Legality Verificationof Logs in Sarawak
By
Datu Haji Len Talif Salleh
Deputy Permanent Secretary, Ministry of Planning and Resource Management,
Director of Forests, andManaging Director/ CEO, Sarawak Forestry
10 December 2010
International Symposium on Legally Verified Wood 2010, Tokyo, Japan

The Objective

Our presentation today is to explain
the movement of logs in Sarawak from thetimber licence areas to the various designatedpoint(s), based on the requirements of existinglaws, regulations, ordinances and legislations
which will verify the LEGALITY statusof these logsPage  2International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

About Sarawak

SARAWAK,SARAWAK, isis thethe largest
largestStateState inin Malaysia
Malaysia withwith aa land
land
area
area ofof 12.3
12.3 million
million hectares
hectaresApproximately
Approximately 8.7
8.7 million*
million*hectareshectares oror 71%
71% ofof Sarawak’s
Sarawak’s
total
total land
land area
area isis covered
covered bybyforests.
forests.
(*Based(*Based on
on FAO’s
FAO’s definition
definition ofof forest)
forest)Page  3

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Forestry In Sarawak
1. The MalaysianFederal Constitution
Article 74 (2) stipulates
that land and natural
resources are under thelegislative authorities ofthe State i.e. State
matters: Each State canformulate its own forest
policies and enact
forestry laws.

2.The National Land
Forestry inSarawak

Council (NLC), formed
as a body in which theFederal and State
Governments formulate
policies relating to land,
forests and minerals.

3.The Forest Department was
4. Sarawak is one of the major
suppliers of tropical logs andtimber products in the globalmarket. (statistics)
Page  4

formed in 1919 by the 3rd Rajah ofSarawak, Vyner Brooke. The
Forest Policy of Sarawak wasformulated in 1954 to provide
guidelines for forest managementin Sarawak.

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Forest Policy of Sarawak
The Statement of the Forest Policy of the Colony of Sarawak was approvedby the Governor-in-Council on 23 December 1954
To reserve permanently for the benefit of thepresent and future inhabitants of the country
forest land sufficient
To manage the productive forests of thePermanent Forest Estate with the object ofobtaining the highest possible revenue
compatible with the principle of sustained yield
and with the primary objects set out above
To promote, as far as may be practicable, thethorough and economical utilisation of obtaining
the highest possible revenue compatible withthe principle of sustained yield and with theprimary objects set out above
To foster, as far as may be compatible with theprior claims of local demands, a profitable
export trade in the forest produce.
Page  5

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Export of Logs and Major Timber Products from Sarawak for 2009

Sarawak Exports to Japan

Page  6

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Regulating Authorities•Ministry of Planning andResource Management• Formulate policies on land,
forests and minerals• 4 agencies dealing withforestry and timber industry
under the Ministry:

Forest Department of Sarawak(FDS), Established(FDS)in 1919
Sarawak Forestry Corporation(SFC), Incorporated in 1995
Sarawak Timber Industry
Development Corporation(STIDC), Incorporated in 1973
Harwood Timber Sdn Bhd
Wholly-owned subsidiary of STIDC(HTSB), Incorporated in 1985

•Page  7

Royal Customs Department

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Some governing legislations in the context of LEGALITY inSarawak
1Forests Ordinance, 1958 (Cap 126)

2

Forest Rules, 1962

3

Land Code, 1958

4

Natural Resources and Environment Ordinance,
1993 (Cap. 84)

5

Wild Life Protection Ordinance, 1998 (Cap 26)

6

Sarawak Forestry Ordinance, 1995 (Cap 17)

7

Sarawak Rivers Ordinance, 1993

8

Sarawak Timber Industry Development
Corporation Ordinance, 1973
Malaysian Customs Act, 1967

9Page  8

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan3rd Party Certified Work Processes
Organization
Sarawak Forestry
Corporation( SF&C and SAPD)

Certified
ISO 9001:2008

Scope•Provision of Security and Asset
Protection

Certified by
Moody International
Certification•Provision of Compliance andRegulation of Sustainable Forest
Management

Sarawak Timber Industry
Development Corporation

ISO 14001:2004•Provision of Compliance andRegulations of Sustainable
Forest Management

Moody International
Certification

ISO 9001:2008•Registration of Companies

Moody International
Certification•Grading Activities
BS EN ISO9001:2008

Harwood Timber Sdn Bhd

ISO 9001:2008•Electronic Issuance of Exportand Import Licences forLogs and Timber Products•Log endorsement•Shipping and Land
Transportation Administration

