EN Official Journal of the European Union L 92/126

COUNCIL DECISION

of 28 February 2011

on the conclusion of a Voluntary Partnership Agreement between the European Union and the Republic of the Congo on forest law enforcement, governance and trade in timber and derived products to the European Union (FLEGT)

(2011/202/EU)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular the first subparagraph of Article 207(3) and the first subparagraph of Article 207(4), in conjunction with Article 218(6)(a)(v) and (7) thereof,

Having regard to the proposal from the European Commission,

Having regard to the consent of the European Parliament,

Whereas:

(1) In May 2003 the European Commission published an EU Action Plan for forest law enforcement governance and trade (FLEGT) which called for measures to address illegal logging through the development of voluntary partnership agreements with timber-producing countries. Council conclusions on this Action Plan were adopted in October 2003 (1) and Parliament adopted a resolution on 11 July 2005 (2).

(2) In accordance with Council Decision 2010/615/EU (3), the Voluntary Partnership Agreement between the European Union and the Republic of the Congo on forest law enforcement, governance and trade in timber and derived products to the European Union (hereinafter ‘the Agreement’) was signed on 17 May 2010, subject to its conclusion at a later date.

(3) The Agreement should be concluded,

HAS ADOPTED THIS DECISION:

Article 1

The Agreement between the European Union and the Republic of Congo on forest law enforcement, governance and trade in timber and derived products to the European Union (FLEGT) is hereby approved on behalf of the Union.

The text of the Agreement is attached to this Decision.

Article 2

The President of the Council is hereby authorised to designate the person empowered on behalf of the Union to make the notification provided for in Article 28 of the Agreement, in order to bind the Union.

Article 3

The Union shall be represented by representatives of the Commission in the Joint Agreement Implementation Committee set up in accordance with Article 19 of the Agreement.

The Member States may participate in meetings of the Joint Agreement Implementation Committee as members of the Union delegation.

Article 4

For the purpose of amending the Annexes to the Agreement on the basis of Article 26 thereof, the Commission is authorised, in accordance with the procedure laid down in Article 11(3) of Council Regulation (EC) No 2173/2005 of 20 December 2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community (4), to approve such amendments on the Union’s behalf.

Article 5

This Decision shall enter into force on the day of its adoption.

Done at Brussels, 28 February 2011. For the Council The President FELLEGI T.

(1) OJ C 268, 7.11.2003, p. 1.

(2) OJ C 157 E, 6.7.2006, p. 482.

(3) OJ L 271, 15.10.2010, p. 1.

(4) OJ L 347, 30.12.2005, p. 1.

EN Official Journal of the European Union L 92/127

VOLUNTARY PARTNERSHIP AGREEMENT

between the European Union and the Republic of the Congo on forest law enforcement, governance and trade in timber and derived products to the European Union (FLEGT)

THE EUROPEAN UNION, hereinafter referred to as ‘the Union’,

and

THE REPUBLIC OF THE CONGO, hereinafter referred to as ‘Congo’,

hereinafter referred to together as ‘the Parties’,

IN VIEW OF the close working relationship between the Union and Congo, particularly in the context of the Partnership Agreement between Members of the African, Caribbean and Pacific Group of States, of the one part, and the European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000 (1), revised in Luxembourg on 25 June 2005, hereinafter referred to as the ‘Cotonou Agreement’,

CONSIDERING the communication from the Commission to the Council and the European Parliament on an EU Action Plan for Forest Law Enforcement, Governance and Trade (FLEGT) (2) is a first step towards tackling the urgent issue of illegal logging and associated trade,

REFERRING to the Yaoundé Ministerial Declaration on Forest Law Enforcement and Governance in Africa of 16 October 2003,

AWARE of the importance of the principles set out in the Convention on Biological Diversity signed in June 1992 in Rio de Janeiro, and in the 1992 Rio de Janeiro Declaration in the context of securing sustainable forest management, and in particular of Principle 10 concerning the importance of public awareness and participation in environmental issues and of Principle 22 concerning the vital role of indigenous peoples and communities and other local communities in environmental management and development, and of the United Nations Declaration on the Rights of Indigenous Peoples of 13 September 2007,

REFERRING to the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) and in particular the requirement that CITES export permits issued by the Parties for specimens of species listed in Annex I, II or III be granted only under certain conditions, including that such specimens were not obtained in contravention of the laws of that State for the protection of fauna and flora,

CONSIDERING the importance attached by the Parties to development objectives agreed at international level and to the Millennium Development Goals of the United Nations,

CONSIDERING the importance attached by the Parties to the principles and rules which govern multilateral trading systems, in particular the rights and obligations in GATT 1994 and in other multilateral agreements establishing the World Trade Organisation (WTO) and to the need to apply them in a transparent and non-discriminatory manner,

REFERRING to Council Regulation (EC) No 2173/2005 of 20 December 2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community (3),

CONSIDERING that the Congolese system for verifying the legality of timber and derived products applies to all exports and not just those intended for the Union,

CONSIDERING Congo’s desire to work towards the sustainable management of forest resources pursuant to international agreements and treaties, in particular the Treaty of 5 February 2005 on the conservation and sustainable management of forest ecosystems establishing the Central Africa Forests Commission, to the constitutional provisions of 20 January 2002 and to Law 16-2000 of 20 November 2000 setting out the forestry code,

HEREBY AGREE AS FOLLOWS:

Article 1

Objective

The objective of this Agreement, consistent with the Parties’ common commitment to the sustainable management of all types of forest, is to provide a legal framework aimed at ensuring that all timber and derived products covered by this Agreement that are imported into the Union from Congo have been legally produced and in doing so to promote trade in this timber and these derived products.

In addition, this Agreement provides a basis for dialogue and cooperation between the Parties to facilitate and promote the full implementation of this Agreement and enhance forest law enforcement and governance.

Article 2

Definitions

For the purposes of this Agreement, the following definitions shall apply:

(a) ‘Import into the Union’ means the release for free circulation of timber and derived products into the Union within the meaning of Article 79 of Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code (4) and which cannot be qualified as ‘goods of a non-commercial nature’ as defined in point 6 of Article 1 of Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Regulation (EEC) No 2913/92 establishing the Community Customs Code (5);

(b) ‘Export’ means the physical leaving or taking out of timber and derived products from any part of the geographical territory of Congo, except for timber and derived products in transit through Congolese territory under the control of the customs authorities of Congo;

(c) ‘Timber and derived products’ means the products listed in Annex I;

(d) ‘HS nomenclature’ means a six digit code as set out in the Harmonised Commodity Description and Coding System established by the International Convention on the Harmonised Commodity Description and Coding System of the World Customs Organisation;

(e) ‘FLEGT licence’ means a licence which refers to a shipment of legally produced timber or derived products;

(f) ‘Licensing authority’ means the authority designated to issue and validate FLEGT licences;

(g) ‘Competent authorities’ means the authorities designated by the Member States of the Union to receive, accept and verify FLEGT licences;

(h) ‘Shipment’ means a quantity of timber and derived products covered by a FLEGT licence that is sent by a consignor or a shipper and is presented for release for free circulation at a customs office in the Union;

(i) ‘Legally produced timber’ is deemed to be any timber from acquisition, production and marketing processes that meets all of the statutory and regulatory provisions in force in Congo applicable to forest management and logging as set out in Annex II.

Article 3

FLEGT licensing scheme

1. A ‘Forest Law Enforcement, Governance and Trade licensing scheme’ (hereinafter referred to as ‘FLEGT licensing scheme’) is hereby established between the Parties to this Agreement. It establishes a set of procedures and requirements aimed at verifying and attesting, by means of FLEGT licences, that timber and derived products shipped to the Union were legally produced. In accordance with Regulation (EC) No 2173/2005, the Union shall only accept such shipments from Congo for import into the Union if they are covered by FLEGT licences.

2. The FLEGT licensing scheme shall apply to the timber and derived products listed in Annex I.

Article 4

Licensing authority

1. Congo shall designate the licensing authority and notify contact details of the licensing authority to the European Commission. Both Parties shall make this information available to the public.

2. The licensing authority will verify that timber and derived products have been legally produced in accordance with the legislation identified in Annex II. According to the terms set out in Annex III, it will issue FLEGT licences covering shipments of timber and derived products that have been legally produced, acquired or imported in Congo and are for export to the Union and any documentation required for timber and derived products in transit through Congolese territory under the control of the customs authorities of Congo.

3. The licensing authority shall not issue FLEGT licences for any timber and derived products that are composed of, or include, timber and derived products imported into Congo from a third country unless it has been proven that this timber and these derived products, imported in accordance with the terms specified in Annex III, have been produced and exported pursuant to the laws of the third country concerned.

4. The licensing authority shall maintain and make publicly available its procedures for issuing FLEGT licences. The licensing authority shall also maintain records of all shipments covered by FLEGT licences and, consistent with national legislation concerning data protection, shall make these records available for the purposes of an independent audit, while respecting the confidentiality of information regarding exporters’ industrial property.

Article 5

Competent authorities of the Union

1. The European Commission shall inform Congo of the contact details of the competent authorities designated by the Member States of the Union.

2. The competent authorities shall verify that each shipment is the subject of a valid FLEGT licence prior to releasing that shipment for free circulation in the Union. The release for free circulation of the shipment may be suspended and the shipment detained where there are doubts regarding the validity of the FLEGT licence. The procedures governing release for free circulation in the Union for shipments covered by a FLEGT licence are described in Annex IV.

3. The competent authorities shall maintain and publish annually a record of FLEGT licences received.

4. According to national legislation on data protection, the competent authorities shall grant persons and bodies designated by Congo as Independent Auditor access to the relevant documents and data.

5. The competent authorities of the Union shall refrain from the action described in Article 5(2) for timber and derived products produced from species listed under the Appendices of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) to the extent that these are covered by the provisions for verification set out in Council Regulation (EC) No 338/97 of 9 December 1996 on the protection of species of wild fauna and flora by regulating trade therein (6). The FLEGT licence scheme shall nonetheless provide assurance of the legal harvesting of these products.

Article 6

FLEGT licences

1. FLEGT licences shall be issued by the licensing authority as a means of attesting that timber and derived products have been legally produced.

2. FLEGT licences shall be laid out on a French form.

3. The Parties may, by agreement, establish an electronic system for the issuing, transmission and receipt of FLEGT licences.

4. The procedure for issuing FLEGT licences and the technical specifications are set out in Annex V.

Article 7

Legality matrices

For the purposes of this Agreement, documentation including criteria and indicators that shall serve as proof of compliance with such regulations, called legality matrices, is given in Annex II.

Article 8

Verifying the legality of timber

1. Congo shall implement a system for verifying that timber and derived products for shipment have been legally produced and that only shipments verified as such are exported to the Union. The verification system should include checks of compliance in order to provide assurance that the timber and derived products destined for export to the Union have been legally produced and that FLEGT licences are not issued in respect of shipments of timber and derived products that have not been legally produced or are of unknown origin. The system shall also include procedures to ensure that timber of illegal or unknown origin does not enter the supply chain.

2. The system for verification that shipments of timber and derived products have been legally produced is set out in Annex III.

Article 9

Application of the system for verifying the legality of all timber and derived products produced in Congo

Congo shall use the system for verifying the legality of timber and derived products in respect of all timber and derived products irrespective of the intended market.

