EN Official Journal of the European Union L 191/102

COUNCIL DECISION

of 14 May 2012

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

(2012/374/EU)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular the first subparagraphs of Article 207(3) and (4), in conjunction with Article 218(6)(a)(v) and Article 218(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 adopted a Communication to the European Parliament and to the Council entitled ‘Forest Law Enforcement, Governance and Trade (FLEGT): Proposal for an EU Action Plan’ which called for measures to address illegal logging through the development of voluntary partnership agreements with timber-producing countries. Council conclusions on that Action Plan were adopted in October 2003 (1) and Parliament adopted a resolution on the subject on 11 July 2005 (2).

(2) In accordance with Council Decision 2011/790/EU (3), the Voluntary Partnership Agreement between the European Union and the Central African Republic on forest law enforcement, governance and trade in timber and derived products to the European Union was signed on 28 November 2011, subject to its conclusion.

(3) The Agreement should be concluded,

HAS ADOPTED THIS DECISION:

Article 1

The Voluntary Partnership Agreement between the European Union and the Central African Republic on forest law enforcement, governance and trade in timber and derived products to the European Union (FLEGT) (hereinafter ‘Agreement’) is 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 European Union to make the notification provided for in Article 30 of the Agreement, in order to bind the Union.

Article 3

The European 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 European Union delegation.

Article 4

For the purpose of amending the annexes to the Agreement in accordance with 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 any such amendments on behalf of the European Union.

Article 5

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

Done at Brussels, 14 May 2012. For the Council The President M. GJERSKOV

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

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

(3) OJ L 320, 3.12.2011, p. 2.

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

EN Official Journal of the European Union L 191/103

VOLUNTARY PARTNERSHIP AGREEMENT

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

THE EUROPEAN UNION, hereinafter ‘the Union’,

of the one part,

and

THE CENTRAL AFRICAN REPUBLIC, hereinafter ‘the CAR’,

of the other part,

hereinafter referred to jointly as ‘the Parties’,

HAVING REGARD TO the close cooperation relations between the Union and the CAR, particularly the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States, on the one hand, and the European Community and its Member States, on the other, signed in Cotonou on 23 June 2000 (1), revised in Luxembourg on 25 June 2005, hereinafter referred to as the ‘Cotonou Agreement’;

HAVING REGARD 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 (2);

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) (3) as a first step towards tackling the urgent issue of illegal logging and associated trade;

REFERRING to the Ministers’ Yaoundé Declaration of 16 October 2003 on Forest Law Enforcement and Governance;

REFERRING to the 1992 Non-Legally Binding Authoritative Statement of Principles for a Global Consensus on the management, conservation and sustainable logging of all types of forests, and the recent adoption by the United Nations General Assembly of the Non-Legally Binding Instrument on all types of forest (4);

AWARE of the importance of the sustainable forest management principles set out in the 1992 Rio de Janeiro Declaration on Environment and Development in the context of the sustainable management of forests, 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 other local communities in environmental management and development;

REFERRING to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (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 these specimens were not obtained in contravention of the laws for the protection of fauna and flora;

RESOLVED to seek to minimise any adverse impacts on indigenous and local communities and poor people which may arise as a direct consequence of implementing this Agreement;

REAFFIRMING the importance attached by the Parties to development objectives agreed at international level and to the UN Millennium Development Goals;

REAFFIRMING the importance attached by the Parties to the principles and rules which govern the multilateral exchange systems, in particular the rights and obligations laid down in the 1994 General Agreement on Tariffs and Trade (GATT) and in the other multilateral agreements in Annex IA of the Marrakesh Agreement of 15 April 1994 establishing the World Trade Organisation (WTO), and the need to apply them in a transparent and non-discriminatory manner;

CONSIDERING the CAR’s desire to work for the sustainable management of its forest resources, in accordance with the partnership objectives of the Congo Basin Forest Partnership of which it is a member, founded in January 2003 following the World Summit on Sustainable Development held in Johannesburg in 2002, with the September 2003 Fora on Water, Forests, Hunting and Fisheries, with international agreements and treaties, in particular the Treaty on the Conservation and Sustainable Management of Forest Ecosystems in Central Africa and to establish the Central African Forests Commission (COMIFAC) of 5 February 2005, and with Law 08.022 of 17 October 2008 on the Forestry Code in the CAR;

CONSIDERING that the Central African Republic’s system for verifying the legality of timber and derived products applies to all exports, and not only those destined for the Union,

HEREBY AGREE AS FOLLOWS:

Article 1

Objective

In accordance with the common commitment of the Parties to sustainably manage all types of forest, the objective of this Agreement is to provide a legal framework aimed at ensuring that all imports into the European Union from the CAR of the timber and derived products covered by this Agreement have been legally produced or acquired and, this being so, to promote the trade in said timber and derived products.

This Agreement also provides a basis for dialogue and cooperation between the Parties aimed at facilitating and promoting its integral implementation and at strengthening the enforcement of forest regulations and governance.

Article 2

Definitions

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

(a) ‘Import into the Union’: the release for free circulation of timber and derived products into the Union within the meaning of Article 79 of Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code (5), 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 (6);

(b) ‘Export’: the physical leaving or taking out of the territory of the CAR timber and derived products produced or acquired in the CAR, with the exception of timber and derived products in transit through the territory of the CAR under the control of the customs authorities of the CAR;

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

(d) ‘HS code’: a four- or six-digit code as set out in the nomenclature of 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, in conformity with the combined nomenclatures of the European Union and the Economic and Monetary Community of Central Africa (CEMAC);

(e) ‘FLEGT licence’: a licence that refers to the shipment of legally produced timber or derived products;

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

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

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

(i) ‘Timber that is legally produced or acquired’: harvested or imported timber and derived products, produced in accordance with the legislation specified in Annex II.

