Proposal for a COUNCIL DECISION on the conclusion of the Voluntary Partnership Agreement between the European Union and the Republic of Liberia on forest law enforcement, governance and trade in timber products to the European Union
Date: 2011-06-17
Institutions: European Commission
Subjects: Liberia, forestry holding, import (EU), import licence, trade agreement (EU), wood product

EUROPEAN COMMISSION 

Brussels, 17.6.2011 
COM(2011) 371 final 

2011/0160 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Voluntary Partnership Agreement between the European Union 
and the Republic of Liberia on forest law enforcement, governance and trade in timber 
products to the European Union  

 
 
  
 
EXPLANATORY MEMORANDUM 

The Action Plan on Forest Law Enforcement, Governance and Trade (FLEGT)1, endorsed by 
the  Council  in  20032,  proposes  a  set  of  measures,  including  support  for  timber-producing 
countries, multilateral collaboration to tackle trade in illegal timber, support for private-sector 
initiatives, and measures to discourage investment in activities that encourage illegal logging. 
The cornerstone of the Action Plan is the establishment of FLEGT partnerships between the 
EU  and  timber-producing  countries  aimed  at  stopping  illegal  logging.  In  2005  the  Council 
adopted Regulation (EC) No 2173/20053 establishing a licensing scheme and a mechanism to 
verify the legality of timber imports into the EU. 

In  December  2005  the  Council  authorised  the  Commission  to  negotiate  partnership 
agreements  with  timber-producing  countries  in  order  to  implement  the  Action  Plan  and,  in 
particular,  to  encourage  trade  in  verified  legal  timber  imports  into  the  EU  from  partner 
countries4.  The  Agreement  with  Liberia  is  the  sixth  such  agreement  to  be  negotiated, 
following  the  agreements  with  Ghana,  Congo, Cameroon,  the  Central  African  Republic  and 
Indonesia. 

The  Commission  entered  into  negotiations  with  Liberia  in  March  2009.  Negotiations 
proceeded over two years and involved six face-to-face negotiating sessions and 14 technical 
discussions  by  video  conference,  plus  technical  working  level  meetings.  Throughout  the 
negotiations the Commission was assisted by Member States, notably the UK which, in this 
instance, provided resources to facilitate the process. The Commission has kept the Council 
updated  on  progress,  with  reports  to  the  Working  Party  on  Forests  and  to  EU  Heads  of 
Mission and representatives in Liberia. After each negotiating session, the parties held public 
meetings  to  keep  stakeholders  informed  of  progress.  In  addition,  Liberia  adopted  a  highly 
participatory  approach  by  involving  civil  society,  community  representatives,  the  private 
sector and a representative of the Liberian legislature in drafting the Agreement. 

The Agreement addresses all elements of the Council negotiating directives. In particular, it 
establishes  the  framework,  institutions  and  systems  of  the  FLEGT  licensing  scheme.  It  sets 
out  the  supply  chain  controls,  the  framework  for  monitoring  legal  compliance  and 
independent  audit  requirements  for  the  system.  These  components  are  set  out  in  annexes  to 
the  Agreement  which  provide  a  detailed  description  of  the  structures  that  will  underpin  the 
assurance of legality afforded by a FLEGT licence.  

The  Voluntary  Partnership  Agreement  (VPA)  focuses  on  governance  and  law  enforcement 
and, by means of the licensing system, provides the assurance that Liberia’s timber is legally 
produced. It exemplifies Liberia’s commitment to improving accountability and transparency. 
As  a  legacy  of  past  malpractice,  Liberian  timber  does  not  have  a  good  reputation  on 
international  markets.  The  FLEGT  licence  will  reassure  international  markets  that  Liberian 
timber products are from verified legal sources. 

The VPA will support on-going regulatory reforms that will strengthen the legal framework, 
in order to promote sustainable management of forests and to strengthen the involvement of 

1 
2 
3 
4 

COM(2003) 251. 
OJ C 268, 7.11.2003, p. 1. 
OJ L 347, 30.12.2005, p. 1. 
Restricted Council document 15102/05. 

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local  communities  in  decision-making  processes.  The  Agreement  clearly  indicates  the  areas 
where reforms are needed and sets out a time frame for these. 

Liberia  has  developed  a  comprehensive  framework  for  monitoring  legal  compliance  for  all 
types of title holdings, whether trees from community forests, large concessions or privately 
owned trees on farms, and embracing all aspects of timber production, including allocation of 
harvesting rights, application of forest management and environmental standards, sharing of 
benefits,  workers’  rights  and  taxes.  Compliance  will  be  monitored  by  the  new  legality 
assurance  system,  which  builds  on  and  expands  an  existing  chain  of  custody  system.  In 
addition,  Liberia  will  work  with  an  independent  auditor,  who  will  provide  regular,  public 
reports  on  the  effectiveness  of  the  system.  Civil  society  will  monitor  the  VPA  as  a  whole, 
sharing  findings  with  the  government,  national  stakeholders  and  the  Joint  Implementation 
Committee responsible for oversight. 

The  Agreement  goes  beyond  the  limited  product  coverage  proposed  in  Annex  II  to 
Regulation (EC) No 2173/2005 on the FLEGT scheme: it covers all exported timber products, 
including wood chips, a common by-product of commercial agriculture concessions. Liberia 
is  committed  to  establishing  a  system  that  will  provide  assurance  to  the  EU  that  all  timber 
products from Liberia are legally produced and so contribute positively to Liberia’s growth. 

The Agreement makes provision for import controls at the EU’s borders, as provided for in 
Regulation  (EC)  No 2173/2005  on  the  FLEGT  scheme  and  Regulation  (EC)  No 1024/2008 
laying down detailed measures for its implementation. The Agreement includes a description 
of  Liberia’s  FLEGT  licence,  which  uses  the  format  prescribed  in  the  above-mentioned 
Implementing Regulation. FLEGT licenses will also be issued for timber exports destined to 
other  international  markets  and  an  EU-specific  numbering  system  will  be  introduced  to 
distinguish readily timber exports destined for the EU. 

The  Agreement  establishes  a  mechanism  for  dialogue  and  cooperation  with  the  EU  on  the 
FLEGT  scheme,  via  the  Joint  Implementation  Committee.  It  also  establishes  principles  of 
stakeholder participation, social safeguards, accountability and transparency, and monitoring 
of and reporting on implementation of the Agreement. 

The Agreement sets out a time frame and the procedures for entry into force of the Agreement 
and  for  applying  the  licensing  scheme.  Since  Liberia  will  further  revise  and  complete  its 
regulations  governing  the  sector,  strengthen  its  regulatory  and  information  management 
system, upgrade supply chain controls to cover processing facilities and establish independent 
verification of legal compliance, it will take several years to develop and test the new systems 
and to build capacity on the part of the government, civil society and the private sector for the 
tasks  envisaged.  The  FLEGT  licensing  scheme  is  expected  to  be  fully  operational  by  2014. 
The licensing scheme will be assessed against the criteria laid down in the Agreement before 
the EU begins accepting FLEGT licences.  

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2011/0160 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Voluntary Partnership Agreement between the European Union 
and the Republic of Liberia on forest law enforcement, governance and trade in timber 
products to the European Union  

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 
218(7), thereof, 

Having regard to the proposal from the European Commission, 

Having regard to the consent of the European Parliament5, 

Whereas: 

(1) 

(2) 

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’6  which  called  for  measures  to 
address illegal logging by developing voluntary partnership Agreements with timber-
producing countries. Council conclusions on that Action Plan were adopted in October 
20037 and Parliament adopted a resolution on the subject on 11 July 20058. 

In  accordance  with  Council  Decision  No  2011/EU  XXX  of  […]9,  the  Voluntary 
Partnership  Agreement  between  the  European  Union  and  the  Republic  of  Liberia  on 
forest  law  enforcement,  governance  and  trade  in  timber  products  to  the  European 
Union (hereinafter referred to as ‘the Agreement’) was signed on […]10, subject to its 
conclusion. 

(3) 

The Agreement should be concluded, 

5 
6 
7 
8 
9 
10 

OJ C […], […], p. […]. 
COM(2003) 251. 
OJ C 268, 7.11.2003, p. 1. 
OJ C 157E, 6.7.2006, p. 482. 
OJ L [...], […], p. […]; please insert the umber, date and publication reference for the doc 
OJ: please insert date of signature 

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HAS ADOPTED THIS DECISION: 

Article 1 

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

The text of the Agreement is attached to this Decision. 

Article 2 

The  President  of  the  Council  shall  designate  the  person(s)  empowered  to  give,  on  behalf  of 
the Union the notification provided for in Article 30 of the Agreement, in order to express the 
consent of the Union to be bound by the Agreement. 

Article 3 

Representatives  of  the  Commission  shall  represent  the  Union  in  the  Joint  Implementation 
Committee set up in accordance with Article 19 of the Agreement.  

The  Member  States  may  participate  in  meetings  of  the  Joint  Implementation  Committee  as 
members of the 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 Regulation (EC) No 2173/2005, to approve any such amendments on behalf 
of the Union. 

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

Article 5 

Article 6 

This Decision shall be published in the Official Journal of the European Union.  

Done at Brussels, […] 

For the Council 
The President 
[…] 

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VOLUNTARY PARTNERSHIP AGREEMENT BETWEEN THE EUROPEAN UNION  
AND THE REPUBLIC OF LIBERIA ON FOREST LAW ENFORCEMENT, 
GOVERNANCE AND TRADE IN TIMBER PRODUCTS TO THE EUROPEAN UNION 

THE EUROPEAN UNION 

hereinafter referred to as ‘the Union’ 

and 

THE REPUBLIC OF LIBERIA, 

hereinafter referred to as ‘Liberia’, 

hereinafter referred to together as ‘the Parties’, 

CONSIDERING the close working  relationship between  the  Union  and  Liberia,  particularly  in 
the  context  of  the  Partnership  Agreement  between  the  members  of  the  African,  Caribbean  and 
Pacific Group of States, of the one part, and the European Community and its Member States, of 
the  other  part,  signed  in  Cotonou  (Benin)  on  23  June  200011,  hereinafter  referred  to  as  ‘the 
Cotonou Agreement’; 

CONSIDERING the Communication from the Commission to the Council and to the European 
Parliament  on  an  EU  Action  Plan  for  Forest  Law  Enforcement,  Governance  and  Trade 
(FLEGT)12  as  a  first  step  towards  tackling  the  urgent  issue  of  illegal  logging  and  associated 
trade; 

HAVING REGARD to the importance of principles set out in the 1992 Rio Declaration in the 
context of securing sustainable forest management and, in particular, of Principle 10 concerning 
the importance of public awareness and participation in environmental issues and of Principle 22 
concerning  the  vital  role  of  indigenous  people  and  other  local  communities  in  environmental 
management and development; 

CONSIDERING  the  1992  Non-Legally  Binding  Authoritative  Statement  of  Principles  for  a 
Global Consensus on the management, conservation and sustainable development 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 forest13; 

HAVING  REGARD  to  the  Convention  on  International  Trade  in  Endangered  Species  of  Wild 
Flora and Fauna (CITES) and, in particular, the requirement that CITES export permits issued by 
the Parties to CITES for specimens of species listed in Annexes I, II or III be granted only under 

11 
12 
13 

OJ L 317, 15.12.2000. 
COM(2003) 251 final, 21.5.2003. 
A/RES 62/98 of 31 January 2008. 

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certain conditions, including that such specimens were not obtained in breach of the laws of that 
State for the protection of fauna and flora; 

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

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

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 
Community14; 

CONSIDERING the framework established by Liberia’s National Forestry Reform Law15 which 
balances the competing commercial, community and conservation priorities in use, management 
and protection of forest resources, thereby promoting effective present use of forest resources for 
economic  development  while,  at  the  same  time  ensuring  that  forest  resources  will  be  available 
for the benefit of future generations; 

ACKNOWLEDGING further Liberia’s recognition of the importance of public participation and 
transparency  in  sustainable  forest  use  and  governance,  including  allocating  forest  licenses, 
promoting  environmentally  sound  operations  and  monitoring  compliance  with  fiscal  and  other 
regulatory requirements; 

RECOGNISING that Liberia’s legality assurance system is designed to ensure the legality of all 
timber products exported from Liberia to any part of the world and with a view to applying and 
or extending the legality requirement to all timber products used on the domestic market; 

CONSIDERING the efforts made by Liberia to promote sustainable management of forests and 
wildlife  throughout  its  entire  national  territory  and,  in  particular,  to  ensure  the  legality  of  all 
timber flows; 

RECOGNISING  further  the  contribution  that  implementing  a  FLEGT  voluntary  partnership 
agreement will make to combating climate change, in line with efforts to reduce emissions from 
deforestation  and  forest  degradation  (REDD+)  by  fostering  forest  law  enforcement  and 
governance; 

CONSIDERING the importance attached by the Parties to the participation of civil society, the 
private  sector and  the resident local population in the success of forest  governance policies, in 
particular through consultations and public information, 

14 
15 

OJ L 347, 30.12.2005. 
National Forestry Reform Law of 2006 (NFRL). 

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HEREBY AGREE AS FOLLOWS: 

Article 1 

Objective 

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

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

Article 2 

Definitions 

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

(a) 

(b) 

(c) 

(d) 

(e) 

‘import into the Union’ means the release for free circulation into the Union within the 
meaning  of  Article  79  of  Council  Regulation  (EEC)  No 2913/92  of  12  October  1992 
establishing  the  Community  Customs  Code16  of  timber  products  which  cannot  be 
classified  as  ‘goods  of  a  non-commercial  nature’  as  defined  in  Article 1(6)  of 
Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for 
the  implementation  of  Council  Regulation  (EEC)  No 2913/92  establishing  the 
Community Customs Code17; 

‘export’  means  the physical leaving or taking out of timber products from any part of 
the  geographical  territory  of  Liberia,  except  for  timber  products  in  transit  through 
Liberia; 

‘timber  in  transit’  means  any  timber  products  originating  from  a  third  country,  which 
enter the territory of Liberia under customs control and leave it in the same form whilst 
retaining their country of origin; 

‘timber products’ means the products listed in Annex I; 

‘HS  code’  means  a  four  or  six-digit  code,  as  set  out  in  the  Harmonised  Commodity 
Description  and  Coding  System  established  by  the  International  Convention  on  the 

16 
17 

OJ L 302, 19.10.1992. 
OJ L 253, 11.10.1993. 

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(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

(l) 

1. 

Harmonised  Commodity  Description  and  Coding  System  of  the  World  Customs 
Organisation; 

‘FLEGT  license’  means  a  document  which  confirms  that  a  shipment  has  been  legally 
sourced  and  verified  in  accordance  with  the  criteria  laid  down  in  this  Agreement.  A 
FLEGT license may be in paper or electronic form; 

‘licensing  authority’  means  the  authority  designated  by  Liberia  to  issue  and  validate 
FLEGT licenses; 

‘competent  authorities’  means  the  authorities  designated  by  the  Member  States  of  the 
Union to receive, accept and verify FLEGT licenses; 

‘shipment’ means a quantity of timber products covered by a FLEGT license that is sent 
by a consignor or a shipper from Liberia and is presented for release for free circulation 
at a customs office in the Union; 

‘legally  produced  timber’  means  timber  products  acquired,  produced  and  marketed  by 
processes  that  comply  with  all  the  statutory  and  regulatory  provisions  in  force  in 
Liberia, as set out in Annex II; 

‘release  for  free  circulation’  means  a  Union  customs  procedure  which  confers  the 
customs status of Union goods on goods which are not from the Union (with reference 
to Regulation (EEC) No 2913/92), entailing the collection of any import duties due; the 
collection,  as  appropriate,  of  other  charges;  the  application  of  commercial  policy 
measures and prohibitions and restrictions; and the completion of other formalities laid 
down in respect of the importation of goods; 

‘European Commission’ means the institution of the Union referred to in Articles 13(1) 
and 17 of the Treaty on European Union which, among other tasks, ensures the Union’s 
external  representation  and  exercises  coordinating,  executive  and  management 
functions. 

Article 3 

FLEGT licensing scheme 

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.  It  establishes  a  set  of  procedures  and  requirements  aiming  at 
verifying  and  attesting,  by  means  of  FLEGT  licenses,  that  timber  products  shipped  to 
the  Union  were  legally  produced  or  acquired.  In accordance  with  Council  Regulation 
(EC)  No 2173/2005  and  this  Agreement,  the  Union  shall  accept  such  shipments  from 
Liberia for import into the Union only if they are covered by FLEGT licenses. 

2. 

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

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Article 4 

Licensing authority 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

4. 

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

The licensing authority shall verify that timber products have been legally produced in 
accordance with legislation listed in Annex II. In accordance with the terms set out in 
Annex  II,  it  shall  issue  FLEGT  licenses  covering  shipments  of  legally  produced  or 
acquired timber for export to the Union. 

The licensing authority shall not issue FLEGT licenses for any timber products that are 
composed  of,  or  include,  timber  products  imported  into  Liberia  from  a  third  country 
unless  it  has  been  proven  that  the  timber  product  has  been  produced  and  exported  in 
accordance with the laws of the third country concerned and has complied with Annex 
II  to  this  Agreement  and  with  any  regulations  governing  the  importation  of  timber 
products into Liberia. 

The  licensing  authority  shall  establish  and  make  publicly  available  its  procedures  for 
issuing FLEGT licenses. It shall also keep records of all shipments covered by FLEGT 
licenses and, in line with the national legislation concerning data protection, shall make 
these records available for the purposes of independent monitoring, while respecting the 
confidentiality of exporters’ proprietary information. 

Article 5 

Competent authorities of the Union  

The European Commission shall inform Liberia of the contact details of the competent 
authorities designated by the Member States of the Union. Both Parties shall make this 
information available to the public. 

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

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

In accordance with the national legislation on data protection, the competent authorities 
shall  grant  persons  or  bodies  designated  by  Liberia  as  independent  auditor,  access  to 
relevant documents and data. 

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5. 

1. 

2. 

3. 

4. 

However,  when  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) and covered by a FLEGT license enter the Union, they shall undergo only the 
examination 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  therein18,  as  the 
FLEGT  license  also  attests  that  the  timber  in  question  has  been  legally  produced  or 
acquired. 

Article 6 

FLEGT licenses 

FLEGT licenses shall be issued by the licensing authority as a means of attesting that 
timber products have been legally produced or acquired. 

FLEGT licenses shall be made out and completed in English. 

The  Parties  may,  by  agreement,  establish  electronic  systems  for  issuing,  transmitting 
and receiving FLEGT licenses. 

The procedure for issuing FLEGT licenses and the technical specifications are set out in 
Annex IV. 

Article 7 

Definition of legally produced timber  

For the purposes of this Agreement, a definition of ‘legally produced timber’ is set out in Article 
2  and  in  Annex II.  The  definition  sets  out  Liberia’s  national  legislation  and  accompanying 
regulations  that  must  be  complied  with  before  timber  products  may  be  covered  by  a  FLEGT 
licenses. Annex II also includes ‘legality matrices’ along with ‘legality indicators’ and ‘legality 
verifiers’  and  detailed  verification  procedures  to  be  followed  to  determine  compliance  with 
Liberian law. 

Article 8 

Verification of legally produced timber 

1. 

Liberia  shall  establish  a  system  to  verify  that  timber  has  been  produced  or  acquired 
legally  and  to  ensure  that  only  shipments  verified  as  such  are  exported  to  the  Union. 
This system for verifying legality shall include compliance checks in  order to provide 
assurance  that  the  timber  and  derived  products  intended  for  export  to  the  Union  have 

18 

OJ EC L 61, 3.3.1997, p. 1. 

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been  legally  produced  or  acquired  and  that  FLEGT  licenses  have  not  been  issued  for 
shipments  of  timber  that  have  not  been  legally  produced  or  acquired,  or  that  are  of 
unknown  origin.  The  system  shall  also  include  procedures  to  ensure  that  timber  of 
illegal or unknown origin does not enter the supply chain.  

2. 

The system for verifying that shipments of timber products have been legally produced 
is described in Annex II.  

1. 

2. 

1. 

Article 9  

Application of the FLEGT licensing scheme to timber products not exported to the Union 

Liberia shall endeavour to verify the legality of timber exported to non-Union markets, 
of timber sold on its domestic markets and of imported timber using, where possible, the 
legality verification systems developed for implementation of this Agreement. 

To  support  such  endeavours,  the  Union,  in  dialogue  with  interested  parties,  shall 
encourage use of the systems developed to implement this Agreement for trade in other 
international markets and with third countries. 

Article 10 

Consultations on validity of licenses 

Where doubts about the validity of any license arise, the competent authority concerned 
may promptly request the licensing authority for additional information and seek further 
clarification.  If  no  answer  is  received  from  the  licensing  authority  within  21  calendar 
days  of  the  date  of  receipt  of  the  request  for  additional  information,  the  competent 
authority  shall  act  in  accordance  with  its  applicable  national  legislation  and  shall  not 
accept the license. If, after provision of additional information and further investigation, 
it is established that information on the license does not correspond to the shipment, the 
competent  authority  shall  act  in  accordance  with  the  national  legislation  in  force  and 
shall  not  accept  the  license.  The  licensing  authority  must  be  promptly  informed  in 
writing  of  each  non-acceptance  of  a  FLEGT  license  along  with  the  reason  for  non-
acceptance. 

2. 

Where  persistent  disagreements  or  difficulties  arise  in  relation  to  consultations 
concerning  FLEGT  licenses,  the  matter  may  be  referred  to  the  Joint  Implementation 
Committee. 

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Article 11 

Independent auditor 

1. 

2. 

3. 

4. 

5. 

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

Liberia shall engage the services of an independent auditor, after consulting the Union. 

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

The  independent  auditor  shall  submit  its  observations  to  the  Parties  in  reports  in 
accordance  with  the  procedure  described  in  Annex  V.  Reports  of  the  independent 
auditor shall be published in accordance with the procedure set out in Annex V. 

The  Parties  shall  facilitate  the  work  of  the  independent  auditor,  including  by  ensuring 
that the latter has access on the territory of each Party to the information necessary for 
the  performance  of  its  functions.  However,  a  Party  may,  in  accordance  with  its 
legislation  on  data  protection,  withhold  any  information  that  it  is  not  allowed  to 
disclose.  

Article 12 

Irregularities 

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

(a) 

circumvention of trade, including re-direction of trade from Liberia to the Union 
via  a  third  country,  where  there  is  reason  to  believe  that  this  is  done  with  the 
intention of avoiding licensing; 

(b)  FLEGT  licenses  covering  timber  products  that  include  imports  from  suspect 

sources in third countries; or 

(c) 

fraud in obtaining or using FLEGT licenses. 

Article 13 

Date of operation of the FLEGT licensing scheme 

1. 

The  Parties  shall  agree  on  a  date  from  which  the  FLEGT  licensing  scheme  shall  be 
operational. 

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2. 

1. 

2. 

1. 

2. 

3. 

4. 

5. 

6. 

The  launch  of  the  issue  of  FLEGT  licenses  shall  be  preceded  by  a  joint  technical 
evaluation, the objectives and criteria of which are set out in Annex VI. The evaluation 
shall  determine  that  the  legality  assurance  underpinning  the  FLEGT  licensing  scheme 
adequately fulfils its functions and that the systems in the European Union for receiving, 
verifying and accepting FLEGT licenses are in place. 

Article 14 

Schedule for implementation of the Agreement 

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

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

Article 15 

Supporting measures 

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

The provision of such resources shall be subject to the normal procedures of the Union 
and  its  Member  States  for  programming  assistance  to  Liberia  and  to  the  budgetary 
procedures of Liberia itself.  

The Parties shall consider 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.  

Liberia shall ensure that capacity-building to implement this Agreement is included in 
its national planning instruments, such as poverty reduction strategies and budgets.  

The  Parties  shall  ensure  that  activities  associated  with  implementation  of  this 
Agreement  are  coordinated  with  relevant  existing  and  future  development  initiatives 
such as, among others, those supporting action to reduce emissions from deforestation 
and degradation (REDD+).  

The  provision  of  additional  resources  shall  be  subject  to  the  procedures  governing 
European Union aid, as set out in the Cotonou Agreement, and to those governing the 
bilateral aid given to Liberia by Member States of the European Union.  

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Article 16 

Stakeholder involvement in implementation of the Agreement 

Pursuant  to  the  National  Forestry  Reform  Law  of  Liberia  related  to  participatory 
management  of  forest  resources,  Liberia  shall  ensure  that  the  implementation  and 
monitoring  of  this  Agreement  are  done  in  consultation  with  relevant  stakeholders, 
including  industry,  civil  society,  local  communities  and  other  people  dependent  on 
forests.  Stakeholders  shall  participate  via  existing  forest  governance  structures  and  by 
membership of a national body to be established pursuant to paragraph 2 of this Article. 

Liberia  shall  establish  a  national  committee  to  monitor  implementation  of  this 
Agreement,  made  up  of  representatives  of  relevant  Government  agencies  and  other 
relevant stakeholders.  

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

Article 17 

Social safeguards 

In order to minimise any possible adverse impact of this Agreement, the Parties agree to 
develop  a  better  understanding  of  the  livelihoods  of  potentially  affected  persons  and 
local communities, including those engaged in illegal logging. 

The Parties shall monitor the impact of this Agreement on the communities referred to 
in  paragraph  1,  while  taking  reasonable  steps  to  mitigate  any  adverse  impact.  The 
Parties may agree on additional measures to address any adverse impact. 

1. 

2. 

3. 

1. 

2. 

Article 18 

Market-related incentives 

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

(a) 

encouragement of public and private procurement policies that recognise efforts to 
ensure a supply of legally produced timber products; and 

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

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Article 19 

Joint Implementation Committee 

1. 

2. 

3. 

4. 

5. 

The Parties shall establish a Joint Implementation Committee (hereinafter referred to as 
‘the  JIC’)  to  facilitate  monitoring  and  review  of  this  Agreement.  The  JIC  shall  also 
facilitate dialogue and exchanges of information between the Parties.  

Each Party shall nominate its representatives on the JIC which shall take its decisions by 
consensus. The JIC shall be co-chaired by two of its members, one from the Union and 
the other from Liberia. 

The  JIC  shall  consider  any  matter  relating  to  effective  implementation  of  this 
Agreement. In particular, the JIC shall: 

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

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

(c) 

establish its own rules of procedure; 

(d) 

establish a co-chair arrangement for presiding over its meetings; 

(e) 

(f) 

ensure  that  its  work  is  transparent  and  that  information  about  its  work  and 
decisions is made available to the public;  

if  necessary,  establish  working  groups  or  other  subsidiary  bodies  for  areas 
requiring specific expertise; 

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

IX. 

The specific functions of the JIC are described in Annex X. 

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

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Article 20 

Communication on implementation of the Agreement 

1. 

The  representatives  of  the  Parties  responsible  for  official  communications  concerning 
implementation of this Agreement shall be: 

For Liberia: 

For the European Union: 

The Minister of Agriculture 

The Head of the Delegation of the Union 
in Liberia 

2. 

The  Parties  shall  communicate  to  each  other  in  a  timely  manner  the  information 
necessary for implementing this Agreement. 

1. 

2. 

3. 

1. 

Article 21 

Reporting and public disclosure of information 

The  publication  of  information  is  essential  to  improve  governance  and  therefore 
provision of information to stakeholders shall be central for the VPA. Information shall 
be regularly published to facilitate implementation and monitoring of systems, increase 
transparency,  and  thus  improve  stakeholder  and  consumer  confidence  as  well  as  to 
ensure greater accountability of the Parties. Details of the information to be published 
are set out in Annex IX. 

Each Party shall determine the most appropriate mechanism for publishing information. 
In particular, the Parties shall endeavour to provide stakeholders in the forest sector with 
reliable and up-to-date information.  

The  terms  of  reference  and  procedures  guiding  the  functioning  of  the  JIC  shall  be 
published. 

Article 22 

Confidential information 

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  involved  in  implementation  of  this  Agreement  to  disclose, 
trade secrets or confidential commercial information exchanged under this Agreement. 

2. 

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

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(a) 

the  number  and  type  of  FLEGT  licenses  issued  by  Liberia  and  received  by  the 
Union and the volume of timber products exported from Liberia and received by 
the Union under such licenses; 

(b) 

the names and addresses of relevant license-holders and importers; 

(c) 

the amounts of fees and taxes paid by any exporter; 

(d)  monetary  fines  imposed  or  regulatory  action  taken  against  any  contractor  or 

license-holder. 

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 Liberia, on the other. 

Article 24 

Settlement of disputes 

1. 

2. 

3. 

4. 

5. 

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

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

In the event that the JIC is unable to settle the dispute within two months, the Parties 
may  jointly  seek  the  good  offices  of,  or  request  mediation  by,  an  independent  third 
party. 

In the event of it not being possible to settle the dispute in accordance with paragraph 3, 
either  Party  may  notify  the  other  of  the  appointment  of  an  arbitrator;  the  other  Party 
must then appoint a second arbitrator within 30 calendar days of the appointment of the 
first arbitrator. The Parties shall jointly appoint a third arbitrator within two months of 
the appointment of the second arbitrator.  

The  arbitrators’  decisions  shall  be  taken  by  majority  vote  within  six  months  of  the 
third arbitrator being appointed. 

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6. 

7. 

1. 

2. 

3. 

1. 

2. 

3. 

4. 