Article 10

Consultation on the validity of licences

1. If any doubt arises as to the validity of a licence, the competent authority concerned may ask the licensing authority for additional information. If no answer is received from the licensing authority within 21 calendar days, the competent authority shall act in accordance with applicable national legislation and shall not accept the licence. If, following the provision of additional information, it is established that information on the licence does not correspond to the shipment, the competent authority shall act in accordance with applicable national legislation and shall not accept the licence.

2. Where persistent disagreements or difficulties arise in consultations concerning FLEGT licences, the matter may be referred to the Joint Implementation Committee of the Agreement.

Article 11

Independent auditor

1. The Parties shall agree on the need to call on the services of an independent auditor at agreed intervals to check the performance and efficiency of the FLEGT licensing scheme as set out in Annex VI.

2. The independent auditor shall submit its observations to the Parties in reports in accordance with the procedure described in Annex VI.

3. The Parties shall facilitate the work of the independent auditor, including by ensuring that the latter has access to information as required in territories of both Parties in order to carry out its functions. However, the Parties, in accordance with the respective legislation on data protection, can keep any information that they are not allowed to disclose.

Article 12

Irregularities

The Parties shall inform each other if they suspect or have found evidence of any circumvention of, or irregularities conflicting with, the FLEGT licensing scheme, including in relation to the following:

(a) circumvention of trade, including by re-direction of trade from Congo to the Union via a third country where there is reason to believe that this has been done with the intention of avoiding applying for a licence;

(b) FLEGT licences being issued for timber and derived products that include imports of suspicious origin from third countries; or

(c) fraud in obtaining or using FLEGT licences.

Article 13

Date of introduction of the FLEGT licensing scheme

1. The Parties shall notify each other through the Joint Implementation Committee of the Agreement when they consider they have made all the necessary preparations for the FLEGT licensing scheme to become fully operational.

2. The Parties, through the Joint Implementation Committee of the Agreement, shall commission an independent assessment of the FLEGT licensing scheme using the criteria set out in Annex VII. The assessment will determine whether the legality assurance system underpinning the FLEGT licensing scheme as described in Annex III adequately fulfils its functions and whether the procedures for receiving, verifying and accepting FLEGT licences, as set out in Article 5 and Annex IV, are in place in the Union.

3. On the basis of the recommendations of the Joint Implementation Committee of the Agreement, the two Parties shall agree on a date from which the FLEGT licensing scheme should start full operation.

Article 14

Schedule for implementation of the Agreement

1. The Parties hereby agree to the implementation schedule set out in Annex VIII.

2. The Parties, working through the Joint Implementation Committee of the Agreement, shall evaluate progress in implementation with reference to the schedule set out in Annex VIII.

Article 15

Other relevant measures

1. The Parties hereby agree on the following as other relevant measures set out in Annex IX of this Agreement:

(a) increasing the capacity of the General Forest Economy Inspectorate;

(b) increasing the capacity of civil society;

(c) legislation and regulations to be supplemented;

(d) implementing a communication plan;

(e) setting up a technical office for the Congolese party responsible for monitoring the Agreement.

2. The Parties have identified the areas set out in Annex IX as those in which there is a need for additional technical and financial resources in order to implement this Agreement.

3. The provision of such additional resources shall be subject to the normal procedures for programming aid to Congo in the Union and the Member States of the Union as well as the budgetary procedures of Congo itself.

4. The Parties shall consider the need for a joint arrangement by which financing and technical contributions of the European Commission and the Member States of the Union are coordinated to support these processes.

5. Congo shall ensure that strengthening its capacity to implement this Agreement is included in national planning instruments, such as poverty reduction strategies.

6. The Parties shall ensure that activities carried out under this Agreement are coordinated with relevant existing and future development programmes and initiatives.

7. The provision of such resources is subject to the procedures governing Union aid as set out in the Cotonou Agreement and those governing bilateral aid given to Congo by Member States of the Union.

Article 16

Stakeholder involvement in the implementation of the Agreement

1. Congo shall involve the stakeholders in the implementation of this Agreement in accordance with the international and subregional commitments it has signed up to, in particular the Convention on Biological Diversity of June 1992 and the Treaty of 5 February 2005 on the conservation and sustainable management of forest ecosystems establishing the Central Africa Forests Commission.

2. The Union shall hold regular consultations with stakeholders on the implementation of this Agreement, taking into account its obligations under the 1998 Aarhus Convention on access to information, public participation in the decision-making process and access to justice in environmental matters.

Article 17

Social safeguards

1. In order to minimise any adverse impacts, the Parties hereby agree to develop a better understanding of the livelihoods of potentially affected indigenous and local communities, including those engaged in illegal logging.

2. The Parties shall monitor the impact of this Agreement on those communities, while taking reasonable steps to mitigate any adverse effects. The Parties may agree on additional measures to address such adverse effects.

Article 18

Market incentives

Taking into account its international obligations, the Union shall strive to promote favourable access to its market for the timber and derived products covered by this Agreement. Such efforts shall include:

(a) the encouragement of public and private procurement policies that recognise efforts to ensure a supply of legally harvested forest produce, in particular timber and derived products; and

(b) the promotion of FLEGT-licensed products within the Union market.

Article 19

Joint implementation committee of the Agreement

1. The Parties shall establish a Joint Implementation Committee of the Agreement to facilitate the monitoring and review of this Agreement. It also facilitates dialogue and the exchange of information between the Parties.

2. Each Party shall name its representatives on the Joint Implementation Committee of the Agreement, which shall take its decisions by consensus.

3. The Joint Implementation Committee of the Agreement:

(a) shall meet at least twice a year on dates and at places agreed by the Parties;

(b) shall prepare the agenda for its work and terms of reference for joint actions;

(c) shall establish its own rules of procedure;

(d) shall preside over its meetings by a co-chair arrangement;

(e) shall ensure that its work is as transparent as possible and that information about its work and decisions is made available to the public;

(f) may set up working groups or other subsidiary bodies for areas of work requiring specific expertise;

(g) publishes an annual report. Details of the content of this report are given in Annex X.

4. The specific functions of the Joint Implementation Committee of the Agreement are described in Annex XI.

5. In the period between the signing of the Agreement and its entry into force, a joint mechanism for dialogue and monitoring shall be set up to facilitate implementation of the Agreement.

Article 20

Communication on implementation of the Agreement

1. The representatives of the Parties responsible for official communications concerning implementation of this Agreement are:

For Congo For the European Union Minister of Sustainable Development, Forestry Economy and Environment Head of the Union Delegation in Congo

2. The Parties shall provide one another with the information necessary for implementing this Agreement.

Article 21

Reporting and public disclosure

1. Public disclosure of information is one of the key provisions of this Agreement for promoting governance. Information facilitates the implementation and monitoring of the system, increasing transparency. Information also allows better provision of accounts and greater accountability of the various parties involved. The information that will be divulged and made available to the public is specified in Annex X.

2. Each Party shall consider the most appropriate mechanism (media, documents, Internet, workshops, annual reports) for publishing the information. In particular, the Parties shall endeavour to provide the various stakeholders associated with the forestry industry with reliable, relevant and up-to-date information. These mechanisms are described in Annex X.

Article 22

Confidential information

1. Each Party agrees to maintain, to the extent required under its laws, the confidentiality of confidential information exchanged under this Agreement. Neither Party shall disclose to the public, nor permit its authorities to disclose to the public, information exchanged under this Agreement that constitutes trade secrets or confidential commercial information.

2. Subject to paragraph 1, the following information shall not be considered confidential:

(a) the number of FLEGT licences issued by Congo and received by the Union and the volume of timber and derived products exported from Congo and received by the Union;

(b) the names and addresses of licence holders and of importers.

Article 23

Territorial application

This Agreement shall apply to the territory in which the Treaty on the Functioning of the European Union is applied under the conditions laid down in that Treaty, on the one hand, and to the territory of Congo, on the other.

Article 24

Settlement of disputes

1. The Parties shall seek to resolve any dispute concerning the application or interpretation of this Agreement through early consultation.

2. If a dispute has not been settled by means of consultation within 3 months from the date of the initial request for consultation, either Party may refer the dispute to the Joint Implementation Committee of the Agreement, which shall endeavour to settle it. The Committee shall be provided with all relevant information for an in-depth examination of the situation with a view to finding an acceptable solution. To this end, the Committee shall be required to examine all possibilities enabling the effective implementation of this Agreement to be maintained.

3. In the event that the Joint Implementation Committee of the Agreement is unable to settle the dispute, the Parties may:

(a) jointly seek the good offices of, or request mediation by, a third party;

(b) seek arbitration. If the dispute cannot be settled in accordance with paragraph 3(a), either Party may notify the other of the appointment of an arbitrator; the other Party must then appoint a second arbitrator within 30 calendar days of the appointment of the first arbitrator. The Parties shall jointly appoint a third arbitrator within two months of the appointment of the second arbitrator. The arbitrators’ decisions shall be taken by majority vote within six months of the third arbitrator being appointed. The award shall be binding on the Parties without right of appeal.

4. The Joint Implementation Committee of the Agreement establishes the working procedures for arbitration.

Article 25

Suspension

1. Either Party may suspend the application of this Agreement. The decision on suspension and the reasons for that decision shall be notified to the other Party in writing.

2. The conditions of this Agreement shall cease to apply 30 calendar days after such notice is given.

3. Application of this Agreement shall resume 30 calendar days after the Party that has suspended its application informs the other Party that the reasons for the suspension no longer apply.

Article 26

Amendments

1. Either Party wishing to amend this Agreement shall present the proposal at least 3 months before the next meeting of the Joint Implementation Committee of the Agreement. The latter shall discuss the proposal and, if consensus is achieved, it shall make a recommendation. Each Party shall consider the recommendation and, subject to its agreement, it shall approve it in accordance with its own procedures.

2. Any amendment so approved by both Parties shall enter into force on the first day of the month following the date on which the Parties notify each other of the completion of the procedures necessary for this purpose.

3. The Joint Implementation Committee of the Agreement may adopt amendments to the annexes to this Agreement.

4. Notification of any amendment shall be sent to the joint depositaries for this Agreement.

Article 27

Annexes

The annexes to this Agreement shall form an integral part thereof.

Article 28

Entry into force

1. This Agreement shall enter into force on the first day of the month following the date on which the Parties notify each other in writing of the completion of the procedures necessary for this purpose.

2. Notification shall be sent to the Secretary-General of the Council of the European Union and to the Congo Ministry of Foreign Affairs and French-Speaking Countries, who shall be the joint depositaries for the Agreement.

Article 29

Duration and extension

This Agreement shall remain in force for a period of seven years and shall be extended for consecutive periods of five years, unless a Party renounces the extension by notifying the other Party in writing at least one year before expiry of the Agreement.

Article 30

Notice of termination of the Agreement

Notwithstanding Article 29, either Party may terminate this Agreement by notifying the other Party in writing. This Agreement shall cease to apply 12 months after the date of such notification.

Article 31

Authentic texts

This Agreement shall be drawn up in duplicate in the Bulgarian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these texts being authentic. In case of divergence of interpretation, the French text shall prevail over the other language texts.