Article 3

FLEGT licensing scheme

1. A Forest Law Enforcement, Governance and Trade Licensing Scheme (hereinafter referred to as the ‘FLEGT licensing scheme’) is hereby established between the Parties to this Agreement. This scheme 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 have been legally produced or acquired. In accordance with Council Regulation (EC) No 2173/2005, the Union shall accept such shipments from the CAR for import into the Union only if they are covered by FLEGT licences.

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

3. The Parties agree to take all measures necessary to implement the FLEGT licensing scheme, in accordance with Article 12 of this Agreement.

Article 4

Licensing authority

1. The CAR shall designate the FLEGT licensing authority and notify its contact details to the European Commission. Both Parties shall make this information available to the public.

2. The licensing authority shall verify that timber and derived products have been legally produced or acquired, in accordance with the legislation given in Annex II. It shall issue FLEGT licences covering shipments of timber and derived products that are legally produced or acquired in the CAR and destined for export to the Union and, where appropriate, the necessary documentation for timber and derived products in transit through the territory of the CAR under the control of the customs authorities of the CAR.

3. The licensing authority may not issue FLEGT licences for any timber and derived products that are composed of, or include, timber and derived products imported into the CAR from a third country in a form prohibited for export under the laws of the country concerned, or for which there is proof that this timber or these derived products have been produced or acquired in violation of the laws of the country where the trees were harvested.

4. The licensing authority shall maintain and make publicly available its procedures for issuing FLEGT licences. It shall also retain the records of all shipments covered by FLEGT licences and, in accordance with national data protection legislation, shall provide these records for the purposes of an independent audit, whilst preserving the confidentiality of the information on exporters’ industrial patent rights.

Article 5

Competent authorities of the Union

1. The European Commission shall inform the CAR of the contact details of the competent authorities designated by the Member States of the Union and their respective territorial areas of competence.

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. This release for free circulation may be suspended and the shipment held if there is any doubt as to the validity of the FLEGT licence. The procedures governing the release for free circulation in the Union of shipments covered by a FLEGT licence are described in Annex III.

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 the persons or bodies designated by the CAR as independent auditors access to the relevant documents and data.

5. The Union’s competent authorities shall refrain from undertaking the action described in Article 5(2) with regard to timber and derived products from species listed in the Appendices to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) insofar as these products are covered by the examination procedures laid down 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 (7). The FLEGT licensing scheme nevertheless provides an assurance that the products in question have been legally harvested.

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 or acquired.

2. FLEGT licences shall be provided on a form written in French.

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

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

Article 7

Definition of legally produced wood

For the purposes of this Agreement, a definition of timber that is legally produced or acquired is given in Annex II. This Annex sets out the CAR’s national regulations that must be complied with for timber and derived products to be given a FLEGT licence. It also includes documentation containing the criteria, indicators and verifiers serving to prove compliance with the regulations, known as the ‘legality matrix’.

Article 8

Verifying the legality of the timber produced or acquired

1. The CAR shall establish one or more systems for verifying that timber and derived products intended for shipment have been legally produced or acquired and that only shipments verified as such are exported to the Union. The system or systems for verifying legality shall include compliance checks in order to provide an assurance that the timber and derived products destined for export to the Union have been legally produced or acquired, and that FLEGT licences have not been issued for shipments of timber and derived products that have not been legally produced or acquired, or that are of unknown origin. The system or systems shall also include procedures to ensure that timber of illegal or unknown origin does not enter the supply chain.

2. The system or systems for verifying that shipments of timber and derived products have been legally produced or acquired is/are described in Annex V.

Article 9

Consultation on the validity of FLEGT licences

1. In the event of doubt about the validity of a FLEGT licence, the competent authority in question may ask the licensing authority for additional information.

2. If the licensing authority fails to reply within 21 calendar days of the date of receipt of the request, the competent authority shall proceed pursuant to the national legislation in force and shall not accept the licence. If it emerges from the additional information that the information appearing on the licence does not correspond to the shipment, the competent authority shall act pursuant to the national legislation in force and shall not accept the licence.

3. In the event of disagreement or persistent difficulties in consultations regarding FLEGT licences, the case may be submitted to the Joint Implementation Committee.

Article 10

Independent auditor

1. The CAR shall engage the services of an independent auditor, in consultation with the Union, for the purposes of the tasks listed in Annex VI.

2. The independent auditor shall be a body with no conflict of interest resulting from an organisational or commercial relationship with the Union or with the CAR’s forestry sector regulatory authorities, its licensing authority or any body given the responsibility of verifying the legality of timber production, or any operator exercising a commercial activity in its forestry sector.

3. The independent auditor shall operate in accordance with a documented management structure, and with published policies, methods and procedures that correspond to internationally accepted best practices.

4. The independent auditor shall refer complaints arising from its work to the Joint Implementation Committee.

5. The independent auditor shall regularly produce the full and summary reports noted in Annex VI.

6. The Parties shall facilitate the work of the independent auditor, ensuring in particular that it has access to the territory of each Party to the information necessary for the performance of its functions. In accordance with their respective national legislation on data protection, the Parties may nonetheless refrain from disclosing information that they are not permitted to communicate.

Article 11

Irregularities

The Parties shall inform each other of their suspicions or observations with regard to any circumvention of, or irregularity in, the FLEGT licensing scheme, in particular regarding:

(a) a circumvention of trade, particularly via the redirection of trade from the CAR to the Union via a third country when there is reason to believe that this is done with the intention of avoiding licensing;

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

(c) fraud in the obtaining or use of FLEGT licences.

Article 12

Date of introduction of the FLEGT licensing scheme

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

2. The Parties shall, through the Joint Implementation Committee, commission an independent evaluation of the FLEGT licensing scheme on the basis of the criteria set out in Annex VII. The evaluation shall determine whether the legality assurance system (LAS) underpinning the FLEGT licensing scheme as described in Annex V adequately fulfils its functions and whether the systems in place for receiving, verifying and accepting licences, as set out in Article 5 and Annex III, are in place in the Union.