The award shall be binding on the Parties and shall be without appeal. 

The JIC shall establish the working procedures for arbitration. 

Article 25 

Suspension 

Either Party may suspend application of this Agreement in the event that the other Party 
(a)  fails  to  fulfil  its  obligations  as  specified  under  this  Agreement,  or  (b)  fails  to 
maintain the regulatory and administrative measures and means required to implement 
this  Agreement,  or  (c)  acts  or  fails  to  act  in  a  way  that  poses  significant  risks  to  the 
environment, health, safety or security of the people of either the Union or Liberia. The 
decision  on  suspension  and  the  reasons  for  that  decision  shall  be  notified  to  the  other 
Party in writing.  

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

Application  of  this  Agreement  shall  resume  30  calendar  days  after  the  Party  that  has 
suspended its application informs the other Party that the reasons for the suspension no 
longer apply and the Parties jointly agree to resumption of this Agreement. 

Article 26 

Amendments 

Either  Party  wishing  to  amend  this  Agreement  shall  put  the  proposal  forward  at  least 
three months before the next meeting of the JIC. The JIC shall discuss the proposal and, 
if a consensus is reached, shall make a recommendation. Each Party shall consider the 
recommendation  and,  subject  to  its  agreement,  shall  approve  it  in  accordance  with  its 
own internal procedures. 

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

The JIC may adopt amendments to the Annexes to this Agreement. 

Notification of any amendment shall be sent to the depositaries of this Agreement and 
shall enter into force at the time and in the form laid down in paragraph 2 of this Article. 

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Article 27 

Annexes 

The Annexes to this Agreement shall form an integral part thereof and shall be enforceable. 

Article 28 

Duration  

With effect from its entry into force, this Agreement shall remain valid indefinitely.  

Article 29 

Termination of the Agreement 

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

Article 30 

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, the English text shall prevail. 

Article 31 

Entry into force 

1. 

2. 

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

Notification  shall  be  sent  to  the  General  Secretariat  of  the  Council  of  the  European 
Union  and  to  the  Liberian  Ministry  of  Foreign  Affairs,  which  shall  be  the  joint 
depositaries for this Agreement. 

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List of Annexes 

Annex I 

List of products subject to FLEGT licensing 

Annex II 

Legality assurance system of Liberia  

Annex III 

Conditions  governing  the  release  for  free  circulation  in  the  Union  of 
timber products exported from Liberia and covered by a FLEGT license 

Annex IV 

Requirements and technical specifications for FLEGT licenses 

Annex V 

Functions of the independent audit: terms of reference 

Annex VI 

Criteria for evaluation of the legality assurance system  

Annex VII 

Implementation schedule  

Annex VIII 

Supporting measures  

Annex IX 

Public access to information and transparency measures 

Annex X 

Functions of the Joint Implementation Committee  

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ANNEX I 

LIST OF PRODUCTS SUBJECT TO FLEGT LICENSING 

COMMERCIAL DESCRIPTION 

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, including rubber wood chips 

Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared 

Railway or tramway sleepers (cross-ties) of wood 

Wood  sawn  or  chipped  lengthwise,  sliced  or  peeled,  whether  or  not  planed,  sanded  or 
end-jointed, of a thickness exceeding 6 mm 

Sheets for veneering (including those obtained by slicing laminated wood), for plywood 
or  for  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 

Wood  (including  strips  and  friezes  for  parquet  flooring,  not  assembled)  continuously 
shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or 
the  like)  along  any  of  its  edges,  ends  or  faces,  whether  or  not  planed,  sanded  or  end-
jointed 

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 

Fibreboard  of  wood  or  other  ligneous  materials,  whether  or  not  bonded  with  resins  or 
other organic substances 

Plywood, veneered panels and similar laminated wood 

Wooden frames for paintings, photographs, mirrors or similar objects 

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 

Casks, barrels, vats, tubs and other coopers’ products and parts thereof, including staves. 

Tools, tool bodies, tool handles, broom or brush bodies and handles,  of wood; boot or 
shoe lasts and trees, of wood. 

Builders’  joinery  and  carpentry  of  wood,  including  cellular  wood  panels,  assembled 
flooring panels, shingles and shakes 

HS 
CODES 

4401 

4403 

4406 

4407 

4408 

4409 

4410 

4411 

4412 

4414 

4415 

4416 

4417 

4418 

9403.30   Wooden furniture of a kind used in offices 

9403.40   Wooden furniture of a kind used in the kitchen 

9403.50  Wooden furniture of a kind used in the bedroom 

9403.60  

 Other wooden furniture 

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ANNEX II 

LEGALITY ASSURANCE SYSTEM OF LIBERIA 

1. 

INTRODUCTION 

The legality assurance system (LAS) of Liberia aims to ensure the legality of the allocation of 
forest use rights and of harvesting, transport, processing and selling of timber. It is based on the 
national  legislation  in  force  and  existing  governmental  control  systems  and  was  designed  by  a 
national multi-stakeholder process which included representatives of communities, civil society 
organisations  (CSOs),  government  agencies  and  the  private  sector.  These  stakeholders  have 
agreed,  through  a  process  of  consultations  and  discussions,  the  elements  of  the  LAS  described 
below:  

• 
• 
• 
• 
• 

Legality definition; 
Verification of compliance with the legality definition; 
Chain of custody system; 
FLEGT licensing; 
Independent audit. 

The  legality  definition  sets  out  the  core  requirements  of  legislation  applicable  to  the  forest 
sector.  The  legality  definition  was  finalised  and  endorsed  by  national  stakeholders  during  the 
VPA negotiations.  

Legality verification systematically determines compliance with the requirements of the legality 
definition. This is the responsibility of government bodies designated by the legislation and by 
the VPA. 

The  chain  of  custody  system  (COCS)  is  applied  to  control  the  timber  supply  chain  from  the 
forest  to  the  point  of  export  or  sale  on  the  domestic  market.  The  COCS  includes  operational 
controls by companies, verification by the COCS manager and an information system where data 
from  the  operational  control  and  verification  activities  are  stored  and  analysed.  A  COCS  that 
largely  complies  with  the  LAS  requirements  has  been  in  operation  since  before  the  VPA 
negotiations  started.  It  was  built  and  is  operated  by  an  external  service  provider  and  will 
eventually be transferred to the Forestry Development Authority (FDA). 

Liberia issues FLEGT licenses to all shipments of timber product exports that are produced in 
accordance with the legality definition and duly controlled by the COCS.  

Independent audit adds credibility to the LAS by inspecting every component of the system to 
ensure that it is working as intended. The audit will be carried out by a competent body that is 
independent of Liberia’s forest sector regulatory bodies and private-sector operators. The audit 
results are reported to the Joint Implementation Committee and reports are publicly available. 

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Legality  verification,  licensing  and  independent  audit  functions  have  been  outlined  by  a 
stakeholder  working  group  and  will  be  further  developed  and  put  into  practice  during 
implementation of the VPA. 

This Annex describes how, in principle, the LAS will work in practice. 

2. 

SCOPE 

2.1. 

Timber sources 

All domestically grown timber and timber products controlled by the LAS must originate from 
legally  designated  areas  for  which  use  rights  have  been  allocated  in  accordance  with  the  legal 
provisions. These timber sources can encompass both natural forests and plantation forests under 
one of the following types of permit granted by the Forestry Development Authority (FDA): 

• 
• 
• 
• 
• 

forest management contract (FMC); 
timber sale contract (TSC);  
private use permit (PUP);  
forest use permit (FUP),  
chainsaw permit. 

The above-mentioned types of permit are provided for by the National Forestry Reform Law, the 
Community Rights Law, the Chainsaw Regulation and other related regulations. The Community 
Rights  Regulations  and  Chainsaw  Regulation  are  currently  being  drafted  and,  once  they  have 
been completed, amendments will be made to the LAS to reflect any additions. 

Rubberwood and other timber products harvested under agricultural concession agreements will 
also be covered by the LAS.  

Abandoned timber will be incorporated into the system once it has been auctioned and new legal 
ownership established. 

At  present,  timber  that  has  been  confiscated  due  to  violation  cannot  be  entered  in  the  system. 
Regulations to deal with confiscated timber and how it will be incorporated into the LAS will be 
developed within two years and before FLEGT licensing becomes operational. 

All imported timber products listed in Annex I to this Agreement will also be controlled by the 
LAS. Further details are given in Section 5.9 of this Annex. 

2.2. 

Products 

The following products are controlled by the LAS: 

- Logs 

- Parquet flooring 

- Wood chips 

- Wooden frames 

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- Railway sleepers 

- Packing cases/boxes 

- Sawn timber 

- Joinery 

- Veneer 

- Plywood 

 -Furniture 

Annex  I  specifies  the  products  covered  by  this  Agreement  and  their  Harmonised  System  (HS) 
codes used for classification of commodities in international trade. 

As implementation proceeds, Liberia will consider adding other products, including charcoal, to 
the scope of the LAS. 

2.3.  Market destinations 

Verification  of  legality  is  applied  both  to  timber  products  sold  on  the  domestic  market  and  to 
exports,  irrespective  of  the  country  of  destination.  Checks  on  products  sold  on  the  domestic 
market  will  be  phased  in,  following  a  schedule  that  will  depend  on  implementation  of  the 
Community Rights Law and Chainsaw Regulation and will take account of ECOWAS regional 
trade treaties and their integration into the LAS. 

3. 

INSTITUTIONAL SET-UP 

In order to verify compliance with the legality definition (LD) and operate the COCS, the FDA 
will  establish  a  new  department  called  the  Liberia  Verification  Department  (LVD).  A  service 
provider will be contracted on a ‘build, operate and transfer’ (BOT) basis for the first five years 
to  develop  the  necessary  verification  methodology  and  to  build  the  capacity  of  the  FDA 
departments and divisions involved in implementing the LAS. 

The LVD will collaborate with other departments and divisions of the FDA, the Environmental 
Protection Agency (EPA), the Ministry of Commerce and Industry, the Ministry of Finance, the 
Ministry  of  Labour  and  other  relevant  government  agencies  responsible  for  specific  aspects  of 
forest sector regulation. These government bodies will submit evidence to the LVD on operators’ 
compliance with the legality definition. In addition, a channel of communication will be set up 
for  civil  society  organisations  (CSOs)  to  provide  the  LVD  and  other  relevant  authorities  with 
monitoring data on operators’ compliance with LAS requirements. 

In  order  to  issue  FLEGT  licenses  for  timber  product  exports,  the  FDA  will  establish  a  new 
department called the Liberia Licensing Department (LLD). Exporters will apply to the LLD for 
FLEGT licenses (see Figure 1). 

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 Figure 1. 

Institutional set-up for verification and licensing 

EXPORTER
EXPORTER

LLD
LLD

LVD
LVD

COC / WTS
COC / WTS

VERIFICATION 
VERIFICATION 
TO LD
TO LD

Submission of 
Submission of 
monitoring data
monitoring data

CSOs
CSOs

FDA DEPTS
FDA DEPTS

EPA
EPA

MOCI
MOCI

Informing 
Informing 
verification bodies
verification bodies

MOL
MOL

OTHERS
OTHERS

MOF
MOF

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4. 

LEGALITY VERIFICATION 

4.1. 

Legality definition and related verification procedures 

The  legality  definition  consists  of  11  principles,  each  of  which  is  divided  into  a  number  of 
indicators  representing  the  legal  requirement  that  must  be  complied  with.  Each  indicator  is 
equipped  with  verifiers  that  are  used  for  determining  whether  a  private-sector  operator  or 
government agency complies with the legal requirements covered by the indicator concerned. 

Appendix A to this Annex contains the legality definition and outlines verification procedures to 
guide  the  responsible  ministry,  government  agency  and  LVD  in  compliance  assessment.  This 
verification framework specifies the: 

–  objective to describe the purpose of a verification procedure; 
–  regulatory  control  to  provide  for  the  normative  and/or  regulatory  requirements  and  the 

responsibility for a particular indicator; 

–  verification method to provide for description and means of verification, which will consist 

of document review, field inspection, confirmation and/or consultation; 

–  frequency to define how often compliance with an indicator or certain aspects thereof must 

be assessed by the LVD. 

More detailed procedures, including checklists, to assess compliance with the legality definition 
will be developed during implementation of the VPA. 

4.2. 

Data management 

Verification results will be recorded in a data management system that allows immediate checks 
on whether an operator complies with the legality definition. The LVD will be in charge of data 
management, including updating records with the frequency set in the verification procedures.  

The chain of custody information system (COCIS) contains certain data on legal compliance that 
will be collected to assess compliance with the legality definition along the product chain. These 
records  are  used  as  triggers  to  allow  progress  along  the  product  chain,  such  as  the  start  of 
harvesting operations or transfer of logs along the supply chain. It is envisaged that the COCIS 
will form part of the data management system necessary for verification purposes. 

The data management system should be developed to allow real-time exchanges of information 
so that any non-compliant timber detected during verification can be prevented from progressing, 
with later checks further down the supply chain. 

The  architecture  and  technical  specifications  for  the  data  management  system  and  detailed 
procedures for data management will be developed during implementation of the VPA. 

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4.3. 

Legality  verification  of  operators  working  under  an 
management certification scheme 

independent  forest 

Operators  working  under  an  independent  certification  scheme  approved  by  the  Government  of 
Liberia can demonstrate legal compliance with the Liberian legality definition by providing the 
LVD and the LLD with a valid scheme certificate.  

Prior  to  acceptance  of  a  certification  scheme,  the  Government  of  Liberia  will  carry  out  a 
consistency assessment to make sure that all the indicators of the Liberian legality definition are 
included  in  the  certification  scheme,  compliance  with  them  is  systematically  audited  and  the 
entire  certification  process  is  reliable.  Only  schemes  which  have  passed  the  consistency 
assessment can be integrated into the LAS of Liberia. 

In keeping with Liberian legislation, all operators, including those with their own certified chain 
of custody systems, will still be subject to Liberia’s national chain of custody system. 

5. 

CHAIN OF CUSTODY SYSTEM 

5.1. 

Standard operating procedures 

A  set  of  standard  operating  procedures  (SOP)  has  been  developed  to  lay  down  (a)  how  forest 
companies control their supply chains and (b) how these company activities are verified with the 
help of the COCS: 

(a) 

general  standard  operating  procedure  01  (GSOP  01)  provides  a  general 
description  of  how  control  and  verification  activities  for  timber  and  wood 
products sourced from TSCs, FMCs and PUPs are conducted; 

(b)  details of each activity are presented in a number of SOPs; 
(c) 

the  GSOPs and SOPs  will be  amended to reflect any changes in the control and 
verification  activities,  including  introduction  of  new  sources  of  timber  in  the 
COCS. 

Control and verification of timber from the following sources will be developed within two years 
of signature of the VPA:  

(a) 
(b) 
(c) 
(d) 
(e) 

forests regulated by the Community Rights Law;  
chainsaw logging operations; 
imported timber;  
timber in transit; 
confiscated timber. 

The next few sections and Appendix B describe the key control points and guiding principles of 
the COCS. 

5.2. 

Pre-harvest 

Demarcation of the contract area and of the harvesting blocks and the enumeration of trees (stock 
survey)  are  the  responsibility  of  the  contract-holder.  The  LVD  verifies  that  the  block  map  and 

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stock  survey  are  accurate  and  provides  the  Commercial  Department  of  the  FDA  with  the 
information it needs in order to issue an acceptance of the block map survey work and the annual 
harvesting certificate (AHC). 

FDA staff verify that the block map and stock survey have been properly undertaken and that the 
forms and maps have been filled in correctly by the contract-holders. This is a two-stage process, 
comprising  first  an  office  check  to  make  sure  that  no  simple  administrative  errors  have  been 
made and, second, if the first check is found to be satisfactory, a check conducted in the forest on 
a  sample  of  at  least  5 %  of  the  stock  survey  area  to  verify  tree  location,  diameter,  species  and 
height. 

The COCIS automatically checks that: 

(a) 
(b) 
(c) 

the contract area reference matches the contract-holder ID; 
the four corners of the block maps fall inside the gross contract area; 
the  tree  ID  numbers  have  been  allocated  to  the  contract-holder  for  use  in  this 
contract area as tree labels.  

The block map is then manually checked by the COC field officer to confirm that: 

(a) 

(b) 
(c) 

(d) 

(e) 

(f) 
(g) 

(h) 

(i) 

the contract area reference and contract-holder ID match those on the stock survey 
forms submitted; 
the dates surveyed match the dates on the stock survey forms; 
the Universal Transverse Mercator (UTM) geographic coordinates match those on 
the stock survey forms; 
the scale is correctly marked on the map, the distance between the cells is correct 
and the distances are correctly marked on the map; 
the  direction  of  the  baseline  has  been  correctly  entered  and  the  direction  of  the 
north arrow is correct in comparison with the baseline; 
the survey line numbers and the distance numbers are correctly denoted; 
the block border drawn on the block map corresponds to the contract area location 
map and fits within the overall boundaries of the contract area; 
the  tree  numbers  on  the  map  are  in  the  correct  cells,  as  indicated  by  the  stock 
survey forms; 
the species codes are correct. 

The COC field officer completes a standard COCIS form, which has a series of check boxes and 
which will be passed to the data entry clerk or COCIS operator for entry into COCIS. 

If  any  of  the  checks  on  the  stock  survey  forms  or  manual  block  map  fail,  then  the  COCIS 
operator  will  print  the  forms/maps  that  failed  the  checks.  The  COC  data  entry  supervisor  will 
send  them  to  the  contract-holder  for  corrections  and  the  process  is  repeated  with  the  corrected 
data. 

5.3. 

Harvesting 

This process describes the labelling, measuring and recording procedures to be followed by the 
contract-holders  during  tree  felling.  Measuring  and  tagging  logs  and  stumps  is  necessary  to 

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connect the original tree number (allocated during the stock survey) to the logs resulting from the 
tree harvest and to the stump left in the forest, thereby establishing traceability. 

Once the annual harvesting certificate has been issued, the contract-holder is allocated bar-coded 
log tags and is permitted to commence harvesting at the locations indicated on the block map:  

(a) 

before felling the tree, the contract-holder’s log measurer records the tree ID tag 
number assigned during the stock survey;  

(b)  on felling the tree, the log measurer affixes and records a new tag to the butt end 
of the log and another to the stump. The resultant tree-length log is measured: the 
diameters  of  both  the  butt  and  top  ends  and  the  length  of  the  log  to  the  crown 
break  (to  the  nearest  10 cm).  The  log  measurer  records  the  data  on  a  personal 
digital assistant (PDA) or the appropriate form. 

Then the log measurer proceeds to the next tree to be felled and repeats the same procedure. The 
data collected are submitted to and processed by a COC data entry clerk who transfers them into 
COCIS. 

5.4. 

Forest log yard/landing 

This process describes how the contract-holder measures and labels felled trees once they have 
been  extracted  to  the  log  landing  and  been  cross-cut  to  length.  The  same  procedure  is  also 
followed if, at a later stage, the logs are cross-cut again into smaller logs or are simply dressed 
(i.e. have the first few inches removed to make the log look better for sale or export). The main 
principle is that an ID tag is attached to each new log so that traceability back to the original log, 
tree and block map is possible. 

COCS  log  scalers  verify  a  sample  to  confirm  that  the  logs  have  been  accurately  tagged  and 
measured by the operator. The species, diameter and log length will be recorded in the COCIS, 
which automatically checks the log data against the information stored by the contract-holder.  

5.5. 

Transport of logs or processed wood 

This process describes the procedure to be followed when logs and/or wood products are loaded 
onto a truck at the log landing in the forest, when logs are loaded at a holding area outside the 
port and when sawn timber products are loaded prior to shipping to the port and then transported. 
Since the COCS is  designed to have  real-time data on where logs or wood products are in the 
supply chain, the following measures are applied: 

(a)  When the shipment is ready for loading, the operator’s staff (i.e. log measurer or 

sawmill tally man) complete a waybill form by: 

– 
– 
– 

– 

filling out the appropriate fields (barcode, species, diameter and length); 
sticking the bar-coded stickers to the waybill in the appropriate places; 
listing all the bar-coded tag numbers or the bar-coded labels affixed to the 
wood products making up the load — these numbers need to be copied in by 
hand;  
dating and signing the waybill. 

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(b)  Logs or wood products must be loaded in a way that enables the bar codes to be 
read by a PDA scanner without removing the load from the truck. Therefore either 
a  space  must  be  left  between  the  end  of  the  logs  and  the  truck  headboard 
(depending on the truck type) or all the logs will need to be loaded with the tags at 
the  rear  end,  so  they  are  clearly  visible.  This  is  to  facilitate  checking  of  the  tag 
numbers by the COCS log scalers and the FDA when the truck is en route. 

LVD does 100% documentary verification of the waybills/delivery notes issued and received and 
has  mobile  teams  of  log  scalers/inspectors  who  check  a  sample  of  all  loads  transported.  The 
species, log diameter and length are recorded. At the same time, the Liberian police will check 
that all loads passing checkpoints have the required waybills with them. 

5.6. 

Processing of timber 

Detailed  procedures  describing  how  sawmilling  and  other  processing  of  wood  products  are 
assessed will be developed in the first three years of implementation of the VPA. In principle, the 
operational  control  by  the  operator  and  verification  by  the  COCS  will  cover  (i)  entry  of  wood 
raw materials into the mill site, (ii) storing of wood raw materials, (iii) processing, (iv) storing of 
processed products and (v) exit of products from the mill site.  

The following control and verification measures will be applied:  

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

the  operator  keeps  records  of  all  wood  raw  materials  entering  the  mill  site  and 
uploads the corresponding data into the COCIS; 
the  operator  keeps  records  of  all  wood  raw  materials  stored  in  the  mill  site  and 
uploads  the  corresponding  data  into  the  COCIS.  An  inventory  management 
system that records inputs and outputs of raw material from storage areas must be 
applied by the operator; 
the operator’s staff record the raw material going into the processing plant and all 
the products coming out by entering the data in standard forms. This will give the 
base data for recovery assessment (for sawmilling this would be the sawn timber 
volume  coming  out  of  the  mill  expressed  as  a  percentage  of  the  volume  of  logs 
going in; in other instances it may be a simple conversion ratio, e.g. x m3 of sawn 
wood will be equal to y units of chair legs, etc.); 
the operator keeps records of all processed wood products stored in the mill site 
and  uploads  the  corresponding  data  into  the  COCIS.  An  inventory  management 
system  that  records  inputs  and  outputs  of  raw  material  to  and  from  each 
warehouse must be applied by the operator; 
the  operator  keeps  records  of  all  wood  raw  materials  exiting  the  mill  site  and 
uploads the corresponding data into the COCIS; 
a whole-sample batch of product processing (for example, one shift at a sawmill) 
must be monitored by LVD staff once the mill is ready to commence production. 
This sample will be the basis for the ‘approved conversion rate’; 

(g)  periodically  and  randomly,  LVD  staff  will  reassess  the  ‘approved  conversion 

rate’. These visits to the processing plant should be unannounced; 

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(h) 

(i) 

the COCIS monitors the conversion rate based on the standard forms submitted by 
the operator against the ‘approved conversion rate’. Any significant variation will 
trigger further investigation and/or issue of a failure report; 
the  LVD  conducts  random  checks  on  all  operations  and  bookkeeping  systems 
used  by  the  operator  to  control  the  flows  of  wood  raw  material  and  processed 
products within the mill site. 

5.7. 

Export 

This process describes how the products already approved for export by the LVD are shipped to 
the port and then loaded onto the vessel.  

At the point of export, the COCS checks 100 % of tag numbers and product specifications within 
the COCIS and physical inspections are conducted on a sample of the export consignment.  

The exporter has to inform the COCS when the vessel is ready for loading, so that the COCS can 
perform its task of sending a team to oversee the final loading of the vessel. While each log or 
bundle  is  being  loaded  onto  the  vessel,  the  COCS  inspector  will  check  them  against  the 
specifications to make sure they are covered by the valid FLEGT license and will record them in 
a PDA or on the appropriate form. The records will be uploaded into the COCIS and reconciled 
with the earlier product specification data stored to keep track of which product has actually been 
exported.  

5.8. 

Domestic market 

The  control  and  verification  procedures  described  in  Sections  5.2  to  5.7  are  applicable  to  the 
domestic market, when the timber originates from production areas covered by FMCs, TSCs and 
PUPs. Procedures to manage supply chains for timber from chainsaw logging operations will be 
developed within the period indicated in Annex VII to this Agreement. 

5.9. 

Imported timber  

The importer must demonstrate that imported timber comes from legal sources and is customs-
cleared  in  accordance  with  the  Liberian  legislation.  The  legality  of  timber  in  the  country  of 
harvest can be demonstrated by certificates issued under certification schemes or other legality 
verification  schemes  that  have  been  assessed  and  approved  by  the  Government  of  Liberia  in 
consultation with the governments concerned. Imported timber controlled by the LAS of another 
country covered by a VPA that has an operational FLEGT licensing scheme will be considered 
legal in the Liberian LAS. Imported timber demonstrated to be legal is included in the COCS at 
the  border  and  is  thereafter  controlled  and  verified  in  the  same  way  as  domestically  grown 
timber.  

5.10.  Timber in transit  

Timber  in  transit  has  to  be  kept  physically  segregated  from  domestic  or  imported  timber  and 
transits  Liberia  under  Liberian  customs  control.  Timber  in  transit  will  not  be  integrated  in  the 
COCS and will not be subject to issue of a Liberian FLEGT license at the point of export. The 
country of origin and country of harvest must be clearly indicated in the bill of lading and other 

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transport documents. Liberia will specify legal documents and related customs controls specific 
to timber in transit. Detailed procedures will be developed before the licensing system becomes 
operational. 

5.11.  Rubberwood 

The  SOPs  for  controlling  harvesting,  transportation,  chipping  and  exports  of  rubberwood 
products will be developed during implementation of the VPA. 

5.12.  Data reconciliation 

The COCIS is used for reconciling quantitative data between and within the various stages of the 
supply  chain.  The  reconciliation  processes  aim  to  ensure  that  timber  quantities  by  species  and 
dimensions  are  consistent  all  along  the  supply  chain,  in  particular  to  prove  that  the  quantity 
dispatched does not exceed the quantity received and that during processing the ratio between the 
quantity of raw materials and the quantity of processed products is rational.  

Protocols  will  be  developed  for  reconciliation  of  consolidated  data  over  several  supply  chains 
and  over  time  with  a  view  to  providing  evidence  of  the  legality  of  the  whole  forest  sector  at 
regional or national level.  

In addition to the reconciliation of quantitative data, the COCS checks with the LVD database 
that there is full compliance with the LD prior to each sale whether intended for export or sale in 
Liberia. 

6. 

FAILURE TO COMPLY WITH THE LAS 

FLEGT licenses will not be issued unless all requirements of the LAS have been complied with. 
Any failure to comply with the LAS must be addressed. Existing legal procedures and sanctions 
apply  for  handling  failures  to  comply  with  the  LAS  identified  in  the  course  of  the  verification 
activities.  Depending  on  the  breach,  administrative  fines,  corrective  action,  suspension  of 
activities and/or prosecution of the operator may apply.  

Detailed guidance on how to handle breaches and to impose sanctions for non-compliance will 
be developed before the FLEGT licensing system becomes operational. 

All  failures  to  comply  with  the  legality  definition,  COCS  and  corresponding  sanctions  will  be 
recorded in the verification database (see Section 4.2). 

7. 

LICENSING 

The Liberia Licensing Department (LLD) will be established to issue FLEGT licenses to export 
consignments of timber products complying with all the requirements of the LAS. The licensing 
process consists of the following phases: 

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(a)  The  exporter  applies  to  the  LLD  for  a  FLEGT  license  for  each  export 
consignment. A standard application form will be developed within two years of 
signature  of  the  VPA  to  specify  the  information  and  documents  required.  The 
LLD will register the application and send a request for verification to the LVD. 

(b)  The  LVD  verifies  that  the  exporter  and  possible  suppliers  associated  with  the 
export  consignment  concerned  comply  with  the  Liberian  legality  definition  and 
that  the  products  for  export  originate  from  legal  sources  and  are  duly  entered  in 
the  COCIS.  The  detailed  procedures  and  checklists  for  the  verification  by  the 
LVD will be developed within two years of signature of the VPA.  

(c)  The  LVD  will  then  send  a  written  communication  to  the  LLD  to  confirm  the 
outcome of the verification. The format and process for this communication will 
be developed within two years of signature of the VPA. 

– 

– 

If  the  LVD  confirms  that  there  is  full  compliance  with  the  LD,  the  LLD 
issues without delay a FLEGT license to the export consignment concerned. 
The  detailed  procedures  for  informing  the  applicant  and  issuing  FLEGT 
licenses will be developed within two years of signature of the VPA.  
If any non-compliance is detected at this stage, the LVD will notify the LLD 
that  no  FLEGT  license  can  be  issued,  indicating  the  reasons  for  this 
rejection,  and  record  the  rejection  in  the  COCIS.  The  LLD  will  notify  the 
applicant  that  the  application  for  a  license  has  been  rejected  and  of  the 
reasons  for  this  rejection.  The  detailed  procedures  for  handling  non-
compliant  consignments  and  informing  the  applicant  will  be  developed 
within two years of signature of the VPA. 