Съставено в Брюксел на седемнайсети май две хиляди и десета година. Hecho en Bruselas, el diecisiete de mayo de dos mil diez. V Bruselu dne sedmnáctého května dva tisíce deset. Udfærdiget i Bruxelles den syttende maj to tusind og ti. Geschehen zu Brüssel am siebzehnten Mai zweitausendzehn. Kahe tuhande kümnenda aasta maikuu seitsmeteistkümnendal päeval Brüsselis. Έγινε στις Βρυξέλλες, στις δέκα εφτά Μαΐου δύο χιλιάδες δέκα. Done at Brussels on the seventeenth day of May in the year two thousand and ten. Fait à Bruxelles, le dix-sept mai deux mille dix. Fatto a Bruxelles, addì diciassette maggio duemiladieci. Briselē, divi tūkstoši desmitā gada septiņpadsmitajā maijā Priimta du tūkstančiai dešimtų metų gegužės septynioliktą dieną Briuselyje. Kelt Brüsszelben, a kétezer-tizedik év május havának tizenhetedik napján. Magħmul fi Brussell, fis-sbatax-il jum ta’ Mejju tas-sena elfejn u għaxra. Gedaan te Brussel, de zeventiende mei tweeduizend tien. Sporządzono w Brukseli dnia siedemnastego maja roku dwa tysiące dziesiątego. Feito em Bruxelas, em dezassete de Maio de dois mil e dez. Întocmit la Bruxelles, la șaptesprezece mai două mii zece. V Bruseli dňa sedemnásteho mája dvetisícdesať. V Bruslju, dne sedemnajstega maja leta dva tisoč deset. Tehty Brysselissä seitsemäntenätoista päivänä toukokuuta vuonna kaksituhattakymmenen. Som skedde i Bryssel den sjuttonde maj tjugohundratio. За Европейския съюз Por la Unión Europea Za Evropskou unii For Den Europæiske Union Für die Europäische Union Euroopa Liidu nimel Για την Ευρωπαϊκή Ένωση For the European Union Pour l’Union européenne Per l’Unione europea Eiropas Savienības vārdā – Europos Sąjungos vardu Az Európai Unió részéről Għall-Unjoni Ewropea Voor de Europese Unie W imieniu Unii Europejskiej Pela União Europeia Pentru Uniunea Europeană Za Európsku úniu Za Evropsko unijo Euroopan unionin puolesta För Europeiska unionen За Република Конго Por la República de Congo Za Konžskou republiku For Republikken Congo Für die Republik Kongo Kongo Vabariigi nimel Για τη Δημοκρατία του Κονγκό For the Republic of Congo Pour la Répubique du Congo Per la Repubblica del Congo Kongo Republikas vārdā Kongo Respublikos vardu A Kongói Köztársaság részéről Għar-Repubblika tal-Kongo Voor de Republiek Congo W imieniu Republiki Konga Pela República do Congo Pentru Republica Congo Za Konžskú republiku Za Republiko Kongo Kongon tasavallan puolesta För republiken Kongo

(1) OJ L 317, 15.12.2000, p. 3.

(2) COM(2003) 251 final, 21.5.2003.

(3) OJ L 347, 30.12.2005, p. 1.

(4) OJ L 302, 19.10.1992, p. 38.

(5) OJ L 253, 11.10.1993, p. 1.

(6) OJ L 61, 3.3.1997, p. 1.

ANNEX I

LIST OF PRODUCTS SUBJECT TO FLEGT LICENSING

The following products are subject to FLEGT licensing:

HS codes Description of the goods 4403 Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared 4406 Railway or tramway sleepers (cross-ties) of wood 4407 Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness exceeding 6 mm 4408 Sheets for veneering (including those obtained by slicing laminated wood), for plywood or for other similar laminated wood and other wood sawn lengthwise, sliced or peeled, whether or not planed, sanded, spliced or end-jointed, of a thickness not exceeding 6 mm 4412 Plywood, veneered panels and similar laminated wood 44 09 Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sanded or end-jointed 44 01 10 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms 44 01 30 Sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms 44 02 90 Wood charcoal (including shell or nut charcoal), whether or not agglomerated 44 10 11 Particle boards 44 14 00 Wooden frames for paintings, photographs, mirrors or similar objects 44 15 10 Cases, boxes, crates, drums and similar packings; cable-drums of wood 44 15 20 Pallets, box pallets and other load boards of wood; pallet collars of wood 44 17 00 Tools, tool bodies, tool handles, broom or brush bodies and handles, of wood; boot or shoe lasts and trees of wood 44 18 10 Builders’ joinery and carpentry of wood: windows, French-windows and their frames 44 18 20 Builders’ joinery and carpentry of wood: doors and their frames and thresholds 44 18 90 Builders’ joinery and carpentry of wood: parquet panels 94 03 30 Wooden furniture of a kind used in offices 94 03 40 Wooden furniture of a kind used in kitchens 94 03 50 Wooden furniture of a kind used in the bedroom 94 03 60 Other wooden furniture

ANNEX II

LEGALITY MATRICES FOR TIMBER SOURCED FROM NATURAL FORESTS AND FOREST PLANTATIONS IN CONGO

Introduction

Annex II of the Voluntary Partnership Agreement consists of the following:

— a matrix for assessing the legality of timber produced in natural forests,

— a matrix for assessing the legality of timber produced in forest plantations.

These two matrices for assessing legality therefore cover all timber and derived products produced and sold in Congo (1).

Legality is defined as follows:

Any timber from acquisition, production and marketing processes that meet all of the statutory and regulatory provisions in force in Congo applicable to forest management and logging is deemed to be legal.

The legality matrices constitute the basic document for verifying legality.

The legality matrices have been produced as part of a participative process involving representatives of stakeholders in the sustainable management of forests, namely: the public sector, the private sector and civil society in Congo. These matrices were also tested on the ground in February 2009 in order to verify the relevance of indicators and verifiers and make improvements to them.

Any amendment of statutory and regulatory provisions will result in a corresponding amendment of the legality matrices. Proposed amendments of this Annex, together with supporting evidence, will be submitted for approval to the Joint Implementation Committee of the Agreement in accordance with Annex XI of this Agreement.

It should be emphasised that the management plan for each forestry concession will be adopted under a separate decree. That is why the details of these regulations cannot be given in the legality matrices.

Besides the logging, processing and trade of timber, the legality matrices take the following into account in accordance with the definition of legality: — conditions stipulated for the existence of a forestry company, — compliance with tax rules, — environmental protection and conservation, — worker conditions, — the involvement of local and indigenous populations and respect for their rights, — provisions governing the transporting of timber.

All logging rights, as defined under Articles 65 to 70 of law 16-2000, are covered by the legality matrices: — the management and processing agreement (CAT), — the industrial processing agreement (CTI), — plantation timber harvesting permits, — special permits (PS).

1. Legality matrix for timber produced in natural forests in Congo

The legality matrix for timber produced in natural forests consists of 5 principles, 23 criteria, 65 indicators and 162 verifiers.

The matrix for timber produced in natural forests includes timber produced in any logging operations:

— the exploitation of annual harvesting sites (annual harvest licence, completion licence, clearing licence),

— logging by special permit,

— the construction of main evacuation roads or minor roads within forestry concessions and the installation of base camps and industrial sites on the basis of an installation licence,

— the completion of development projects relating to the construction of social and economic infrastructures (roads, hydroelectric dams, etc.). This is timber harvesting by deforestation licence.