Standards & Industrial
Research Institute Malaysia(SIRIM)•Inspection of Export Logs

Independent External Auditors : National Audit Department, Audit Departmentof Chief Minister’s Office Sarawak and Financial Audit
Internal Auditors : All the 4 agencies
Page  9International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

The definition of legality
SarawakJapan“Timber harvested by licensed
person from approved areas andtimber and timber products
exported in accordance with thelaws, regulations and procedures
pertaining to forestry, timberindustry and trade of Malaysia”“ The timber to be produced
should be harvested in legalmanner consistent withprocedures in the forest laws oftimber producing countries andareas”

Based on the“Guidelines for Exporters of wood andwood products to Japan” issued by
the Council for Tackling Illegal
Logging Issue, 2007

Page  10International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Legality Verification of Logs in Sarawak
Venue/
activities

Organisation

LicensingForest/ForestLandingForest Checking StationMill

Process Forest
Timber LicenceForestDepartment
Sarawak

Export Point

For export

Issue Forest
Timber Licence
Process &Approve General
Harvesting Plan

Sarawak
Forestry
Corporation

Harwood
TimberSdn Bhd

Sarawak
TimberIndustry
CorporationDevelopment
Royal
Customs
Malaysia
Page  11

Approve Detailed
Harvesting Plan
Issue Permit toEnter Coupe(PEC 1-5)

MonitorHarvesting ,LPI Tagging &Property Mark

Verify and Issue
Removal Pass(Transit/Export)
Royalty
Assessment

PhysicalInspection

Issue Removal
Pass (Transit)
Issue ECC ,Transportation &Shipping Pass

Inspect& VerifyMillingLogs

PhysicalInspection & Issue
Export Clearance
Certificate(ExCC)

Issue Export Permit

Provide Clearance forExport

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Checklist - Process Application to Issue Forest Timber Licence

Page  12

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Sample of Forest Timber Licence

ABC SDN BHD

Page  13

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

General Harvesting Plan (GP)Objective
A plan to ensure that harvesting
operations in a Forest Timber Licencearea are been carried out in accordancewith the prescriptions of the Forest
Management PlanDate
Page  14

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Checklist – Checking Of General Harvesting Plan

Page  15

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Checklist Of General Harvesting Plan
Checklist of GP consists of the following
information
1. Licence Description
2. Submission Number
3. Type of map submitted
4. Legends Used
5. Quality of Submission
6. Is the Licence Boundary correctly indicated on the GP?
7. What are the forest/land type excluded from harvesting regulation?
8. Coupe sizes and layout
9. Sequence of harvesting
10. Proposed road layout
11. Other comments
12. Recommendation

The completed form will be checked by the Forest Department
Page  16

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

General Harvesting Plan (GP)Shifting Agriculture

Terrain IV

Page  17

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Detailed Harvesting Planning (DP)Objective
DP incorporates Sustainable Forest
Management (SFM) principles andpractices at the coupe level. It contains
prescriptions for harvesting block layout,
harvesting method used, surveyed road
network, conservation areas for theprotection of totally protected plants andcritical resources and sites

DatePage  18

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Detailed Harvesting Plan (Example)

Page  19

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Permit to Enter Coupe (PEC)

Objective
The PEC process comprises 5 operational
stages and is designed to ensure thatconditions stipulated in the Detailed
Harvesting Plan have been complied withprior to the commencement of harvesting

DatePage  20

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Permit to Enter Coupe (PEC) Operations
Operations 1-3-Boundary Survey(Range of Annual Coupe Size: 1000-3000ha)-Road Survey, Alignment & Profile

1-3
Operation 4-Boundary Survey (Block size : 60-100ha)

45-Road construction-Tree Enumeration (10%)-Pre-felling checks by SFC Officers

Operation 5-Blocks endorsement for felling
Note:•Duration to process from DP to PEC
Operation 5 ranges from 8 to 12 months

Main Road construction
Tree Enumeration

Page  21

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Permit to Enter Coupe (Example)

Inspection
Authorisation to enter coupePage  22

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Monitoring Harvesting & Log Production Identity (LPI) Tagging

Objectives
To ensure that the harvesting operations arewithin the approved areas and comply withthe terms and conditions
To ensure only approved Log Production
Identity numbers (LPI) are used by licensee
and daily logs cuts are captured inLog Tracking Systems (LOTS)
through the submission ofDaily Production Return (DPR)
to Forest CheckingStation Office
DatePage  23