(d)  Once the FLEGT license has been issued, the exporter sends a copy of the license, 
including the specification, to the customs and port authority, with notification of 
the  proposed  date  of  loading.  The  customs  and  port  authority  checks  that  the 
license  is  consistent  with  the  other  official  export  documents  and  meets  the 
standard formats. The LLD keeps records of all applications for FLEGT licenses 
received, including those that resulted in rejection. 

The  technical  specifications  for  FLEGT  licenses,  including  the  license  format  and  period  of 
validity, are presented in Annex IV to this Agreement. 

8. 

INDEPENDENT AUDIT 

The  objective  of  the  independent  audit  (IA)  is  to  assess  whether  the  LAS  is  functioning 
effectively, appropriately and with credibility and to identify potential weaknesses and risks in 
the structures and implementation of the system. 

The  terms  of  reference  for  the  IA,  including  the  tasks,  qualifications  required  and  method,  are 
presented in Annex V to this Agreement. 

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APPENDIX A: LEGALITY DEFINITION, MATRIX AND VERIFICATION 
PROCEDURES 

1. 

P LAN FOR FORESTRY POLICY AND LAW REFORM 

The  Legality  Definition  set  out  below  has  been  developed  through  a  participatory  process 
with a wide range of stakeholders. During development of the Legality Definition, Liberian 
stakeholders  identified  a  number  of  ambiguities,  gaps  and  inconsistencies  in  the  existing 
laws, regulations and policies that underlie the Legality Definition, and that these need to be 
addressed in order to achieve the good governance desired in the Liberian forestry sector. The 
Government of Liberia therefore plans to carry out legal and policy reforms in respect of the 
forestry  sector  in  consultation  with  all  relevant  stakeholders.  It  is  expected  that  such  legal 
reforms  would  be  completed  by  2013,  and  that  the  Legality  Definition  will  be  updated 
thereafter to reflect these amendments. Areas that require policy and legal reforms include: 

(a)  Social  Agreements:  Establishment  of  procedures  to  govern  negotiations  of 
Social Agreements, including (i) timing of negotiations; (ii) timeliness of both 
the payments and transfers of funds to communities; (iii) minimum content of 
social  agreements  and  enforcement  of provisions; (iv)  community  user rights 
in  respect  of  concession  areas,  and  (v)  employment  of  non-skilled  workers, 
etc; 

(b)  Promulgation  of  Community  forestry  regulation  to  provide  specific 

guidelines for community forest management; 

(c)  Use of abandoned logs including procedures for their auction, registration of 

legal ownership and entry into the LAS; 

(d)  Use of logs confiscated by the Government on grounds of being harvested in 

(e) 

violation of the law; 
Integration  of  Independent  Certification  Schemes  into  the  LAS:  discussion 
and  agreement  with  stakeholders  on  the  use  of  independent  certification 
scheme(s)  in  Liberia  and  identification  of  the  independent  certification 
scheme(s)  Liberia  would  recognize  for  the  purpose  of  establishing  the  legal 
origin of logs imported from non-VPA countries; 

(f)  Debarment  List:  The  establishment  of  a  debarment  list  identifying  those 
individuals  who  contributed  to  the  civil  war  of  Liberia  and  are  thus  banned 
from working in the forest sector, as required by existing FDA Regulations; 
(g)  Processing  facilities:  A  regulation  relating  to  (i)  the  establishment  of 
processing  facilities  by  holders  of  FMCs,  and  (ii)  guidelines  on  operation  of 
processing facilities; 

(h)  Third  Party  Access  and  Use  of  Forest  Products:  Regulations  on  third  party 

access and use of forest resources in another parties' concession area; 

(i)  Validation  and  promulgation  of  Chainsaw  Regulations:  to  guide  new 

procedures for working with the informal sector. 

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2. 

LEGALITY MATRIX 

In determining whether timber and or timber products being sold on the Liberian market or being exported from Liberia meet the legal standard 
set out in the definition of “legal timber”, the principles and indicators as well as the detailed verification procedures as set out in the following 
table shall apply. The table describes the format of the Legality Matrix (Principles, Indicators, Verifiers, and Verification Guidance). The matrix 
is divided into 11 principles, with indicators and verifiers listed underneath each principle, and verification guidance outlining how the indicators 
should be checked for compliance. The verification guidance (indicating Objective, Regulatory Control, Verification Method, and Frequency) 
reflects current thinking but may be subject to change during further development of systems and procedures.  

The Legality Principle The  Liberian  legality  definition  is  divided  into  11  legality  principles.  Each  legality  principle  consists  of  a  number  of  legality 

indicators with verifiers under each indicator. A verification procedure has been developed for each indicator.  

Legality Indicators 

This outlines the norm or requirement the Liberian Verification Department (LVD) needs to check for compliance with the specific 
legality principle.  

Legality Verifiers 

Verifiers are evidence the LVD inspectors/or assessors will look for when evaluating if the specific norm or indicator has been met. 
This list is not exhaustive and the assessor may use additional means of verifying the relevant indicator if required. 

Verification Guidance  These principles guide LVD inspectors/or assessors in their evaluation of a particular indicator:  

1. Objective: The objective puts forward the purpose of the verification procedure.  

2. Regulatory Control: Provides for the normative and/or regulatory requirements in respect of a particular indicator and

responsible government bodies. 

3. Verification Method: Provides for description and method of verification and will consist of document review, field inspection,

confirmation and/or consultation. 

4. Frequency: Provides for the verification frequency of the indicator or certain aspects thereof by the LVD. 

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PRINCIPLE 1 : LEGAL EXISTENCE/RECOGNITION AND ELIGIBILITY TO OPERATE IN FORESTRY SECTOR 

The forest contract or permit holder is a legally recognized business, community or an individual eligible to operate in the forestry sector 

Indicator 1.1 

The Contract or permit holder is a natural or legal person duly registered with the Government of Liberia and/or recognized by the FDA 

Verifier 

1.1.1. 

For  corporations  and  partnerships,  current annual  Business  Registration  certificate  and  license  issued 
by the Ministry of Commerce and Industry (MOCI)  

1.1.2. 
1.1.3. 

For corporate entities, articles of incorporation filed with Ministry of Foreign Affairs(MOFA)  
For holders who are not registered businesses, a certificate or letter of recognition issued by FDA  

Contract or Permit Type 

All contract or permit types whose holder is a registered business 

All contract or permit types whose holder is a corporation. 

FMC/TSC under Community Forestry law, FUP/PUP, and chain saw 
permits issued to natural person or sole proprietorship 

Verification Guidance 

Verification method 

Objective: 

The  objective  of  this  procedure  is  to  verify  that  a  person  seeking  a  forest  contract  or  permit  for  harvesting, 
processing or exporting logs or any timber product in Liberia is either a duly registered business enterprise or one 
recognized by FDA as capable of obtaining and holding a forest contract or permit under Liberian law.  

Regulatory Control: 

Liberian law requires that any person conducting and/or carrying out business must register the business with the 
MOCI.  It  is  an  offense  not  to  register  a  business.  To  engage  in  community  forestry  the  community  must  be 
recognized by the FDA. Business registration expires annually on the date of registration and must be renewed. The 
NFRL also provides that any eligible person may obtain and hold a forest contract. The term “person” is defined to 
include both natural and legal person, and incorporated and unincorporated entities.  

Description: 

The  existence  of  a  valid  business  registration 
document  is  verified  by  the  LVD.  In  the  event  that 
clarity  is  required  the  LVD  can  obtain  additional 
information from the MOCI and the FDA Commercial 
and  Legal  Departments.  In  case  of  community 
forestry,  verification  of  FDA’s  recognition  of  the 
community may be obtained from the FDA Legal and 
Community Forestry Department.  

Verification means:  
1.  1.  Document review 
2.  2.  Consultation  with  MOCI  and 

the  FDA 
Commercial,  Legal  and  Community  Forestry 
Departments.  

References: GBL (4.3 to 4.5); COCS SOP(4) 

Verification 
frequency 

Annually 

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Indicator 1.2 

The  current  owner(s)  or  shareholders  of  a  contract  or  permit  holder  do  not  include  the  current  President  and  the Vice  President  of  Liberia,  Members  of  the
Legislature, Members of the cabinet, Directors and Managers of FDA, current county Superintendents or any other person specifically prohibited from owning a
forest contractor or an interest in a forest contract 

Verifier 

Contract or Permit Type 

1.2.1 

1.2.2 

1.2.3 

For  a  contract  holder  that  is  a  registered  business,  a  notarized  affidavit  executed  by  its  CEO  declaring
that its owners do not include prohibited persons 
Current FDA-prepared list of current senior Government officials prohibited from holding forest license
pursuant to Section 5.2(b) of NFRL  
Current List of shareholders and beneficial owners of corporate contract or permit holder  

All contract and permit types  

All contract and permit types  

All contract and permit types  

Verification Guidance/ Procedure (LAS-LVD-0.1.2) 

Verification Method 

Objective: 

The objective of this procedure is to ensure that all applicants for forest licensing and/or concessions are eligible to 
hold a forest license.  

Regulatory Control: 

Holders  of  certain  positions  in  Government  are  prohibited  by  Section  5.2b  of  the  NFRL  to  conduct  commercial 
forest operations because of actual or potential conflict of interest. A key regulatory interest is to cross check the 
current owner of a contract holder against the current list of prohibited senior government officials maintained by 
the FDA. Because the primary responsibility is on the contract holder to ensure that its owners are eligible persons, 
the contract holder is to execute an affidavit that it is in compliance.  

The veracity of the sworn affidavit will be checked against available records regarding the owners of the contract 
holder.  The  list  of  prohibited  persons  as  well  as  the  list  of  current  shareholders  of  registered  businesses  holding 
contract or licenses shall be placed in the public domain, as is stated under Annex IX of this Agreement.  

Description: 

In  order  to  ensure  that  the  above  requirements  have 
been met, the LVD must review the ownership records 
of the contract holder to verify that the applicant is not 
a  prohibited  person  or  an  entity  whose  owner(s) 
include prohibited person(s). 

Verification means:  
3.  1.  Consultation with the FDA  
4.  2.  Document review  

Verification 
frequency 

Per shipment  

References: NFRL (5.2b); Regulation 103-7(21-22) Regulation 104-07(62); Sections 44, PPC Act 

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Indicator 1.3 

The Contract holder is not barred from bidding or applying for a forest license or any other government contract/concession because of violations of the Public
Procurement and Concessions Act (PPCA) 

1.3.1 

Public Procurement Concession Commission (PPCC) develops and maintains a Debarment List of persons
found guilty of violating the PPC Act and or the rules and guidelines established thereunder 

Verifier 

FMC, TSC and FUP having value of more than US$10,000.00 

Contract or Permit Type 

Verification Guidance/ Procedure: 

Verification Method 

Objective: 

The objective of this procedure is to ensure that all applicants for forest contracts or permits are not in violation of 
the PPC Act governing award of concessions and other contracts. 

Regulatory Control: 

An applicant for forest licensing must not be barred from bidding for concession and other public contracts due to 
violations of tender rules established by the PPCC. Successful bidders must be checked against the current/updated 
debarment  list  that  is  produced  and  maintained  by  the  PPCC  under  section  44  of  the  PPC  Act,  which  precludes 
certain entities from being awarded a concession as a result of certain conditions being present after a successful 
application and/or bid.  

References: Sections 44, PPC Act 

Description: 

In  order  to  ensure  the  above  requirements  have  been 
met, the LVD must verify that the applicant is not on 
the  PPCC  debarment  list.  The  PPCC  debarment  list 
shall  be  one  of  the  documents  placed  in  the  public 
domain as indicated in Annex IX of this Agreement.  

Verification means:  
5.  1.  Consultation with PPCC 
6.  2.  Document review 

Verification 
Frequency 

Once  during 
the  contract 
period 

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The Forest Use Rights covered by the contract was awarded pursuant to the National Forestry Reform Law and the Community Rights Law 

PRINCIPLE 2: FOREST ALLOCATION 

Indicator 2.1 

All communities within 3.0 kilometers of the proposed concession area (called “affected communities”) have been consulted by FDA and have given their informed
consent to the proposed concession. 

Verifier 

Contract or Permit Type 

2.1.1 

FDA-prepared socio-economic survey report  

2.1.2  Written notices of the consultation meeting(s) (Radio or Newspaper announcements) 
2.1.3  Minutes and attendance list of the meetings showing key points discussed and agreements reached  
2.1.4 

Letter  of  good  faith  signed  by  communities  undertaking  to  negotiate  in  good  faith  with  any  eventual
contract holder 

FMC,TSC, and FUP having a value of more than US$10,000.00 

FMC,TSC, and FUP having a value of more than US$10,000.00 
FMC,TSC, and FUP having a value of more than US$10,000.00 
FMC, TSC, and FUP having a value of more than US$10,000.00 

Verification Guidance/ Procedure (LAS-LVD-0.2.1) 

Verification Method 

Verification 
Frequency 

Objective: 

Description: 

The law emphasizes the vital role of public participation in participatory governance, transparency and the decision-
making process.  The  purpose  of  this  procedure  is  to  ensure  that  adequate  adherence  is  given  to  this aspect  in  the 
determination and allocation of forestry resources within Liberia. 

Regulatory Control: 

The FDA is mandated to decide on the use and allocation of forestry resources held in trust by the Government. In 
the decision of land use planning and validation of forestry resources, public participation fulfils a key role and there 
exists  a  duty  on  the  FDA  to  engage  with  the  relevant  affected  communities.  With  a  view  to  ensuring  adequate 
participation, requirements are placed on the FDA in terms of notifying, informing, conducting meetings, recording 
comments and considering the input of such communities. Such a participatory approach ensures that the views of 
relevant  stakeholders  are  taken  into  consideration  and  that  an  informed  decision  is  taken  in  terms  of  land  use 
planning and the validation of forestry resources. Pursuant to an approved manual issued by the FDA following a 

EN 

40 

The  LVD  shall  verify  that  FDA  plans  its  forest  land 
use  through  statutorily  required  consultations  with 
communities  and  other  stakeholders.  In  the  case  of 
consultation with communities, the LVD shall confirm 
the fact and quality of the consultations by review of 
documentation,  including  the  report  of  the  socio-
economic  survey  and  the  timing  and  arrangements 
relating 
the 
meetings.  If  necessary,  other  government  agencies 
such  as  the  Ministry  of  Internal  Affairs  and  the 
relevant affected communities may be consulted.  

the  conduct  and  discussions  at 

to 

Verification means:  

Once 
the 

during 
contract 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
participatory  preparation  process,  the  affected  communities  include  those  within  3.0  kilometers  of  the  concession 
area. 

7.  1.  Consultation with the FDA and, if necessary, 
the  Ministry  of  Internal  Affairs  and  affected 
communities 

period 

. 

8.  2.  Document Review 

References: NFRL (4.1-4.5); Regulation 102-07(21-22) Regulation 104-07(62) Section 87 of the PPC Act 

Indicator 2.2 

Prior to allocation of the forest contract, FDA has obtained a Concession Certificate from the Ministry of Planning & Economic Affairs, approving the concession
plan submitted by FDA and confirming that the proposed concession is consistent with national development objectives  

2.2.1 

2.2.2 

Concession plan submitted by FDA to the Ministry of Planning & Economic Affairs (MPEA) in respect of
the contract holder’s concession 
Concession  certificate  (or  a  written  approval)  issued  by  the  MPEA  to  FDA,  authorizing  FDA  to
commence concession/ contract allocation activity for the specified forest area 

FMC, TSC, and FUP having a value of US$10,000.00 or more 

FMC, TSC, and FUP having a value of US$10,000.00 or more 

Verifier 

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.2.2) 

Verification Method 

Objective: 

The procedure aims to verify that the forestry objectives of Liberia are captured in the overall development plan of 
the country as endorsed by the MPEA through the issuance of a concession certificate. 

Regulatory Control: 

The FDA must ensure that the forest to be allocated is suitable for commercial forestry and that a concession plan 
has  been  developed  to  ensure  compliance  with  all  requirements  provided  for  by  the  NFRL  and  the  PPC  Act, 
respecting protected areas and rights of affected communities especially for use of non timber forest products.  

Description: 

The LVD must verify that the MPEA indeed issued a 
concession certificate to the FDA based on a review of 
the concession plan developed and submitted by FDA 
to  ensure  that  the  requirements  for  competitive 
bidding are met as provided for by the NFRL and the 
PPC  Act.  This  is  done  through  consultation  with  the 
FDA Legal and/or Commercial Department.  

Verification means:  
9.  1.  Consultation  with  PPCC  and/or  FDA  Legal 

and Commercial Departments. 

10. 2.  Document review 

References: Regulation 104-07 (5.2(a)(i)) PPC Act (46) 

Verification 
Frequency 

during 
contract 

Once 
the 
period 

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Indicator 2.3 

The Contract holder did comply with statutory prequalification requirements and was duly qualified by FDA to (i) operate in the forestry sector, and in the case of
TSC and FMC, (ii) bid for the contract  

2.3.1 
2.3.2 

Report of the prequalification committee regarding the prequalification process  
Valid pre-qualification certificate issued the contract holder 

Verifier 

2.3.3 

Tax clearance showing no tax arrears at date of submission 

2.3.4 

Liquidity guarantee from reputable bank at date of submission 

Contract or Permit Type 

FMC, TSC and FUP having a value of US$10,000.00 or more 
FMC, TSC and FUP having a value of US$10,000.00 or more 

FMC, TSC and FUP having a value of US$10,000.00 or more 

FMC, TSC and FUP having a value of US$10,000.00 or more 

2.3.5 

Business registration certificate predates pre-qualification certificate 

FMC, TSC and FUP having a value of US$10,000.00 or more 

Verification Guidance/ Procedure (LAS-LVD-0.2.3) 

Verification Method 

Objective: 

The  aim  of  this  procedure  is  to  verify  that  a  company  applying  for  licensing  has  complied  with  all  the  relevant 
prequalification requirements and as such meets the criteria of the bidding process.  

Regulatory Control: 

The FDA must ensure that all the pre-qualification requirements were met by a particular contract holder prior to the 
bidding  process  and/or  obtaining  the  forest  resource.  The  pre-qualification  requirements  inter  alia  include:  (1) 
Articles of incorporation from the Ministry of Foreign Affairs (MOFA), (2) Business registration certificate by the 
MOCI, (3) Tax clearance from the Ministry of Finance (MOF), and (4) Liquidity guarantee from a reputable bank. 

References: NFRL (5.2(a)(i); Regulation 103-07 (41-46)  

Description: 

The LVD must verify that the requirements were met 
in  the  time  established  by  law.  This  means  that  the 
Prequalification  Certificate  must  be  predated  by  the 
contract  holder  or  processor’s  business  registration 
certificate, tax clearance, and required bank guarantee. 

Verification means:  
11.  1.  Consultation  with  FDA,  MOF,  MOFA  and 

the MOCI .  

12.  2.  Document Review 

Verification 
Frequency 

Once 
during 
the  Contract 
period  

Indicator 2.4 

The forest contract was tendered in accordance with the competitive bidding process and rules established by the Public Procurement and Concessions Act and
the Regulations issued by the FDA 

2.4.1 
2.4.2 

Public tender notice 
Concession bid evaluation panel report  

Verifier 

Contract or Permit Type 

FMC, TSC and FUP having a value of more than US$10,000 
FMC, TSC and FUP having a value of more than US$10,000 

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2.4.3  Due diligence report by FDA 

FMC, TSC and FUP having a value of more than US$10,000 

2.4.4 
2.4.5 

Final report of bid evaluation panel to the Inter-Ministerial Concessions Committee (IMCC) 
IMCC recommendations to the President 

FMC, TSC and FUP having a value of more than US$10,000 
FMC, TSC and FUP having a value of more than US$10,000 

Verification Guidance/ Procedure ( LAS-LVD-0.2.4) 

Verification Method 

Objective: 

The aim of this procedure is to verify that the forest license for commercial forest operations was granted based on a 
competitive bidding process as required by the law.  

Regulatory Control: 

The law requires that once a bid is submitted, bids are evaluated by the concession bid evaluation panel, who then 
submit a bid evaluation report within 60 days to the concession entity (in this case the FDA). Thereafter FDA must 
conclude a due diligence report on all recommended bids. After that the concession bid evaluation panel will submit 
a final report to the IMCC. The IMCC will then review the report and submit its recommendations to the President 
for final decision. 

Description: 

The  LVD  must  verify  that  the  above  requirements 
were  met  by  firstly  consulting  and  verifying  the 
existence and validity of the required documents with 
the  FDA  Commercial  Department  and/or  Legal 
Department.  If  further  clarification  is  required,  the 
LVD may consult with the Concession Bid Evaluation 
Committee and/or the IMCC.  

Verification means:  
13.  1.  Consultation with FDA, IMCC and PPCC 
14.  2.  Document review 

References: NFRL (3.3 &5.2(a)); PPC Act (115(1)&(2) and 116); and FDA Regulations 104, Section 31-36 

Indicator 2.5: 

In case of a private use permit (PUP), the contract was awarded upon the written permission of the verified land owner 

Verification 
Frequency 

during 
contract 

Once 
the 
period 

2.5.1 
2.5.2 

The valid deed of the private land owner 
The written permission of the private land owner  

Verifier 

Verification Guidance/ Procedure ( LAS-LVD-0.2.5) 

Objective: 

The  aim  of  this  procedure  is  to  ensure  that  the  PUP  is  only  granted  where  private  land  ownership  is  clearly 
established and upon the written approval of the land owner.  

Contract or Permit Type 

Verification Method 

Verification 
Frequency 

PUP 
PUP 

Description: 

The  LVD  must  verify  that  the  above  requirements 
were met by first reviewing the titled deed to the land, 
and  then  confirming  that  the  written  permission  is  in 
fact from the land owner.  

Once 

during 

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Regulatory Control: 

The  LVD  is  required  to  verify  the  owner  of  a  private  land  intended  to  be  the  subject  of  a  PUP.  This  will  entail 
checking  the  submitted  deed  against  public  records  at  the  Center  for  National  Records  and  Documentation 
(CNDRA).  

References: NFRL Section 5.6 

Verification means:  
15.  1.  Consultation with CNDRA 
16.  2.  Document review 

contract 

the 
period 

Indicator 2.6 

In consultation with stakeholders and based on its socio-economic survey report, the FDA has prepared an integrated map showing the contract area and adjacent
land areas such as other concessions, protected forest areas and private land.  

2.6.1 

2.6.2 

FDA map showing the subject concession area and indicates adjacent lands 

FDA enforcement report (FDA compliance Audit Report) 

FMC, TSC, FUP 

FMC, TSC, FUP 

Verifier 

Contract or Permit Type 

Verification Guidance/ Procedure ( LAS-LVD-0.2.6) 

Verification Method 

Objective: 

The  aim  of  this  procedure  is  to  verify  that  the  concession  area  awarded  to  the  contract  holder  does  not  encroach 
upon land owned by other contract holder(s) or protected forest area.  

Regulatory Control: 

It  is  essential  that  every  contract  area  is  properly  demarcated  to  avoid  overlapping  of  concession  areas  or 
encroachment into protected forest areas.  

Description: 

The  LVD  should  verify  that  these  requirements  were 
met checking the validity of the concession map with 
the FDA Research and Development Department and 
the Law Enforcement Department.  

Verification means:  
17.  1.  Consultation  with  FDA  Research  and 
Development and Law Enforcement Departments  

18.  2.  Document review 

Verification 
Frequency 

during 
contract 

Once 
the 
period 

References: COCS SOP (7, 8, 19, 20 & 21) Regulation 109-07 

Indicator 2.7 

The forest contract holder has submitted a bidder’s bond along with its bid for the forest contract to the FDA 

2.7.1 

Bidder’s bond receipt issued the contract holder by FDA  

FMC and TSC 

Verifier 

Contract or Permit Type 

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Verification Guidance/ Procedure ( LAS-LVD-0.2.7) 

Verification Method 

Objective: 

The aim of this procedure is to verify that the bidder has submitted the  statutory required bond and met with the 
relevant requirements. 

Regulatory Control: 

FDA Regulations 104-07 requires bidders for FMC and TSC to submit a bid bond together with its bid. The bond 
should  be  valid  for  at  least  12  months  and  in  the  amount  equal  to  1/6  of  the  annual  area  fee  determined  for  a 
particular contract. The bond must, moreover, be issued by a competent and (cid:31)uthorized institution in Liberia. 

According to Section 43 of Regulation 104-07, within 30 days after the selection of the winning bidder, the winning 
bidder may reclaim the original bond by depositing the bond amount in cash with the Central Bank of Liberia or 
other bank officially designated to hold the FDA’s accounts and presenting the proof of deposit to the FDA. The 
Regulation  further  provides  that  upon  timely  presentation  of  proof  of  deposit  of  the  value  of  the  bond  with  the 
Central  Bank  of  Liberia,  the  FDA  shall  return  the  original  bond  to  the  winning  bidder.  However,  if  the  winning 
bidder fails to offer proof of deposit within 30 days after selection, the FDA shall draw on the bond and deposit the 
funds with the Central Bank of Liberia or other bank officially designated to hold the Authority’s accounts. Finally, 
if the winning bidder and the Government execute the contract in respect of which the bond was submitted, the FDA 
shall arrange to credit the deposited funds towards any amounts the winning bidder owes the Government under the 
contract. 

References: Regulation 104-07 (43 & 61(b)) COCS SOP (9) 

Description: 

The LVD must verify that the requirements were met 
by  consulting  with,  and  verifying  the  validity  of  the 
Bidders  Bond  Receipt  with  the  FDA  Commercial 
and/or Finance Department.  

Verification means:  
19.  1.  Consultation  with  FDA  Commercial 

/ 

Finance departments 

20.  2.  Document review 

Verification 
Frequency 

during 
contract 

Once 
the 
period 

Indicator 2.8 

The contract holder posts an initial performance bond within the period specified by law after conclusion of contract negotiations  

2.8.1 
2.8.2 

Copy of performance bond posted within 90 days of conclusion of negotiations  
Copy of performance bond posted within 30 days of conclusion of negotiations  

FMC 
TSC 

Verifier 

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.2.8) 

Verification Method 

Verification 
Frequency 

Objective: 

Description: 

The  aim  of  this  procedure  is  to  verify  that  the  required  performance  bond  was  posted  within  the  required  time 
period. 

The  LVD  must  verify  that  the  above  requirements 
were  met  by  consulting with,  and verifying  existence 

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Regulatory Control: 

Regulation 104-07 requires contract holders of FMC and TSC (but not FUP or PUP) to submit a performance bond 
within the required period of time: 

and  validity  of  the  performance  bond  with  the  FDA 
Commercial and/or Finance Department.  

Verification means:  
21.  1.  Consultation  with  FDA  Commercial  and/or 

1. FMC: performance bond must be submitted within 90 days in the amount of 150 000 USD (less than 10 0000ha) 
or up to 250 000USD (more than 100 000 ha 
2. TSC: performance bond within 30 days in the amount of 25 000 USD.  

Finance Departments 
22.  2.  Document review 

Once  at  start 
of 
contract 
period 

References: Regulation 104-07(61(b)); COCS SOP (9) 

Indicator 2.9 

The forest contract has been signed by the contract holder and the FDA and, where applicable, duly ratified in keeping with the law 

2.9.1 
2.9.2 

Verifier 
The Act ratifying the forest contract , which is signed by the President and printed into hand bills 
Contract signed by the contract holder and the Managing Director of FDA 

Contract or Permit Type 

FMC and agricultural concessions/plantations 
TSC, FUP, PUP, Chainsaw permits 

Verification Guidance/ Procedure (LAS-LVD-0.2.9) 

Verification Method 

Objective: 

The aim of this procedure is to verify that all forest contracts are concluded in keeping with law. Regarding FMCs, 
the aim is to ensure that in addition to it being signed by the contract holder and the Government of Liberia, an act 
ratifying the FMC is also passed by both houses of the Legislature and approved by the President. In respect of all 
other contracts, the objective is to ensure that they are duly signed between the contract holder and the management 
of FDA. 

Regulatory Control: 

Once an FMC is signed with a successful bidder, the FMC should be ratified by the Legislature and the act of the 
Legislature ratifying the FMC approved by the President. All other forest contracts and licenses are signed between 
the contract holder and the FDA. 

Description: 

the  relevant  contract  holder  and 

The LVD verifies that (1) every FMC has been signed 
and ratified, and (2) all other forest licenses are signed 
by 
the  FDA 
Managing Director upon approval by the FDA Board. 
The  LVD  must  verify  that  the  above  requirements 
were met by consulting with the FDA Commercial or 
Legal Departments.  