Reference of the legislation or regulations Articles Type of permit Principle 1: The company legally exists in Congo. Criterion 1.1: The company is properly registered with the competent authorities. Indicator 1.1.1: The company is properly registered with the economic, fiscal and judicial authorities. Verifier 1.1.1.1. Trading licence — decree No 2008-446 of 15 November 2008 1, 3 and 9 CAT, CTI, PS Verifier 1.1.1.2. Business, credit and real estate register — law 19-2005 of 24 November 2005 18 and 40 CAT, CTI Indicator 1.1.2: The company is properly registered with the social security and employment authorities. Verifier 1.1.2.1. Certificate of registration with the national social security fund (CNSS) — law No 004/86 of 25 February 1986 172 CAT, CTI — law 19-2005 of 24 November 2005 18 and 40 CAT, CTI Verifier 1.1.2.2. Declaration of existence — law 45/75 of 15 March 1975 181 CAT, CTI — order No 3020/IGT/LS of 29 September 1953 1, subparagraph 2 CAT, CTI Indicator 1.1.3: The company is properly registered with the relevant Forestry Authority. Verifier 1.1.3.1. Consent — decree 2002-437 of 31 December 2002 48 CAT, CTI, PS Verifier 1.1.3.2. Licence — decree 2002-437 of 31 December 2002 48 CAT, CTI, PS Criterion 1.2: The company is not subject to any judicial decisions or administrative measures resulting in temporary or permanent suspension of its business. Indicator 1.2.1: The company’s business has not been suspended by a judicial decision. Verifier 1.2.1.1. Judicial decision — OHADA uniform act of 10 April 1998 organising summary debt collection procedures 8 CAT, CTI, PS — law 19-2005 of 24 November 2005 28, 42 and 43 CAT, CTI, PS — law 6-1994 of 1 June 1994 26 CAT, CTI, PS Indicator 1.2.2: The company’s business has not been suspended by an administrative measure. Verifier 1.2.2.1. Suspension note — OHADA uniform act relating to general commercial law 10 CAT, CTI — law 6-1994 of 1 June 1994 26 CAT, CTI Principle 2: The company owns legal rights of access to forestry resources in its operation area. Criterion 2.1: The certificate of exploitation of forestry resources in the operation area was properly granted by the competent authorities. Indicator 2.1.1: All steps leading up to the granting of the certificate of exploitation were properly followed by the company including compliance with deadlines stipulated under national laws and regulations. Verifier 2.1.1.1. Call for tenders order — law 16-2000 of 20 November 2000 73 CAT, CTI — decree 2002-437 of 31 December 2002 148 CAT, CTI Verifier 2.1.1.2. Minutes of the meeting of the Forestry Commission — decree 2002-437 of 31 December 2002 164 CAT, CTI Verifier 2.1.1.3. Notification of approval of the file by the Forest Economy Director General — decree 2002-437 of 31 December 2002 165 CAT, CTI Indicator 2.1.2: The company has a valid certificate of exploitation. Verifier 2.1.2.1. Agreement — law 16-2000 of 20 November 2000 65 and 66 CAT, CTI Verifier 2.1.2.2. Special permit — law 16-2000 of 20 November 2000 77 PS Criterion 2.2: The company holds all periodic licences allowing it to carry out its business. Indicator 2.2.1: All the steps leading up to the granting of installation, annual harvest, completion and clearing licences have been respected. Verifier 2.2.1.1. Installation, annual harvest, completion and clearing licence application file — decree 2002-437 of 31 December 2002 71 CAT, CTI Verifier 2.2.1.2. Verification reports on the annual harvest, completion harvest and control of non-evacuated timber — decree 2002-437 of 31 December 2002 72, 74, 101 and 172 CAT, CTI Indicator 2.2.2: Installation, annual harvest, completion and clearing licences granted by the relevant department of the Forestry Authority are still valid. Verifier 2.2.2.1. Installation, annual harvest, completion and clearing licences — decree 2002-437 of 31 December 2002 74, 75, 101 and 172 CAT, CTI Indicator 2.2.3: The documents and other licences periodically provided by economic, financial, fiscal and forestry authorities are still valid. Verifier 2.2.3.1. Patents — General Tax Code 277 and 314 CAT, CTI, PS Verifier 2.2.3.2. Consent of the authorised customs inspector — Customs Regulations 112 to 119 CAT, CTI Verifier 2.2.3.3. Consent — decree 2002-437 of 31 December 2002 48 CAT, CTI, PS Principle 3: The company involves civil society and local and indigenous populations in the management of its concession and respects the rights of these populations and workers. Criterion 3.1: The company involves civil society and local and indigenous populations in the management of its forestry concession. Indicator 3.1.1: The company has a mechanism for functional dialogue between the stakeholders with respect to the sustainable management of its concession. Verifier 3.1.1.1. Minutes of the meeting of the committee monitoring and reviewing the management plan — — CAT Indicator 3.1.2: Local and indigenous populations are sufficiently well informed of their rights and of the management of the forestry concession. Verifier 3.1.2.1. Minutes of information meetings — decree approving the management plan — CAT Criterion 3.2: The company respects the rights, customs and practices of local and indigenous populations in accordance with national legislation and regulations and international conventions. Indicator 3.2.1: The company respects the customs, practices and rights of local and indigenous populations. Verifier 3.2.1.1. Report of the committee monitoring and reviewing the management plan — decree approving the management plan — CAT Verifier 3.2.1.2. Inspection report of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 37 and 81 CAT, CTI Indicator 3.2.2: The company meets its commitments with respect to local and indigenous populations. Verifier 3.2.2.1. Terms and conditions/Memorandum of understanding — law 16-2000 of 20 November 2000 72 CAT, CTI — decree 2002-437 of 31 December 2002 168 CAT, CTI Verifier 3.2.2.2. Inspection report of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 37 and 81 CAT, CTI Verifier 3.2.2.3. Report of the committee monitoring and reviewing the management plan — decree approving the management plan — CAT Indicator 3.2.3: If property belonging to local and indigenous populations is destroyed by the company, compensation meets the requirements of applicable legislation and regulations. Verifier 3.2.3.1. Report — decree 86/970 of 27 September 1986 10 CAT, CTI, PS Verifier 3.2.3.2. Compensation receipts — decree 86/970 of 27 September 1986 1 and 9 CAT, CTI, PS Criterion 3.3.: The company, civil society and local populations have put mechanisms in place for monitoring and settling disputes. Indicator 3.3.1: A procedure for recording and handling requests and complaints established within the company. Verifier 3.3.1.1. Minutes of meetings of platforms for dialogue between the company and local populations. — decree approving the management plan — CAT Indicator 3.3.2: Civil society and local and indigenous populations are informed of procedures for managing disputes and are involved in the mechanisms for settling them. Verifier 3.3.2.1. Minutes of meetings of platforms for dialogue between the company and local populations. — decree approving the management plan — CAT Criterion 3.4: The social partners at the company are sufficiently well informed of their rights. Indicator 3.4.1: The company guarantees freedom of and legal and regulatory means for union activities. Verifier 3.4.1.1. Existence of staff representatives and union branches — law 06/96 of 6 March 1996 supplementing and amending certain provisions of law 45/75 of 15 March 1975 new 173 and 210-3 CAT, CTI Verifier 3.4.1.2. Existence of union premises — law 06/96 of 6 March 1996 supplementing and amending certain provisions of law 45/75 of 15 March 1975 210-5 CAT, CTI Verifier 3.4.1.3. Existence of records of complaints and claims — law 06/96 of 6 March 1996 supplementing and amending certain provisions of law 45/75 of 15 March 1975 210-7 and new 179 CAT, CTI — order No 1110/MTFPSS/DGT of 24 June 1996 27 CAT, CTI Indicator 3.4.2: Staff representatives and members of union branches have received various training to help them carry out their functions. Verifier 3.4.2.1. Memorandum of placement on leave for worker education — law 06/96 of 6 March 1996 new 179 CAT, CTI Indicator 3.4.3: Company employees have access to the various documents relating to labour, employment and social security rights. Verifier 3.4.3.1. Documents available — Agreement No 98 (OIT, 1949) 7 CAT, CTI Criterion 3.5: The company respects workers’ rights. Indicator 3.5.1: The company meets its commitments with respect to its social partners. Verifier 3.5.1.1. Minutes of meetings — order No 1110/MTFPSS/DGT of 24 June 1996 26 CAT, CTI Indicator 3.5.2: Relations between the company and its employees are formalised in accordance with the provisions of the labour code and the social security code. Verifier 3.5.2.1. Employer register signed — law 45/75 of 15 March 1975 182 CAT, CTI Verifier 3.5.2.2. Employment contract — law No 022/88 of 17 September 1988 13 to 16 CAT, CTI — law 45/75 of 15 March 1975 75 CAT, CTI — general order No 3815 of 1 December 1953 6 CAT, CTI Verifier 3.5.2.3. Internal rules displayed — law No 004/86 of 25 February 1986 172 CAT, CTI Verifier 3.5.2.4. List of workers registered with the National Social Security Fund — law No 004/86 of 25 February 1986 172 CAT, CTI Indicator 3.5.3: The company pays its workers in accordance with employment regulations and legislation and with the applicable collective agreement. Verifier 3.5.3.1. Pay registers signed — law No 45/75 of 15 March 1975 90 CAT, CTI Verifier 3.5.3.2. Pay slips — law No 45/75 of 15 March 1975 90 CAT, CTI Indicator 3.5.4: Worker health and safety conditions comply with applicable legislation and regulations. Verifier 3.5.4.1. Health and Safety Committee reports — order 9030 of 10 December 1986 9 CAT, CTI Verifier 3.5.4.2. Medical check-up registers — law 6-96 of March 1996 supplementing and amending certain provisions of law 45/75 of 15 March 1975 new 145-1 CAT, CTI — order 9033 of 12 December 1986 22 CAT, CTI Verifier 3.5.4.3. Accident in the workplace registers — law 6-96 of March 1996 supplementing and amending certain provisions of law 45/75 of 15 March 1975 new 141-2 CAT, CTI Verifier 3.5.4.4. Safety registers — law 6-96 of March 1996 supplementing and amending certain provisions of law 45/75 of 15 March 1975 new 141-2 CAT, CTI Verifier 3.5.4.5. Reports of the committee monitoring and reviewing the management plan — decree approving the management plan — CAT Indicator 3.5.5: The company adheres to the working hours laid down by legislation and regulations. Verifier 3.5.5.1. Working hours displayed — decree 78-361 of 12 May 1978 5 CAT, CTI Verifier 3.5.5.2. Authorisation of overtime by the Departmental Employment Office — decree 78-361 of 12 May 1978 10 CAT, CTI Indicator 3.5.6: Worker recruitment meets the conditions laid down under national legislation and by the International Labour Organisation. Verifier 3.5.6.1. Copy of the job offer sent to National Office of Employment and Labour (ONEMO) — law 022-88 of 10 September 1988 9 and 10 CAT, CTI Verifier 3.5.6.2. Employment contract — law 022-88 of 10 September 1988 16 CAT, CTI Principle 4: The company complies with legislation and regulations relating to the environment, management, forestry, processing of timber, and tax. Criterion 4.1. Environmental impact studies have been carried out in accordance with legal and regulatory requirements and formulated mitigating measures have been implemented. Indicator 4.1.1: Procedures for carrying out environmental impact studies have been followed. Verifier 4.1.1.1. Approval of the office carrying out the study — law 003-91 of 23 April 1991 2 CAT, CTI — decree 86/775 of 7 June 1986 1 and 4 CAT, CTI — order 835/MIME/DGE of 6 September 1999 4 and 5 CAT, CTI Verifier 4.1.1.2. Impact study report — law 003-91 of 23 April 1991 2 CAT, CTI — decree 86/775 of 7 June 1986 1 and 4 CAT, CTI Verifier 4.1.1.3. Minutes of the meeting approving the impact study report — law 003-91 of 23 April 1991 2 CAT, CTI Indicator 4.1.2: The measures contained in the approved impact study reports aimed at protecting biodiversity have been carried out. Verifier 4.1.2.1. Land inspection and audit reports — law 003-91 of 23 April 1991 39 CAT, CTI — order 1450/MIME/DGE of 19 November 1999 16, 17 and 18 CAT, CTI Verifier 4.1.2.2. Inspection report of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 37 and 82 CAT, CTI Verifier 4.1.2.3. Report of the committee monitoring and reviewing the management plan — decree approving the management plan — CAT Indicator 4.1.3: Measures aimed at protecting public health and cleaning up base camps and industrial sites have been carried out. Verifier 4.1.3.1. Order approving the personnel of the company’s socio-sanitary centre — law 45/75 of 15 March 1975 142 and 143 CAT, CTI — order No 9033/MTERFPPS/DGEF/DSS of 10 December 1986 12 CAT, CTI Verifier 4.1.3.2. Order authorising performance of the Ministry in charge of health — order No 3092 MSP/MEFB of 9 July 2003 2 CAT, CTI Verifier 4.1.3.3. Minutes of meetings of the Health and Safety Committee — order No 9030/MTERFPPS/MTERFPPS/DGEF/DSS of 10 December 1986 9 CAT, CTI Verifier 4.1.3.4. Report of the committee monitoring and reviewing the management plan — decree approving the management plan — CAT Criterion 4.2: The provisions of national regulations and legislation and international agreements and conventions ratified by Congo relating to the environment have been observed. Indicator 4.2.1: The company disposes of waste produced from its activities in accordance with legal and regulatory requirements. Verifier 4.2.1.1. Inspection report of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 37 and 82 CAT, CTI Verifier 4.2.1.2. Report of the committee monitoring and reviewing the management plan — decree approving the management plan — CAT Indicator 4.2.2: The company meets its commitments regarding the protection of fauna and the prevention of poaching. Verifier 4.2.2.1. The company’s internal rules — law 45/75 of 15 March 1975 74 CAT, CTI Verifier 4.2.2.2. Inspection report of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 37 and 82 CAT, CTI Verifier 4.2.2.3. Report of the committee monitoring and reviewing the management plan — decree approving the management plan — CAT Criterion 4.3: Management documents have been drawn up in accordance with regulatory time-frames and standards and approved by the Forestry Authority and the stakeholders. Indicator 4.3.1: Inventory reports and supplementary studies and the management plan have been drawn up in accordance with the standards established by the forestry authority and forestry concession management directives. Verifier 4.3.3.1. Inventory report — order 5053/MEF/CAB of 19 June 2007 5 CAT Verifier 4.3.3.2. Supplementary study report — order 5053/MEF/CAB of 19 June 2007 5 CAT Verifier 4.3.3.3. Management plan — law 16-2000 of 20 November 2000 55 and 56 CAT — decree 2002-437 of 31 December 2002 54 CAT Indicator 4.3.2: Inventory reports and supplementary studies have been approved by the forestry authority and the management plan by the stakeholders. Verifier 4.3.2.1. Minutes of the meeting approving inventory reports and supplementary studies — order 5053/MEF/CAB of 19 June 2007 5 CAT Verifier 4.3.2.2. Minutes of the meeting approving the management plan — order 5053/MEF/CAB of 19 June 2007 5 CAT Indicator 4.3.3: Administrative plans and exploitation plans have been approved in accordance with national forestry concession management directives and regulatory provisions by the forestry authority. Verifier 