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

4. The two Parties shall consider the recommendation and notify each other in writing of their approval of the recommendation.

Article 13

Application of LAS to timber and derived products not exported to the Union

The CAR shall use the legality assurance system or systems described in Annex V for timber and derived products exported to markets outside of the Union.

Article 14

Schedule for implementation of this Agreement

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

2. Through the Joint Implementation Committee, the Parties shall evaluate progress made in implementation with reference to the schedule set out in Annex VIII.

Article 15

Supporting measures

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

2. The provision of such additional resources shall be subject to the normal procedures of the Union and its Member States for programming aid to the CAR and to the budgetary procedures of the CAR itself.

3. The Parties shall envisage the need for a joint arrangement whereby the financing and technical contributions of the European Commission and the Member States of the Union are coordinated to support these processes.

4. The CAR shall ensure that capacity building for the implementation of this Agreement is included in national planning instruments, such as the poverty reduction strategies.

5. The Parties shall ensure that activities associated with implementation of this Agreement are coordinated with the relevant development programmes and initiatives, current or future.

6. The provision of these resources shall be subject to the procedures governing Union aid, as set out in the Cotonou Agreement, and to those governing the bilateral aid given to the CAR by each of the Union’s Member States.

Article 16

Stakeholder involvement in the implementation of this Agreement

1. The CAR shall involve the stakeholders in implementation of this Agreement, in accordance with the guidelines of the Central Africa Forests Commission on the involvement of non-governmental organisations, local communities and indigenous peoples.

2. The Union shall hold regular consultations with the European stakeholders on the implementation of this Agreement, bearing in mind 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 possible adverse impact, the Parties agree to develop a better understanding of the livelihoods of potentially affected local and indigenous communities, including those engaged in illegal logging.

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

Article 18

Market incentives

Bearing in mind 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 products; and

(b) the promotion of FLEGT-licensed timber and derived products on the Union’s market.

Article 19

Joint Implementation Committee

1. The Parties shall establish a Joint Implementation Committee to facilitate the monitoring and review of this Agreement.

2. Each Party shall appoint its representatives to the Joint Implementation Committee. The Committee shall take its decisions by a consensus.

3. The Joint Implementation Committee shall facilitate dialogue and an effective and regular exchange of information between the Parties in order to optimise the functioning of this Agreement, and may consider any issues relating to its effective operation. The detailed functions of the Joint Implementation Committee are given in Annex X.

4. The Joint Implementation Committee:

(a) shall meet at least once a year on a date agreed by the Parties;

(b) shall produce the agenda and terms of reference for joint actions on a collegiate basis;

(c) shall establish its own rules of procedure;

(d) shall preside over its meetings either in turns, by representatives of each Party, or by a co-chair arrangement;

(e) shall ensure that its work is as transparent as possible and that information concerning its work and its decisions is accessible to the public;

(f) may establish working groups or other subsidiary bodies for areas of work requiring specific expertise.

5. The Joint Implementation Committee shall publish an annual report. Details regarding the content of this report can be found in Annex XI.

6. In the period between signing of this Agreement and its entry into force, a joint consultation and review mechanism shall be established in order to facilitate the implementation of this Agreement.

Article 20

Communication on implementation of this Agreement

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

(a) for the CAR: the Minister for Water, Forests, Hunting and Fisheries;

(b) for the European Union: the Head of the EU Delegation in the CAR.

2. The Parties shall provide each other with the necessary information to implement this Agreement.

Article 21

Reporting and public disclosure

1. Provision of information to the public is a key element in strengthening governance under this Agreement. Publishing information facilitates the implementation and monitoring of the system by making it more transparent. The provision of information also enables better accountability and greater responsibility on the part of the different actors involved. The information to be disclosed and made public is listed in Annex XI.

2. Each Party shall consider the most appropriate mechanisms (media, documents, Internet, workshops, annual reports) by which to disseminate the information to the public. In particular, the Parties shall endeavour to make reliable and relevant information available to the different stakeholders involved in the forestry sector in real time. These mechanisms are described in Annex XI.

Article 22

Confidential information

1. Each Party undertakes, within the limits of its laws, not to disclose confidential information exchanged under this Agreement. Neither Party shall disclose to the public, nor permit its authorities to disclose, information exchanged under this Agreement that constitutes a trade secret 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 the CAR and received by the Union and the volume of timber and derived products exported from the CAR and received by the Union;

(b) the names and addresses of licence holders and 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 the CAR, on the other.

Article 24

Settlement of disputes

1. The Parties shall endeavour to resolve any dispute concerning the application or interpretation of this Agreement by means of prompt consultations.

2. If a dispute has not been settled by consultation within three months from the date of the initial consultation request, each Party may submit the dispute to the Joint Implementation Committee, which shall endeavour to resolve it. The Committee shall obtain all information relevant to an in-depth examination of the situation with a view to finding an acceptable solution. To this end, it is required to examine all possible ways of maintaining the good functioning of this Agreement.

3. In the event that the Joint Implementation Committee cannot resolve the dispute, the Parties may:

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

(b) go to arbitration. In the event that it is not possible to resolve the dispute 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 a majority vote within six months of the appointment of the third arbitrator. The arbitrators’ decisions shall be binding on the Parties, and shall be without appeal.

4. The Joint Implementation Committee shall establish the methods of arbitration.

Article 25

Suspension

1. Either Party may suspend the application of this Agreement. The decision to suspend 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 it 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 submit the proposal at least three months before the next meeting of the Joint Implementation Committee. The Committee shall discuss the proposal and, if consensus is reached, make a recommendation. Each Party shall consider the recommendation and, if it agrees, approve it in accordance with its own procedures.