Verification means:  
23.  1.  Document review 
24.  2.  Consultation with FDA Commercial or Legal 

Department 

Verification 
Frequency 

Once  at  start 
of 
contract 
period 

References: NFRL (5.3); Regulations 104-07 (62); COCS SOP (5) 

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PRINCIPLE 3: SOCIAL OBLIGATIONS AND BENEFIT SHARING 

Contract holder is in compliance with the social obligations and benefit sharing requirements established by law 

Indicator 3.1 

The contract holder has negotiated a social agreement with authorized representatives of affected communities within 3.0 kilometers of the proposed concession  or 

permit area following advance notice to these affected communities 

Verifier 
3.1.1  Meeting minutes reflecting actual discussions and agreements reached by contract holder and authorized

representatives of affected communities earlier identified by the FDA during its socio-economic survey  

FMC, TSC, FUP having a value in excess of US$10,000.00 

Contract or Permit Type 

3.1.2  Delivered  or  published  notice  of  intent  to  negotiate  with  affected  communities  (Radio  announcement  or

FMC, TSC, FUP having a value in excess of US$10,000.00 

3.1.3 

Newspaper advertisements) 
Evidence  that  no  complaint  has  been  filed  with  FDA  by  an  affected  community  alleging  exclusion  from
negotiation or failure of contract holder to negotiate 

FMC, TSC, FUP having a value in excess of US$10,000.00  

Verification Guidance/ Procedure (LAS-LVD-0.3.1) 

Verification Method 

Verification 
Frequency 

Objective: 

Description: 

The  objective  of  this  procedure  is  to  ensure  that  a  contract  holder  adheres  to  all  the  relevant  statutory  and  FDA 
requirements pertaining to social obligations prior to obtaining its Annual Harvesting Certificate for the FMC, TSC, 
or FUP. 

The  LVD  must  verify  that  the  requirements  are 
met through consultation and verification with the 
FDA Community Forestry Department. 

Regulatory Control: 

Verification means:  

The NFRL and Regulations 105-07 promulgated under the NFRL both place a duty on holders of FMC, TSC and 
major FUPs to negotiate a ‘Social Agreement’ with affected communities through their authorized representatives in 
respect of forests to be harvested. 

19 

Cycle: 5 years for FMC &FUP; 3 years for TSC. 

25.  1.  Consultation  with  FDA  Community 
affected 

Department 

Forestry 

and 

Per Cycle19 

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communities 

26.  2.  Document review  

The Regulations defines affected communities as “a community comprising less than a statutory district (including 
chiefdoms, clans, townships, towns, villages, and all human settlements) whose interests are likely to be affected by 
operations  carried  out  under  a  forest  resources  license.  “Interests”  for  purposes  of  this  definition  may  be  of  an 
economic,  environmental,  health,  livelihood,  aesthetic,  cultural,  spiritual,  or  religious  nature.”  In  practice,  the 
affected  communities  are  defined  and  identified  by  FDA  during  its  pre-allocation  forest  use  planning  and  socio-
economic survey. 

According to Regulations 105-07 the duration of such social agreements are five (5) years for FMCs and FUPs, and 
three (3) years for TSCs. The signing of a social agreement is a pre-felling requirement for FMCs and TSCs. 

References: Regulation 105-07 (31&32); NFRL, Section 5.6(d)(vi) 

Indicator 3.2 

A mutually negotiated social agreement has been signed between the contract holder and ALL affected communities through their (cid:31)uthorized  representatives, and
the agreement becomes effective prior to the start of felling operations  

3.2.1 

3.2.2 

Executed  Social  Agreement  signed  by  contract  holder  and  each  affected  community  through  its
Community Forestry Development Committee (CFDC) 
Social Agreement that predates Annual Harvesting Certificate of contract holder  

Verifier 

FMC, TSC, and FUP having value in excess of US$10,000.00 

Contract or Permit Type 

FMC, TSC, and FUP having value in excess of US$10,000.00 

3.2.3 

List of CFDC identified by or registered with FDA 

FMC, TSC, and FUP having value in excess of US$10,000.00 

Verification Guidance/ Procedure (LAS-LVD-0.3.2) 

Verification Method 

Verification 
Frequency 

Objective: 

The objective of this procedure is to ensure that a holder of an FMC, TSC and/or FUP having a value in excess of 
US$10,000.00 has signed a social agreement with all affected communities prior to logging operations. 

Regulatory Control: 

The  holder  and/or  company  may  only  negotiate  the  Social  Agreement  with  the  CFDC  who  acts  on  behalf  of  the 
affected  communities.  The  CFDC  must  be  representative  of  all  the  communities  affected  by  the  contract  holders 
logging  activities.  There  may  be  more  than  one  CFDC  representing  communities  affected.  Annual  audits  are 

Description: 

The  LVD  must  verify  that  the  above  requirements 
were met through consultation with and verification of 
the  executed  social  agreement  with 
the  FDA 
Community Forestry Department.  

Verification means:  

Per cycle 

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conducted  by  the  FDA  to  monitor,  assess  and  ensure  compliance  with  the  conditions  of  a  FMC,  TSC  and  FUP 
having value in excess of US$10,000.00. 

27.  1.  Consultation  with  FDA  Community  Forest 

Department and affected communities. 

28.  2.  Document review  
29.  3.  Field inspection 

Section  31  (b)  (1)  of  Regulations  105-07  states  that  the  contract  holder  “shall  ensure  that  at  all  times,  for  the 
duration  of  the  forest  resources  license,  a  social  agreement  for  the benefit  of  all  affected  communities  is  in  force 
with respect to the area to be logged”. Section 31 (b) (2) further provides that the contract holder may not fell trees 
unless a social agreement for the benefit of all affected communities is in force with respect to the area to be logged 
under a forest resource License.” 

References: Regulation 105-07 (31) 

Indicator 3.3.  The terms of the social agreement between the contract/permit holder and the affected communities include a code of conduct governing parties to the agreement,
a dispute resolution mechanism, plus (i) a description of amounts of financial benefits payable to the community by the contract holder and (ii) a requirement that
the contract/permit holder pays the amounts quarterly in an interest-bearing escrow account that the contract/ permit holder shall maintain in trust on behalf of
all affected communities.  

Verifier 

Contract or Permit Type 

3.3.1 

Code of conduct that governs the rights and responsibilities of affected communities and contract/ permit
holder  

FMC, TSC, and FUP having a value in excess of US$10,000.00 

3.3.2  Description of the minimum cubic meter fee that the contract/ permit holder will pay on a quarterly basis

FMC, TSC and FUP having a value in excess of US$10,000.00  

3.3.3 

to the affected communities (if there are others, specify) 
Bank  book  or  other  records  of  the  required  interest-bearing  escrow  account  opened  by  the  contract/
permit holder in trust for the affected communities 

FMC, TSC and FUP having a value in excess of US$10,000.00 

3.3.4  Dispute resolution mechanism established 

FMC, TSC and FUP having a value in excess of US$10,000.00 

Verification Guidance/ Procedure (LAS-LVD-0.3.3) 

Verification Method 

Verification 
Frequency 

EN 

49 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
Objective: 

The objective of this procedure is to ensure that all the statutory requirements are met and that all the prescribed 
conditions and/or elements are included in the social agreement negotiated. 

Regulatory Control: 

Any social agreement negotiated between one or more CFDCs must inter alia contain: 
1. A description of the rights and responsibilities of members of affected communities as well as the holder; 
2. A description of the financial benefits an affected community will receive; 
3.  Requirement  that  the  contract/  permit  holder  would  pay  financial  benefits  on  a  quarterly  basis  into  an  interest 

bearing escrow account maintained in trust for the community. 

4.  A  requirement  that  funds  only  be  released  in  benefit,  upon  written  request  of  a  CFDC,  provided  that  such  a 

request is approved by the FDA.  

Section 33 (a) of Regulations 105-07 provides that the FDA shall make model codes of conduct freely available on 
the Internet and shall, upon request, provide paper or electronic copies of model codes of conduct to contract/ permit 
holders, CFDCs, and affected communities. 

References: NFRL (5.3(b) &5.6(d)), Regulation 105-07 (33) 

Description: 

The  LVD  must  verify  that  the  above  requirements 
were met through consultation with and verification of 
the  contents  of  the  signed  social  agreement  with  the 
FDA Community Forestry Department.  

Verification means:  
30.  1.  Document review 
31.  2.  Field visit with communities  

Per cycle20 

Indicator 3.4 

The social agreement between the contract holder and the community or communities has been attested to by the FDA 

3.4.1 

FDA-attested social agreement between contract holder and affected community 

FMC, TSC, and FUP having value in excess of US$10,000.00 

Verifier 

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.3.4) 

Verification Method 

Verification 
Frequency 

Objective: 

The objective of this procedure is to ensure and/or verify that the social agreement has been approved by the FDA.  

Regulatory Control: 

Any social agreement negotiated must be submitted to the FDA for attestation. Upon receipt of the document, the 

Description: 

The  LVD  must  verify  that  the  above  requirements 
were met through consultation with and verification of 
the  existence  and  validity  of  the  attested  social 
agreement  with 
the  FDA  Community  Forestry 
Department.  

20 

Cycle: 5 years for FMC &FUP; 3 years for TSC. 

EN 

50 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
FDA  will  review  the  agreement  to  determine  its  completeness,  accuracy  and  conformity  with  the  law.  If  the 
agreement does not meet the relevant criteria, the FDA must reject it and supply reasons for its decision. The holder 
may remedy any deficiencies and resubmit the social agreement to the FDA for reconsideration. The FDA will attest 
to the social agreement if it is satisfied that the agreement is complete, accurate and complies with the relevant laws. 

Verification means:  
32.  1.  Consultation with FDA Community Forestry 

Department. 

33.  2.  Document review  
34.  3.  Field visit with selected communities 

Per cycle 

References: Regulation 105-07 (36) COCS SOP (9) 

Indicator 3.5 

The  stipulated  fees  owed  to  the  communities  by  the  contract  holder  under  the  social  agreement  are  paid  by  the  contract  holder  (i)  within  the  prescribed  time
periods and (ii) into an escrow account opened by the contract holder for this purpose 

3.5.1 

3.5.2 

Authenticated quarterly bank statements of escrow account  

Verifier 

FDA Compliance Audits 

Contract or Permit Type 

FMC, TSC and FUP having a value in excess of US$10,000.00 

FMC, TSC and FUP having a value in excess of US$10,000.00 

Verification Guidance/ Procedure (LAS-LVD-0.3.5) 

Verification Method 

Verification 
Frequency 

Objective: 

The objective of this procedure is to verify that the relevant fees due to the community have been paid in a timely 
manner.  

Regulatory Control: 

The  social  agreement  contains  financial  terms  of  the  performance  which  are  of  essence  to  the  agreements.  It  is 
therefore essential that the timely payment of the fees agreed and provided for in the social agreements is verified. 
At the operational level, control points may include statements of escrow account, and annual audit reports by the 
FDA measuring compliance of contract holders.  

Description: 

The  LVD  must  verify  that  the  above  requirements 
were  met  through  confirmation.  In  the  event  that 
further clarification is required, the FDA Commercial 
and  Community  Forestry  Departments  may  be 
consulted.  

Verification means:  
35.  1.  Consultation  with  FDA  Community  forestry 

Per shipment  

department 

36.  2.  Document review  
37.  3.  Field inspections 

References: Regulation 105-07(36)10 Regulation 107-07 (33);  

EN 

51 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PRINCIPLE 4: FOREST MANAGEMENT OPERATIONS AND HARVESTING 

Forest management operations and harvesting complies with all applicable laws 

Indicator 4.1 

The contract or permit holder has completed an annual operational plan and where applicable, a forest management plan 

Verifier 

4.1.1 

Annual Harvesting Certificate 

4.1.2 

Approved annual operational plan 

Approved Forest Management Plan 
4.1.3 
4.1.4  Written permission from land owner 

Contract or Permit Type 
All Contract and permit types except agricultural 
concessions/plantations  
All Contract and permit types except agricultural 
concessions/plantations  
FMC 
PUP 

Verification Guidance/ Procedure (LAS-LVD-0.4.1) 

Verification Method 

Objective: 

The aim of this procedure is to ensure that every contract holder complies with the relevant statutory pre-requisites 
before commencing felling operations.  

Regulatory Control: 
1. 

FMC: Contracts are awarded on forest land validated and in line with the requirements of the PPC Act. 
The  FMC  is  a  25  year  contract  and  subject  to  a  management  plan,  Environmental  Impact  Assessment 
(EIA), business plan, Social Agreements, and annual operational plans.  
TSC: three year contracts awarded in line with the National Forest Management Strategy, validated and 
meet with the requirements of the PPC Act and subject to annual operational plans.  
In  isolated  cases,  instances may  arise  where  FUP  exceeds  the  anticipated  small  scale  requirements  and 
are  formally  validated.  In  such  instances  the  LVD  may  be  required  to  evaluate  any  pre-harvest 
requirements that may attach to such FUP. 
PUP: for  all  commercial  use  of forest resources on  private  land,  an operator  must  be  the  landowner or 
have  permission  of  the  landowner  and  hold  a  valid  PUP  issued  by  the  FDA.  A  PUP  holder  may  not 

2. 

3. 

4. 

Description: 

The  LVD  must  verify  that  the  above  requirements 
were  met  through  consultation  with  FDA  and  EPA 
including  Commercial  and  Community  Forestry 
Departments. 

Verification means:  
38.  1.  Consultation with FDA and EPA 
39.  2.  Document Review 
40.  3. 

field inspection 

Verification 
Frequency 

Annually  (for 
operational 
plan); 

cycle 

Per 
(Management 
plan) 

EN 

52 

EN 

 
  
 
 
 
 
 
 
 
 
 
commence felling until they have an approved annual harvesting certificate and annual operational plan. 

Reference: NFRL (4.5, 5.3,5.4, 5.6) Regulation 104-07 (62a); EPML (23) ; COCS SOP (9) 

Indicator 4.2 

The contract or permit holder complies with the terms of its annual operational plan and requirements of law regarding the species and quantities it is permitted to
harvest. 

Verifier 

Contract or Permit Type 

4.2.1 

Approved annual blocks 

4.2.2 

Compartment and annual coupe 

4.2.3 

Felled trees data verification (SOP 11) 

4.2.3 

Annual compliance audit report of FDA 

FMC 

All forest contracts except FMC 

All contract and permit types except agricultural 
concessions/plantations  
All contract and permit types except agricultural 
concessions/plantations  

Verification Guidance/ Procedure (LAS-LVD-0.4.3) 

Verification Method 

Verification 
Frequency 

Objective: 

The  objective  of  this  procedure  is  to  ensure  that  a  contract  or  permit  holder  complies  with  its  annual  harvesting 
allocations and obligations as approved by the FDA.  

Regulatory Control: 

1. 

2. 

The approved annual harvesting certificate provides the parameters in which a particular operator must 
work, and also the requirements to be complied with, within the specified annual period.  

The FDA has two operational control mechanisms: 

2.1.  Continuous field monitoring, and 
2.2  Annual compliance audits conducted by the FDA to monitor assess and ensure compliance with 

the conditions of a FMC, TSC, single FUP and/or a PUP. 

References: NFRL (3.2;3.4) & COCS SOP (7-11) 

Description: 

This requirement is verified in detail by the LVD. The 
LVD  must  verify  that  the  above  requirements  were 
met  through  consultation  with  the  FDA  Commercial 
Department.  

Annually 

Verification means:  
41.  1.  Consultation  with 

Department 

42.  2.  Field inspection  

the  FDA  Commercial 

EN 

53 

EN 

 
  
 
 
 
 
 
 
 
 
 
PRINCIPLE 5: ENVIRONMENTAL OBLIGATIONS 

Contract Holder and Timber Processor have met all environmental obligations required by law. 

Indicator 5.1 

The Contract or permit holder and timber processor have completed an Environmental Impact Assessment that is approved by EPA.  

5.1.1 

5.1.2 

5.1.3 

Verifier 
Environmental Impact Assessment report prepared by or for the contract holder or timber processor 

Environmental  Impact  License  issued  by  EPA  to  contract  holder  or  timber  processor  prior  to
commencement of harvesting operations 
Environmental  Impact  Permit  issued  by  EPA  to  the  contract  holder  or  timber  processor  stating  the
condition(s), if any, of the Environmental Impact License listed as Verifier 5.1.2  

Contract or Permit Type 

All contract and permit types 

All contract and permit types 

All contract and permit types 

Verification Guidance/ Procedure (LAS-LVD-0.5.1) 

Verification Method 

Objective: 

The  objective  of  this  procedure  is  to  verify  that  the  relevant  requirements  have  been  met  in  relation  to  the  EIA 
application process. 

Regulatory Control: 

An Environmental Impact Assessment (EIA) License is required by the Environmental Protection and Management 
Law (EPML) of 2002 for activities listed and/or identified in Annex 1 to the Act. In relation to forestry activities, 
the  following  require  an  EIA:  (1)  logging  and/or  timber  processing,  (2)  plantation  forestry.  In  addition  to  the 
Environmental License, the EPA issues an Environmental Impact Permit which states the conditions attending the 
License and which the environmental license holder must comply with. 

Prior to issuing the license, the FDA provides the necessary consideration and inputs into the EPA evaluation.  

References: EPML (6,21-23); Reg (105-107) COCS SOP (9) 

Description: 

The  LVD  must  confirm  with  the  FDA  and  the  EPA 
that  the  contract  or  permit  holder  has  not  only  an  EI 
license  but  also  an  EI  permit  that  sets  forth  with 
specificity  the  conditions  that  the  EI  license  holder 
must comply with.  

Verification means:  
43.  1.  Consultation with the EPA and the FDA 
44.  2.  Document review 

Verification 
Frequency 

Once 
during 
the  validity  of 
the  EI  License 
and Permit  

EN 

54 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
Indicator 5.2 

The contract or permit holder or timber processor implements the mitigating measures identified in its EIA as indicated in the EI permit  

5.2.1 
5.2.2 

EPA environmental monitoring reports 
FDA EIA inspection report 

All contract and permit types 
All contract and permit types 

Verifier 

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.5.2) 

Verification Method 

Objective: 

The objective of this procedure is to ensure that any conditions and/or mitigation measures identified and imposed 
by  the  EPA  are  implemented  by  the  contract  or  permit  holder  or  timber  processor  and  that  there  are  no 
environmental transgressions inconsistent with the EI permit. 

Regulatory Control: 

A record of decision and/or an environmental authorization must be issued to the contract or permit holder prior to 
commencement  of  logging  operations.  The  EPA  and  FDA  monitor  compliance  with  the  conditions  of,  and/or 
mitigations  measures  identified  through  regular  and/or  spot  audits.  The  holder  of  EIA  license  is  under  a  duty  to 
submit notifications to EPA if there is a material change in project or activity that may impact on environment. The 
EPA may further institute enforcement action in the event of non-compliances. 

References: EPML (24-27), EPAA  

Description: 

The LVD must consult with, and verify with the FDA 
Environmental  Impact  Assessment  Division,  and  the 
EPA Monitoring Department as well as the Outstation 
&  Inspectorate  Department  that  the  contract  holder 
complies with the conditions of the EI permit.  

Verification means:  
45.  1.  Consultation with EPA and FDA 
46.  2.  Document review 
47.  3.  Field inspections 

Verification 
Frequency 

Annually  

Indicator 5.3 

Contract  or  permit  holder  or  timber  processor  has  disposed  of  equipment,  fuel,  wood  refuse  and  related  waste  arising  from  its  operations  in  a  lawful  and

environmentally appropriate manner 

5.3.1 

5.3.2 

EPA inspection report  

FDA Annual compliance audit report 

All contract and permit types 

All contract and permit types 

Verifier 

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.5.3) 

Verification Method 

EN 

55 

Verification 
Frequency 

EN 

 
  
 
 
 
 
 
 
 
Objective: 

The objective of this procedure is to ensure that all waste is lawfully disposed of in an environmentally appropriate 
manner. 

Regulatory Control: 

1. 

2. 
3. 

4. 

Evidence  of  a  record  of  decision  and/or  a  positive  environmental  impact  license  was  issued  to  the 
contract holder prior to commencement of operations.  
The EPA monitors compliance with the conditions of, and/or mitigation measures identified. 
The EPA conducts regular and/or periodic audits with the projects that may have a detrimental impact or 
affect. 
EPA may institute enforcement action in the event of non-compliance. 

Description: 

The LVD must consult with, and verify with the FDA 
Commercial  Department  and  Law  Enforcement 
Division. In addition the EPA Monitoring Department 
as  well  as  the  EPA  Outstation  &  Inspectorate 
Department must be consulted. 

Additional  information  could  be  obtained  from  the 
contract  or  permit  holder  and  timber  processors 
directly. 

Verification means:  
48.  1.  Consultation with EPA  
49.  2.  Document review 
50.  3.  Field inspection 

Annually  

References: EPML (24-27), EPAA 

Indicator 5.4 

Contract holder has maintained a buffer between its harvesting operations and water courses, and has specifically not felled trees that could threaten the flow or

stability of the water course(s)  

5.4.1 
5.4.2 

EPA inspection report  
FDA Annual Compliance Audit Report 

Verifier 

Contract or Permit Type 

All contract and permit types 
All contract and permit types 

Verification Guidance/ Procedure (LAS-LVD-0.5.4) 

Verification Method 

Verification 
Frequency 

Objective: 

The objective of this procedure is to ensure that the permit holder is in compliance with the relevant requirements 
relating to water management and the prevention of pollution of water resources. 

Regulatory Control: 

The objective is to ensure overall compliance in respect of water resource management. In this regard, the Code of 
Harvesting Practices (2007) prohibits logging in protected areas and water courses. It requires that adequate buffer 
strips be maintained between harvesting areas and water courses... 

Description: 

The  LVD  must  consult,  and  verify  with  the  FDA 
Commercial  Department  and  Law  Enforcement  Unit. 
In addition the EPA Monitoring Department as well as 
the  Outstation  &  Inspectorate  Department  must  be 
consulted.  Additional  information  can  be  obtained 
from  the  Contract  Holder  and/or  timber  processor 
directly. 

EN 

56 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In  respect  of  measuring  compliance,  both  the  EPA  and  FDA  are  tasked  with  routine  inspections  and  compliance 
audits which the LVD will review to determine compliance of the contract or permit holder.  

Verification means:  
51.  1.  Consultation with FDA and EPA. 
52.  2.  Document review 
53.  3.  Field inspections 

Annually  

References: EPML ( parts IV & V ), Code of Harvesting Practices (3.1; 3.2; 4 et al) 

Indicator 5.5 

The Contract or permit holder has in place procedures (i) to ensure compliance with rules regarding wildlife conservation, and (ii) to avoid harvest or trade in

endangered or threatened plants and animals species.  

5.5.1 

EPA inspection report  

5.5.2 

FDA Annual Compliance Audit Report 

All contract and permit types  

All contract and permit types  

Verifier 

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.5.5) 

Verification Method 

Objective: 

The objective of this procedure is to ensure that the contract or permit holder is in compliance with the provisions of 
Sections 9.11(v) which requires “hunting and wildlife trading certificates and licenses” and the provisions of 9.12(i) 
of the NFRL which prohibit hunting, capturing or trading in endangered species. 

Regulatory Control: 

Description: 

The  LVD  must  consult,  and  verify  with  the  FDA 
Commercial  Department  and  Law  Enforcement 
Division. In addition the EPA Monitoring Department 
as  well  as  the  EPA  Outstation  &  Inspectorate 
Department must be consulted. 

The  objective  is  to  ensure  compliance  with  the  requirements  of  Section  9.11  of  the  NFRL  regarding  conserving, 
managing and controlling the use of wildlife as well as the prohibition of Section 9.12 that no person shall capture, 
harvest or trade any species that the FDA has designated as threatened or endangered.  

In  respect  of  measuring  compliance,  both  the  EPA  and  FDA  are  tasked  with  routine  inspections  and  compliance 
audits to verify adequate procedures are in place and there is no evidence of illegal harvest or trade.  

Verification means:  
54.  1.  Consultation with EPA and FDA 
55.  2.  Document review 
56.  3.  Field inspections 

References: Sections 9.11 and 9.12 of the NFRL; EPML (parts IV & V), Code of Harvesting Practices (3.1;3.2 et al) 

Verification 
Frequency 

Annually  

EN 

57 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
The Contract or permit holder or timber processor meets all of its obligations required by law for the transportation and traceability of timber and/or timber products. 

PRINCIPLE 6: TIMBER TRANSPORTATION AND TRACEABILITY 

Indicator 6.1 

Transportation of logs, timber and other timber products is accompanied by a waybill identifying chain of custody numbers/references and a named destination  

6.1.1 

6.1.2 

Completed  Waybill  indicating  place  of  harvest,  chain  of  custody  ID  numbers,  date  and  place  logs  were
loaded, and destination. 
Completed Waybill for imported logs or timber product indicating country of harvest, chain of custody ID
numbers, date and place logs were loaded, and destination  

All contract and permit types  

Imported timber permit 

Verifier 

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.6.1) 

Verification Method 

Objective: 

Description: 

The aim of this procedure is to ensure that a contract holder or processor is in compliance with the relevant statutory 
requirements pertaining to the transport of logs, timber and timber products. 

Regulatory Control: 

The transport of logs, timber and timber products to either a processing facility or port is subject to the completion 
of a waybill that  must accompany the load. Transporters must possess valid transporter registration issued by the 
FDA. Detailed procedures will be developed during first two years of VPA implementation to guide incorporation 
of imported timber into the COCS. 

References: COCS SOP (13-17, 19 & 20) 

The LVD must confirm that the requirements relating 
to  transport  of  timber  products  have  been  met 
through  confirmation  of  control  in  the  Chain  of 
Custody 
(linking 
waybill and bar codes).  

Information  System 

(COCIS) 

Verification means:  
57.  1.  Confirmation with COCIS 
58.  2.  Field inspection 

Verification 
Frequency 

Per  Shipment 
or load 

EN 

58 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
Indicator 6.2 All logs are properly marked and entered in the chain of custody system in accordance with standard operating procedures of the FDA 

Log data form (SOP 13) 
Log data verification form (SOP 14) 

6.2.1 
6.2.2 
6.2.3  Waybill for transportation of logs and timber products (SOP 16) 

Verifier 

Verification Guidance/ Procedure (LAS-LVD-0.6.2) 

Objective: 

The  aim  of  this  procedure  is  to  verify  that  a  contract  or  permit  holder  is  in  compliance  with  the  relevant  COCS 
requirements and that all logs are integrated into the COCS.  

Regulatory Control: 

As  part  of  the  COCS  and  in  line  with  the  Ten  Core  Regulations,  various  standard  operational  procedures  and 
operational control documents have been developed that are checked by the COCS/FDA. . 

References: COCS SOP (13-17, 19 and 20) 

Contract or Permit Type 

All contract and permit types 
All contract and permit types 
All contract and permit types 

Verification Method 

Verification 
Frequency 

Description: 

The LVD verifies that the Contract or permit holder 
has complied with COCS requirements by consulting 
with FDA and reviewing the log data in the COCIS. 

Verification means:  
59.  1.  Consultation  with 

FDA  Commercial 

Department. 

60.  2.  Confirmation in COCIS. 

Per shipment 
or load 

Indicator 6.3 

All logs, timber and timber products harvested or transported by the contract or permit holder originate from the concession area of the contract or permit holder  

6.3.1 

6.3.2 

6.3.3 

Log data form (SOP 13) 

Standard form 14 (verification of cross cutting, dressing, and invoicing for Stumpage) 

Annual compliance audit of FDA 

All contract and permit types  

All contract and permit types  

All contract and permit types  

Verifier 

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.6.3) 

Verification Method 

Verification 
Frequency 

Objective: 

Description: 

The  aim  of  this  procedure  is  to  verify  that  every  contract  or  permit  holder  only  harvest  and  transport  timber  or 
timber products from its approved contract/license area.  

The  LVD  verifies  this  requirement  by  obtaining 
confirmation  from  review  of  the  relevant  standard 

EN 

59 

EN 

 
  
 
 
 
 
 
 
 
 
Regulatory Control: 

The FDA Ten Core Regulations requires that all timber or timber products are harvested from a licensed forest area 
and in compliance with the said license. 

Verification means:  
1. 

References: COCS SOP (13-15) 

2. 

forms and the FDA Compliance Audit Report 

Consultation  with  FDA  Commercial 
Department 
Field inspections 

Per shipment 
or load 

Indicator 6.4 

All logs, timber, or timber products imported (not in transit) into Liberia have complied with applicable legislation and regulations of the country of harvest. 

6.4.1 

Evidence of legal compliance with laws of country of harvest  

Imported timber permit 

Verifier 

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.6.4) 

Verification Method 

Objective: 

The aim of this procedure is to verify that logs and timber products imported into Liberia come from legal sources 
and are also custom cleared in accordance with Liberian legislation.  

Regulatory Control: 

The key requirement of Liberian law is that all timber harvested or imported into the country comes from a legal 
source.  The  legality  of  timber  in  the  country  of  harvest  can  be  demonstrated  by  a  certificate  issued  under  a 
sustainable  forest  management  certification  scheme  or  legality  verification  scheme  that  have  been  assessed  and 
approved by the Government of Liberia in consultation with concerned governments. Imported timber controlled by 
a  LAS  of  another  VPA  country  that  has  an  operational  FLEGT  licensing  scheme  will  be  considered  legal  in  the 
Liberian LAS 

References: Regulation 108-07 (44(d)) 

Description: 

The  LVD  must  verify  that  timber  imported  into 
Liberia  is  legal  under  the  laws  of  the  country  of 
harvest. In this regard, verification requires review of 
the  document  showing  legality  of  the  timber  in  the 
country of harvest.  

Verification means:  
61.  1.  Consultation  with  COCS 

and  FDA 

Commercial Department  

62.  2.  Document review  

Verification 
Frequency 

Per 
consignment 

import 

Indicator 6.5 All logs or timber products in transit are (i) physically segregated from domestic or imported timber, and (ii) custom-controlled at all times while in Liberia 

6.5.1.  Customs documents from country of harvest. 
6.5.2.  Completed waybill indicating country of harvest and country of export 

Timber in transit 
Timber in transit 

Verifier 

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.6.5) 

Verification Method 

Verification 

EN 

60 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
  
Objective: 

The aim of this procedure is to verify that logs and timber products in transit through Liberia are not integrated in 
the chain of custody system or mixed with domestically harvested or imported timber.  