4.3.3.1. Minutes of the meeting approving the administrative plan — order 5053/MEF/CAB of 19 June 2007 5 CAT Verifier 4.3.3.2. Annual harvest licence — order 5053/MEF/CAB of 19 June 2007 8 CAT — decree 2002-437 of 31 December 2002 68 CAT Criterion 4.4: The boundaries of the various subdivisions of the forestry concession are clearly defined and respected. Indicator 4.4.1: Forest maps have been produced in accordance with standards approved by the forestry authority and the boundaries shown on the maps are clearly marked and regularly maintained on the ground in accordance with the applicable regulations. Verifier 4.4.1.1. Forest maps — decree 2002-437 of 31 December 2002 24 CAT, CTI Verifier 4.4.1.1. Inspection reports of the Departmental Forest Economy Office and of the Central Authority — decree 2002-437 of 31 December 2002 80, 81 CAT, CTI Indicator 4.4.2: The company carries out all of its logging activities within its concession and inside the boundaries of its annual harvesting sites. Verifier 4.4.2.1. Annual harvest licence — decree 2002-437 of 31 December 2002 81, 82 CAT, CTI Verifier 4.4.2.2. Inspection reports of the Departmental Forest Economy Office and of the Central Authority — decree 2002-437 of 31 December 2002 80 and 81 CAT, CTI Verifier 4.4.2.3. Activity reports of the Departmental Forest Economy Office and of the Central Authority — decree 2002-437 of 31 December 2002 82 CAT, CTI Criterion 4.5: Roads have been built in accordance with the rules on activities in forest areas. Indicator 4.5.1: The road network has been planned, mapped and opened in accordance with regulatory requirements and the management plan. Verifier 4.5.1.1. Management plan — law 16-2000 of 20 November 2000 55, 56 CAT Verifier 4.5.1.2. Exploitation plan — decree 2002-437 of 31 December 2002 24 CAT — decree 2002-437 of 31 December 2002 68 CAT, CTI — order 5053/MEF/CAB of 19 June 2007 8 CAT, CTI Verifier 4.5.1.3. Road network map — decree 2002-437 of 31 December 2002 99 CAT, CTI Verifier 4.5.1.4. Inspection reports of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 37, 81 CAT, CTI Criterion 4.6: The company complies with the regulations regarding timber felling and marking. Indicator 4.6.1: The company complies with the species to be taken, felling diameters and volumes to be taken as laid down in the regulations and the management plan. Verifier 4.6.1.1. Management plan — law 16-2000 of 20 November 2000 55, 56 CAT — decree 2002-437 of 31 December 2002 24 CAT Verifier 4.6.1.2. Exploitation plan — order 5053/MEF/CAB of 19 June 2007 8 CAT, CTI — decree 2002-437 of 31 December 2002 68 CAT, CTI Verifier 4.6.1.3. Annual harvest licence — decree 2002-437 of 31 December 2002 72,74 CAT, CTI Verifier 4.6.1.4. Worksite book — decree 2002-437 of 31 December 2002 87 CAT, CTI Verifier 4.6.1.5. Inspection reports of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 37, 81 CAT, CTI Indicator 4.6.2: Stumps, trunks and logs are marked in accordance with applicable forestry regulations. Verifier 4.6.2.1. Worksite book — decree 2002-437 of 31 December 2002 87 CAT, CTI Verifier 4.6.2.2. Inspection reports of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 37, 81 CAT, CTI Indicator 4.6.3: The worksite and timber transportation documents are filled in and updated regularly. Verifier 4.6.3.1. Worksite book — decree 2002-437 of 31 December 2002 87 CAT, CTI Verifier 4.6.3.2. Waybill — decree 2002-437 of 31 December 2002 121 CAT, CTI Verifier 4.6.3.3. Inspection reports of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 81 CAT, CTI Criterion 4.7: The company does not abandon timber of commercial value. Indicator 4.7.1: Timber is only abandoned in accordance with applicable regulatory provisions. Verifier 4.7.1.1. Inspection reports of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 81 CAT, CTI Verifier 4.7.1.2. Inspection and activity reports of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 82 CAT, CTI Verifier 4.7.1.3. Worksite book — decree 2002-437 of 31 December 2002 87 CAT, CTI Criterion 4.8: The company complies with legislation and regulations regarding timber processing. Indicator 4.8.1: The company complies with the processing quota laid down under the applicable regulations. Verifier 4.8.1.1. Annual production reports — decree 2002-437 of 31 December 2002 90 CAT, CTI Verifier 4.8.1.2. Report of the Inspectorate of Forestry Products for Export — decree 2002-437 of 31 December 2002 130, 131 CAT, CTI Verifier 4.8.1.3. Verification report on annual production of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 88 CAT, CTI Indicator 4.8.2: The processing unit has been set up in accordance with the regulations. Verifier 4.8.2.1. Agreement — decree 2002-437 of 31 December 2002 65, 66, 67 CAT, CTI Verifier 4.8.2.2. Inspection report of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 81 CAT, CTI Indicator 4.8.3: Logs that supply the processing unit are properly recorded in the documents prescribed under the regulations. Verifier 4.8.3.1. Register of timber entering the plant — decree 2002-437 of 31 December 2002 119 CAT, CTI Verifier 4.8.3.2. Waybill — decree 2002-437 of 31 December 2002 121 CAT, CTI Verifier 4.8.3.3. Inspection reports of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 81 and 82 CAT, CTI Indicator 4.8.4: If the company receives supplies of timber from other operators, it ensures that all the sources of supply are known and legal. Verifier 4.8.4.1. Certificate of exploitation of the partner — decree 2002-437 of 31 December 2002 65 CAT, CTI Verifier 4.8.4.2. Contract — decree 2002-437 of 31 December 2002 118 CAT, CTI Verifier 4.8.4.3. Annual harvest licence — decree 2002-437 of 31 December 2002 71 and 72 CAT, CTI Verifier 4.8.4.4. Inspection and activity report of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 81 and 82 CAT, CTI Criterion 4.9: Formal undertakings given by the company to make a greater contribution to local development have been respected. Indicator 4.9.1: Contractual clauses aimed at ensuring that the company contributes to the construction or improvement of social, economic and cultural infrastructures are complied with. Verifier 4.9.1.1. Special terms and conditions of the agreement — decree 2002-437 of 31 December 2002 168 CAT, CTI Verifier 4.9.1.2. Inspection reports of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 81 CAT, CTI Verifier 4.9.1.3. Inspection and activity reports of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 82 CAT, CTI Indicator 4.9.2: The company meets its obligations regarding the financing of a local development fund within the framework of the management of the community development package in accordance with the management plan. Verifier 4.9.2.1. Copies of cheques — order relating to the organisation and functioning of the local development fund — CAT Verifier 4.9.2.2. Minutes of meetings of the fund management committee — order relating to the organisation and functioning of the board of consultation for the community development package — CAT Indicator 4.9.3: The company complies with national plans and standards for construction of social and cultural infrastructures specified in the special terms and conditions of the agreement. Verifier 4.9.3.1. Terms and conditions — decree 2002-437 of 31 December 2002 169 and 170 CAT, CTI Verifier 4.9.3.2. Inspection reports of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 81 CAT, CTI Verifier 4.9.3.3. Activity reports of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 82 CAT, CTI Criterion 4.10: Tax returns correspond to the activities of the company. Indicator 4.10.1: Tax returns are prepared in accordance with the regulations and submitted within the prescribed deadlines. Verifier 4.10.1.1. Income tax return — General Tax Code, Volume I 124 to 124 b CAT, CTI Indicator 4.10.2: Declarations regarding exports and/or imports comply with the regulations. Verifier 4.10.2.1. Customs declaration — CEMAC customs regulations 110 and 111 CAT, CTI Verifier 4.10.2.2. Export declaration — law 003/2007 of 24 January 2007 14 and 27 CAT, CTI Verifier 4.10.2.3. Import declaration — law 003/2007 of 24 January 2007 6 and 27 CAT, CTI Indicator 4.10.3: The company sends the tax authorities, within the prescribed deadlines, a balance sheet of its activities for the previous year and sends the National Social Security Fund (CNSS) an annual salary statement. Verifier 4.10.3.1. Company balance sheet — General Tax Code 31, 46, 47 CAT, CTI — decree 2002-437 of 31 December 2002 191 CAT, CTI — uniform act relating to trading companies and economic interest groups 137 CAT, CTI — uniform act harmonising company accounts 23 CAT, CTI Verifier 4.10.3.2. Annual salary statement — General Tax Code 179 CAT, CTI Criterion 4.11: All taxes and social security contributions to which the company is subject have been paid within the deadlines. Indicator 4.11.1: The company pays any dues and taxes relating to forestry within the prescribed deadlines. Verifier 4.11.1.1. Copies of cheques — law 16-2000 of 20 November 2000 87 CAT, CTI, PS Verifier 4.11.1.2. Tax register/payment receipt — General Tax Code, Volume I 124 to 124 b CAT, CTI, PS — law 16-2000 of 20 November 2000 87 CAT, CTI, PS Indicator 4.11.2: The company duly pays all taxes and fees associated with importing products. Verifier 4.11.2.1. Statement of payment of fees and taxes — CEMAC customs regulations 132 to 135 CAT, CTI — General Tax Code 461 CAT, CTI Verifier 4.11.2.2. Copies of cheques — General Tax Code, Volume I 462 CAT, CTI — CEMAC customs regulations 134 CAT, CTI Verifier 4.11.2.3. Payment receipt — CEMAC customs regulations 134 CAT, CTI — General Tax Code 462 and 463 CAT, CTI Verifier 4.11.2.4. Establishment agreement — decree No 2004-30 of 18 February 2004 33 CAT, CTI Indicator 4.11.3: The company pays in good time all taxes, fees and duties from which it is not exempt and which are applicable in national territory. Verifier 4.11.3.1. Copies of cheques — General Tax Code, Volume I 462 CAT, CTI Verifier 4.11.3.2. Payment receipts — General Tax Code, Volume I 461, 462 and 463 CAT, CTI Indicator 4.11.4: The company pays its contributions in arrears. Verifier 4.11.4.1. Payment certificate — law 004/86 of 24 February 1986 171 CAT, CTI Verifier 4.11.4.2. Copies of cheques/payment slips — General Tax Code, Volume I 461 to 463 CAT, CTI — Social Security Code, law 004/86 of 24 February 1986 147bis CAT, CTI Indicator 4.11.5: The company carries out, within the prescribed deadlines, its transactions relating to forestry, customs, tax, trade and social security. Verifier 4.11.5.1. Infringement reports — law 6-94 of 1 June 1994 21, 22, 23 and 26 CAT, CTI — law 16-2000 of 20 November 2000 111 CAT, CTI, PS — General Tax Code, Volume I 387(5) and 399 CAT, CTI — CEMAC customs regulations 308 CAT, CTI Verifier 4.11.5.2. Transaction certificate — law 6-94 of 1 June 1994 21, 22, 23 and 26 CAT, CTI, PS — General Tax Code, Volume I 463 CAT, CTI, PS — law 16-2000 of 20 November 2000 134 CAT, CTI, PS — CEMAC customs regulations 327 and 328 CAT, CTI Verifier 4.11.5.3. Copies of cheques — CEMAC customs regulations 134 CAT, CTI — General Tax Code, Volume I 462, 463 CAT, CTI, PS — law 16-2000 of 20 November 2000 CAT, CTI, PS Verifier 4.11.5.4. Payment receipts — General Tax Code, Volume I 461, 462 and 463 CAT, CTI, PS — CEMAC customs regulations 134 CAT, CTI Criterion 4.12: The company subcontracts work to other companies in accordance with the rules. Indicator 4.12.1: The company ensures that all of its subcontractors have the necessary licences and pay their employees in accordance with legal requirements. Verifier 4.12.1.1. Licences granted by the relevant authorities — uniform act relating to the law for trading companies and the economic interest group of 17 April 1997 10 and 15 CAT, CTI — uniform act relating to general commercial law 16, 17, 18, 23, 24 and 40 CAT, CTI Verifier 4.12.1.2. Company contract — uniform act relating to the law for trading companies and the economic interest group of 17 April 1997 173 CAT, CTI Indicator 4.12.2: The company encourages and supports subcontracting in recycling abandoned timber and the by-products of processing. Verifier 4.12.2.1. Contract — decree 2002-437 of 31 December 2002 118 CAT, CTI Indicator 4.12.3: The company complies with contracts concluded with subcontractors. Verifier 4.12.3.1. Company contract — uniform act relating to the rights of trading companies and the economic interest group 173 CAT, CTI Verifier 4.12.3.2. Staff secondment agreement — law No 6-96 of 6 March 1996 73-3 CAT, CTI Principle 5: The company complies with regulations regarding timber transportation and marketing. Criterion 5.1: Timber is transported in accordance with applicable legislation and regulations. Indicator 5.1.1: The various means of transporting forestry products have been registered with the competent authorities. Verifier 5.1.1.2. Vehicle registration document — decree 2003-61 of 6 March 2003 2 and 3 CAT, CTI, PS — order 2844 of 12 April 2005 10 and 11 Verifier 5.1.1.3. Insurance — General Tax Code (Book V) 503 CAT, CTI, PS Indicator 5.1.2: Consents and licences for transporting forestry products are in order and regularly updated. Verifier 5.1.2.1. Transport authorisation — decree 90/135 of 31 March 1990 5 CAT, CTI, PS Verifier 5.1.2.2. Seaworthiness certificate — CEMAC interior navigation code 23 CAT, CTI, PS Verifier 5.1.2.3. Consent — order 5694 of 17 September 2001 1 to 9 CAT, CTI, PS Verifier 5.1.2.4. Consent — decree 2002-437 of 31 December 2002 48 CAT, CTI, PS Indicator 5.1.3: Means of transport are regularly inspected. Verifier 5.1.3.1. Technical check-up report — order No 11599 of 15 November 2004 9 CAT, CTI, PS Verifier 5.1.3.2. Vehicle technical inspection certificate — order No 11599 of 15 November 2004 1 to 24 CAT, CTI, PS — CEMAC community highway code 23 CAT, CTI, PS Indicator 5.1.4: The company complies with obligations or restrictions regarding timber transportation. Verifier 5.1.4.1. Waybill — decree 2002-437 of 31 December 2002 121 CAT, CTI, PS Verifier 5.1.4.2. Manifest/bill of lading (boat) — CEMAC/RDC interior navigation code 1, 2, 3, 4 CAT, CTI Verifier 5.1.4.3. Cargo identification note — order 1033 of 14 May 2008 3 CAT, CTI — decree 98-39 of 29 January 1998 3 and 4 CAT, CTI Criterion 5.2: Marketed products are clearly identifiable and their origin can be traced. Indicator 5.2.1: Timber transported by the company bears markings in accordance with applicable regulations which enable it to be traced back to its place of cutting. Verifier 5.2.1.1. Markings on the timber — decree 2002-437 of 31 December 2002 86 CAT, CTI, PS Verifier 5.2.1.2. The company’s marking hammer — law 16-2000 of 20 November 2000 75 CAT, CTI, PS Verifier 5.2.1.3. Inspection report of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 81 CAT, CTI, PS Indicator 5.2.2: Documents accompanying transported and marketed timber comply with applicable regulations and are properly drawn up. Verifier 5.2.2.1. Certificate of origin — law 3/2007 of 24 January 2007 20 and 27 CAT, CTI Verifier 5.2.2.2. Specification sheet — decree 2002-437 of 31 December 2002 135 CAT, CTI Verifier 5.2.2.3. Phytosanitary certificate — order 1.142 of 12 June 1945 3 and 8 CAT, CTI Verifier 5.2.2.4. Pro forma of the commercial invoice — law 3/2007 of 24 January 2007 18 and 27 CAT, CTI Verifier 5.2.2.5. Customs declaration — CEMAC customs regulations 110 and 111 CAT, CTI Verifier 5.2.2.6. Export declaration — law 3/2007 of 24 January 2007 6, 14 and 27 CAT, CTI Verifier 5.2.2.7. Import declaration — law 3/2007 of 24 January 2007 6, 14 and 27 CAT, CTI Verifier 5.2.2.8. Delivery note — law 3-2007 of 24 January 2007 27 CAT, CTI