2. Any amendment thus 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 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 shall form an integral part of this Agreement.

Article 28

Duration and extension

This Agreement shall remain in force for a period of six years and shall be extended for consecutive periods of six years unless a Party renounces the extension by notifying the other Party in writing at least one year prior to the expiry of this Agreement.

Article 29

Termination

Notwithstanding Article 28, either Party may terminate this Agreement by notifying the other Party. This Agreement shall cease to apply 12 months after the date of the said notification.

Article 30

Entry into force

1. This Agreement shall enter into force on the first day of the month following that in 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 Office of the CAR’s Prime Minister, who shall be the joint depositaries for this Agreement.

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 version shall prevail.

Съставено в Брюксел на двадесет и осми ноември две хиляди и единадесета година. Hecho en Bruselas, el veintiocho de noviembre de dos mil once. V Bruselu dne dvacátého osmého listopadu dva tisíce jedenáct. Udfærdiget i Bruxelles den otteogtyvende november to tusind og elleve. Geschehen zu Brüssel am achtundzwanzigsten November zweitausendelf. Kahe tuhande üheteistkümnenda aasta novembrikuu kahekümne kaheksandal päeval Brüsselis. Έγινε στις Βρυξέλλες, στις είκοσι οκτώ Νοεμβρίου δύο χιλιάδες έντεκα. Done at Brussels on the twenty-eighth day of November in the year two thousand and eleven. Fait à Bruxelles, le vingt-huit novembre deux mille onze. Fatto a Bruxelles, addì ventotto novembre duemilaundici. Briselē, divi tūkstoši vienpadsmitā gada divdesmit astotajā novembrī. Priimta du tūkstančiai vienuoliktų metų lapkričio dvidešimt aštuntą dieną Briuselyje. Kelt Brüsszelben, a kétezer-tizenegyedik év november havának huszonnyolcadik napján. Magħmul fi Brussell, fit-tmienja u għoxrin jum ta' Novembru tas-sena elfejn u ħdax. Gedaan te Brussel, de achtentwintigste november tweeduizend elf. Sporządzono w Brukseli dnia dwudziestego ósmego listopada roku dwa tysiące jedenastego. Feito em Bruxelas, em vinte e oito de novembro de dois mil e onze. Întocmit la Bruxelles la douăzeci și opt noiembrie două mii unsprezece. V Bruseli dvadsiateho ôsmeho novembra dvetisícjedenásť. V Bruslju, dne osemindvajsetega novembra leta dva tisoč enajst. Tehty Brysselissä kahdentenakymmenentenäkahdeksantena päivänä marraskuuta vuonna kaksituhattayksitoista. Som skedde i Bryssel den tjugoåttonde november tjugohundraelva. 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 Sajungos 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 Централноафриканската република Por la República Centroafricana Za Středoafrickou republiku For Den Centralafrikanske Republik Für die Zentralafrikanische Republik Kesk-Aafrika Vabariigi nimel Για την Κεντροαφρικανική Δημοκρατία For the Central African Republic Pour la République centrafricaine Per la Repubblica centrafricana Centrālāfrikas Republikas vārdā – Centrinės Afrikos Respublikos vardu A Közép-afrikai Köztársaság részéről Għar-Repubblika Ċentru-Afrikana Voor de Centraal-Afrikaanse Republiek W imieniu Republiki Środkowoafrykańskiej Pela República Centro - Africana Pentru Republica Centrafricană Za Stredoafrickú republiku Za Srednjeafriško republiko Keski-Afrikan tasavallan puolesta För Centralafrikanska republiken

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

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

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

(4) A/RES 62/98 of 31 January 2008.

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

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

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

ANNEX I

LIST OF PRODUCTS COVERED BY THE VOLUNTARY PARTNERSHIP AGREEMENT (VPA)

4401 : Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms. 4403 : Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared. 4404 : Hoopwood; Split poles; piles, pickets and stakes of wood, pointed but not sawn lengthwise; wooden sticks, roughly trimmed but not turned, bent or otherwise worked, suitable for the manufacture of walking sticks, umbrellas, tool handles etc.; chipwood and the like. 4406 : Railway or tramway sleepers (cross-ties) of wood. 4407 : Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or finger-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. 4409 : Wood (including strips, friezes for parquet flooring, not assembled, continuously shaped (tongued, grooved, v-jointed, beaded or the like) along any edge or face, planed, sanded or finger-jointed or not. 4410 : Particle board, oriented strand board (OSB) and similar board (for example, waferboard) of wood or other ligneous materials, whether or not agglomerated with resins or other organic binding substances. 4411 : Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other organic substances. 4412 : Plywood, veneered panels and similar laminated wood. 441400 : Wooden frames for paintings, photographs, mirrors or similar objects. 4415 : Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums of wood; pallets, box pallets and other load boards, of wood; pallet collars of wood. 441600 : Casks, barrels, vats, tubs and other coopers’ products and parts thereof, of wood, including staves. 441700 : Tools, tool bodies, tool handles, broom or brush bodies and handles, in wood; boot or shoe lasts and trees, of wood. 4418 : Builders’ joinery and carpentry of wood, including cellular wood panels, assembled flooring panels, shingles and shakes. 441900 : Tableware and kitchenware of wood. 9403 30 : Wooden furniture of a kind used in offices. 9403 40 : Wooden furniture of a kind used in kitchens. 9403 50 : Wooden furniture of a kind used in the bedroom. 9403 60 : Other wooden furniture.