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Log Tracking Systems (LOTS)
What is LOTS?
It is a network application
designed and tailor-made inSarawak to capture, recordand monitor:

LOTS application riding onFORESTNET

the details of logs felled by
the respective licensees orcontractors
volume of logs that had
been royalty assessedthe movement oflogs from one place
to anotherPage  24

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Daily Production Return (DPR)

Page  25

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Checklist Checking DPR

Page  26

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Property Mark
What is Property Mark ?
Every licensee is assigned with anIdentity Property Mark to denote theownership of the logs
Hammer marked at both ends of thelogs
Done in the licence areas
Log with Property Mark

Page  27

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Royalty Assessment

ObjectiveTo ensure that trees felled and extracted
as logs under Timber Licence areassessed for Royalty, Premia and Cessdue to the government in an orderly
and timely mannerDate
Page  28

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Royalty Marking Activities

Recording details required in the royalty
specifications form (eg : species, length(m), diameter (cm) and volume (m3))

Page  29

Log Scaling

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Royalty Marking Activities

FD hammer
FD hammer marked denote royalty
due to Government had been paid
Page  30

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Inspection Checklist - Royalty Assessment

Example of
1. Log Specification Form(Royalty Assessment)
2. Log Specification Summary(Swamp)
3. Royalty Assessment Check Form
4. Royalty Removal Pass (Royalty)

Page  31

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Log Specification Form (Royalty Assessment)

Page  32

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Log Specification Summary (Swamp)

Page  33

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Royalty Assessment Check Form

Page  34

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Royalty Removal Pass (Royalty)

Page  35

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Physical Inspection

Objective
To inspect and certify that the logs to be
removed from the Forest Checking Station
had been royalty assessed

Date
Page  36

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Log Specification Form (Transit)

Page  37

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Inspection Report –E1 (Example)

Page  38

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Endorsement Clearance Certificate (ECC) (for milling logs only)

Page  39

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Shipping Pass

Page  40

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Transportation Pass

Page  41

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Removal Pass (Transit)

Objective
To ensure that all royalty assessed logs
that are to be removed from the Forest
Checking Station are issued with Removal
Pass (Transit) for monitoring and control

Date
Page  42

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Removal Pass (Transit)

Page  43

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Inspect & Verify Milling Logs

Objective
To ensure all the logs endorsed at theForest Checking Station are delivered tothe designated mill as in the Removal
Pass (Transit)

Date
Page  44

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Inspection Reports

Page  45

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Physical Inspection & Issue Export Clearance Certificate (ExCC)

ObjectiveTo ensure that the logs destined for export
had been royalty paid and are meant forexportPage  46

Date

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Inspection Report –E3

Page  47

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Export Clearance Certificate (ExCC)

Page  48

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Check & Verify Logs for Export

Objective
To ensure that all royalty assessed logs
that are to be removed from the transit log
pond to the vessel have a Removal Pass(Transit) issued

DatePage  49

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Check & Verify Logs for export

Page  50

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Removal Pass (Export)

Page  51

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Export PermitObjectiveTo ensure that exporters obtain export
permit from STIDC in compliance with theSarawak Timber Industry (Registration)
Regulations 1999

Date
Page  52

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Checklist for Issuance of Export Permit
Issue Export Permit
1. Exporter submits application for
Export Permit (e‐Permit System)
2. Endorsed Customs Declaration Form
(CDF No.2)

Page  53

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japane-Permit System
An electronic system (e-Permit) was developed to facilitate a moreefficient delivery system and is now been used to processapplications and approve export Permits

Page  54

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japane-Permit System (con’t)

Page  55

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japane-Permit Supporting Documents
Relevant supporting documents
required:
1.
2.
3.
4.

Page  56

Removal Pass (Transit/Export)
Log specifications Form
Shipping Order and Invoices
Supplier Forms

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan

Export Permit (Customs Declaration Form No.2)

Page  57

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, JapanWe hope that our presentation
has provided a better understanding on :The system that we have developed toaddress the LEGALITY and traceability oflogs in Sarawak which is based on our laws,
regulations, ordinances and legislations andthe roles and responsibilities of the four
regulating agencies

Page  58

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, JapanWe are fully supportiveof all initiatives to curb
illegal logging and its
associated trade

Page  59

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, JapanThank you
for your attention

Page  60

International Symposium on Legally Verified Wood 2010, 10 - 11 December 2010, Tokyo, Japan