2. Legality matrix for timber produced in forest plantations

The legality matrix for timber produced in plantations consists of 5 principles, 20 criteria, 56 indicators and 141 verifiers.

Reference of the legislation or regulation Article Principle 1: The company legally exists in Congo. Criterion 1.1: The company is properly registered with the competent authorities. Indicator 1.1.1: The company is properly registered with the economic, fiscal and judicial authorities. Verifier 1.1.1.1. Trading licence — decree No 2008-446 of 15 November 2008 1, 3 and 9 Verifier 1.1.1.2. Business, credit and real estate register — law 19-2005 of 24 November 2005 18 and 40 Indicator 1.1.2: The company is properly registered with the social security and employment authorities. Verifier 1.1.2.1. Certificate of registration with the national social security fund (CNSS) — law No 004/86 of 25 February 1986 172 Verifier 1.1.2.2. Declaration of existence — law 19-2005 of 24 November 2005 18 and 40 — law 45/75 of 15 March 1975 181 — order No 3020/IGT/LS of 29 September 1951 1, paragraph 2 Indicator 1.1.3: The company is properly registered with the relevant Forestry Authority. Verifier 1.1.3.1. Consent — decree 2002-437 of 31 December 2002 48 Verifier 1.1.3.2. Licence — decree 2002-437 of 31 December 2002 48 Criterion 1.2: The company is not subject to any judicial decisions or administrative measures resulting in temporary or permanent suspension of its business. Indicator 1.2.1: The company’s business has not been suspended by a judicial decision. Verifier 1.2.1.1. Judicial decision — OHADA uniform act of 10 April 1998 organising summary debt collection procedures 8 — law 19-2005 of 24 November 2005 28, 42 and 43 — law 6-1994 of 1 June 1994 26 Indicator 1.2.2: The company’s business has not been suspended by an administrative measure. Verifier 1.2.2.1. Suspension note — uniform act relating to general commercial law 10 — law 6-1994 of 1 June 1994 26 Principle 2: The State owns the rights over the land on which the forest plantations have been set up. Criterion 2.1: The title deed relating to the land on which the plantations have been set up has been properly granted by the competent authorities. Indicator 2.1.1: All steps leading up to the granting of the title deed were properly followed by the company including compliance with deadlines stipulated under national laws and regulations. Verifier 2.1.1.1. File containing notarised deeds and any other document sent in authentic form — law 17-2000 of 31 December 2000 60 Verifier 2.1.1.2. Demarcation map — law 17-2000 of 31 December 2000 24 Verifier 2.1.1.3. Demarcation report — law 17-2000 of 31 December 2000 24 Indicator 2.1.2: The company has a valid title deed. Verifier 2.1.2.1. Land register or land volume — law 17-2000 of 31 December 2000 102 Verifier 2.1.2.2. Copy of the title deed — law 17-2000 of 31 December 2000 37 Criterion 2.2: Forest plantations have been classified in accordance with legal and regulatory provisions with respect to forestry. Indicator 2.2.1: The procedure for classifying forest plantations has been followed. Verifier 2.2.1.1. Minutes of the consultative meeting between the Forestry Authority, government authorities and local and indigenous populations — law 16-2000 of 20 November 2000 15 Verifier 2.2.1.2. Forest authority reports on the surveying of the area to be classified — law 16-2000 of 20 November 2000 15 Verifier 2.2.1.3. Letters of complaint from local populations to the classification committee — law 16-2000 of 20 November 2000 17 Verifier 2.2.1.4. Minutes of the classification meeting — law 16-2000 of 20 November 2000 19 Verifier 2.2.1.5. Classification decree — law 16-2000 of 20 November 2000 14 Criterion 2.3.: Exploitation rights for the State’s forest plantations have been properly granted. Indicator 2.3.1: The steps leading up to exploitation, by means of permission for a third party to cut timber from the State’s plantations, have been properly followed. Verifier 2.3.1.1. Report on the inspection to check the availability of parcels carried out by the Forest Economy Directorate-General — decree 2002-437 of 31 December 2002 61 Verifier 2.3.1.2. Forest Economy Directorate-General notice — decree 2002-437 of 31 December 2002 62 Verifier 2.3.1.3. Writ — law 27 of 20 August 1992 2 — OHADA uniform act organising collection procedures and methods of performance of 10 April 1998 92 Verifier 2.3.1.4. Joint order of the Minister responsible for forests and the Minister responsible for finances setting sale prices — law 16-2000 of 20 November 2000 102 Verifier 2.3.1.5. Minutes of the meeting of the sale committee — decree 2002-437 of 31 December 2002 64 Indicator 2.3.2 The company has a valid certificate of exploitation Verifier 2.3.2.1. Plantation timber harvesting permit — law 16-2000 of 20 November 2002 65, 76 — decree 2002-437 of 31 December 2002 178 Criterion 2.4: The company holds all periodic licences allowing it to carry out its business. Indicator 2.4.1: The documents and other licences periodically provided by financial and fiscal authorities are valid. Verifier 2.4.1.1. Patent — General Tax Code 277 and 314 Verifier 2.4.1.2. Consent of the authorised customs inspector — Customs Regulations 112 to 119 Verifier 2.4.1.3. Consent — decree 2002-437 of 31 December 2002 48 Principle 3: The State that manages the forest plantations involves civil society and local populations in their management and respects the rights of these populations and workers. Criterion 3.1: The State involves civil society and local populations in the protection of plantations and in drawing up and monitoring development programmes. Indicator 3.1.1: The State has a mechanism for functional dialogue between the stakeholders with respect to the management of forest plantations. Verifier 3.1.1.1. Committee monitoring and reviewing implementation of the management plan — decree approving the management plan — Verifier 3.1.1.2. Platform for dialogue between the State and local populations — decree approving the management plan — Indicator 3.1.2: Local populations are sufficiently well informed of their rights and the management of forest plantations. Verifier 3.1.2.1. Minutes of meetings of the platform for dialogue — decree approving the management plan — Criterion 3.2: The State respects the rights, customs and practices of local and indigenous populations in accordance with national legislation and regulations and international conventions. Indicator 3.2.1: The State respects the customs, practices and rights of local and indigenous populations. Verifier 3.2.1.1. Minutes of meeting of the platform for dialogue — decree approving the management plan — Verifier 3.2.1.2. Report of the committee monitoring and reviewing implementation of the management plan — decree approving the management plan — Verifier 3.2.1.3. Inspection report of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 37 and 81 Indicator 3.2.2: The State meets its commitments with respect to local and indigenous populations Verifier 3.2.2.1. Terms and conditions/Memorandum of understanding — law 16-2000 of 20 November 2000 72 — decree 2002-437 of 31 December 2002 168 Verifier 3.2.2.2. Inspection report of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 37 and 81 Verifier 3.2.2.3. Report of the committee monitoring and reviewing the management plan — decree approving the management plan — Verifier 3.2.2.4. Minutes of meeting of the platform for dialogue — decree approving the management plan — Indicator 3.2.3: If property belonging to local and indigenous populations is destroyed by the company, compensation meets the requirements of applicable legislation and regulations. Verifier 3.2.3.1. Report — decree 86/970 of 27 September 1986 10 Verifier 3.2.3.2. Compensation receipts — decree 86/970 of 27 September 1986 1 and 9 Criterion 3.3: The social partners of the company are sufficiently well informed of their rights. Indicator 3.3.1: The company guarantees freedom of and legal and regulatory means for union activities. Verifier 3.3.1.1. Existence of staff representatives and union branches — law 06/96 of 6 March 1996 supplementing and amending certain provisions of law 45/75 of 15 March 1975 new 173 and 210-3 Verifier 3.3.1.2. Existence of union premises — law 06/96 of 6 March 1996 supplementing and amending certain provisions of law 45/75 of 15 March 1975 210-5 Verifier 3.3.1.3. Existence of records of complaints and claims — law 06/96 of 6 March 1996 supplementing and amending certain provisions of law 45/75 of 15 March 1975 210-7 and new 179 — order No 1110/MTFPSS/DGT of 24 June 1996 27 Indicator 3.3.2: Staff representatives and members of union branches have received various training to help them carry out their functions. Verifier 3.3.2.1. Memorandum of placement on leave for worker education — law 06/96 of 6 March 1996 new 179 Indicator 3.3.3: Company employees have access to the various documents relating to labour, employment and social security rights. Verifier 3.3.3.1. Documents available — agreement No 98 (OIT, 1949) 7 Criterion 3.4: The company respects workers’ rights. Indicator 3.4.1: The company meets its commitments with respect to its social partners. Verifier 3.4.1.1. Minutes of meetings — order No 1110/MTFPSS/DGT of 24 June 1996 26 Indicator 3.4.2: Relations between the company and its employees are formalised in accordance with the provisions of the labour code and the social security code. Verifier 3.4.2.1. Employer register signed — law 45/75 of 15 March 1975 182 Verifier 3.4.2.2. Employment contract — law No 022/88 of 17 September 1988 13 to 16 — law 45/75 of 15 March 1975 75 — general order No 3815 of 1 December 1953 6 Verifier 3.4.2.3. Internal rules displayed — law No 004/86 of 25 February 1986 172 Verifier 3.4.2.4. List of workers registered with the National Social Security Fund — law No 004/86 of 25 February 1986 172 Indicator 3.4.3: The company pays its workers in accordance with employment regulations and legislation and with the applicable collective agreement. Verifier 3.4.3.1. Pay registers signed — law No 45/75 of 15 March 1975 90 Verifier 3.4.3.2. Pay slips — law No 45/75 of 15 March 1975 90 Indicator 3.4.4: Worker health and safety conditions comply with applicable legislation and regulations. Verifier 3.4.4.1. Health and Safety Committee reports — order 9030 of 10 December 1986 9 Verifier 3.4.4.2. Medical check-up registers — law 6-96 of 6 March 1996 supplementing and amending certain provisions of law 45/75 of 15 March 1975 new 145-1 — order 9033 of 12 December 1986 22 Verifier 3.4.4.3. Accident in the workplace registers — law 6-96 of March 1996 supplementing and amending certain provisions of law 45/75 of 15 March 1975 new 141-2 Verifier 3.4.4.4. Safety registers — law 6-96 of March 1996 supplementing and amending certain provisions of law 45/75 of 15 March 1975 new 141-2 Verifier 3.4.4.5. Report of the committee monitoring and reviewing the management plan — decree approving the management plan — Indicator 3.4.5: The company respects working hours in accordance with legal and regulatory provisions. Verifier 3.4.5.1. Working hours displayed — decree 78-361 of 12 May 1978 5 Verifier 3.4.5.2. Authorisation of overtime by the Departmental Employment Office — decree 78-361 of 12 May 1978 10 Indicator 3.4.6: Worker recruitment meets the conditions laid down under national legislation and by the International Labour Organisation. Verifier 3.4.6.1. Copy of the job offer sent to National Office of Employment and Labour (ONEMO) — law 022-88 of 10 September 1988 9 and 10 Verifier 3.4.6.2. Employment contract — law 022-88 of 10 September 1988 16 Principle 4: The State complies with legislation and regulations relating to the environment, management, forestry, processing of timber and tax. Criterion 4.1. Environmental impact studies have been carried out in accordance with legal and regulatory requirements and mitigating measures formulated have been implemented. Indicator 4.1.1: Procedures for carrying out environmental impact studies have been followed. Verifier 4.1.1.1. Approval of the office carrying out the study — law 003-91 of 23 April 1991 2 — decree 86/775 of 7 June 1986 1 and 4 — order 835/MIME/DGE of 6 September 1999 4 and 5 — law 003-91 of 23 April 1991 Verifier 4.1.1.2. Impact study report — decree 86/775 of 7 June 1986 1 and 4 Verifier 4.1.1.3. Minutes of the meeting approving the impact study report — law 003-91 of 23 April 1991 2 Indicator 4.1.2: The measures contained in the approved impact study reports aimed at protecting biodiversity have been carried out. Verifier 4.1.2.1. Land inspection and audit reports — law 003-91 of 23 April 1991 39 — order 1450/MIME/DGE of 19 November 1999 16, 17 and 18 Verifier 4.1.2.2. Inspection report of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 37 and 82 