ANNEX II

DEFINITION OF LEGALLY PRODUCED WOOD

Introduction

This definition is given in the form of a ‘legality matrix’ comprising indicators grouped around 10 main themes:

1. The company has a legal existence;

2. Legal access rights to forest resources in its area of operation;

3. Compliance with environmental legislation;

4. Rights of workers, local and indigenous communities;

5. Legislation on forest logging;

6. Processing of forest products;

7. General and forest taxation;

8. The transport and traceability of timber forest products is in accordance with the regulations;

9. Compliance with contractual obligations;

10. Relations with sub-contractors in activities other than timber production.

The different logging concessions in the CAR that are concerned by this definition are the following:

— exploitation and land-use permits (PEAs) that are allocated to companies legally established in the CAR for industrial logging in accordance with a land-use plan;

— logging authorisations for areas of reforestation also known as ‘plantations’.

In addition, the Central African Republic’s Forest Code also establishes other logging concessions:

— artisanal permits, which are permits for an area of 10 ha or less, intended for award to private individuals of CAR nationality or local communities;

— community forests of no more than 5 000 ha, which will need to be covered by a management agreement between the Ministry responsible for forests and an organised village and/or indigenous community.

PEAs, artisanal permits and community forests are allocated in production forests within the State’s permanent forest domain, located in the south-west of the country. Plantations may be situated throughout the whole country.

Since the enactment of the new Forest Code, namely Law No 08.022 of 17 October 2008 on the CAR’s Forest Code, timber exported by the CAR has been primarily from PEAs. To this must be added timber originating under operating licences for old teak plantations.

Given the practical difficulties in implementing and monitoring community forests and artisanal permits, these concessions are not yet operational in the CAR. In 2010, there are no concessions relating to community forests or artisanal permits.

Consequently, the legality matrix used under this Agreement applies only to concessions that are currently operational, namely PEAs and plantations. The legality definition will be completed to take account of community forests and artisanal permits under the conditions given in Annex V, paragraphs 1.2 and 2.1.

The desire to negotiate a VPA along participatory lines entails respect for all those involved in the discussions. Three groups were thus formed, namely the public sector, the private sector and civil society.

In order to best build a gradual understanding of the FLEGT process and best formulate proposals for negotiating it, two different kinds of consultations were held on the matrix, namely, consultation by group and a joint consultation of the three groups together. Consultation by group took place internally within the different actors. The joint consultation enabled a comparison of the positions of each group in order to find a national position to serve as a basis for the team negotiating with the Union.

Given that the legality matrix needs to provide operational support to the process of issuing FLEGT licences, the CAR and the Union agreed on the need to test the applicability and relevance of the draft legality matrix on the ground before implementing it in the context of the VPA. During the negotiations, an international organisation called ‘The Forest Trust’ was therefore appointed by the European Forest Institute (EFI) to conduct field tests involving Central African Republic representatives.

Given that the wood coming from teak plantations is currently exported to the Union market in the form of logs, it was essential to consider these plantation products in the legality matrix. The regulations governing plantations are less developed. This matrix was produced on the basis of existing regulatory texts. Other texts will subsequently be produced to improve the regulations governing plantations. The legality definition will then, consequently, be updated.

Clarification regarding the matrix indicators

Some indicators have no regulatory reference. These indicators are included subject to the publication and content of the necessary references. For this reason, the references that need to be created are given in Annex IX. The regulatory texts that will finally be adopted may entail amendments to the way in which these indicators are currently drafted.

Some indicators apply to all shipments, whatever the origin of the timber. Others apply only to shipments coming from PEAs or shipments coming from permits to log State reforested areas (State plantations) or to shipments coming from authorisations to log in a private domain (community or private plantations). The last column ‘Concessions concerned’ specifies the concession (that a shipment has come from) the indicator in the line applies to: all, PEA, plantations (covering reforested area authorisations, so-called State plantations, and private reforested authorisations for communities and individuals, so-called private plantations).

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

List of laws, principle regulatory texts, regional and international agreements to be considered in forest legality

The texts noted in the context of this matrix are as follows:

— Orders (83.083 of 31.12.83; 84.045 of 27.7.1984);

— Law No 08.022 of 17.10.2008 on the Forest code of the Central African Republic and its different implementing regulations: decrees, orders, decisions and service notes;

— Law No 07.018 of 28.12.2007 on the Environment Code;

— Law No 09.004 on the Labour Code;

— The Law on the Civil Code in the CAR;

— The Law on the General Tax Code (including the law on the Code for Registration of Stamps and Trusteeship);

— Finance Law for each financial year;

— Law No 06.035 of 28.12.2006 on the Social Security Code;

— Law No 99.008 of 19.5.1999;

— CIMA Insurance Code;

— CEMAC Customs Code, implementing regulations for CEMAC’s Customs Code: — Instrument No 1/92-UDEAC-CD-SE1; — Instrument No 1/93-UDEAC-573-CD-SE1; — Instrument No 7/93-UDEAC-556-CD-SE1; — Instrument No 16/96-UDEAC-556-CD-57; — Instrument No 5/89-UDEAC-491.

— The agreements (collective agreements for logging companies in the CAR, International Labour Office Convention C155 of 1981 on workers’ health and safety, final exploitation and land-use agreements, provisional exploitation and land-use agreements);

— Wildlife Protection Code, Order No 84.045 of 27.7.1984;

— Code for Registration of Stamps and Trusteeship;

— Civil Code;

— Decrees: — Decree No 83.550 of 31.12.1983; — Decree No 09.116 of 27.4.2009; — Decree No 09.118 of 28.4.2009; — Decree No 00.068; — Decree No 88.151 of 25.4.1988; — Decree No 90.043 of May 1990 on road transport; — Decree 86.328 of 20.11.1986.