Regulatory Control: 

A key regulatory requirement, which is also a cornerstone of the LAS is that timber in transit are not integrated in 
the  COCS  and  that  at  the  point  of  export  it  will  not  be  subject  to  issuance  of  a  Liberian  FLEGT  License.  It  is 
required that the country of harvest is clearly articulated in the bill of lading, customs documents and other transport 
documents.  

References: Regulation 108-07 (44(a)-(c))  

Description: 

The LVD must verify that timber products in transit 
are  or  were  at  all  times  physically  segregated  from 
imported  and  domestic  log  and  timber  products  and 
under control of the Bureau of Customs.  

Verification means:  
63.  1.  Consultation with MOF, Customs Bureau 

Indicator 6.6 

The FDA has complied with legal requirements for (i) seizure and or (ii) auctioning of abandoned logs wherever found. 

6.6.1 
6.6.2 
6.6.3 
6.6.4 
6.6.5 

Verifier 
FDA petition to Court of competent jurisdiction for seizure and Court decree authorizing seizure  
FDA Petition to Court of competent jurisdiction for auction and Court Decree of Auction 
Auction certificate 
Letter or statement verifying winning bidder. 
Registration of abandoned logs (SOP 37). 

FMC, TSC and FUP 
FMC, TSC, and FUP 
FMC, TSC, and FUP 
FMC, TSC, and FUP 
FMC, TSC, and FUP 

Contract or Permit Type 

Frequency 

unit 

Per 
transport 

of 

Verification Guidance/ Procedure (LAS-LVD-0.6.6) 

Verification Method 

Objective: 

The aim of this procedure is to verify that any abandoned log and timber products found are seized and auctioned in 
keeping  with  procedures  established  by  law.  The  lawful  seizure  and  auctioning  of  abandoned  logs  re-establishes 
their legality.  

Regulatory Control: 

Upon discovery of abandoned logs the FDA shall petition a court in the specific county where the logs were found 
for authorization to seize and auction the logs. If the Court is satisfied that there is adequate legal reason to grant the 
petition, it will authorize the seizure and consequent auction which will all be carried out under its supervision.  

Description: 

The  LVD  must  verify  that  the  above  requirements 
were  met  through  consultation  with  and  verification 
of  relevant  documents  with  the  FDA  Commercial 
Department.  

Verification means:  
64.  1.  Consultation  with 

Department 

65.  2.  Document review  

FDA  Commercial 

References: Regulation 108-07(51(d)&(e)) 

Verification 
Frequency 

Every 
time 
abandoned  logs 
are  entered  into 
the COCS 

EN 

61 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
PRINCIPLE 7: TRANSFORMATION AND TIMBER PROCESSING 

Timber processors have complied with the relevant Liberian laws and regulation  

Indicator 7.1 

A timber processor has applied for and obtained required sawmill permit (either Class A, B, or C operator permit) following payment of required fees and prior to

commencement of its operations  

7.1.1 Processor’s application for sawmill permit 
7.1.2 Payment of initial annual sawmill registration fees that predates sawmill permit 
7.1.3 Environmental plan approved by the EPA 
7.1.4 Sawmill permit issued by FDA to the operator 

Sawmill permit 
Sawmill permit 
Sawmill permit 
Sawmill permit 

Verifier 

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.7.1) 

Verification Method 

Verification 
Frequency 

Objective: 

The  aim  of  this  procedure  is  to  verify  that  the  timber  processor  has  obtained  the  required  permit  prior  to 
commencement of operations.  

Regulatory Control: 

Timber processors are required to obtain a sawmill permit prior to commencement of operations. Applications for 
permits are submitted to the FDA and if requirements fulfilled, the FDA will issue the relevant permits (Class A, B, 
or C). In addition, the EPA must approve an environmental plan for sawmill operations.  

Description: 

The LVD must verify that every timber processor has 
a  saw  mill  permit.  The  verification  will  be  through 
consultation with FDA Commercial Department.  

Verification means:  
66.  1.  Consultation  with 

Department 

67.  2.  Document review  
68.  3.  Field inspection 

Annually  

FDA  Commercial 

References: Regulation 107-07 (46); COCS SOP (26) 

EN 

62 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
Indicator 7.2 

All logs harvested in Liberia and logs imported from 3rd countries for processing are accompanied by their chain of custody ID numbers. . 

7.2.1 

Bar code issue report SOP 7 

Verifier 

7.2.2 

Verification of transported logs and wood products (SOP 17) 

7.2.3 

Sawn wood registration report (SOP 15) 

Contract or Permit Type 
All  contract  and  permit  types,  including  imported  log  and  timber 
products 
All  contract  and  permit  types,  including  imported  log  and  timber 
products  
All  contract  and  permit  types,  including  imported  log  and  timber 
products  

Verification Guidance/ Procedure (LAS-LVD-0.7.2) 

Verification Method 

Verification 
Frequency 

Objective: 

Description: 

The aim of this procedure is to verify that all logs entering processing facilities are well documented and the legal 
origin verified. 

Regulatory Control: 

It is a key requirement of Liberian law that all processing facilities have effective control systems in place and only 
source legally harvested logs that are in the COCS. 

The  LVD  must  verify 
logs  entering 
processing  facilities  are  entered  into  the  COCS.  If 
further clarification is required, the FDA Commercial 
Department may be consulted.  

that  all 

Per shipment 
or load  

Verification means:  
69.  1.  Consultation  with 

FDA  Commercial 

Department and COCS 
70.  2.  Confirmation in COCIS 
71.  3.  Field inspection 

References: COCS SOP (15, 19 &20) 

Indicator 7.3 

The timber processor has in place a system of recording timber products through the mill or processing activity to ensure their traceability 

7.3.1 

7.3.2 

7.3.3 

Logging verification report  

Production report  

Sawmill log input form and sawmill output form (SOPs 31 and 32) 

Sawmill permit  

Sawmill permit  

Sawmill permit  

Verifier 

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.7.3) 

Verification Method 

EN 

63 

Verification 
Frequency 

EN 

 
  
 
 
 
 
 
 
Objective: 

Description: 

The aim of this procedure is to ensure that traceability is maintained through processing that will verify that timber 
products originating from a processing facility can be linked to a source of verifiable legal origin. 

Regulatory Control: 

The FDA requires adequate measures are in place to ensure that products are duly entered into the COCS and can be 
traced through the processing chain. 

The LVD must verify that the requirements were met 
through  confirmation  of  effective  COCS  in  the 
processing facility. If further clarification is required, 
the FDA Commercial Department may be consulted.  

Per shipment 

or load  

Verification means:  
72.  1.  Field inspections 
73.  2.  Consultation  with 

Department 

FDA  Commercial 

References: NFRL 13.5; COCS SOP (15) 

EN 

64 

EN 

 
  
 
 
 
 
 
The contract/ permit holder or timber processor meets its obligation under the Labour Law and any collective bargaining agreements of the timber industry 

PRINCIPLE 8: WORKERS RIGHTS, HEALTH SAFETY AND WELFARE 

Indicator 8.1 

Liberian  nationals  are  given  preference  by  contract/permit  holders  and  timber  processors  in  the  employment  of  skilled  and  unskilled  workers  in  keeping  with

Liberian Labour Law.  

Verifier 

Contract or Permit Type 

8.1.1 

Employment  records  or  quarterly  reports  submitted  evidencing  local  employment  and  preference  to
Liberian workers  

8.1.2  Quarterly report submitted by contract holder or timber processor to the Ministry of Labour 
Employment records, including register or employees along with their nationalities  
8.1.3 
Attestation  of  compliance  issued  by  the  Ministry  of  Labour  in  favour  of  contract  holder  or  timber
8.1.4 
processor 

All contract and permit types  

All contract and permit types  
All contract and permit types  
All contract and permit types 

Verification Guidance/ Procedure (LAS-LVD-0.8.1) 

Verification Method 

Objective: 

The objective of this procedure is to verify that persons hired by the contract holder and/ or timber processor have 
been employed following Legislative requirements.  

Regulatory Control: 

All aspects of employment are regulated by the Liberian Labour Law (LLL). These laws require that only Liberian 
nationals are preferred in all employment decisions, and that a non Liberian may be hired only if it is demonstrated 
that no Liberian national is competent and available to fill a post requiring specialized skills. Labour agents and/or 
inspectors  monitor  implement  and  evaluate  compliance  with  the  legislative  requirements  relating  to  hiring  of 
employees, conditions of work, etc. 

Description: 

The  purpose  of  this  indicator  is  not  to  evaluate 
specific aspects of employment (which are dealt with 
elsewhere), but to verify overall compliance with the 
law on preferred employment of Liberians. The LVD 
needs  to  crosscheck  and/or  verify  the  compliance 
with  MOL  Employment  Section  and  also  Labour 
Inspectorate Section. 

Verification means:  
74.  1.  Consultation with the MOL  
75.  2.  Document review  

References: LLL (54 to 60,75, 1503) Code of Harvesting Practices (12.2) 

Verification 
Frequency 

Per shipment 

EN 

65 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indicator 8.2 

The contract/permit holder or timber processor pays to all its employees no less than the minimum wage established by law 

Published minimum wage 
Payroll 
Annual inspection reports and/or letter of compliance 

8.2.1 
8.2.2 
8.2.3 
8.2.4  Workers payslips 

Verifier 

Contract or Permit Type 

All contract and permit types 
All contract and permit types 
All contract and permit types 
All contract and permit types 

Verification Guidance/ Procedure (LAS-LVD-0.8.2) 

Verification Method 

Objective: 

The objective of this procedure is to verify whether employees receive fair wages as provided for by the Law.  

Regulatory Control: 

Description: 

The LVD needs to crosscheck and/or verify that fair 
wages  are  paid  by  liaising  with  the  MOL  Labour 
Inspectorate Section. 

All  employees  are  entitled  to  receive  adequate  wage  which  must  not  be  below  the  minimum  prescribed  wage.  In 
addition to this duty placed on employers, Labour inspectors will also investigate compliance. Moreover, employees 
should be aware of this requirement. The Minimum wage is set from time to time by a minimum wage Board and 
duly communicated upon establishment. 

Verification means:  
76.  1.  Consultation with MOL 
77.  2.  Document review  

References: LLL(500-513) Code of Harvesting Practices (12.2) 

Indicator 8.3 

The contractor/permit holder or timber processor complies with the maximum hours of work, leave and rest periods laid out in law 

Verification 
Frequency 

Per shipment 

8.3.1  Working hour schedule 
Leave records  
8.3.2 
Payment of overtime  
8.3.3 

All contract and permit types 
All contract and permit types 
All contract and permit types 

Verifier 

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.8.3) 

Verification Method 

Verification 
Frequency 

Objective: 

The objective of this procedure is to verify whether employees’ working hours comply with the provisions of LLL  

Description: 

The  LVD  needs  to  crosscheck  and/or  verify  that 
prescribed  working  hours  are  complied  with  by 
liaising with the MOL Labour Inspectorate Section. 

Regulatory Control: 

EN 

66 

EN 

 
  
 
 
 
 
 
 
 
 
The Law provides for the maximum working hours per day (8 hours) or per week (48 hours). Certain variations are 
in respect of certain activities and also seasonal work. In addition to the maximum prescribed hours, LLL provides 
for overtime of 50% above normal rate where such hours are exceeded. LLL also provides for an hour rest where 
five hours  are exceeded,  which  hour  is  included  in  the working hours. Moreover,  specific  leave  requirements  are 
provided for. 

Verification means:  
78.  1.  Consultation with MOL  
79.  2.  Document review  
80.  3.  Field inspection 

Annually 

References: LLL (700-706,906) 

Indicator 8.4 

The contract/permit holder or timber processor has neither employed anyone under the age of sixteen nor engaged in the practice of forced labour 

8.4.1  Quarterly reports submitted to Ministry of Labour 
8.4.2  Ministry of Labour inspection report 

Verifier 

Contract or Permit Type 

All contract and permit types 
All contract and permit types 

Verification Guidance/ Procedure (LAS-LVD-0.8.4) 

Verification Method 

Objective: 

The objective of  this  procedure  is  to  verify  whether  the minimum  age  of  employment  (and  prohibition on  forced 
labour) is complied with. 

Regulatory Control: 

Section 74 of the Labour law says that it “shall be unlawful for any person to employ or hire any child under the age 
of  sixteen  during  the  hours  when  he  is  required  to  attend  school”.  The  Constitution  of  Liberia  and  the  LLL  also 
prohibit forced labour 

Description: 

The  LVD  needs  to  crosscheck  and/or  verify  that  the 
minimum age is respected by liaising with the MOL 
Labour Inspectorate Section. 

Verification means:  
81.  1.  Consultation with the Ministry of Labour 
82.  2.  Document review  
83.  3.  Field inspection 

Verification 
Frequency 

Annually 

References: LLL (74) 

Indicator 8.5 

The contract/permit holder or processor pays its (employer’s) contributions to the employee pension and social security funds established by Liberian Law.  

8.5.1  Quarterly report submitted to Ministry of Labour 

8.5.2  Ministry of Labour inspection reports 

Verifier 

8.5.3 

Attestation from National Social Security & Welfare Corporation (NSSWC) 

Contract or Permit Type 

All contract and permit types 

All contract and permit types 

All contract and permit types 

EN 

67 

EN 

 
  
 
 
 
 
 
 
 
 
 
Verification Guidance/ Procedure (LAS-LVD-0.8.5) 

Verification Method 

Verification 
Frequency 

Objective: 

The  objective  of  this  procedure  is  to  verify  whether  employers  meet  their  obligations  in  respect  of  retirement 
pension and social security pension. 

Regulatory Control: 
LLL and the National Social Security Law (NSSL) place an obligation on employers to contribute to two schemes 
established  and  operated  by  the  National  Social  Security  and  Welfare  Corporation  of  Liberia  for  purpose  of 
protecting employees. The first scheme is the Retirement Pension Scheme while the second is an insurance scheme. 
Every employer having five or more employees must contribute to these schemes; the social security scheme is to 
provide for pension payments for employees who have retired while the insurance scheme is to address matter of 
occupational injuries.  

References: LLL (2500 to 2501) NSSL (89.9) 

Description: 

The LVD needs to crosscheck and/or verify that there 
has been compliance with the above verifiers through 
consultation  with  the  MOL  Labour  Inspectorate 
Section as well as the NSSWC 

Verification means:  
84.  1.  Consultation with MOL and NSSWC. 
85.  2.  Document review  

Annually 

Indicator 8.6 

The  contract/permit  holder  or  timber  processor  has  observed  legal  requirements  concerning  housing  and  sanitation as  well  as  operational  hygiene  and  general

workers safety pursuant to the code of harvesting practices and guidelines issued by the FDA  

8.6.1 

FDA Compliance Audit Report  

Verifier 

All contract and permit types 

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.8.6) 

Verification Method 

Objective: 

The  objective  of  this  procedure  is  to  ensure  that  a  contract  holder  or  company  applying  for  FLEGT  licensing 
complies with the relevant statutory and FDA requirements in respect of workers health and safety. 

Regulatory Control: 

The  Code  of  Forest  Harvesting  Practices  (2007)  was  developed  by  the  FDA  to  regulate,  inter  alia,  operational 
hygiene and workers safety. The code outlines operational requirements. Annual audits are conducted by the FDA 
to monitor, assess and ensure compliance with the conditions of the various forest contracts and permits 

Description: 

The LVD must verify that workers health, sanitation 
and  shelter  are  properly  addressed  by  the  contract 
holder.  This  is  to  be  done  through  consultation  with 
the  FDA  and  a  review  of  the  Compliance  Audit 
Reports by the FDA Law Enforcement Unit.  

Verification means: 
86.  1.  Consultation with FDA 
87.  2.  Document review 

Reference: Code of Harvesting Practices (3.0 and 4.0)  

Verification 
Frequency 

Annually 

EN 

68 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The contract holder or timber processor is current in its compliance with all fiscal obligations including payment of taxes and fees 

PRINCIPLE 9: TAXES, FEES AND OTHER PAYMENTS 

Indicator 9.1 

The contract/permit holder or timber processor has settled all tax arrears prior to the signing of the contract or the issuance/renewal of the saw mill permit.  

9.1.1 

9.1.2 

Tax clearance by the Ministry of Finance evidencing settlement of all tax arrears at the time of signing of
the contract or the issuance/renewal of saw mill or timber processor permit  
Report of any authorized representative of FDA 

Verifier 

All contract and permit types 

Contract or Permit Type 

All contract and permit types except agricultural 
concessions/plantations 

Verification Guidance/ Procedure (LAS-LVD-0.9.1): 

Verification Method 

Verification 
Frequency 

Objective: 

Description: 

The aim of this procedure is to verify that the contract holder or timber processor has cleared all tax arrears prior to 
signing contract. 

Regulatory Control: 

The law requires that a bidder or contract holder has met all fiscal obligations prior to commencement of operations. 

The  LVD  must  verify  that  the  above  requirements 
the  FDA 
were  met 
through  consultation  with 
Commercial 
and 
verification of valid tax clearance.  

and  Finance  Departments 

Verification means:  
88.  1.  Consultation  with  FDA  Commercial  and 

Once during the 
effective  period 
of  the  contract 
or permit type 

Finance Departments 
89.  2.  Document review 

References: Regulation 107-07  

Indicator 9.2 

The  contract/permit  holder  or  timber  processor  has  paid  the  initial  annual  area  fee  (in  case  of  contract  holder)  or  annual  registration  fee  (in  case  of  timber

processor) prior to the signing of the contract or the issuance/renewal of the permit.  

Verifier 

Contract or Permit Type 

EN 

69 

EN 

 
  
 
 
 
 
 
 
 
 
 
9.2.1 
9.2.2 
9.2.3 
9.2.4 

Receipt of payment for area fee by any authorized representative of FDA  
Receipt of bid premium payment  
Receipt of annual registration fee payment  
Copy of manager’s check 

FMC, TSC 
FMC, TSC, FUP having value of more than US$10,000 
Timber processors, chain saw operators 
FMC, TSC, FUP, chain saw operators, timber processors 

Verification Guidance/ Procedure (LAS-LVD-0.9.2) 

Verification Method 

Objective: 

The aim of this procedure is to verify that the contract/permit holder has paid the annual area fee and that the timber 
processor has paid their annual registration fee. 

Regulatory Control: 

The FDA or an authorized representative of FDA has, as part of the COCS, provided for mechanisms to ensure the 
implementation and payment of all forest related taxes and fees. 

Description: 

The  LVD  must  verify  that  the  above  requirements 
were  met  through  confirmation  with  an  authorized 
representative of FDA  

Verification means:  
90.  1.  Document review 
91.  2.  Consultation  with  COCS 

Commercial Department 

and  FDA 

References: COCS SOP (9) 

Verification 
Frequency 

Annually 

Indicator 9.3 

The contract or permit holder has been cleared by the Ministry of Finance upon paying all taxes and fees required of it by law and in keeping with the terms of its

contract 

Verifier 

Contract or Permit Type 

9.3.1 
9.3.2 
9.3.3 
9.3.4 
9.3.5 
9.3.6 

Tax clearance from the Ministry of Finance 
Receipt of stumpage fees 
Receipts of payment of contract administrative fees 
Receipts of payments of annual coupe inspection fees 
Receipts of payment of waybill fees 
Proof of payment of chain of custody fees 

All contract and permit types 
All contract and permit types 
All contract and permit types except agricultural concession/plantations 
All contract and permit types except agricultural concession/plantations 
All contract and permit types 
All contract and permit types 

Verification Guidance/ Procedure (LAS-LVD-0.9.3) 

Verification Method 

Verification 
Frequency 

Objective: 

The aim of this procedure is to verify that all relevant forest taxes are paid. 

Regulatory Control: 

EN 

Description: 

The  LVD  must  verify  that  the  above  requirements 
were  met  through  confirmation  in  COCIS.  In  the 
event  that  clarification  is  required,  the  LVD  may 

70 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
Section  2108  of  Phase  One  of  the  Reform  Tax  Code,  as  amended,  and  Section  14.2  of  the  NFRL,  as  well  as 
Regulations 107-07 of the FDA established stumpage fees, land rental fees and forest product fees as some of the 
fees that contract holders are required to pay in addition to corporate income tax and other duties.  

Regulation 107-07 requires that all taxes and fees be paid on their due date, and that failure to pay such fees on their 
due date shall attract penalties after a thirty-day grace period. 

check with the Registration Return Services Division 
at the Ministry of Finance. 

Annually 

Verification means:  
92.  1.  Confirmation in COCIS 
93.  2.  Consultation with MOF 

References: Regulation 107-07 61-63; COCS SOP (9) 

Indicator 9.4 Contract/permit holder or timber processor has filed its annual tax return with the Ministry of Finance no later than March 31st of each year  

9.4.1 

Tax return  

Objective: 

Verifier 

All contract and permit types 

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.9.4) 

Verification Method 

Verification 
Frequency 

The aim of this procedure is to verify that a contract or permit holder or timber processor has filed its annual tax 
return as specified by law.  

Regulatory Control: 

The law requires that companies file annual tax returns between 31 December and 31 March of the following year. 

References: Revenue Code of Liberia 109(c)(d)(e) 

Description: 

The LVD must verify that the requirements were met 
by  consulting  with  the  Registration  Return  Service 
Section  within  the  Large  Income  Tax  Division 
(Ministry  of  Finance)  to  ensure  that  the  return  was 
filed. 

Annually  

Verification means:  
94.  1.  Consultation with MOF 
95.  2.  Document review  

PRINCIPLE 10: EXPORT, PROCESSING AND TRADE REQUIREMENTS 

All contract and permit holders as well as timber processors have complied with export, processing and trade requirements 

EN 

71 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
Indicator 10.1  Any person exporting logs, timber and/or timber products is duly registered with the FDA annually 

10.1.1  Valid Exporter Registration 

Verifier 

Contract or Permit Type 
All exporters of logs, timber and timber products 

Verification Guidance/ Procedure (LAS-LVD-0.10.1) 

Verification Method 

Verification 
Frequency 

Objective: 

The aim of this procedure is to verify that exporters have complied with the statutory requirements/registration for 
exporting logs, timber and/or timber products.  

Regulatory Control: 

Section  41  of  Regulations  108-07  provides  that  before  “exporting  logs,  timber,  or  wood  products,  a  person  shall 
register with the Authority as an exporter and renew the registration annually”.  

Description: 

The  LVD  must  verify  annually  with  the  FDA 
Commercial  Department  that  a  particular  company 
and/or permit holder is registered as an exporter.  

Verification means:  
96.  1.  Consultation  withthe  FDA  Commercial 

Annually 

Department 

97.  2.  Document review  

References: Regulation 108-07 (41) 

Indicator 10.2  All shipments of logs, timber, or timber products loaded for export have been entered into the chain of custody system 

Verifier 

Contract or Permit Type 

10.2.1  Application for a FLEGT license 

10.2.2  Export shipment specification log (SOP 20) 
10.2.3  Export specification-sawn timber (SOP 21 
10.2.4  Log export volume report 
10.2.5  Proof of payment of export fees (SOP 26) 

All exported logs and timber products 

All exported logs and timber products 
All exported sawn timber 
All exported logs and timber products 
All exported logs and timber products 

Verification Guidance/ Procedure (LAS-LVD-0.10.2) 

Verification Method 

Verification 
Frequency 

Objective: 

Description: 

The aim of this procedure is to verify that all export shipments have been included in the COCS.  

Regulatory Control: 

EN 

The  LVD  must  verify  through  inspection  of  each 
consignment. 

Per shipment  

72 

EN 

 
  
 
 
 
 
 
 
 
 
 
Section 42 of Regulation 108-07 provides that Government officials in charge of ports and customs shall not allow 
bulk shipments of logs, timber, or timber Products to be loaded on vehicles, vessels, or aircraft for export unless the 
officials verify all of the following:  

Verification means:  
100. 1.  Confirmation in the COCIS 

98.  1.  All logs, timber and timber products have been entered into the COCS; and  
99.  2.  The COCS/ COCIS confirm that logs (or timber products) have not already been exported. 

References: Regulation 108-07 (42); COCS SOP (20-21) 

Indicator 10.3  Any load of logs, timber, or timber products has been priced according to current market information gathered, sorted and maintained by the LVD  

10.3.1 Reference price as found in market intelligence data base (MIDB) maintained by LVD 

All contract and permit types 

Verifier 

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.10.3) 

Verification Method 

Objective: 

The aim of this procedure is to verify that all export shipments have been priced according to the relevant and/or 
accepted market prices.  

Regulatory Control: 

Regulation 108-07 of the FDA requires that no under-priced timber or timber products will be 
loaded for export.  

Description: 

The  LVD  must  verify  through  confirmation  with 
LVD  databases  that  none  of  the  contract  and/or 
reference  prices  of  a  particular  shipment  were 
indicative of under-pricing. If clarification is needed, 
the Ministry of Commerce can also be consulted. 

Verification means:  
101. 1.  Confirmation in LVD database 
102. 2.  Consultation with Ministry of Commerce 

References: Regulation 108-07 (43); COCS SOP (18 &21) 

Verification 
Frequency 

Per 
load 
shipment  

or 

EN 

73 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
PRINCIPLE 11: TRANSPARENCY AND GENERAL DISCLOSURE 

Indicator 11.1:  The contract or permit holder has published bi-annually in a newspaper of general circulation, a list of the amounts and dates of all payments and considerations

provided the Government of Liberia in respect of specified contract area.  

11.1.1  Copy of newspaper containing the publication 

Verifier 

FMC, TSC, PUP, FUP and Chain Saw Permit  

Contract or Permit Type 

Verification Guidance/ Procedure (LAS-LVD-0.11.1) 

Verification Method 

Verification 
Frequency 

Objective: 

Description: 

The objective of this procedure is to verify that holders of forest licenses publish the required data in a newspaper 
circular as a mechanism of transparency and accountability.  

Regulatory Control: 

The  LVD  needs  to  crosscheck  and/or  verify  that  the 
publication  of  the  aforesaid  information  took  place 
and 
required 
the  notices  contained 
information with the FDA Commercial Department. 

that 

the 

The NFRL requires holders to biannually (no later than 15 March and 15 September) publish notices containing the 
following information in a newspaper in circulation in Monrovia:  
103. 1.  The name of the contract holder 
104. 2.  Description of area covered by logging operations of the contract holder 
105. 3.  List of payments and other considerations provided to government by the contract holder. 

Verification means:  
106. 1.  Document review  
107. 2.  Consultation  with 

Department 

Semi-annually 

FDA  Commercial 

References: NFRL (5.8)  

Indicator 11.2  The contract or permit holder is currently participating in the Liberia Extractive Industries Transparency Initiative (LEITI) 

11.2.1  LEITI Report 
11.2.2  LEITI Attestation 

Verifier 

Contract or Permit Type 

All contract and permit types 
All contract and permit types 

EN 

74 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
Verification Guidance/ Procedure (LAS-LVD-0.11.2) 

Verification Method 

Objective: 

The  objective  of  this  procedure  is  to  verify  whether  a  contract  or  permit  holder  is  compliant  with  LEITI.  LEITI 
which includes forest resources aims to ensure transparent and accountable resource governance-. 

Regulatory Control: 

LEITI publishes and/or disseminates widely the details of all payments made by inter alia the forestry sector to the 
Government, and the corresponding revenues received by the Government.  

Description: 

The  LVD  needs  to  crosscheck  and/or  verify  the 
publication  of  the  LEITI  report  with  the  FDA 
Commercial Department. 

Verification means:  
108. 1.  Consultation  with  LEITI 

and  FDA 

Commercial Department 

109. 2.  Document review  

Verification 
Frequency 

Annually 

References: LEITI Act (4.1 & 5.4)  

Indicator 11.3  Copies  of  the  contract,  license,  permits,  records  of  payments  made  to  Government  as  well  as  the  bid  evaluation  report  of  its  successful  bid  are  made  publicly

accessible by FDA in keeping with the Freedom of Information Act of Liberia. 

Verifier 
11.3.1  FDA publication scheme listing the contracts and other documents of contract or permit holders it holds

All contract and permit types  

Contract or Permit Type 

and are available for public access 

11.3.2  Evidence of the publication of the contract holder’s contract on the LEITI website 

All contract and permit types  

Verification Guidance/ Procedure (LAS-LVD-0.11.3) 

Verification Method 

Objective: 

The objective of this procedure is to verify whether the contract or license of the contract or permit holder as well as 
other documents pertaining to the concession of the contract holder are published or publicly available in keeping 
with the LEITI Act and the Freedom of Information Act. 

Regulatory Control: 

LEITI  requires  publications  of  all  concessions  in  the  forestry  sector.  The  Freedom  of  Information  Act  requires 
publication  and  or  public  accessibility  of  all  documents  affecting  public  interest.  Because  the  concession  and  the 
underlying  document  submitted  for  the  concession  implicate  public  interest,  the  objective  is  to  ensure  their 
availability to the public especially civil society. 