Verifier 4.1.2.3. Report of the committee monitoring and reviewing the management plan — decree approving the management plan — Indicator 4.1.3: Measures aimed at protecting public health and cleaning up base camps and industrial sites have been carried out. Verifier 4.1.3.1. Order approving the personnel of the company’s socio-sanitary centre — law 45/75 of 15 March 1975 142 and 143 — order No 9033/MTERFPPS/DGEF/DSS of 10 December 1986 12 Verifier 4.1.3.2. Order authorising performance of the Ministry in charge of health — order No 3092 MSP/MEFB of 9 July 2003 2 Verifier 4.1.3.3. Minutes of meetings of the Health and Safety Committee — order No 9033/MTERFPPS/MTERFPPS/DGEF/DSS of 10 December 1986 9 Verifier 4.1.3.4. Report of the committee monitoring and reviewing the management plan — decree approving the management plan — Criterion 4.2: The provisions of national regulations and legislation and international agreements and conventions ratified by Congo relating to the environment have been observed. Indicator 4.2.1: The company disposes of waste produced from its activities in accordance with legal and regulatory requirements. Verifier 4.1.1.1. Inspection report of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 37 and 82 Verifier 4.1.1.2. Report of the committee monitoring and reviewing the management plan — decree approving the management plan — Indicator 4.2.2: The company meets its commitments regarding the protection of fauna Verifier 4.2.2.1. The company’s internal rules — law 45/75 of 15 March 1975 74 Verifier 4.2.2.2. Inspection report of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 37 and 82 Verifier 4.2.2.3. Report of the committee monitoring and reviewing the management plan — decree approving the management plan — Criterion 4.3: Management documents have been drawn up in accordance with regulatory time-frames and standards and approved by the Forestry Authority and the stakeholders. Indicator 4.3.1: Inventory reports and supplementary studies and the management plan have been drawn up in accordance with the standards established by the forestry authority and forestry concession management directives. Verifier 4.3.3.1. Inventory report — order 5053/MEF/CAB of 19 June 2007 5 Verifier 4.3.3.2. Supplementary study report — order 5053/MEF/CAB of 19 June 2007 5 Verifier 4.3.3.3. Management plan — law 16-2000 of 20 November 2000 55 and 56 — decree 2002-437 of 31 December 2002 54 Indicator 4.3.2: Inventory reports and supplementary studies have been approved by the forestry authority and the management plan by the stakeholders. Verifier 4.3.2.1. Minutes of the meeting approving inventory reports and supplementary studies — order 5053/MEF/CAB of 19 June 2007 5 Verifier 4.3.2.2. Minutes of the meeting approving the management plan — order 5053/MEF/CAB of 19 June 2007 5 Indicator 4.3.3: Administrative plans and annual operation plans have been approved in accordance with national forestry concession management directives and regulatory provisions by the forestry authority. Verifier 4.3.3.1. Minutes of the meeting approving the administrative plan — order 5053/MEF/CAB of 19 June 2007 5 Verifier 4.3.3.2. Annual harvest licence — order 5053/MEF/CAB of 19 June 2007 8 — decree 2002-437 of 31 December 2002 68 Criterion 4.4: The boundaries of the plantations and the logging standards are clearly defined and respected. Indicator 4.4.1: Forest maps have been produced in accordance with standards approved by the forestry authority and the boundaries shown are marked and regularly maintained on the ground in accordance with the applicable regulations. Verifier 4.4.1.1. Forest maps — decree 2002-437 of 31 December 2002 24 Verifier 4.4.1.2. Inspection and activity reports of the Departmental Forest Economy Office and of the Central Authority — decree 2002-437 of 31 December 2002 37 and 82 Indicator 4.4.2: The cutting of trees is carried out and recorded in accordance with the annual operation plan. Verifier 4.4.2.1. Annual operation plan/logging plan — decree 2002-437 of 31 December 2002 68 — order 5053/MEF/CAB of 19 June 2007 8 Verifier 4.4.2.2. Worksite register — decree 2002-437 of 31 December 2002 183 Verifier 4.4.2.3. Inspection and activity reports of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 37, 81, 82 Indicator 4.4.3: Plantation parcels are exploited in accordance with the provisions of the management plan. Verifier 4.4.3.1. Rotation — decree approving the management plan — Verifier 4.4.3.2. Number of parcels exploited — decree approving the management plan — Verifier 4.4.3.3. Volume exploited — decree approving the management plan — Indicator 4.4.4: Waybills for the transporting of logs are filled in before their removal from the worksite. Verifier 4.4.4.1. Waybills — decree 2002-437 of 31 December 2002 121 Verifier 4.4.4.2. Inspection reports of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 81 and 82 Criterion 4.5: The company complies with legislation and regulations regarding timber processing. Indicator 4.5.1: The processing unit has been set up in accordance with the regulations. Verifier 4.5.1.1. Consent to the setting-up of the industrial unit — decree 2002-437 of 31 December 2002 114, 115 Verifier 4.5.1.2. Site inspection reports and activity reports of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 81 and 82 Indicator 4.5.2: Logs that supply the processing unit are properly recorded in a document opened by the forestry authority. Verifier 4.5.2.1. Waybill — decree 2002-437 of 31 December 2002 121 Verifier 4.5.2.2. Register of timber entering the plant — decree 2002-437 of 31 December 2002 119 Verifier 4.5.2.3. Site inspection report of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 81 and 82 Indicator 4.5.3: The company encourages and supports subcontracting in recycling the by-products of processing. Verifier 4.5.3.1. Subcontract — decree 2002-437 of 31 December 2002 118 Criterion 4.6: Tax returns correspond to the activities of the company. Indicator 4.6.1: Tax returns are prepared in accordance with the regulations and submitted within the prescribed deadlines. Verifier 4.6.1.1. Income tax return — General Tax Code, Volume I 124 to 124 b Indicator 4.6.2: Declarations regarding exports and/or imports comply with the regulations. Verifier 4.6.2.1. Customs declaration — CEMAC customs regulations 110 and 111 Verifier 4.6.2.2. Export declaration/import declaration — law 003/2007 of 24 January 2007 6, 14 and 27 — Customs Regulations 49 Indicator 4.6.3: The company sends the tax authorities, within the prescribed deadlines, a balance sheet of its activities for the previous year and sends the National Social Security Fund (CNSS) an annual salary statement. Verifier 4.6.3.1. Balance sheet — General Tax Code 31, 46 and 47 — decree 2002-437 of 31 December 2002 191 — uniform act relating to trading companies and economic interest groups 137 — uniform act harmonising company accounts 23 Verifier 4.6.3.2. Annual salary statement — General Tax Code 179 Criterion 4.7: All taxes and social security contributions to which the company is subject have been paid within the deadlines. Indicator 4.7.1: The company pays any dues and taxes relating to forestry within the prescribed deadlines. Verifier 4.7.1.1. Copies of cheques — law 16-2000 of 20 November 2000 87 Indicator 4.7.2. The company duly pays all taxes and fees associated with importing products. Verifier 4.7.2.1. Statement of payment of fees and taxes — CEMAC customs regulations 132 to 135 — General Tax Code 461 Verifier 4.7.2.2. Copies of cheques — CEMAC customs regulations 134 — General Tax Code 462 and 463 Verifier 4.7.2.3. Payment receipt — CEMAC customs regulations 134 — General Tax Code 46 and 463 Indicator 4.7.3: The company pays in good time all taxes, fees and duties from which it is not exempt and which are applicable in national territory. Verifier 4.7.3.1. Revenue register — General Tax Code, Volume I 462 Verifier 4.7.3.2. Copies of cheques — General Tax Code, Volume I 462 Verifier 4.7.3.3. Payment receipts — General Tax Code, Volume I 461, 462 and 463 Indicator 4.7.4: The company pays its contributions in arrears. Verifier 4.7.4.1. Payment certificate — law 004/86 of 24 February 1986 171 Verifier 4.7.4.2. Copies of cheques/payment slips — General Tax Code, Volume I 461 to 463 — Social Security Code, law 004/86 of 24 February 1986 147bis Indicator 4.7.5: The company carries out, within the prescribed deadlines, its transactions relating to forestry, customs, tax, trade and social security. Verifier 4.7.5.1. Infringement reports — law 6-94 of 1 June 1994 21, 22, 23 and 26 — law 16-2000 of 20 November 2000 111 — General Tax Code, Volume I 461 — CEMAC customs regulations 308 Verifier 4.7.5.2. Transaction certificate — law 6-94 of 1 June 1994 21, 22, 23 and 26 — General Tax Code, Volume I 463 — law 16-2000 of 20 November 2000 134 — CEMAC customs regulations 327 and 328 Verifier 4.7.5.3. Copies of cheques or payment receipts — CEMAC customs regulations 134 — General Tax Code, Volume I 426 and 463 Criterion 4.8: The company subcontracts work to other companies in accordance with the rules. Indicator 4.8.1: The company ensures that all of its subcontractors have the necessary licences and pay their employees in accordance with legal requirements. Verifier 4.8.1.1. Licences granted by the relevant authorities — uniform act relating to the law for trading companies and the economic interest group of 17 April 1997 10 and 15 — uniform act relating to general commercial law 16, 17, 18, 23, 24 and 40 Verifier 4.8.1.2. Company contract — uniform act relating to the law for trading companies and the economic interest group of 17 April 1997 173 Indicator 4.8.2: The company complies with contracts concluded with subcontractors. Verifier 4.8.2.1. Company contract — uniform act relating to the rights of trading companies and the economic interest group 10 and 15 Verifier 4.8.2.2. Staff secondment agreement — law No 1-96 of 6 March 1996 73-3 Principle 5: The company complies with regulations regarding timber transportation and marketing. Criterion 5.1: Timber is transported in accordance with applicable legislation and regulations. Indicator 5.1.1: The various means of transporting logs have been registered with the competent authorities. Verifier 5.1.1.1. Vehicle registers — decree 261-59 of 20 January 1959 1, 2, 3 and 4 Verifier 5.1.1.2. Vehicle registration document — order 2844 of 12 April 2005 1 to 5 — CEMAC customs regulations 77 and 78 Verifier 5.1.1.3. Insurance — CIMA code, book V (tax) 503 Indicator 5.1.2: Consents and licences for transporting logs are in order and regularly updated. Verifier 5.1.2.1. Transport authorisation — decree 90/135 of 31 March 1990 5 Verifier 5.1.2.2. Seaworthiness certificate — CEMAC/RDC interior navigation code 23 Verifier 5.1.2.3. Consent — order 5694 of 17 September 2001 1 to 9 Verifier 5.1.2.4. Consent — decree 2002-437 of 31 December 2002 48 Indicator 5.1.3: Means of transport are regularly inspected. Verifier 5.1.3.1. Technical check-up report — order No 11599 of 15 November 2004 9 Verifier 5.1.3.2. Vehicle technical inspection certificate — order No 11599 of 15 November 2004 1 to 24 — CEMAC community code 23 Indicator 5.1.4: The company complies with obligations or restrictions regarding timber transportation. Verifier 5.1.4.1. Waybill — decree 2002-437 of 31 December 2002 121 Verifier 5.1.4.2. Manifest, bill of lading (boat) — CEMAC/RDC interior navigation code 1, 2, 3 and 4 Verifier 5.1.4.3. Cargo identification note — order No 1033 of 14 May 2008 3 — decree No 98-39 of 29 January 1998 3 and 4 Criterion 5.2: Marketed products are clearly identifiable and their origin can be traced. Indicator 5.2.1: Timber transported by the company bears markings in accordance with applicable regulations which enable it to be traced back to its place of cutting. Verifier 5.2.1.1. Markings on the timber/packages — decree 2002-437 of 31 December 2002 86 Verifier 5.2.1.2. The company’s marking hammer — law 16-2000 of 20 November 2000 75 Verifier 5.2.1.3. Inspection report of the Departmental Forest Economy Office — decree 2002-437 of 31 December 2002 81 Indicator 5.2.2: Documents accompanying transported and marketed timber comply with applicable regulations and are properly drawn up. Verifier 5.2.2.1. Certificate of origin — law 003/2007 of 24 January 2007 20 and 27 Verifier 5.2.2.2. Specification sheet — decree 2002-437 of 31 December 2002 135 Verifier 5.2.2.3. Pro forma of the commercial invoice — law 3/2007 of 24 January 2007 18 and 27 Verifier 5.2.2.5. Customs declaration — CEMAC customs regulations 110 and 111 Verifier 5.2.2.4. Export declaration — law 3/2007 of 24 January 2007 14 and 27 Verifier 5.2.2.6. Import declaration — law 3-2007 of 24 January 2007 6 and 27 Verifier 5.2.2.7. Delivery note — law 3-2007 of 24 January 2007 27