— Ministerial and interministerial orders: — Order No 004/MEFPCI/DFB/CAB/SGS/DGID; — Order No 09.020 of 30.4.2009; — Order No 019 of 5.7.2006 on approving national rules for producing land-use plans (Volume 1); — Order No 09.021 of 30.4.2009; — Order No 005/MFPSSSFP/CAB/DGTEFP of 11.7.2004; — Interministerial Order No 82 of 13.2.2004; — Order 005/Ministry of Rural Development of 9.7.1973; — Order No 09.026 of 28.7.2009 on approving national rules for producing land-use plans (Volume 2); — Interministerial Order No 82 of 13.2.2004;

— Registration Guide

ANNEX III

Conditions governing the release for free circulation into the European Union of timber and derived products exported from a partner country and covered by a FLEGT licence

GENERAL FRAMEWORK

Regulation (EC) No 2173/2005 and Commission Regulation (EC) No 1024/2008 (1) of 17 October 2008 laying down detailed measures for the implementation of Regulation (EC) No 2173/2005, laying down detailed measures for the entry onto the Union market of timber and derived products covered by a FLEGT licence and coming from the CAR. The procedures laid out in these regulations anticipate a possible adaptation to the national requirements of Member States and, in particular, the possibility that the competent authorities responsible for accepting FLEGT licences during entry onto the Union market may be the customs authority or another administration. For this reason, the description of the process anticipates two stages in the verification: (1) documentary control of the licence and (2) a check that the shipment actually complies with the corresponding licence.

This process established in the European Union aims to strengthen the controls put in place by the CAR and verify that the FLEGT licences presented on entry into the Union are indeed those that were duly issued and registered by the CAR’s licensing authority, and that they cover the shipments that the CAR’s authorities intended them to. The competent authorities do not have a mandate to question the CAR’s legality assurance system and the validity of licence award, these issues being considered, as necessary, by the Joint Implementation Committee.

Article 1

Processing licences

1. The FLEGT licence (hereinafter the ‘licence’) shall be submitted to the competent authority of the Member State in which the shipment (2) covered by that licence is declared for release for free circulation (3).

2. Once a licence has been accepted, the competent authorities indicated in paragraph 1 shall inform the customs authorities, in accordance with current national procedures.

Article 2

Documentary control of licences

1. Paper-based licences shall conform to the format set out in Annex IV.

2. A licence submitted on a date past its expiry date shall be considered null and void.

3. The licence may not include any deletions or alterations, unless these have been validated by the licensing authority.

4. The extension of the validity of a licence shall not be accepted unless that extension has been validated by the licensing authority.

5. A duplicate or replacement licence shall not be accepted unless it has been issued and validated by the licensing authority.

Article 3

Request for additional information

1. In case of doubt concerning a FLEGT licence, a duplicate or replacement, the competent authority may request additional information from the licensing authority.

2. A copy of the licence, duplicate or replacement in question may be forwarded together with the request.

Article 4

Physical verification

1. Checks shall be conducted by the competent authorities, as appropriate, to ensure that the shipment actually complies with the corresponding licence.

2. If the competent authorities consider it necessary to further verify the shipment, checks may be carried out to establish whether the shipment in question conforms to the information provided in the licence and to the records relating to the licence in question which are held by the licensing authority.

3. Where the volume or weight of the timber products contained in the shipment presented for release for free circulation does not deviate by more than 10 % from the volume or weight indicated in the corresponding licence, the shipment shall be considered as conforming to the information provided in the licence insofar as volume or weight is concerned.

4. The costs entailed in these checks shall be the responsibility of the importer, unless the national legislation of the Member States in question states otherwise.

Article 5

Prior verification

A licence lodged prior to the arrival of the shipment it accompanies may be accepted if it satisfies all the requirements stated in Annex IV and if it is not considered necessary to undertake additional checks in accordance with Articles 3 and 4 of this Annex.

Article 6

Release for free circulation

1. Reference shall be made, in Box 44 of the Single Administrative Document on which the customs declaration for release for free circulation appears, to the number of the licence covering the timber and derived products subject to this declaration.

Where the customs declaration is made via an electronic procedure, the reference shall be provided in the appropriate box.

2. The timber and derived products shall only be released for free circulation when the procedure described in this Annex has been completed.

(1) OJ L 277, 18.10.2008, p. 23.

(2) Shipment is understood as meaning a quantity of timber or derived products as given in Annexes II and III of Regulation (EC) No 2173/2005, accompanied by a FLEGT licence, that is sent by a consignor or a shipper on departure from a partner country and which is presented for release for free circulation at a customs office in the Union.

(3) Release for free circulation is a customs procedure of the Union. Release for free circulation involves: (1) the collection of any import duties due; (2) the collection, as appropriate, of other charges, according to the relevant provisions in force in this regard; (3) the application of commercial policy measures, and prohibitions and restrictions, if these have not been applied at an earlier stage (in fact, it is within these measures that the presence of a FLEGT licence will be verified); (4) the completion of other formalities laid down in respect of the importation of goods. Release for free circulation confers the customs status of Union goods on a non-Union product.

ANNEX IV

CONDITIONS GOVERNING THE ISSUING OF AND TECHNICAL SPECIFICATIONS FOR FLEGT LICENCES

SECTION 1

FORMALITIES RELATING TO FLEGT LICENCE APPLICATIONS

Article 1

Any timber company from the CAR that would like to export the products of its logging, processing or business activities to the Union is required to have a FLEGT licence for each shipment of timber products and for each destination in the Union. The FLEGT licence is a way of ensuring that timber and derived products have been legally produced.

Article 2

A licence is issued following written request, in hard copy format, sent to the licensing authority. The licence application must enable all the information noted in Appendix I to this Annex to be complete. The licence application must be submitted on a standard template that will be circulated by the forest administration.

Article 3

The licensing authority is a body appointed by the Minister for Forests and under his authority. The body is attached to the Minister’s office but is not a delegated function. It is a full structure in its own right.

The composition and powers of this licensing authority shall be defined by an order from the Minister of Forests, to be issued during the Agreement implementation stage.

Article 4

The application must state in its subject line ‘FLEGT licence application’.

