Appendix 2
Summary of the verification scheme
Name of thesystem
Related AreaGeneral
overview ofverification

Scheme tocheck forlegality at thetime oflogging

Name in home language
Name in English : CoC Sarawak
Region /Country : Sarawak, Malaysia
Party responsible for issuing verification
Name : STIDC
Location : Sarawak
Communication
Outline of issuing process
Application ‒ Verification by STIDC ‒ Issuance of Export Permit by STIDC ‒ Custom
Clearance（Copy of verification documents should be attached）
The system shall verify legality only□/or both sustainability□
Definition of legality
Timber exported in accordance to Ordinances, Orders, Regulations enacted by state
government of Sarawak
Relevant laws
Forest Ordinance, 1954
Sarawak Timber Industry Development Corporation Ordinance, 1973
The Timber Grading Regulations, 1975 (Amendment 1983)
The Sarawak Timber Industry (Registration) Regulations, 1983 (Amendment 1999
Sarawak Forestry Corporation Ordinance, 1995
Details of presumed illegal activities
Activities which contravene the above Ordinances , Regulations, Orders and related
restriction, terms and conditions
Procedures for retaining and verifying the evidence
Inspection by relevant government agencies

Scheme implemented by the third party and so on to ensure reliability
ISO 9001:2000 ‒ STIDC registration of companies
1SO 9001/UKAS ‒ SFC provision of security, asset protection, compliance & sustainable
forest management
ISO 14001/UKAS ‒ SFC verification of land ownership status & use right, forest planning &Operation
ISO 9001 : 2000 ‒ Harwood Timber log endorsement, shipping administration & inspection ofexport logs

Scheme tocheck forsustainability

Definition of sustainability
As stipulated in Forest Ordinance 1954 and Forest Management Plan ; and based on ITTO
guidelines
Procedures for retaining and verifying the evidence
Scheme implemented by the third party and so on to ensure reliability
ISO certified process

Scheme ofseparativecustodymanagement

Real picture of the dealings, from logging to export
Flow Chart attached
Procedure for ensuring separative custody management
Contained in Forest Management Plan as incorporated in licensing
Scheme implemented by the third party and so on to ensure reliability
As being by SFC, STIDC, Harwood Timber and other related agencies in Sarawak

Future Task
andPerspectives

Criticisms against the system and recognition of problems
The need to strengthen enforcement activities
Remediation procedure
Upgrading of skill in human resources in the field of enforcement
Increase in strength of enforcement personnels
Improvement in co-ordination among implementing agencies
Future perspectives
Robust CoC system to eliminate loopholes, red tape and effective enforcement personnels

ReferenceAuthor

Web site www.stidc.gov.my
URL
Contact Mohd. Hinri AbdullahName Title Organization Assistant General Manager, Preventive & Enforcement
Sarawak Timber Industry Development Corporation (STIDC)
Email address hinria@pusaka.gov.my

CHAIN OF CUSTODY (CoC) SARAWAKORGANIZATION FOREST LICENSE/POINTForests
Department

LoggingCompany/Licensee

Sarawak
Forestry
Corporation(SF & C)

FOREST (LANDING) TRANSIT CAMP

LOG PONDMILL

EXPORT• Approve ForestLicense• Issuance ofForest License• Re-trim, re-scale,
re-grade• Sort-export/mill• Tagging logs serial no• Prepare log specs• Apply royalty marking• Scaling,• General Harvesting
Plan (GH)• Detailed Harvesting
Plan (DP)• Permit to Enter
Coupe (PEC)• TimberHarvesting• Marking &Tagging

Grading& Sorting• Property
Mark• Royalty Assessment• FD Hammer Marking• Issuance ofRemoval Pass (Royalty)

FOR LOGS EXPORT• Inspection
before Removal• Issuance of TRP

FOR MILLING LOGS
Harwood
Timber
Sdn.Bhd

Sarawak
Forestry
Corporation(SAPU)
TimberIndustry

STIDCCustoms
Department• Inspection ofMilling Logs
• Endorsement
Clearance
Certificate(ECC) issued• Inspectionof MillingLogs byriver transport• Issuance ofShipping Pass

•Inspection ofMilling Logs
on arrival at
Mill• Inspection ofLogs on arrivalat Mill• Inspection of Logs
• Issuance of Export
Clearance Certificate(EXCC)•Checkingof IncomingLog•Recordsverified• Inspectionof Logs
• Issuanceof TRP• Processing

Logs into
timber Products• Process & Verify Application• Inspection ofTimber Products• Issuance of Export License

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Customs Clearance& Endorsement