Under measurement of logs; Shipping
undeclared logs; Shipping with Export Permit and Licence; Not paying export tax
Procedures for retaining and verifying the evidence
Logs are physically inspected at the export port by SGS inspectors who employ bar-code
scanners and portable computers.
Ship loading is not authorized by the PNG Forest Service unless the SGS pre-shipment
inspection gives a satisfactory result.
All inspection, ship loading and commercial documentation are held at the SGS
headquarters. All data is held 9n a central database.
Scheme implemented by the third party and so on to ensure reliability
All verification procedures are managing and executing by SGS, the world’s leading
inspection, verification, testing and certification company under SGS General Conditions ofServices that ensure reliability and international creditability.
Real picture of the dealings, from logging to export
The number on the SGS log tag is also the official log no. for declaration on a monthly basis
to the PNG Forest Service. Each log has a location and landowner registered. .
Procedure for ensuring separative custody management
The log numbers together with details of species and measurement, as declared monthly to
the PNG Forest Service are verified by SGS at time of export.
Scheme implemented by the third party and so on to ensure reliability
All verification procedures are managing and executing by SGS, the world’s leading
inspection, verification, testing and certification company under SGS General Conditions ofServices that ensure reliability and international creditability.
Criticisms against the system and recognition of problems
Some international stakeholders would like to see the independent monitoring extended
back into the forest and to include other legal compliance issues for example, harvesting
practices plus compliance with social and environmental laws of PNG.
Remediation procedure
PNG Forest Service is considering the development of a legal definition for PNG forest
operations to assist companies and the Government to demonstrate legal wood production.
Web site: www.forestry.sgs.com
Author: Bruce Telfer
E-mail: bruce.telfer@sgs.com