It must include the name of the concession, the number of the concession given on the forest register, the date of the application and the applicant’s signature. The applicant must expressly indicate if he wishes to receive the FLEGT licence in Douala.

For logs, the applicant must also indicate the forest management unit (UFG).

The application must clearly define the nature, origin, volume and destination of the product in question.

This application must be supported by the following customs documentation:

— specification document from the body responsible for securing export revenue (BIVAC);

— commercial export declaration (DEC);

— EUR.1 form;

— customs clearance receipt (exit fees, minimum set tax, fee for equipment in financial computer tools).

The FLEGT licence application form shall be defined during the development of the legality assurance system (LAS) and then communicated by the licensing authority to interested parties, in particular exporters, and published.

Article 5

The application references shall be held in the files of the applicant company and must be the same as those submitted to the office of the licensing authority.

Article 6

Applications submitted by companies shall be recorded by the licensing authority, which shall, in return, send acknowledgement of receipt.

Article 7

Documents submitted by the applicant company (application form correctly filled in and customs documents referred to in Article 4 of this Annex) shall be passed on to the Central Inspectorate for Water and Forests (ICEF), which shall verify the legality of the shipment for which the licensing application has been made and issue an opinion with regard to its compliance. The verification procedures to be followed are described in Annex V. ICEF verification is compulsory.

Article 8

With reference to the ICEF recommendation, the licensing authority then issues:

— when the authorisation is sent to Douala, notification of prior acceptance within a reduced overall timeframe, around two working days from receipt of application, if the shipment in question is verified to be legal, according to the procedure described in Annex V;

— when the authorisation is sent to Bangui, the licence within a reduced overall timeframe, around two working days from receipt of the application, if the shipment in question is verified to be legal, according to the procedure described in Annex V.

The procedure followed in case of non-compliance is set out in Annex V.

The verification results are communicated to the company and filed by the Forestry Data Centre (CDF) along with copies of the licences issued. A record is kept to this effect by the licensing authority.

The formalities for FLEGT licence applications shall be scrutinised during the development of the LAS and then communicated by the licensing authority to interested parties, in particular potential exporters, and published.

SECTION 2

REQUIREMENTS RELATING TO FLEGT LICENCES

Article 9

A FLEGT licence may be in paper or electronic form.

The licence shall provide the information specified in Appendix 1, in accordance with the notes for guidance set out in Appendix 2.

Article 10

The FLEGT licence shall be valid from the day it is issued.

The period of validity of the FLEGT licence shall be six months. The date of expiry shall be indicated on the licence.

After its expiry, the FLEGT licence shall be considered as void. In the case of duly noted ‘force majeure’, a new application shall be made to the FLEGT licensing authority.

In the event that the timber products in question have been destroyed, a FLEGT licence shall cease to be valid and shall be returned to the licensing authority.

Article 11

Licences in paper form shall comply with the format set out in Appendix 1.

Article 12

The paper to be used shall weigh 120 grams/m2.

The paper size shall be 21/29 cm (A4).

The colour of the paper used for the form shall be as follows:

— white for Form No 1, the ‘original’;

— yellow for Form No 2, the ‘copy for the Union customs authority’;

— green for Form No 3, the ‘copy for the Central African Republic’s customs authority’;

— blue for Form No 4, the ‘copy for the licensing authority’.

Article 13

Licences shall be completed in typescript or by computerised means. They shall be signed by hand.

The stamps of the licensing authority shall be applied by means of a metal stamp, preferably made of steel. However, an embossing press combined with letters or figures obtained by means of perforation may be substituted for the licensing authority stamp. The licensing authority shall use any tamper-proof method to record the quantity allocated in such a way as to make it impossible to insert figures or references.

The form may not contain any deletions or alterations, unless they have been authenticated by the stamp and signature of the licensing authority.

Licences shall be printed and completed in French.

Article 14

The licence shall be drawn up in four copies, two of which shall be issued to the applicant.

Once filled in, initialled, signed and dated by the licensing authority:

— the first copy, marked ‘Original’, shall be given to the applicant for submission to the competent authorities of the Union’s Member State in which the shipment covered by that licence is declared for release for free circulation;

— the second copy, marked ‘Copy for the Union customs authority’, shall be given to the applicant for submission to the customs authority of the Member State of the Union in which the shipment covered by the licence is declared for release for free circulation;

— the third copy, marked ‘Copy for the CAR customs authority’, shall be given to the CAR customs authority;

— the fourth copy, marked ‘Copy for the licensing authority’, shall be filed with the CDF by the licensing authority.

SECTION 3

FLEGT LICENCE LOST, STOLEN OR DESTROYED

Article 15

In the event of loss, theft or destruction of the ‘original’ and/or the ‘copy for the Union customs authority’, the licence holder or his authorised representative may apply to the licensing authority for a replacement on the basis of the document(s) in his possession or submitted during the FLEGT licence application.

In the event of loss, theft or destruction of the ‘copy for the CAR customs authority’, the licence holder or his authorised representative may apply to the licensing authority for a replacement.

The licensing authority shall issue the replacement(s) within 24 hours of receipt of the request from the licence holder.

The replacements shall contain all the information and entries appearing on the licence they replace, including the licence number.

The replacement document(s) shall bear the endorsement ‘duplicate’.

If the replacement document is lost, stolen or destroyed, no further replacement documents can be issued.

If the lost or stolen licence is retrieved, it shall be null and void and must be returned to the licensing authority.

SECTION 4

DOUBTS REGARDING THE VALIDITY OF A FLEGT LICENCE

Article 16

Where there is doubt regarding the validity of the licence or a replacement, the competent authorities may ask for additional information from the licensing authority.

If considered necessary, the licensing authority may ask the competent authority to send a copy of the licence or the replacement in question.

If the licensing authority considers it necessary, it shall withdraw the licence and issue a corrected copy bearing the endorsement ‘duplicate’, authenticated with its seal, and forward this to the competent authority.