References: LEITI Act (4.1 & 5.4); Freedom of information Act (Section 2.6) 

Description: 

The  LVD  needs  to  crosscheck  and/or  verify  the 
Publication  Scheme  with  the  FDA  Commercial 
Department  and  check  the  LEITI  website  for 
publication of the contract. 

Verification means:  

110. 1.  Consultation  with  LEITI 

and  FDA 

Commercial Department.  

Verification 
Frequency 

Annually 

EN 

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LIST OF ACRONYMS 

AHC 

BOT 

CEO 

Annual Harvesting Certificate 

Build, Operate, Transfer contract type 

Chief Executive Officer 

CFDC 

Community Forestry Development Committee 

CNDRA 

Center for National Records and Documentation 

COCIS 

Chain of Custody Information System 

COCS 

Chain of Custody System 

CSO 

EIA 

EI 

EIP 

EPA 

EPAA 

EPML 

FDA 

FMC 

FUP 

GBL 

GSOP 

IMCC 

LAS 

LEITI 

LLD 

Civil Society Organisation 

Environmental Impact Assessment 

Environmental Impact License 

Environmental Impact Permit 

Environmental Protection Agency 

Environmental Protection Agency Act 

Environmental Protection and Management Law 

Forestry Development Authority 

Forest Management Contract  

Forest Use Permit 

General Business Law 

General Standard Operating Procedure 

Inter-Ministerial Committee on Concessions 

Legality Assurance System 

Liberia Extractive Industries Transparency Initiative 

Liberia Licensing Department 

EN 

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LLL 

LVD 

MIDB 

MOCI 

MOF 

Liberian Labour Law 

Liberia Verification Department, FDA 

Market Intelligence Data Base 

Ministry of Commerce and Industry 

Ministry of Finance 

MOFA 

Ministry of Foreign Affairs 

MOL 

MPEA 

NFRL 

NSSL 

Ministry of Labour 

Ministry of Planning & Economic Affairs 

National Forestry Reform Law 

National Social Security Law 

NSSWC 

National Social Security & Welfare Corporation 

PDA 

PPCA 

PPCC 

PUP 

SOP 

TSC 

Personal Digital Assistant 

Public Procurement and Concessions Act 

Public Procurement and Concessions Commission 

Private Use Permit 

Standard Operating Procedure 

Timber Sale Contract 

UTM 

Universal Transverse Mercator  

EN 

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LEGISLATION REFERENCED IN LIBERIAN LEGALITY DEFINITION 

Referenced in the Legality Definition: 

Environmental Protection and Management Law (2002) 

Environmental Protection Agency Act (2002) 

FDA Code of Forest Harvesting Practices (2007) 

FDA Regulation 111-10  

FDA Ten Core Regulations (2007) (Regulations 101-07 to 110-07) 

Freedom of Information Act (2010) 

General Business Law 

LEITI Act (2009) 

Liberia COC Standard Operating Procedures  

Liberia Labour Law 

National Forestry Reform Law (2006) 

National Social Security Law 

Public Procurement and Concessions Commission Act (2005) 

Revenue Code of Liberia, as Amended (2009) 

Additional Relevant Documents: 

Community Rights Law (2009) 

Liberia Forest Policy (2007) 

National Forest Management Strategy 

Protected Forest Areas Network Law (2003) 

EN 

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Appendix B:  Overview of the chain of custody system (COCS) 

RESPONSIBILITIES OF OPERATORS 

VERIFICATION BY THE FDA  

STAGE 

ACTIVITIES 

DATA ENTERED 
IN COCIS 

KEY OUTPUTS  ASSESSMENTS 

AND FIELD 
INSPECTIONS 

DATA 
VALIDATION 
WITHIN COCIS21  

RECONCILIATION 
BETWEEN AND/OR 
WITHIN STAGES 
OF THE SUPPLY 
CHAIN22  

ID numbers of trees, 
tree species, diameter 
at breast height, height 
and location 

Use of barcode tags 

Pre-har-
vest 

Contract holder TIN 
(Registration num-
ber issued by 
Ministry of 
Commerce) 

Coordinates of 
blocks 

Stock survey data, 
including tree ID, 
tree species, 
diameter at breast 
height, height and 
location in the block 
of 2500m2 

Registration of 
contract holder’s 
business unit in 
COCIS 

Delineation and 
block cutting (GPS 
located grid system) 
of contract areas 
allocated by the 
FDA  

Enumeration of all 
trees of commercial 
size and affixing of 
COCIS barcode 
tags on trees 

Forest mapping: 
Location of tree and 
natural features  

Block maps 

Office: 

Sketch maps 

Stock survey re-
sults and request 
for crop trees 

Annual opera-
tional plan 

-Block maps/ com-
partment maps, 

-Stock survey 
forms, 

-Sketch maps, 

-Validation of tree 
requested for har-
vesting. 

Field:  

-5% of block area: 
tree location, di-
ameter, height spe-
cies. 

-Coordinates of 
block corners 

21 
22 

Between declaration by contract-holder and verification by COCIS. 
On the basis of data provided by the contract-holders   

EN 

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RESPONSIBILITIES OF OPERATORS 

VERIFICATION BY THE FDA  

STAGE 

ACTIVITIES 

DATA ENTERED 
IN COCIS 

KEY OUTPUTS  ASSESSMENTS 

AND FIELD 
INSPECTIONS 

DATA 
VALIDATION 
WITHIN COCIS21  

Contract holder TIN 

Tree data forms 

Felling site: 

Tree data: ID num-
ber, species, di-
ameters and length 

Stump ID numbers 

Road alignment 
forms  

-5% verification of 
tree data 

- sample checking 
that tree data are 
consistent between 
the log, stump and 
felled tree 

Tree data (while 
standing): ID number, 
species, diameters and 
estimated length  

Felled tree location, 
species and log dimen-
sions; 

RECONCILIATION 
BETWEEN AND/OR 
WITHIN STAGES 
OF THE SUPPLY 
CHAIN22  

Between stock survey 
and tree data forms23:  

-comparing number of 
crop trees and number 
of trees actually har-
vested by species 

-comparing volume of 
crop trees and volume 
of tree lengths (or logs) 
by species 

ID link between stump, 
tree and tree length/log 

Harvesting

Forest log 
yard/any 
other log 
yard 

Felling of trees, 
production of tree 
lengths or logs 

Affixing of COCIS 
barcode tags to logs 
and stumps 

Measurement of 
tree lengths or logs 

Hauling to forest 
log yard (at road-
side) 

Identifying pro-
posed road align-
ment and inventory 
of trees on proposed 
route 

Cross-cutting or 
dressing of tree 
lengths or logs 

Affixing of COCIS 
barcode tags to 

Contract holder TIN 

Log data form 

At log landing: 

Log data: ID num-
ber, species, di-
ameters, length, 
volume and quality 

-Sample verification 
of Log Data (Sam-
ple intensity based 
on the performance 

Log data: ID number, 
species, diameters, 
length and volume of 
log  

Between tree data forms 
and log data forms: 

-comparing number of 
tree lengths/logs and 
crosscut and dressed 

23 

Tree data forms are completed when trees are felled, prior to cutting into initial long logs. 

EN 

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RESPONSIBILITIES OF OPERATORS 

VERIFICATION BY THE FDA  

STAGE 

ACTIVITIES 

DATA ENTERED 
IN COCIS 

cross-cut or dressed 
logs 

Scaling of logs 

of log  

Link between tree 
lengths or long log 
and cross-cut or 
dressed logs. 

KEY OUTPUTS  ASSESSMENTS 

AND FIELD 
INSPECTIONS 

of the company) 

DATA 
VALIDATION 
WITHIN COCIS21  

Ownership 
transfer 

Request from owner 
of the logs for 
change of own-
ership 

Registration of 
timber product ID 
numbers by the new 
owner 

ID numbers of pre-
vious and current 
owners  

Declaration on 
change of owner-
ship 

Timber product ID 
numbers subject to 
change of owner-
ship 

RECONCILIATION 
BETWEEN AND/OR 
WITHIN STAGES 
OF THE SUPPLY 
CHAIN22  
logs by species 

-comparing volume of 
tree lengths/each log  

-comparing tree 
lengths/each log for 
consistency of diameter 
and species  

ID link between stump, 
tree, tree length/log and 
crosscut or dressed logs 

Harvested volume and 
paid stumpage fee 

Consistency of the log 
ID numbers and log 
data between the previ-
ous and current owner 

Transport 

Loading of logs 
onto truck 

Transport of logs 

Unique waybill ID 

Origin and destina-
tion 

Waybills (origin 
and destination) 

Random waybill 
inspections along 
the transport route 
(e.g. in the log yard, 

Between log data form 
and waybill  

-comparing log ID 

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RESPONSIBILITIES OF OPERATORS 

VERIFICATION BY THE FDA  

STAGE 

ACTIVITIES 

DATA ENTERED 
IN COCIS 

KEY OUTPUTS  ASSESSMENTS 

AND FIELD 
INSPECTIONS 

DATA 
VALIDATION 
WITHIN COCIS21  

Unloading of logs 

Log owner 

Transporter 

List of logs trans-
ported, including ID 
number, species, 
dimensions, and 
volume 

Data on raw mate-
rial received and 
stored at mill site: 
ID number, species, 
dimensions, volume 

Input product data: 
ID number, species, 
dimensions, volume 

Date 

Output product 
data: Batch ID 
number, species, 
dimension and 
volume (quantity) 

Data on processed 

Processing 
site 

Reception of logs or 
other timber prod-
ucts (raw materials) 

Storing of raw ma-
terials 

Dressing of logs 
and affixing of new 
barcode tags 

Feeding of raw 
materials into proc-
essing 

Handling of proc-
essed goods, in-
cluding affixing of 
COCIS barcode tag 
to product batches 

or at roadside 
checkpoints) 

Recovery rates/yields 
of processing lines 

Monitoring of sam-
ple production 
batches 

Random audits of 
mill operations and 
bookkeeping sys-
tems 

Sawmill entry 
form 

Raw material in-
ventory 
bookkeeping 

Production form 
specifying inputs 
and outputs by 
production lines 

Warehouse book-
keeping 

RECONCILIATION 
BETWEEN AND/OR 
WITHIN STAGES 
OF THE SUPPLY 
CHAIN22  
numbers 

-comparing number of 
logs by species  

-comparing volume of 
logs by species  

Between sawmill entry 
form, raw material in-
ventory bookkeeping 
and production form 

- comparing raw mate-
rial ID numbers 

-comparing number of 
raw materials by spe-
cies  

-comparing volume of 
raw materials by spe-
cies  

Between inputs and 
outputs declared in the 
production form  

Between production 

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RESPONSIBILITIES OF OPERATORS 

VERIFICATION BY THE FDA  

STAGE 

ACTIVITIES 

DATA ENTERED 
IN COCIS 

KEY OUTPUTS  ASSESSMENTS 

AND FIELD 
INSPECTIONS 

DATA 
VALIDATION 
WITHIN COCIS21  

Storing of proc-
essed goods 

products stored at 
mill site: Batch ID 
number, species, 
dimensions, volume 
and grade 

Transport 

Loading of bundled 
processed products 
onto truck 

Transport of the 
bundles 

Unloading of the 
bundles 

Unique waybill ID 

Waybills 

Origin and destina-
tion 

Log owner 

Transporter 

Data on processed 
products stored at 
mill site: Batch ID 
number, species, 
dimensions, volume 

Random waybill 
inspections along 
the transport route 
(e.g. roadside 
checkpoints) 

RECONCILIATION 
BETWEEN AND/OR 
WITHIN STAGES 
OF THE SUPPLY 
CHAIN22  
form and warehouse 
bookkeeping 

- comparing ID num-
bers 

-comparing number of 
products by species  

-comparing volume of 
products by species  

Between warehouse 
bookkeeping and way-
bills 

- comparing bundle ID 
numbers 

-comparing number of 
products by -comparing 
volume of products by 
species  

Between waybill origin 
copies and destination 
copies 

Between previous 
control points earlier 
along the chain 

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RESPONSIBILITIES OF OPERATORS 

VERIFICATION BY THE FDA  

STAGE 

ACTIVITIES 

DATA ENTERED 
IN COCIS 

KEY OUTPUTS  ASSESSMENTS 

AND FIELD 
INSPECTIONS 

DATA 
VALIDATION 
WITHIN COCIS21  

RECONCILIATION 
BETWEEN AND/OR 
WITHIN STAGES 
OF THE SUPPLY 
CHAIN22  

Pre-export  Grading  

Product IDs 

Product specifica-
tions: type, species, 
and dimension 

Sales contract in-
formation: buyer, 
and prices 

Trimming and 
marking  

Tax payment 

Customs declaration  

Commerce declara-
tion  

Phytosanitary 
treatment 

Loading 
and export 

Loading of the 
products covered by 
the FLEGT license 

FLEGT License 
application 

Products specifi-
cations 

Sales contract 

At point of export: 
Sample inspection 
of products for ex-
ports (Verification 
of specification 
data) 

At point of export: 

Overseeing the final 
loading of the ves-
sel 

Checking specifica-
tions of products 
loaded onto the ves-
sel 

Number, volume and 
grades 

Between waybills and 
FLEGT License 

- comparing bundle ID 
numbers 

-comparing number of 
products by species  

-comparing volume of 
products by species  

Product specifications 
of export consignment 
(IDs, product type, 
species and, 
dimensions)  

Between FLEGT li-
cense and physical veri-
fication of loaded prod-
ucts. 

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ANNEX III 

CONDITIONS GOVERNING THE RELEASE FOR FREE CIRCULATION IN THE 
UNION OF TIMBER PRODUCTS EXPORTED FROM LIBERIA AND COVERED 
BY A FLEGT LICENSE  

General framework 

Regulation  (EC)  No  2173/2005  of  20  December  2005  on  the  establishment  of  a  FLEGT 
licensing scheme for imports of timber into the European Community24 and its Implementing 
Regulation  25  govern  the  conditions  for  entry  into  the  Union  market  for  timber  and  derived 
products covered by a FLEGT license from Liberia. These Regulations provide for adaptation 
of detailed procedures to national conditions and, in particular, envision different possibilities 
for  the  competent  authorities  responsible  for  accepting  FLEGT  licenses  on  entry  into  the 
Union  market,  which  may  be  a  customs  authority  or  another  national  authority.  For  this 
reason, the description of the process divides verification into two steps: (1) checks on license 
documents and (2) physical checks for the conformity of the actual shipment to the license.  

This procedure is intended to supplement the checks carried out by Liberia and to verify that 
FLEGT licenses presented on entry into the Union are indeed those duly issued and registered 
by  the  Liberian  licensing  authority  and  cover  the  shipments  intended  by  the  Liberian 
authorities.  The  competent  authorities  have  no  mandate  to  challenge  the  Liberian  legality 
assurance system or the validity of licenses. Such concerns may be dealt with by the JIC, in 
accordance with Articles 10, 19 and 24 of the Agreement. 

1. 

2. 

24 
25 

26 

Article 1 

Lodging of the license 

The license shall be lodged with the competent authority of the Union Member State 
in  which  the  shipment  covered  by  that  license  is  declared  for  release  for  free 
circulation26. This may be done electronically or by other expeditious means. 

The  competent  authorities  referred  to  in  paragraph  1  shall,  in  accordance  with  the 
applicable  national  procedures,  inform  the  customs  authorities  as  soon  as  a  license 
has been accepted.  

OJ EU L 347, 30.12.2005, p. 1. 
Commission Regulation (EC) No 1024/2008 of 17 October 2008 laying down detailed measures for the 
implementation of Council Regulation (EC) No 2173/2005 on the establishment of a FLEGT licensing 
scheme for imports of timber into the European Community (OJ EU L 277, 18.10.2008, p. 23). 
Release  for  free  circulation  is  an  EU  customs  procedure.  Under  Article  129(2)  and  (3)  of  Regulation 
(EC)  No 450/2008  of  the  European  Parliament  and  of  the  Council  of  23  April  2008  laying  down  the 
Community  Customs  Code  (Modernised  Customs  Code),  release  for  free  circulation  entails:  (a) the 
collection of any import duties due; (b) the collection, as appropriate, of other charges, as provided for 
under  relevant  provisions  in  force  relating  to  the  collection  of  those  charges;  (c)  the  application  of 
commercial policy measures and prohibitions and restrictions insofar as they have not been applied at 
an earlier stage (in this case, it is among these measures that the existence of a FLEGT license will be 
verified); (d) completion of the other formalities laid down in respect of the importation of the goods. 
Release for free circulation confers on non-Community goods the customs status of Community goods. 

EN 

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1. 

2. 

3. 

4. 

5. 

1. 

2. 

3. 

1. 

2. 

Article 2 

Checks on validity of license documentation 

Paper licenses shall conform to the model described in Annex IV. Any license that 
does  not  meet  the  requirements  and  specifications  set  out  in  Annex  IV  shall  be 
invalid. 

A license shall be considered void if it is lodged on a date later than the expiry date 
indicated in the license.  

Any  erasures  from  or  alterations  to  a  license  shall  not  be  accepted  unless  such 
erasures or alterations have been validated by the licensing authority. 

Extension of the validity of a license shall not be accepted unless that extension has 
been validated by the licensing authority. 

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

Article 3 

Requests for additional information 

In case of doubt concerning the validity or authenticity of a license, a duplicate or a 
replacement  license,  the  competent  authorities  may  request  additional  information 
from the licensing authority.  

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

If necessary, the licensing authority shall withdraw the license and issue a corrected 
copy,  which  shall  be  authenticated  by  the  stamped  endorsement  ‘Duplicate’  and 
forwarded to the competent authority. 

Article 4 

Verification of the conformity of the license with the shipment 

If further verification of the shipment is considered necessary before the competent 
authorities can decide whether a license can be accepted, checks may be carried out 
to establish whether the shipment in question conforms to the information provided 
in the license and to the records relating to the relevant license which are held by the 
licensing authority. 

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  license,  the  shipment  shall  be 
considered to conform to the information provided in the license as far as volume or 
weight is concerned. 

EN 

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3. 

4. 

5. 

6. 

7. 

1. 

2. 

1. 

2. 

1. 

In case of doubt about whether the shipment conforms with the FLEGT license, the 
competent  authority  concerned  may  seek  further  clarification  from  the  licensing 
authority. 

The  licensing  authority  may  request  the  competent  authority  to  send  a  copy  of  the 
license or the replacement in question. 

If necessary, the licensing authority shall withdraw the license and issue a corrected 
copy,  which  shall  be  authenticated  by  the  stamped  endorsement  ‘Duplicate’  and 
forwarded to the competent authority. 

If the competent authority receives no answer within 21 calendar days of the request 
for  further  clarification,  as  provided  for  in  Article  10  of  this  Agreement,  the 
competent authority shall not accept the license and shall act in accordance with the 
applicable legislation and procedures.  

A  license  shall  not  be  accepted  if  it  has  been  established,  where  necessary  after 
provision of additional information in accordance with Article 3 of this Annex or a 
further investigation in accordance with Article 4 of this Annex, that the license does 
not correspond to the shipment.  

Article 5 

Verification prior to the arrival of the shipment 

A license may be lodged before the arrival of the shipment it covers.  

A license shall be accepted if it meets all the requirements set out in Annex IV and 
no further verification in accordance with Articles 3 and 4 of this Annex is deemed 
necessary. 

Article 6 

Other matters 

Costs incurred while the verification is being completed shall be at the expense of the 
importer,  except  where  the  applicable  legislation  and  procedures  of  the  Member 
State of the Union concerned determine otherwise.  

Where  persistent  disagreements  or  difficulties  arise  from  verification  of  FLEGT 
licenses, the matter may be referred to the JIC. 

Article 7 

Release for free circulation 

In box 44 of the Single Administrative Document on which the customs declaration 
for release for free circulation is made, reference shall be made to the number of the 
license that covers the timber products subject to the declaration. 

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2. 

3. 

Where the customs declaration is made by computerised means, the reference shall 
be provided in the appropriate box. 

Timber  products  shall  be  released  for  free  circulation  only  after  completion  of  the 
procedures described in this Annex. 

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REQUIREMENTS AND TECHNICAL SPECIFICATIONS FOR FLEGT LICENSES 

ANNEX IV 

Article 1 

General requirements relating to FLEGT licenses 

FLEGT licenses may be in paper or electronic form. 

Both  paper  and  electronic  licenses  shall  provide  the  information  specified  in 
Appendix 1, in accordance with the notes for guidance set out in Appendix 2. 

FLEGT licenses shall become valid on the date on which they are issued. 

FLEGT licenses shall be numbered in a manner that distinguishes between licenses 
intended for the Union and those intended for non-Union markets. 

The  period  of  validity  of  FLEGT  licenses  shall  not  exceed  six  months.  The  expiry 
date shall be indicated on the license. 

After the license expires, it shall be considered void. The licensing authority may, at 
its discretion, extend the period of validity for an additional three months. Upon such 
extension the licensing authority shall insert and validate the new expiry date. 

FLEGT  licenses  shall  cease  to  be  valid  and  shall  be  returned  to  the  licensing 
authority  if  the  timber  products  covered  by the  license  are  lost  or  destroyed  during 
shipment prior to arrival in the Union.  

Article 2  

Technical specifications with regard to paper FLEGT licenses 

Paper licenses shall conform to the format set out in Appendix 1. 

The  paper  size  shall  be  standard  A4.  The  paper  shall  have  watermarks  showing 
various logos, including a Liberian emblem that  shall  be embossed on the paper in 
addition to the seal.  

The  licenses  shall  be  completed  using  a  typewriter  or  computer.  They  may  be 
completed by hand, if necessary. 

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 replace the licensing authority stamp.  

The  licensing  authority  shall  use  a  tamper-proof  method  to  record  the  quantity 
allocated in such a way as to make it impossible to insert figures or references. 

The form shall contain no erasures or alterations, unless those erasures or alterations 
have been authenticated by the stamp and signature of the licensing authority. 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

1. 

2. 

3. 

4. 

5. 

6. 

EN 

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7. 

The licenses shall be printed and completed in English.  

Article 3 

Copies of FLEGT licenses 

1. 

The  licenses  shall  be  drawn  up  in  five  copies  using  the  colour  paper  indicated  as 
follows: 

(a) White, form number 1, marked ‘Original’; 
(b) Yellow, copy number 2, marked ‘Copy for EU customs authority’; 
(c) Pink, copy number 3, marked ‘Copy for the licensing authority’; 
(d) Green, copy number 4, marked ‘Copy for Liberia customs’; 
(e) Blue, copy number 5, marked ‘Copy for licensee’. 

The  ‘Original’  shall  be  given  to  the  licensee  to  be  forwarded  to  the  importer  for 
submission  to  the  competent  authority  of  the  Union  Member  State  in  which  the 
shipment covered by that license is declared for release for free circulation. 

The  second  copy,  marked  ‘Copy  for  EU  customs  authority’,  shall  be  given  to  the 
licensee to be forwarded to the importer for submission to the customs authorities of 
the Union Member State in which the shipment covered  by that license is declared 
for release for free circulation. 

The  third  copy,  marked  ‘Copy  for  the  licensing  authority’,  shall  be  retained  by  the 
licensing authority for its records and future verification of licenses issued.  

The  fourth  copy,  marked  ‘Copy  for  Liberia  customs’,  shall  be  given  to  the  Liberia 
customs authorities for their records and for exportation purposes. 

The fifth copy, marked ‘Copy for the licensee’, shall be given to the licensee for its 
records. 

Article 4 

FLEGT licenses lost, stolen or destroyed  

In the event of loss, theft or destruction of the ‘Original’ and/or of the ‘Copy for EU 
customs’,  the  licensee  or  its  authorised  representative  may  apply  to  the  licensing 
authority for a replacement, providing justification of the loss of the original and/or 
copy.  

The licensing authority shall issue a replacement within one month following receipt 
of the request from the licensee. 

The replacement shall contain the information and entries appearing on the license it 
replaces,  including  the  license  number.  The  replacement  license  shall  bear  the 
endorsement ‘Replacement license’. 

In the event that the lost or stolen license is retrieved, it shall not be used and must be 
returned to the licensing authority.  

2. 

3. 

4. 

5. 

6. 

1. 

2. 

3. 

4. 

EN 

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Article 5 

Technical specifications with regard to electronic FLEGT licenses 

FLEGT licenses may be issued and processed using electronic systems.  

In Member States of the Union which are not linked to an electronic system, a paper 
license shall be made available. 

Article 6 

Treatment of doubts regarding the validity of a license 

In case of doubt concerning the validity or authenticity of a license, a duplicate or a 
replacement  license,  the  competent  authority  in  the  Union  may  request  additional 
information from the licensing authority.  

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

If  the  licensing  authority  considers  it  necessary,  it  shall  withdraw  the  license  and 
issue  a  corrected  copy,  which  shall  be  authenticated  by  the  stamped  endorsement 
‘Duplicate’ and forwarded to the competent authority. 

If  the  validity  of  the  license  is  confirmed,  the  licensing  authority  shall  notify  the 
competent  authority  forthwith,  preferably  by  electronic  means.  The  copies  returned 
shall be authenticated by the stamped endorsement ‘Validated on’. 

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

APPENDICES 

License form. 

Notes for guidance. 

1. 

2. 

1. 

2. 

3. 

4. 

5. 

1. 

2. 

EN 

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Appendix 1 

Format of the FLEGT license 

2 Tax identification number 

Destination 

4 Expiry date

 1 Issuing authority 

Name 

1 

Address 

3 FLEGT licence number 

I

L
A
N
G
R
O

I

 5 Country of export

7 Means of transport

 6 ISO code

 8 Licensee (name and address)

 9 Commercial description of the timber products 

 10 HS heading 

1 

 11 Common or scientific names

 12 Countries of harvest

 13 ISO codes

14 Volume (m3)

 15 Net weight (kg)

 16 Number of units

 17 Distinguishing marks 

 18 Signature and stamp of issuing authority 

Place and date

EN 

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E
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9
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6

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6

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Appendix 2 

Notes for Guidance 

General:  

– 
– 

Complete in capital letters. 
ISO codes refer to the international standard two-letter country code. 

Box 1 

Issuing authority  

Indicate the name and address of the licensing authority.  

Box 2 

Tax identification 
number and destination 

the  Liberian 

Indicate 
the 
destination of the export. Licenses will be issued for all market 
destinations, not only the European Union. 

identification  number  and 

tax 

Box 3 

FLEGT license number  

Indicate the license number. 

Box 4 

Expiry date  

Period of validity of the license.  

Box 5 

Country of export  

This means the partner country (Liberia) from where the timber 
products were exported to the Union. 

Box 6 

ISO code  

Indicate the two-letter code for Liberia.  

Box 7 

Means of transport  

Indicate the means of transport at the point of export.  

Box 8 

Licensee  

Indicate the name and address of the exporter.  

Box 9 

Commercial description  

Indicate the commercial description of the timber product(s).  

Box 10 

HS heading  

Box 11 

Common or scientific 
name  

Box 12 

Countries of harvest  

Box 13 

ISO codes 

The  four-  or  six  digit  commodity  code  established  pursuant  to 
the  Harmonised  Commodity  Description  and  Coding  System 
and described in Annex I of this Agreement.  

Indicate the common or scientific name of the species of timber 
used in the product. Where more than one species is included in 
a  composite  product,  use  separate  lines.  May  be  omitted  for  a 
composite  product  or  component  that  contains  multiple  species 
whose identity has been lost (e.g. particle board). 

Indicate the countries where the timber referred to in box 10 was 
harvested. In the case of composite products, include all sources 
of  wood  used.  May  be  omitted  for  a  composite  product  that 
contains multiple species which are no longer identifiable. 

Indicate the ISO code of the countries referred to in box 12. May 
be omitted for a composite product or component that contains 
multiple species whose identity has been lost. 

Box 14 

Volume (m3)  

Give  the  overall  volume  in  m3.  May  be  omitted  unless  the 
information referred to in box 15 has been omitted.  

Box 15 

Net weight (kg) 

Give  the  weight  in  kg.  This  is  defined  as  the  net  mass  of  the 
timber products without immediate containers or any packaging, 
other than bearers, spacers, stickers, etc. May be omitted unless 

EN 

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   EN 

 
the information referred to in box 14 has been omitted.  

Box 16 

Number of units 

Indicate the number of units, if this is the best way to quantify a 
manufactured product. May be omitted.  

Box 17 

Distinguishing marks 

Indicate  any  distinguishing  marks  where  appropriate,  e.g.  lot 
number or bill of lading number. May be omitted.  

Box 18 

Signature  and  stamp  of 
issuing authority 

This box must be signed by the authorised official and stamped 
with the official stamp of the licensing authority.  

The  signatory’s  name  and  the  place  and  date  must  also  be 
indicated.  

EN 

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   EN 

 
FUNCTIONS OF THE INDEPENDENT AUDIT: TERMS OF REFERENCE 

ANNEX V 

1. 

INTRODUCTION 

These terms of reference (ToR) describe the framework for checking the systems of legality 
assurance  established  for  the  Voluntary  Partnership  Agreement  (VPA)  between  the 
Government  of  Liberia  and  the  Union.  The  ToR  describe  the  functions  of  the  independent 
audit  (IA)  of  the  Legality  Assurance  System  (LAS),  which  provides  assurance  that  timber 
harvested, processed and exported or sold on the domestic market complies with the legality 
definition, verifies that it complies with the chain of custody requirements and verifies that the 
licensing  authority  has  issued  FLEGT  licenses  only  to  consignments  that  are  produced  in 
accordance with the LAS requirements.  