LIST OF LAWS AND PRINCIPAL SETS OF REGULATIONS AND REGIONAL AND INTERNATIONAL AGREEMENTS TAKEN INTO ACCOUNT IN DETERMINING THE LEGALITY OF FORESTRY PRODUCTS

1. Forestry

— law No 16-2000 of 20 November 2000 setting out the forestry code,

— decree No 2002-434 of 31 December 2002 relating to the organisation and functioning of the forestry fund,

— decree No 2002-435 of 31 December 2002 relating to the powers, organisation and functioning of the national centre for the surveying and management of forestry and fauna,

— decree No 2002-436 of 31 December 2002 relating to the powers, organisation and functioning of the inspectorate of forestry products for export,

— decree No 2002-437 of 31 December 2002 laying down the conditions of forest management and use,

— order No 5053/MEF/CAB of 19 June 2007 defining national directives for the sustainable management of forest concessions.

2. Environment

— law No 003/91 of 23 April 1991 on environmental protection,

— decree No 86/775 of 7 June 1986 making environmental impact studies compulsory,

— order No 1450/MIME/DGE of 18 November 1999 relating to the application of certain provisions on installations classified under law No 003/91 on environmental protection,

— order No 835/MIME/DGE of 6 September 1999 laying down the conditions of consent for the performance of environmental impact studies or assessments in the Republic of Congo.

3. Labour, health and safety

— law No 45-75 of 15 March 1975 instituting a labour code in the Popular Republic of Congo,

— law No 6-96 of 6 March 1996 amending and supplementing certain provisions of law No 45-75 of 15 March 1975 instituting a labour code in the Popular Republic of Congo,

— law 004/86 of 25/02/86 instituting the social security code in the Popular Republic of Congo,

— law No 022/88 of 17 September 1988 amending law No 001/86 of 22 February 1986 replacing and supplementing law No 03/85 of 14 February 1985 creating the National Office of Employment and Labour (ONEMO) and amending the labour code,

— decree No 78/359/MJT.SGFPT.DTPS.ST.3/8 of 12 May 1978 ruling on the dispensation specified in Article 105 of the labour code,

— decree No 78/360/MJT.SGFPT.DTPS.ST. 3/8 of 12 May 1978 laying down, for establishments not covered by farming regulations, working hours, overtime rules and payment terms,

— decree No 78/361/MJT.SGFPT.DTPS.ST.3/8 of 12 May 1978 laying down, for farming companies and the like, overtime rules and payment terms,

— order No 9028/MTERFPPS/DGT/DSSHST of 10 December 1986 relating to special health and safety measures applicable to forestry work,

— order No 9030/MTERFPPS/DGT/DSSHST of 10 December 1986 instituting company health and safety committees,

— order No 9033/MTERFSPPS/DGT/DSSHST of 10 December 1986 relating to the organisation and functioning of company socio-sanitary centres set up in the Popular Republic of Congo,

— decree No 2008-942 of 31 December 2008 setting the minimum guaranteed interprofessional salary (SMIG),

— order No 3092 of 9 July 2003 laying down the conditions for setting up and opening private sanitation establishments.

4. Trade

— law No 6-94 of 1 June 1994 regulating prices, trading standards and the identification and suppression of fraud,

— law No 19-2005 of 24 November 2005 regulating the trading profession in the Republic of Congo,

— law No 3-2007 of 24 January 2007 regulating imports, exports and re-exports,

— decree No 2008-446 of 15 November 2008 laying down the terms for obtaining a trading licence.

5. Land management

— law No 17-2000 of 31 December 2000 relating to land ownership.

6. Agriculture and farming

— decree No 55/1219 of 13 September 1955 relating to public authority rules laying down the conditions for applying the law of 26 November 1952 relating to the organisation of plant protection in territories under the responsibility of the Ministry for French Overseas Territories,

— decree No