If the validity of the licence is confirmed, the licensing authority shall notify the competent authority forthwith, preferably by electronic means, and return the copies of the licence. The copies returned shall bear the endorsement ‘Validated on …’, validated/authenticated by stamp.

In the event that the licence in question is not valid, the licensing authority shall notify the competent authority, preferably by electronic means.

ANNEX V

LEGALITY ASSURANCE SYSTEM (LAS)

I. INTRODUCTION

1.1. Background

(a) Presentation of the sector

The CAR covers a total area of 623 000 km2, and comprises different ecosystems, including 54 000 km2 of equatorial forest found in two blocks: the forest mass in the south-west, covering 3 800 000 ha and the forest mass in the south-east, covering 1 600 000 ha. Only the forest mass in the south-west is currently under industrial exploitation.

Eleven logging companies are currently operating there with an average annual production of approx. 600 000 m3 of logs and 200 000 m3 of sawn timber (source: MEFCP statistical yearbook).

The main destinations for the CAR’s timber are: Europe, Asia, America and Africa.

(b) The structures currently responsible for control

The control structures that currently carry out control functions in the different ministerial departments, both at central and decentralised level, are given below.

— The Ministry for Water, Forests, Hunting and Fisheries

At central level: documentary verification is undertaken on a daily basis, whilst field checks are of variable frequency (quarterly or six-monthly):

— the General Directorate for Water, Forests, Hunting and Fisheries (DGEFCP), through two departments: the forest logging and industry department (DEIF) and the forest inventory and land-use department (DIAF);

— the Central Inspectorate for Water and Forests (ICEF);

— the Forestry Data Centre (CDF);

— the mobile intervention and verification brigade (BMIV), made up of the following ministerial elements: — Ministry for Water, Forests, Hunting and Fisheries — Ministry of Finances — Ministry of National Defence (police);

— the Department for Legal Affairs and Litigation (DAJC).

At decentralised level: the frequency of decentralised controls is not as regulated. Checks may be quarterly or six-monthly. Border post controls are undertaken on a daily basis, however, every time a loaded lorry passes:

— the General Directorate for Regional Services, through the regional water and forests departments, the prefectural-level inspectorates and the border inspectorates;

— the Ministry for the Environment and Ecology: — the General Directorate for the Environment; — the Central Inspectorate for the Environment and Ecology;

— the Ministry of Finances and Budgets: — General Inspectorate of Finances; — General Directorate for Customs; — General Directorate for Taxes;

— the Ministry of Trade and Industry: — Central Inspectorate for Trade; — General Directorate for Trade and Competition; — decentralised department of the Ministry of Trade through the ‘One Stop Shop’ (guichet unique);

— the Ministry of the Civil Service, Social Security and Youth Employment: — Central Inspectorate for Labour; — Labour inspection unit of the administrative district; — Department for recovery and litigation within the National Social Security Office (CNSS); — General Directorate of ACFPE;

— the Ministry of Agriculture and Rural Development;

— the Ministry of Justice: — judicial inspection unit; — President of the Trade Court; — Clerk to the Trade Court;

— the Ministry for the Civil Service and Regional Administration: — traffic police.

(c) Identifying areas for improvement

Implementation of the LAS requires improvements in the following areas:

— Legal framework: several regulatory texts, above all laws on different codes (Environment Code, December 2007; Forest Code, 2008) exist in the CAR to improve its forest sector governance. Nonetheless, analysis and preparation work for the Agreement has shown that the CAR’s forestry regulations need further additions.

— Institutional framework: The Ministry for Water and Forests, which is primarily responsible for management, suffers from a number of problems in terms of implementing its policies efficiently. These difficulties explain the irregularity of the controls: — human resources are currently insufficient and lacking in qualifications; — material resources: a lack of appropriate equipment for verification work, logistical needs in terms of data gathering, processing and management, and the working environment; — financial resources: the CAR is experiencing financial difficulties due to the enormous needs. The CAS-DF, which is one of the sector’s financial support mechanisms, is useful but insufficient to cover these needs and respond to the challenges of forest governance. Moreover, it is sometimes called on to respond to unplanned needs outside of the forest sector.

Independent monitoring

Civil society is organised in a platform but skills and resources are currently limited and prevent it from undertaking independent monitoring.

Independent audit

The CAR does not currently have an external audit system or one that would cast an ‘independent’ eye over its forest system.

Annex IX proposes, in particular, additional measures to remedy a number of these observations.

1.2. Coverage of the LAS

The products covered by the LAS are given in Annex I.

The LAS applies to all current sources of timber and derived products open to export. In 2010, this relates to:

— exploitation and land-use permits (PEAs);

— plantations (also known as ‘reforestation areas’).

Timber in transit and imported timber are covered by the LAS. Imported timber is also used for timber and derived products exported to markets outside of the Union.

In contrast, the LAS does not apply to timber from:

— community forests; or

— artisanal logging permits.

In fact, to date, and although these provisions are anticipated in the Forestry Code, there are not yet any community forests or artisanal logging permits in the CAR. These sources are therefore not considered in the LAS. Timber and derived products could soon be coming from community forests or artisanal logging permits, however, and could be exported to the Union in the future. They will then be taken into account in the LAS.

The domestic consumer market for timber is not covered by the LAS described in this Agreement. Local activities that supply national consumption of timber and derived products are properly monitored, according to provisions external to this Agreement. The LAS described in this Agreement guarantees that exported products do not include products coming from the domestic market.

2. DEFINITION OF LEGALITY AND VERIFICATION OF THE LEGALITY OF TIMBER

2.1. Legality matrices

The CAR has legislation (Forestry Code, Environment Code, CEMAC Customs Code, General Tax Code, Labour Code and social laws, etc.) and impl