The ToR therefore set out a detailed list of tasks and a protocol for gathering information and 
reporting;  they  also  establish  a  list  of  primary  sources  of  information  and  describe  the 
qualifications required of the independent auditor.  

2. 

OBJECTIVES 

The objectives of the IA include:  

(a) assess the efficiency and effectiveness of the LAS; and 
(b) improve the credibility of the LAS established under the VPA.  

3. 

TASKS 

The  overall  task  of  the  independent  auditor  is  to  monitor  implementation  of  the  systems 
established  to  verify legal  compliance with all aspects  of the  LAS. The  key  issues  to check 
will include compliance with the legal requirements established in the legality definition, the 
chain  of  custody  and  verification  by  the  Liberia  Verification  Department  (LVD)  and  the 
Liberia  Licensing  Department  (LLD),  all  described  in  Annexes  II  and  IV  respectively.  The 
method to be used must be evidence-based and include documentary checks and field or on-
site visits. Specific tasks of the independent auditor will be: 

(a) 

check  that  systems  are  functioning  effectively  and  that  timber  harvested, 
processed  and  traded  complies  with  the  requirements  of  these  systems.  This 
includes  legal  requirements  for  pre-contract  timber  rights  allocation,  contract 
allocation, pre-felling requirements, felling, processing and deliveries; 

(c) 

(b)  verify  that  the  chain  of  custody  system,  a  key  component  of  the  LAS,  is 
effective  and  functioning  appropriately,  confirming  that  requirements  are 
fulfilled  from  pre-harvesting  operations  to  export  or  sale  on  the  domestic 
market; 
assess  the  performance  and  effectiveness  of  the  LVD  and  associated 
Government agencies involved in the verification process to ensure compliance 
with the LAS requirements; 
assess  the  system  established  to  ensure  that  the  LLD  issues  FLEGT  licenses 
only to consignments which are produced or exported in full compliance with 
the LAS; 

(d) 

EN 

99 

   EN 

 
(e) 

(f) 

(g) 
(h) 

(i) 

assess  the  process  for  determining  the  validity  of  licenses  in  order  to  ensure 
that  the  license  verification  system  is  efficient  and  does  not  unduly  delay  or 
burden the license-holder; 
assess how reported infractions are addressed or not addressed by the relevant 
authorities;  
evaluate the effectiveness of any measures taken to correct those weaknesses; 
identify  gaps  and  weaknesses  in  the  overall  LAS,  i.e.  the  functioning  of  the 
chain  of  custody,  legality  verification  and  licensing  components  of  the  LAS, 
and the level of impact on the credibility of the LAS; 
report  its  findings  and  recommendations  to  the  Joint  Implementation 
Committee (JIC), that is required to publish these audit reports regularly.  

4. 

METHODOLOGY:  METHODS  FOR  GATHERING  AND  ASSESSING  INFORMATION  AND 
REPORTING 

The  independent  auditor  is  required  to  demonstrate  professionalism  and  integrity  in  the 
discharge of its responsibilities. The independent auditor shall prepare a manual of procedures 
outlining  methods  for  gathering  information,  assessing  evidence  and  reporting.  The  manual 
proposed by the independent auditor will be reviewed and agreed by the JIC. The independent 
auditor  shall  use  the  procedures  established  in  the  IA  Manual  to  conduct  audits,  field  visits 
and  investigations,  to  seek  feedback  from  stakeholders  and  to  document  and  report  its 
findings to the JIC for subsequent publication.  

4.1.  Work schedule 

(a) 

(b) 

In the first year of operation of the FLEGT licensing scheme, the independent 
auditor shall conduct two audits. The first audit shall aim to establish that all 
the requirements of the LAS are in place and ready to be put into full operation. 
The  second  audit,  and  all  other  future  audits,  shall  assess  or  evaluate  the 
performance of the LAS.  
In subsequent years the independent auditor shall conduct at least annual audits 
of the LAS.  

(c)  The independent auditor may also conduct impromptu audits and spot checks 

as necessary.  

4.2. 

Scope of work 

(a)  The  activities  of  the  independent  auditor  shall  cover  all  aspects  of  the  LAS, 
including compliance with the legality definition, the chain of custody system, 
verification  and  licensing,  and  any  certification  scheme  that  the  Government 
has approved as providing evidence of compliance with the LAS. 

(b)  The  independent  auditor  shall  audit  the  relevant  activities  of  all  institutions, 

including State agencies, responsible for different aspects of Liberia’s LAS.  

(c)  The  independent  auditor  shall  check  systems  implemented  by  EU  competent 

authorities to verify FLEGT licenses issued by Liberia.  

4.3. 

Evidence gathering 

The IA Manual of Procedures shall describe procedures and practices for gathering evidence 
which  will  include  field  checks,  investigations,  interviews,  documentation  and  how  the 
independent auditor will respond to complaints.  

EN 

100 

   EN 

 
4.4. 

Assessment 

During  the  course  of  investigations,  the  independent  auditor  will  ensure  that  evidence  is 
assessed in accordance with ISO 19011 or an equivalent standard.  

4.5. 

Audit systems  

In documenting audit evidence, diagnosing failures and infractions in any part of the LAS and 
following up corrective action taken, the independent auditor shall: 

(a) 

(b) 

(c) 

(d) 

keep appropriate records of audit evidence detailing performance, compliance, 
non-performance and non-compliance;  
record and assess a sample, selected on the basis of risk assessment, of detected 
non-performance  or  non-compliance  with  the  different  aspects  of  the  LAS, 
including licensing requirements, and the action taken to address it; 
record  observed  system-related  weaknesses,  gaps  and  areas  requiring 
improvement  in  the  LAS  and  ensure  that  each  is  appropriately  distinguished 
from the others; 
record and assess the effectiveness of all corrective measures implemented by 
the  parties  concerned,  including  the  Forestry  Development  Authority  (FDA), 
other  State  authorities  and  private  bodies  responsible  for  other  aspects  of  the 
LAS. 

5. 

REPORTS AND DISSEMINATION  

5.1. 

The  independent  auditor  shall  adhere  to  a  structure  and  protocol  for  preparing  its
reports as agreed with the JIC. The independent auditor shall: 

report on activities in line with the work schedule agreed with the JIC; 

(a) 
(b)  prepare  its  report  in  accordance  with  internationally  accepted  auditing 

principles and as specified in its agreement with the JIC; 
present all reports to the JIC, which shall comment on them;  

(c) 
(d)  prepare final reports which reflect the JIC’s comments.  

5.2.  Reports validated by the JIC will become public documents.  

6. 

SOURCES OF INFORMATION  

include  document  reviews,  field  visits  and 
Primary  sources  of 
consultations/meetings with relevant stakeholders who are identified in the legality definition 
of the legality verification matrix (ref Annex II).  

information  shall 

The Government of Liberia and the Union will ensure that the independent auditor has access 
to  all  necessary  information,  including  documents  and  databases  that  it  deems  relevant, 
especially  those  that  are  needed  to  assess  the  efficacy  of  systems  established  to  verify 
compliance with the LAS. This shall include access to information produced and or held by 
branches and agencies of Government as well as private bodies recruited by the Governments 
concerned.  

The  independent  auditor  shall  also  have  full  access  to  all  forest  management  areas  prior  to, 
during  and  after  forest  operations.  This  will  include  access  to  logging  sites  and  other  areas 
where  forest  resources  are  being  extracted  or  processed  and  to  points  of  export.  This  broad 

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access  is  designed  to  enable  the  independent  auditor  to  uncover  weaknesses  wherever  they 
exist in the LAS.  

Specifically, the independent auditor shall have access to the following Government agencies, 
other  bodies  appointed  or  recruited  by  the  Government  to  perform  functions  related  to  any 
part of the LAS and other parties who may be able to provide relevant information about the 
functioning of the LAS: 

6.1. 

Government of Liberia and bodies appointed by the Government 

(a)  Departments of the FDA that are involved in different aspects of commercial 
logging.  This  shall  include  departments  involved  in  pre-allocation  processes, 
including validation of proposed concession areas, pre-qualification of logging 
and  other  companies  interested  in  the  commercial  forestry  sector  and 
announcing, receiving and opening bids.  

(b)  Departments  of  the  FDA  involved  in  law  enforcement  in  the  commercial 

sector. 

(c)  Departments  of 

in 
implementing  the  legality  assurance  system  and  related  law  enforcement 
activities. 

the  FDA  and  other  relevant 

institutions 

involved 

(d)  Other  Government  agencies  and  appointed  citizens  involved  in  the  bid 
evaluation  processes,  including  the  Bid  Evaluation  Panel,  the  Due  Diligence 
Committee and the Inter-Ministerial Committee on Concessions (IMCC). 
(e)  The Legislative Committees on Forestry, the House of Representatives and the 
Senate  with  respect  to  their  roles  in  the  process  of  ratifying  forest  resource 
licenses.  

(f)  The Environmental Protection Agency (EPA) of Liberia. 
(g)  Government ministries responsible for exports of forest products, including the 
Ministry  of  Finance,  the  Ministry  of  Commerce  and  the  National  Port 
Authority  and  their  internal  departments  directly  responsible  for  various 
aspects of the process. 

(h)  The service-provider contracted to operate the legality assurance system. 

6.2. 

Civil society and communities  

(a)  Local, national, regional and international civil society organizations involved 

in monitoring forestry activities in Liberia.  

(b)  Communities and individuals involved in monitoring forestry activities. 
(c)  Community  Forestry  Management  Bodies  and  Community  Forestry 
Development  Committees  involved  in  various  aspects  of  the  commercial 
forestry sector. 

6.3. 

Other sources 

(a)  Forestry companies, including outcomes of private certification processes.  
(b)  Academic institutions.  
(c)  Local authorities. 
(d)  Local communities and populations. 
(e)  Sustainable forest management (SFM) certification bodies. 
(f)  Complainants. 
(g)  Union competent authorities. 
(h)  Stakeholders  and  parties  that  register  a  complaint  or  request  an  impromptu 

audit of certain aspects of the LAS. 

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(i)  Any other source that the independent auditor considers relevant.  

7. 

QUALIFICATIONS REQUIRED 

The independent auditor must possess integrity and have a track record of conducting similar 
audits,  be  objective  and  have  the  capacity  to  conduct  systematic  analysis.  The  independent 
auditor  must  be  independent  from  Liberian  operators  and  Liberian  institutions  that  have  a 
commercial or regulatory role in the forestry sector and be credible. It is the responsibility of 
the independent auditor to ensure that its personnel declare any potential conflict of interests 
and,  where  these  exist,  to  state  what  measures  it  will  take  to  mitigate  such  conflicts.  In 
addition  to  this  requirement,  the  independent  auditor  shall  meet  the  following  other 
requirements: 

(a) 

have  a  documented  internal  quality  management  system  that  meets  the 
requirements  of  ISO  1702127  or  equivalent  standards  and  conduct  audits  in 
accordance with procedures that meet ISO 1901128 or equivalent standards; 

(b)  have experience in audits of management systems;  
(c) 

have  in  place  a  mechanism  for  transparently  handling  complaints  or 
grievances; 

(e) 

(d)  have a range of competencies including audit, preferably in forest management, 
and sufficient expertise and experience in performing similar functions in other 
parts of the world, preferably in Africa;  
be able to demonstrate that its teams include experts with sufficient experience 
in Liberia and/or elsewhere in West Africa. The involvement of experts from 
the sub-region is to be encouraged alongside international experts; 
have a thorough understanding of the commercial forestry sector, preferably in 
Africa; 

(f) 

(g)  have  personnel  with  expertise  in  various  fields  of  forestry,  including  forest 
management,  processing,  traceability  and  chain  of  custody  systems,  and 
international trade in timber and timber products.  

The  independent  auditor  may  consider  a  partnership  or  joint  venture  with  a  Liberian 
organization.  

8. 

SELECTION PROCESS AND INSTITUTIONAL ARRANGEMENTS 

The  independent  auditor  will  be  recruited  by  competitive  bidding  (open  to  national  and 
international entities). Bid evaluation will be transparent and all stakeholders will be informed 
of the criteria that will be applied. Due diligence conducted on the competing entities and the 
bid evaluation report will be made public.  

9. 

OTHER REQUIREMENTS 

This  section  covers  additional  responsibilities  of  the  independent  auditor  that  are  not 
addressed in other parts of these terms of reference.  

27 

28 

ISO/IEC  17021:2006.  Conformity  assessment  -  Requirements  for  bodies  providing  audit  and 
certification of management systems. 
ISO 19011:2002. Guidelines for quality and/or environmental management systems auditing. 

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9.1. 

Accessibility  

The independent auditor is expected to have a contact point in Liberia to make it accessible to 
the private sector, Government and civil society organisations.  

9.2 

Capacity-building and sustainability 

The independent auditor shall also: 

(a) 

(b) 

engage with civil society, the private sector and Government agencies in ways 
that  enable  Liberians  to  acquire  a  fair  understanding  of  the  independent 
auditor’s work, for example from occasional workshops and briefing sessions; 
recruit qualified Liberians and build their individual capacity in how to conduct 
IAs of the LAS.  

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ANNEX VI 

CRITERIA FOR EVALUATION OF THE LEGALITY ASSURANCE SYSTEM  

This Agreement provides for implementation of a legality assurance system (LAS) intended 
to  guarantee  that  all  timber  and  derived  products  specified  in  this  Agreement  and  exported 
from Liberia to the Union are produced entirely legally. The LAS should include:  

– 

– 

– 

– 
– 

a definition of legally produced timber that lists the laws that must be complied 
with in order for a license to be issued;  
control  of  the  supply  chain  to  track  timber  from  the  forest  to  the  point  of 
export;  
verification  of  compliance  with  all  elements  of  the  definition  of  legality  and 
control of the supply chain;  
the procedures for issuing FLEGT licenses; and  
the independent audit to ensure that the system is working as intended. 

The LAS will be subject to an independent technical evaluation before the FLEGT licensing 
scheme  becomes  operational;  the  terms  of  reference  will  be  jointly  agreed  between  the 
Parties,  via  the  Joint  Implementation  Committee  (JIC)  for  the  Agreement.  These  evaluation 
criteria describe what the LAS is expected to produce and will provide the basis for the terms 
of reference for the evaluation. The evaluation will: 

– 
– 

review any revisions made to the system after the Agreement was signed; and  
examine  the  functioning  of  the  system  in  practice  and  whether  it  delivers  the 
intended result. 

1. 

DEFINITION OF LEGALITY 

Legally produced timber needs to be defined on the basis of the laws applicable in Liberia. 
The  definition  used  must  be  unambiguous,  objectively  verifiable  and  operationally 
workable and, as a minimum, include those laws which cover: 

Harvesting  rights:  granting  of  legal  rights  to  harvest  timber  within  legally  gazetted 
boundaries;  

Forestry  operations:  compliance  with  legal  requirements  regarding  forest  management, 
including compliance with relevant environmental and labour legislation; 

Fees  and  taxes:  compliance  with  legal  requirements  concerning  taxes  and  fees  directly 
related to timber harvesting and harvesting rights; 

Other users: respect for other parties’ legal tenure or rights of use of land and resources 
that may be affected by timber harvesting rights, where such other rights exist; 

Trade and customs: compliance with legal requirements for trade and customs procedures. 

Is it clear which legal instrument underpins each element of the definition? 

Are  criteria  and  indicators  that  can  be  used  to  test  compliance  with  each  element  of  the 
definition specified? 

Are the criteria/indicators clear, objective and operationally workable? 

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Do  the  indicators  and  criteria  clearly  identify  the  roles  and  responsibilities  of  the  various 
parties  and  does  verification  of  legal  compliance  assess  the  performance  of  all  relevant 
parties? 

Does the definition of legality include the main areas of existing law outlined above? If not, 
why were certain areas of law left out of the definition? 

In  drawing  up  the  definition,  did  the  parties  concerned  consider  all  the  main  areas  of 
applicable law? 

Does the legality  assurance system  incorporate the main legal provisions identified  by prior 
discussion between the various parties involved? 

Does  the  legality  definition  account  for  all  possible  sources  of  timber  that  enter  the  supply 
chain  intended  for  the  Union  and  are  appropriate  indicators  developed  for  different 
sources/rights allocation procedures? 

Have  the  definition  of  legality  and  the  legality  assurance  matrix  been  amended  since  the 
Agreement was concluded? Have indicators and criteria been defined to ensure verification of 
these changes? Were all relevant stakeholders consulted about these changes in a process that 
took adequate account of their viewpoints? 

2. 

CONTROL OF THE SUPPLY CHAIN 

Systems to control the supply chain must provide credible assurance that timber products 
can  be  traced  throughout  the  supply  chain  from  harvesting  or  the  point  of  import  to  the 
point of export. It will not always be necessary to maintain physical traceability for a log, 
log  load  or  timber  product  from  the  point  of  export  back  to  the  forest  of  origin,  but  it  is 
always  needed  between  the  forest  and  the  first  point  of  possible  mixing  (e.g.  a  timber 
terminal or a processing facility). 

2.1. 

Logging rights 

There is clear delineation of areas where forest resource rights have been allocated and the 
holders of those rights have been identified. 

Does the control system ensure that only timber originating from a forest area with valid and 
permissible rights of use enters the supply chain? 

Does the control system ensure that enterprises carrying out harvesting operations have been 
issued appropriate logging rights for the forest areas concerned? 

Have the procedures for issuing logging rights and information on logging rights issued and 
their holders been published as required by Liberian legislation? 

2.2. 

Systems for controlling the supply chain  

There  are  effective  mechanisms  for  tracing  timber  throughout  the  supply  chain  from 
harvesting to the point of export. 

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The approach for identifying timber may vary, ranging from use of labels for individual items 
to reliance on documentation accompanying a load or batch. The method selected must reflect 
the  type  and  value  of  the  timber  and  the  risk  of  contamination  with  illegal  or  unverified 
timber. 

Are all the supply chain alternatives identified and described in the control system? 

Are all stages in the supply chain identified and described in the control system? 

Are  methods  defined  and  documented  to  (a)  identify  the  product  origin  and  (b)  prevent 
mixing with timber from unknown sources in the subsequent stages of the supply chain, i.e.: 

– 
– 
– 
– 
– 
– 
– 
– 

timber in the forest, 
transport, 
interim storage, 
arrival at the primary processing facility, 
processing facilities, 
interim storage, 
transport, 
arrival at the point of export? 

Which  organisations  are  in  charge  of  controlling  the  timber  flows?  Do  they  have  adequate 
human and other resources for carrying out the control activities? 

Is there a protocol for verifying the results of the control procedures set up and applied?  

Are the application procedures clearly defined and communicated to all interested parties? 

2.3. 

Quantities 

There are robust and effective mechanisms for measuring and recording the quantities of 
timber or timber products at each stage of the supply chain, including reliable and accurate 
pre-harvest estimates of the volume of standing timber in each harvesting site. 

Does  the  control  system  produce  quantitative  data  on  inputs  and  outputs  at  the  following 
stages of the supply chain: 

– 
– 
– 
– 
– 
– 

standing timber, 
logs in the forest, 
transported and stored timber, 
arrival at the primary processing facility, 
control within the processing facilities, 
arrival at the point of export? 

Which organisations are responsible for feeding the quantitative data into the control system? 
How  are  these  organisations  linked?  Are  the  staff  of  these  organisations  given  standard 
training  in  data  management?  Do  the  organisations  have  adequate  resources  in  terms  of 
personnel and equipment? 

What is the quality of the data control? 

If different organisations are responsible, how is it ensured that control performance and data 
management are conducted in the same way and to the same standard between organisations? 

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2.4. 

Data gathering 

All data are recorded in a way which makes it possible to reconcile them with the prior and 
subsequent links in the chain in a timely manner. Reliable reconciliation is carried out for 
the entire supply chain. 

Are  all  quantitative  data  recorded  in  a  way  which  makes  it  possible  to  reconcile  quantities 
quickly with the prior and subsequent stages in the supply chain? 

Are there methods for assessing correspondence between standing timber, harvested logs and 
timber entering the plant/point of export? 

Are  there  methods  to  assess  coherence  between  inputs  of  raw  materials  and  outputs  of 
processed products at sawmills and other plants? 

Is  reliable  reconciliation  by  individual  item  or  by  batch  of  timber  products  possible 
throughout the supply chain? 

Which  information  systems  and  technologies  are  applied  for  storing,  reconciling  and 
recording data? Are robust systems in place for securing the data? 

How is unauthorised access to the system avoided (system security)? 

How is the viability of the security systems guaranteed? 

Which organisation is responsible for data reconciliation? Does it have adequate human and 
other resources for carrying out the data management activities? 

What information on the supply chain control is made publicly available? 

How can the interested parties access this information? 

2.5. 

Imported timber products 

There are adequate controls to ensure that imported timber and derived products have been 
imported in line with legal requirements and procedures established to ensure imports have 
been legally harvested following the legal requirements of the country of harvest. 

How is the legality of imported timber products demonstrated? 

What  evidence  is  required  to  demonstrate  that  imported  products  originate  from  trees 
harvested legally in a third country? 

Does the LAS identify imported timber products throughout the supply chain? 

Where imported timber is used, can the country of origin be identified on the FLEGT license, 
including that of components in composite products? 

Does the use of bar codes on imported timber guarantee that only forestry products that have 
been legally logged and processed will be exported with a FLEGT license?  

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3. 

VERIFICATION 

Verification  provides  adequate  checks  to  ensure  the  legality  of  timber.  It  must  be 
sufficiently  robust  and  effective  to  ensure  that  any  non-compliance  with  requirements, 
either in the forest or within the supply chain, is identified and corrective action is taken in 
good time.  

3.1. 

Organisation 

Verification  is  carried  out  by  a  Government,  a  third-party  organisation  or  some 
combination of these, which has adequate resources, management systems and skilled and 
trained  personnel,  as  well  as  robust  and  effective  mechanisms  to  control  conflicts  of 
interest. 

Has  the  Government  appointed  a  body  or  bodies  to  undertake  the  verification  tasks?  Is  the 
mandate (including associated responsibilities) clear and in the public domain? 

Are the responsibilities clearly allocated and are the required competences associated with the 
responsibilities clearly defined? How are they implemented?  

How do the departments responsible for verifying legality guarantee the highest possible level 
of  rationalised  collaboration  and  data  management  between  the  administrations  involved  in 
forestry sector control? 

Does  the  verification  body  have  adequate  resources  for  carrying  out  the  verification  of  the 
legality definition and the systems for controlling the timber supply chain? 

Does the verification body have a fully documented management system that: 

– 

– 
– 
– 
– 
– 

ensures  adequate  competence/experience  amongst  the  personnel  of  the 
verification body, 
applies internal control/supervision, 
includes mechanisms to control conflicts of interest, 
ensures the transparency of the system, 
defines and applies a verification method, 
uses a publicly accessible complaints management system?  

3.2. 

Verification against the definition of legality 

There  is  a  clear  definition  setting  out  what  has  to  be  verified.  The  verification  method  is 
documented and ensures that the process is systematic, transparent and evidence-based, is 
carried out at regular intervals and covers everything included within the definition. 

Does the verification method cover all elements of the legality definition and include tests of 
compliance with all the indicators specified? 

Does verification require: 

– 

– 
– 

checks  of  documentation,  operating  records  and  field  operations  (and  spot 
checks), 
collection of information from external interested parties, 
recording of verification activities that allows checking by internal auditors and 
the independent auditor? 

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Are institutional roles and responsibilities clearly defined and applied? 

Are the verification results against the definition of legality made publicly available? How can 
the interested parties access this information? 

3.3. 

Verification of systems for controlling the supply chain 

There  is  a  clear  scope  setting  out  what  has  to  be  verified,  which  covers  the  entire  supply 
chain from harvesting to export. The verification method is documented and ensures that 
the process is systematic, transparent, evidence-based, carried out at regular intervals and 
covers everything included within the scope, and includes regular and timely reconciliation 
of data between each stage in the chain. 

Does the verification method fully cover checks on supply chain controls?  

Is this clearly spelt out in the verification method? 

What evidence is there to demonstrate application of verification of supply chain controls?  

Are institutional roles and responsibilities clearly defined and applied? 

Are  the  verification  results  on  supply  chain  control  made  publicly  available?  How  can  the 
interested parties access this information? 

3.4. 

Non-compliance 

The  non-compliance  mechanism  makes  it  possible  to  deal  with  any  cases  of  non-
compliance  with  the  requirement  of  legality  verification.  There  is  an  effective  and 
functioning  mechanism  for  enforcing  appropriate  corrective  action  where  offences  are 
identified. 

Does the verification system define the above requirement? 

Have  mechanisms  been  developed  for  handling  non-compliance?  Are  these  applied  in 
practice? 

Are there adequate records available on the offences identified and corrective action taken? Is 
the effectiveness of corrective action evaluated? 

What information on identified breaches goes into the public domain? 

3.5. 

Complaints 

A complaints mechanism makes it possible to deal with any  complaint relating  to legality 
verification. 

Is there a complaints mechanism available to all interested parties? Do the verification bodies 
have  mechanisms  in  place  to  receive  and  respond  to  objections  from  stakeholders  or 
independent observation? Do the verification bodies have mechanisms in place to receive and 
respond to infringements/breaches detected by Government officials? 

Is  it  clear  how  complaints  are  received,  documented,  escalated  (where  necessary)  and 
responded to? 

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4. 

LICENSING 

Liberia  has  assigned  a  licensing  authority  overall  responsibility  for  issuing  FLEGT 
licenses. FLEGT licenses are issued on the basis of individual shipments. 

4.1. 

Organisation 

Which body is assigned responsibility for issuing FLEGT licenses? 

Are  the  roles  of  the  licensing  authority  and  its  personnel  with  regard  to  issuing  FLEGT 
licenses clearly defined and publicly available? 

Are the competence requirements defined and internal controls established for the personnel 
of the licensing authority? 

Does the licensing authority have adequate resources for carrying out its task?  

4.2. 

Issuing of FLEGT licenses 

Does the licensing authority have documented procedures for issuing licenses?  

Are these publicly available, including any fees payable?  

What evidence is there that these procedures are properly applied in practice? 

Are adequate records available on licenses issued and refused?  

Do the records clearly show the evidence on which the issuing of licenses is based? 

Are the requirements for licenses clearly specified and available to the exporter?  

Do exporters fully understand the criteria for issuing FLEGT licenses? 

Which information on licenses issued goes into the public domain? 

4.3. 

Procedures to handle queries on licenses issued 

Can  the  competent  authorities  of  Union  Member  States  obtain  clarification  on  FLEGT 
licenses issued?  

Have  clear  procedures  been  established  for  communication  between  the  licensing  authority 
and competent authorities in the Union? 

Are there channels for other national or international stakeholders to inquire about the FLEGT 
licenses issued?  

4.4.  Mechanism for handling complaints 

There is a mechanism for handling complaints and disputes that arise from licensing. This 
mechanism  makes  it  possible  to  deal  with  any  complaint  relating  to  operation  of  the 
licensing scheme. 

Is there a documented complaints mechanism available to all interested parties? 

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Is  it  clear  how  complaints  are  received,  documented,  escalated  (where  necessary)  and 
responded to? 

5. 

INSTRUCTIONS ON THE INDEPENDENT SYSTEM AUDIT 

The  independent  audit  (IA)  is  a  function  that  is  independent  from  Liberia’s  regulatory 
bodies for the forestry sector. It aims to provide credibility to the FLEGT licensing scheme 
by checking that all aspects of the LAS are operating as intended.  

5.1. 

Institutional arrangements 

5.1.1.  Designation of authority  

Liberia  has  formally  authorised  the  IA  function  and  allows  it  to  operate  effectively  and 
transparently. 

5.1.2. 

Independence from other elements of the LAS  

There  is  a  clear  separation  between  organisations  and  individuals  that  are  involved  in 
management or regulation of forest resources and those involved in the IA. 

Does  the  Government  have  documented  requirements  for  the  independence  of  the 
independent auditor? 

Do  provisions  state  that  organisations  or  individuals  from  both  Parties  with  a  commercial 
interest  or  an  institutional  role  in  the  forestry  sector  are  not  eligible  to  perform  the 
independent auditor function? 

5.1.3.  Designation of the independent auditor  

The independent auditor  was appointed  by  a transparent mechanism and there are clear and 
publicly available rules regarding its activities. 

Has  the  Government  made  the  terms  of  reference  for  the  independent  auditor  publicly 
available? 

Has the Government documented the procedures for appointing the independent auditor and 
made them publicly available? 

5.1.4.  Mechanism for handling complaints  

There  is  a  mechanism  for  handling  complaints  and  disputes  that  arise  from  the  IA.  This 
mechanism makes it possible to deal with any complaint relating to operation of the licensing 
scheme. 

Is  there  a  documented  mechanism  for  handling  complaints  that  is  available  to  all  interested 
parties? 

Is  it  clear  how  complaints  are  received,  documented,  escalated  (where  necessary)  and 
responded to? 

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5.2. 

The independent auditor 

5.2.1.  Organisational and technical requirements 

The independent auditor is independent from the other components of the legality assurance 
system  and  operates  in  accordance  with  a  documented  management  structure,  policies  and 
procedures that meet internationally accepted best practice. 

Does the independent auditor operate in accordance with a documented management system 
that meets the requirements of ISO Guide 17021 or similar standards? 

5.2.2.  Audit method 

The  method  of  the  IA  is  evidence-based  and  verifications  are  carried  out  at  specific  and 
frequent intervals. 

Does the method specify that all findings must be based on objective evidence concerning the 
functioning of the LAS? 

Does  the  method  of  the  independent  audit  specify  the  maximum  intervals  at  which  each 
element of the LAS will be verified? 

Does  the  Government  provide  assurance  that  the  IA  can  access  information  and  resources 
which enable it to perform its function effectively? 

5.2.3.  Scope of the audit  

The  independent  auditor  operates  in  accordance  with  terms  of  reference  that  clearly  specify 
what has to be audited and that cover all agreed requirements for issuing FLEGT licenses. 

Does  the  method  of  the  IA  cover  all  elements  of  the  LAS  and  specify  the  main  tests  of 
effectiveness? 

5.2.4.  Reporting requirements  

The IA shall submit a preliminary report to the Joint Implementation Committee (JIC). The 
reports of the independent auditor and any corrective action required will be discussed in the 
JIC.  

Do  the  independent  auditor’s  terms  of  reference  specify  the  reporting  requirements  and 
reporting intervals? 

Do the terms of reference of the auditor and the procedures of the JIC describe the procedure 
for publishing audit results? 

6. 

EVALUATION CRITERIA OF THE SYSTEM ESTABLISHED IN THE EUROPEAN UNION TO 
ACCEPT FLEGT LICENSES 

The  FLEGT  Regulation  and  the  associated  implementing  measures  lay  down  procedures 
for establishing the FLEGT licensing scheme, including procedures to verify that Liberian 
timber  products  intended  for  release  for  free  circulation  within  the  Union  are  properly 

EN 

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covered  by  a  FLEGT  license.  These  procedures  also  require  the  Member  States  of  the 
Union to designate a competent authority to take on this responsibility. 

Since these are new measures introduced specifically to implement the FLEGT scheme, the 
evaluation  will  examine  the  degree  of  preparedness  of  the  Union  for  verification  of  the 
FLEGT licenses. 

Have the competent authorities been identified in each Member State of the Union? Has this 
information been made public? 

Have  the  procedures  for  processing  the  FLEGT  licenses  been  established  in  every  Member 
State of the Union? Have these procedures been made public? 

Have  appropriate  laws  and  regulations  been  established  where  deemed  necessary  by  the 
Member States of the Union? 

Have  the  means  of  communication  between  the  competent  authorities  and  the  customs 
authorities been determined? 

Have procedures been established to enable the Union, or any person or body designated by 
the European Union, to gain access to relevant documents and data and to avoid any problems 
arising that could hamper the proper functioning of the FLEGT licensing scheme? 

Have  procedures  been  established  to  enable  the  independent  auditor  to  gain  access  to  all 
relevant documents and data? 

Have  reporting  methods  been  negotiated  between  the  Member  States  of  the  Union  and  the 
European Commission? Have procedures for publication of these reports been adopted? 

Do procedures cover cases where goods accompanied by a FLEGT license are not accepted? 
Have procedures been established to report any contradictions in the licenses and to deal with 
offences?  

Has the information relating to fines for various offences been published? 

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ANNEX VII 

IMPLEMENTATION SCHEDULE 

This schedule indicates major milestones on the path in implementing the VPA. Development of systems, further development of the legal framework, 
capacity-building and other supporting measures required to establish  an effective, fully functioning national legality assurance system will all start 
once  the  VPA  has  been  agreed  and  initialled.  However,  ratification  of  the  VPA  could  take  some  time  and  the  formal  structure  of  the  Joint 
Implementation  Committee  and  consequent  reporting  and  monitoring  obligations  will  not  be  put  in  place  until  the  VPA  has  been  ratified  by  both 
Parties and enters into force, as described in Article 31 of the Agreement. In the mean time a mechanism for dialogue will be created (Article 19). As 
shown in the indicative schedule, activities planned for 2011 will commence once the VPA is initialled.  

Key outputs 

Milestones (Activities) 

2011 

2012  2013  2014  2015  2016  2017 

Preparatory Phase   Operational Phase 

VPA implementation 
structures established 

Interim VPA EU-Liberia dialogue structure (pre-JIC) established 

Interim stakeholder committee established (e.g. Steering Committee 
for VPA negotiations) 

X 

X 

JIC established  

JIC reporting established  

Annual reports produced 

JIC procedures established 

National implementation structures:  

Cross department coordination mechanism(s) established  

National  stakeholder  committee  for  monitoring  implementation  of 
the VPA established  

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

Liberia  Licensing  Department  (LLD)  fully  equipped,  staffed  and 
operational  

X 

EN 

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Key outputs 

Milestones (Activities) 

2011 

2012  2013  2014  2015  2016  2017 

Capacity improved 

A comprehensive five-year training and investment plan  

Implementation of capacity-building investment plan 

Training for commercial private sector  

Outreach to small-scale chainsaw operators  

Outreach by civil society to build capacity of communities 

Financial mechanism 
established and 
resources secured for 
effective implementation 
of the VPA  

Mechanism established to coordinate and deliver external donor and 
national support for implementation of the VPA  

Development  of  short-term  and  long-term  implementation  plan 
targeting potential sources of support for VPA action 

Support secured 

Long-term  sustainable  national  financing  secured  for  operation  of 
the LAS 

Legality assurance 
system: legality 
verification established 

Systems developed 

COCS revised to incorporate VPA requirements  

Legality  verification  procedures 
requirements developed 

incorporating  new  regulatory 

Data  management  systems  developed 
requirements 

to 

incorporate  VPA 

Detailed procedures and guidance developed for abandoned logs and 
confiscated timber 

Detailed procedures and guidance for imported timber  

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

EN 

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Key outputs 

Milestones (Activities) 

2011 

2012  2013  2014  2015  2016  2017 

Domestic market and informal sector integrated into the LAS 

X 

Agriculture-sourced  products  integrated  into  the  LAS  (rubber  and 
other plantation wood)  

Institutions strengthened 

External service provider (ESP) contracted 

Government body established to oversee service contract 

X 

ESP building and operating the LVD (including working with FDA 
staff seconded to ESP) 

ESP building capacity of different government agencies for legality 
verification as prescribed in detailed procedures 

Transfer of verification functions to the LVD  in the FDA (detailed 
transfer in key stages to be integrated into contract) 

Licensing procedures developed by the LLD 

Export permits phased out and application of the new licensing 
system by LLD 

FLEGT licensing for exports to EU and other markets 

Mechanisms to communicate with EU competent authorities 
established 

Legality assurance 
system: licensing 
established 

Legality assurance 
system: independent 
audit established 

Independent auditor contracted 

Operating procedures developed and agreed with the JIC 

Independent audits initiated and reports published 

FLEGT licenses 

External evaluation of functioning of the LAS and EU procedures; 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

EN 

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Key outputs 

Milestones (Activities) 

2011 

2012  2013  2014  2015  2016  2017 

accepted in the EU 

adjustments made if necessary (see Annex VI)  

Civil society monitoring 
established 

Law enforcement and 
regulatory framework 
improved 

JIC confirms date when EU starts to accept FLEGT licenses 

LAS operational and EU accepting licenses 

Capacity-building for civil society (CS) to conduct monitoring 

CS monitoring designed in detail 

CS monitoring established  

Community forest regulations adopted  

Legality definition (LD) updated 

Chainsaw regulations adopted 

LD updated 

Regulation on abandoned logs in concession areas adopted 

Regulations on transit timber adopted  

Detailed procedures and guidance for timber in transit adopted 

Regulations on timber imports adopted 

Regulations for confiscated timber adopted 

Refinement of procedures for social agreements and other social and 
environmental provisions in place 

Amendments to the LD 

Review  of  regulations  framed  in  the  LD,  based  on  practical 
experience of implementation of the LAS  

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

Law enforcement capacity strengthened 

X 

X 

X 

EN 

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Key outputs 

Milestones (Activities) 

2011 

2012  2013  2014  2015  2016  2017 

Regulation and 
monitoring of domestic 
market established 

Procedures for legal verification for the domestic market established 
in the LAS (integration in the legality verification and in COCS) 

Establishment of information-gathering system 

X 

X 

X 

Assessment of contribution by the informal sector to the national 
(local) economy (regular monitoring will be established 
subsequently) 

Training  of  chainsaw  operators  to  work  with  new  regulations  and 
procedures  

Monitoring organisation(s) for baseline studies engaged 

Monitoring framework agreed by the JIC 

Routine monitoring, with reporting to the JIC 

Monitoring the impact 
of the VPA  

Communication 

A costed communication plan for raising public awareness prepared 
(P) and implemented (I)  

Trade  shows  with  trading  partners  to  promote  the  benefits  of 
FLEGT-licensed timber 

Public information sites and capacity established (see Annex IX) 

Guidelines for developing social agreements 

Targeted guidance for LAS compliance for different stakeholders 

X 

X 

VPA monitoring and JIC reports published  

X 

X 

X 

X 

X 

X 

X 

I 

X 

X 

X 

X 

X 

I 

X 

X 

X 

I 

X 

X 

X 

X 

I 

X 

X 

I 

X 

X 

X 

X 

X 

P 

X 

X 

X 

X 

EN 

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ANNEX VIII 

SUPPORTING MEASURES  

1. 

BACKGROUND 

The  forestry  sector  in  Liberia  is  in  a  process  of  recovery  and  redevelopment  following  the 
lifting of the UN sanctions against logging in 2006. The new legislative framework is in place 
and areas of forest have been identified for conservation and for commercial and community 
forest operations. New regulations are being developed to regulate the informal sector, known 
as "chainsaw logging", which supplies mainly the domestic market.  

A review of the capacity of government services, private-sector operators and civil society to 
perform  functions  prescribed  in  the  new  legal  and  policy  frameworks,  carried  out  in 
December  2010  in  preparation  for  the  VPA,  points  to  a  large  gap  between  the  intended 
functions and the actual capacity. Effective operation of the legality assurance system (LAS) 
described in this Agreement will require strengthened capacity for core regulatory functions 
alongside the upgrading of systems described in Annex II of this Agreement.  

Liberia  will  take  a  range  of  supporting  measures,  as  indicated  in  Article  15(1)  of  this 
Agreement, in cooperation with the Member States of the Union, the European Commission 
and  other  development  partners  in  order  to  implement  this  Agreement  effectively.  These 
include measures to:  

establish implementing structures to ensure effective coordination; 

(a) 
(b)  build capacity of key stakeholders; 
(c) 
(d) 
(e)  monitor domestic trade in timber and its importance to the national economy; 
(f)  monitor  the  impact  of  the  VPA,  including  on  communities  and  private-sector 

establish the legality assurance system;  
strengthen the legal and regulatory framework; 

operators; 

(g)  monitor implementation of the VPA; 
(h) 
(i) 

communicate with national and international stakeholders; 
update the strategic framework for the forest sector. 

Possible  supporting  measures  are  outlined  below.  These  will  be  further  developed  into 
detailed action plans, including investment schedules, at an early stage of implementation of 
the VPA. 

2. 

IMPLEMENTING STRUCTURES 

Institutional  structures  will  be  established  to  enable  smooth  operation  and  coordination 
between  government  and  non-government  bodies  involved  in  implementing  the  VPA  .  In 
particular,  drawing  on  existing  structures  two  new  departments  will  be  created  within  the 
Forestry Development Authority (FDA), the Liberia Verification Department (LVD) and the 
Liberia  Licensing  Department  (LLD).  A  mechanism  for  coordination  between  government 
agencies and increasing capacity in existing departments to take on new functions will be one 
priority for the first year. In particular, a structure to manage the outsourced verification/chain 
of custody system (COCS) contract will be established in the first year of implementation. In 
preparation for implementation, technical support to plan for and build capacity needed will 

EN 

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be a priority (e.g. staff job descriptions, recruitment, engagement of experts and inter-agency 
communications between the FDA and other line agencies e.g. the Environmental Protection 
Agency  and  the  Ministries  of  Commerce  and  Industry,  Labour,  Agriculture  and  Finance 
(Bureau of Concessions and Bureau of Customs)).  

3. 

CAPACITY-BUILDING 

Capacity-building will be required for all parties involved in implementing the VPA. Planning 
for  this  should  take  into  consideration  on-going  and  planned  sector  support,  as  indicated  in 
Article  15  of  this  Agreement.  Capacity-building  encompasses:  (a)  technical  training  for 
government  agencies,  in  particular  the  FDA,  the  Environmental  Protection  Agency  and 
Customs; (b)  training  for  FDA staff working with the external service provider; (c) training 
for civil society groups to enable them to monitor LAS operations and help communities to 
participate  in  forestry-related  action;  (d)  assistance  for  chainsaw  loggers’  groups  in 
cooperative  formation  and  technical  skills;  (e)  training  in  information  management  for  the 
LAS and capacity routinely to analyse and publish information on the sector; and (f) increased 
capacity with the aid of technology, including provision of adequate equipment, software and 
communication equipment. 

In  order  to  guide  the  significant  capacity-building  task  and  drawing  on  the  capacity  gap 
analysis carried out in December 2010, Liberia will develop a comprehensive costed five-year 
training  plan,  reflecting  ongoing  or  planned  initiatives,  differentiating  between  on-the-job 
training by the verification/COCS service provider and other training required and identifying 
training  that  can  be  covered  by  existing  initiatives  and  that  for  which  additional  training 
tailored to VPA requirements is needed.  

Furthermore,  Liberia  will  develop  a  five-year  investment  plan,  identifying  the  needed 
equipment  and  its  operating  costs,  facility  construction  or  refurbishment  and  maintenance, 
investments  that  will  be  procured  by  the  service  provider  for  eventual  handover,  those 
procured under existing funded initiatives and those which will need additional funding. As 
indicated in Article 15, the Parties will work together under existing arrangements to secure 
the resources needed for this capacity-building. 

4. 

FINANCING MECHANISMS  

Detailed budgets for all the measures described in this Annex will need to be developed and 
financing  arranged.  The  latter  will  include  determining  the  contribution  that  Liberia  can 
provide  from  its  own  resources,  establishing  what  will  be  required  from  donors  and 
identifying and engaging potential donors. Key measures may include: 

establishing the financial delivery mechanism; 

(a) 
(b)  developing  a  comprehensive  short-term  and  long-term  budget  and  detailed 

proposals and sources for funding implementation of the VPA ; 
identifying  support  from  Liberia’s  resources  and  support  needed  from  the 
Union  and  other  development  partners,  including  coordination  of  existing 
donor support where relevant; 
securing funds. 

(c) 

(d) 

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5. 

ESTABLISHING THE LAS  

The LAS will build on existing systems and structures already operating in Liberia. Support is 
required to upgrade systems to ensure verification of compliance with the legality definition 
in  Annex  II,  by  means  of  the  procedures  outlined  in  the  same  Annex.  The  supporting 
measures will focus on action needed to establish the functional capacity across a number of 
different  government  agencies  and  on  introducing  independent  audit.  They  involve 
establishing  the  legality  verification  function  the  FLEGT  licensing  system  and  the 
independent audit function and upgrading the existing COCS to meet LAS requirements.  

5.1. 

Establishing the legality verification system 

Liberia  will  contract  an  external  service  provider  to  build,  operate,  and  transfer  the  legality 
verification and COCS over a five-year period. A central part of the task will be building the 
capacity  of  line  government  agencies  to  deliver  the  functions  needed.  The  external  service 
provider will work directly with staff of the FDA seconded into their service who, in the long 
run, will become the LVD. Key measures may include:  

(a) 

(b) 

(c) 

(d) 
(e) 
(f) 
(g) 
(h) 
(i) 
(j) 

engage  a  qualified  client’s  representative  to  assist  with  drawing  up  detailed 
specifications  and  contract  documents  for  the  service  provider  and  with 
selection procedures; 
advertising for receiving, shortlisting and  evaluating proposals for the service 
provider;  
negotiating  a  contract  with  the  service  provider  on  a  build-operate-transfer 
basis; 
transferring relevant FDA staff to the service provider; 
establishing an oversight structure to monitor the service provider; 
building and operating the LAS described in Annex II to this Agreement; 
integrating mill processes and production of rubber-wood chips into the COCS; 
integrate imported timber and confiscated timber into COCS;  
extending the LAS to include timber produced for the domestic market; 
transferring systems operated by the service provider to the FDA. 

5.2. 

Establishing the Liberia Licensing Department 

The FDA will establish a Licensing Department that will be responsible for FLEGT licensing 
all exports. It will develop the detailed procedures for FLEGT licensing and ensure coherence 
with  export  procedures,  phasing  out  the  current  system  of  export  permits  as  the  FLEGT 
licensing system becomes operational. To this end, key measures may include:  

(a)  with expert assistance as appropriate, developing  additional routines to adjust 

the current export permit system for FLEGT licensing;  
(b) 
establishing the Department within the FDA; 
recruiting staff and a technical advisor; 
(c) 
(d)  drafting regulations on export licensing; 
(e) 
(f) 
(g) 

phasing out export permits; 
issuing FLEGT licences; 
establishing mechanisms for communication with EU competent authorities. 

5.3. 

Establishing Independent Audit mechanism 

As indicated in Annex V to this Agreement Liberia will contract an independent auditor (IA) 
to ensure smooth operation of the LAS and to lend credibility to the systems, for international 

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markets in particular. Liberia will contract the Independent Auditor in consultation with the 
Union following Liberia's procurement procedures and following the guidance established in 
Annex V. To this end, key actions may include: 

(a) 

advertising  for,  short-listing,  selecting  and  negotiating  with  Independent 
Auditor; 

(b)  developing detailed procedures for the Independent Audit to be agreed with the 

Joint Implementation Committee (JIC); 
initiating independent audits; 
establishing capacity for reviewing and reporting. 

(c) 
(d) 

5.4. 

External review of the operational LAS  

As  indicated  in  Annex  VI  to  this  Agreement,  the  LAS  will  be  subject  to  an  independent 
technical evaluation before the licensing scheme becomes fully operational and before the EU 
authorities will accept FLEGT licenses. Key measures may include: 

(a) 

(b) 

conducting  an  independent  evaluation  of  the  LAS,  reviewing  results  and 
adjusting systems if necessary; 
informing  the  JIC  of  evaluation  results  and  agreeing  on  a  date  when  the 
licensing scheme will ‘go live’ and the EU authorities will be required to verify 
FLEGT licenses before entry to the Union market. 

6. 

STRENGTHENING LAW ENFORCEMENT AND THE REGULATORY FRAMEWORK 

Parallel to implementation of the LAS, Liberia will examine the efficiency of the regulatory 
and enforcement system and the coherence of the legal framework applicable to the forestry 
sector  and  introduce  improvements  where  necessary.  Development  of  the  legality  definition 
and the consultations and field testing that took place during its development have brought to 
light some areas of the regulations that need further amendment to provide clear guidance to 
economic operators. Key measures may include: 

(a) 

(b) 

(c) 

(d) 

providing for a regulatory review after five years of implementation of the LAS 
that  will  allow  time  to  identify  practical  concerns  in  application  and 
verification of legal compliance; 
improving  the  following  areas  of  the  legal  framework;  guidelines  for 
negotiation of Social Agreements; community forestry regulations; procedures 
for handling abandoned logs; procedures for handling timber confiscated due to 
violation of the law; guidelines on how independent certification schemes will 
be  integrated  into  the  LAS;  procedures  for  producing  the  debarment  list; 
procedures  for  tracking  timber  through  processing  facilities;  regulations  on 
third-party  access  and  use  of  resources  in  a  concession  area;  regulation  of 
chainsaw  logging;  regulations  for  timber  import  and  timber  in  transit; 
improvement of EIA processes and environmental management within timber 
contract areas; 
strengthening the regulations on the safety and welfare of workers involved in 
the logging industry; 
any necessary readjusting of the legality verification matrix described in annex 
II of this Agreement as a result of changes to laws and regulations. 

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7. 

MONITORING THE DOMESTIC TIMBER MARKET  

The  domestic  market  for  timber  is  very  important  for  the  national  economy,  but  poorly 
understood and largely unregulated. Liberia will adopt new regulations, to help it work with 
small-scale chainsaw operators. Production for the domestic trade will be integrated into the 
LAS  and  regulatory  measures  will  be  adopted  to  ensure  better  regulation,  fair  trade  and 
environmental  safeguards  in  what  is  currently  an  informal  sector  operating  outside  the 
regulatory system. Key measures may include:  

(a) 
(b) 
(c) 
(d) 

(e) 

organising of the domestic timber market; 
improving of the legal framework relating to the domestic timber market; 
establishing an information system; 
establishing  a  suitable  traceability  system  for  timber  sold  on  the  domestic 
market; 
integrating domestic timber sales into the LAS. 

8. 

MONITORING THE IMPACT OF THE VPA IMPACTS 

including  baselines  and  agreed 

Monitoring  the  social,  environmental  and  market  impact  of  the  VPA,  in  general  and  with 
particular emphasis on forest-dependent communities is necessary to ensure that the VPA is 
delivering its intended aims. To this end, key measure may include: designing a monitoring 
framework, 
indicators  covering  elements  such  as: 
improvements in governance structures; allocation of forest use right; social agreements and 
benefit-sharing  with  affected  communities;  volumes  of  regulated  timber  compared  with 
volumes still unregulated; evidence of law enforcement; volumes of timber confiscated and its 
disposal;  efficiency  of  revenue  capture;  efficiency  of  revenue  disbursement  to  affected 
communities;  markets  for  Liberia’s  timber  and  the  impact  of  the  VPA  impact  on  its 
competitiveness. The JIC will establish effective monitoring as indicated in Annex X to this 
Agreement.  

9. 

MONITORING IMPLEMENTATION OF THE VPA 

The JIC will have overall responsibility for monitoring implementation of the VPA. This will 
includes review and action in response to the Independent Audit reports, and reviews of the 
impact monitoring described above. In addition, other stakeholders including civil society will 
monitor implementation of the VPA and, in so doing, contribute to effective implementation 
of  the  LAS.  The  JIC  will  receive  reports  from  stakeholders  and  ensure  that  an  effective 
complaints  mechanism  is  in  place  for  addressing  problems  identified.  Key  measures  may 
include:  

(a) 

supporting  the  national  multi-stakeholder  monitoring  committee  described  in 
Article  16  to  this  Agreement  in  holding  regular  open  public  consultations  on 
implementation of the VPA, where stakeholders will be able to give feedback; 

(b)  monitoring by civil society, including ensuring that community-level concerns 
are articulated and communicated to the LVD, LLD and IA, the national multi-
stakeholder monitoring committee and to the JIC. 

10. 

COMMUNICATION  

Communication supports implementation of the VPA and is essential to redress the negative 
image of the sector given the difficult historical background of Liberia and its timber industry. 

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The  VPA  is  an  opportunity  to  work  towards  transparency,  accountability  and  legality.  The 
value  of  communicating  about  the  government  efforts  to  improve  governance  in  the  forest 
sector cannot be overemphasised. The VPA will affect not only the administration, but also 
different  stakeholder  groups  and  the  broader  public  and  therefore  requires  a  comprehensive 
communication strategy that will provide all the necessary information on the VPA, its impact 
and  its  benefits,  not  only  in  economic,  but  also  environmental  and  social  terms. 
Communication on action planned and achievements under the VPA will aim to: 

(a) 

(b) 
(c) 
(d) 

(e) 

encourage  involvement  and  guarantee  the  coherence  of  actions  by  various 
stakeholders; 
ensure public access to information to facilitate monitoring; 
promote the image of Liberian timber on the international market; 
secure  public  support  for  the  action  taken  by  Liberia  to  promote  sustainable 
forest resource management and development of the communities that depend 
on it; and  
promote the benefits of a VPA among the stakeholders and the wider public. 

To this end Liberia will support measures to ensure effective communication of the ambition 
and results of the VPA. Key measures may include: 

(a) 

(b) 

(c) 

preparing and implementing a communication strategy with the goal of raising 
public awareness via modern and traditional media to keep the public and the 
timber  trade  informed  about  implementation  of  the  VPA  and  its  impact  and 
benefits; 
identifying  appropriate  target  groups  and  designing  specific  printed  and 
electronic messages concerning the VPA for each target audiences with regular 
updates; 
establishing an information exchange platform for consistent dissemination of 
information  to  domestic  and  international  partners,  including  considering 
where it should be located in the overall implementing structure; 

(d)  organising  trade  shows  involving  prospective  trading  partners  to  promote  the 

(e) 

benefits of FLEGT-licensed timber; 
putting systems in place for the appropriate government authorities to publish 
information  and  to  respond  to  requests  for  information  under  the  Freedom  of 
Information Act, as indicated in Annex IX. 

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ANNEX IX 

PUBLIC INFORMATION AND TRANSPARENCY MEASURES 

In  line  with  the  desire  of  the  Government  of  Liberia  to  adopt  transparent  and  accountable 
natural  resource  management,  as  exemplified  by  the  scrupulous  implementation  of  the 
Extractive  Industries  Transparency  Initiative  (EITI),  the  Parties  agree  that  publication  of 
information  and  other  transparency  measures  are  essential  for  successful  implementation  of 
the VPA as indicated in Article 21 of this Agreement. In this light, both Parties are committed 
to regularly publishing all information of interest to stakeholders and information to facilitate 
implementation  and  monitoring  of  the  VPA.  This  Annex  describes  the  information  to  be 
published by the Government of Liberia or that can be made available to the public under the 
Freedom of Information Act by the Government of Liberia. 

1. 

CATEGORIES OF INFORMATION THAT WILL BE ROUTINELY PUBLISHED 

The  following  information  described  below  will  be  made  available  to  the  public  by  regular 
publication, as described in Sections 2.5 and 2.6 of the Freedom of Information Act 2010. The 
information  may  be  provided  by  various  means  depending  on  the  nature  of  the  information 
and the target audience, for example:  

(a)  Websites; 
(b)  Multi-stakeholder implementation platform; 
(c)  Public meetings; 
(d)  Press conferences 
(e)  National radio and newspapers 
(f)  Brochures and newsletters 

As  indicated  in  Annex  VIII  a  comprehensive  communication  strategy  will  be  developed  to 
support dissemination of information to all stakeholders using the most appropriate means.  

1.1. 

Information relating specifically to the Voluntary Partnership Agreement 

(a)  The VPA and all its Annexes  
(b)  Reports  produced  by  the  Joint  Implementation  Committee  (JIC),  which  must 

include the following information: 

• 
• 
• 

• 

• 
• 

Number of FLEGT licenses issued by Liberia; 
Number of rejected applications for FLEGT license applications; 
Instances of non-compliance with the FLEGT licensing process in 
Liberia and measures taken to address such cases; 
Annual  quantities  of  timber  and  timber  products  exported  to  the 
Union;  
Number of FLEGT licenses received by the Union; 
Quantities  of  timber  and  timber  products  imported  into  the  Union 
under  the  FLEGT  licensing  scheme,  by  the  EU  Member  State  in 
which importation took place.  

(c)  Reports produced by the independent auditor; 
(d)  Procedures guiding the functioning of the JIC; 
(e)  Aide-memoires and other reports by the JIC, including monitoring and impact

 studies as indicated in Annex X; 

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(f) 

Procedures  and  terms  of  reference  guiding  the  functioning  of  the  national
 stakeholder committee for monitoring the VPA; 

(g)  Guidelines for LAS compliance targeting different stakeholders; 
(h)  Guidelines for social agreements. 

1.2. 

Information on management of the forestry sector 

(a) 

Information  about  and  documents  from  government  agencies  that  exercise 
oversight  over  the  forestry  sector  and  that  are  required  under  the  publication 
arrangements outlined in Sections 2.1–2.3 of the Freedom of Information Act 
2010, to make such information routinely available, including: 

Enabling legislation of the government agency or authority; 
Its existing policy, procedures and rules; 
its budgets; 
The financial accounts of the agency or authority; 
its organisation chart, including lines of reporting; 

• 
• 
• 
• 
• 
•  Material contracts; 
• 

Procedure  for  appealing  against  decisions  by  the  authority  or  its 
officers;  
Resolutions of the board of directors; 
Audit reports; 
Public  comments,  reports,  strategies  and  manuals  relating  to  the 
forest  sector,  pursuant  to  Section  18.15  of  the  National  Forestry 
Reform Law.  

• 
• 
• 

(b)  All legislation, regulations and operating procedures that have been enacted by 
the  Government  of  Liberia.  This  includes  all  aspects  of  the  regulatory 
framework that are referred to in the Liberian legality definition in Annex II to 
this Agreement. 

1.3. 

Information on forest resource allocation 

(a)  Forest 

issued, 

licenses 

timber  sales  contracts  (TSC),  forest 
management  contracts  (FMC)  agreements  and  permits  for  operations  and  for 
processing  wood  products,  including  forest  use  permit  (FUP)  and  private  use 
permit (PUP); 

including 

(b)  Agricultural  concession  contract  agreements  pertaining  to  products  listed  in 

Annex I;  

(c)  Documents relating to competitive bidding: Pre-qualification evaluation panel 

report;  

(d)  Concession contracts awarded;  
(e)  Social  agreements  between  forest  communities  and  all  contract  or  permit 

holders; 

(f)  Maps of communal forests and their areas; 
(g)  List and maps of all TSCs, PUPs, FUPs and FMCs awarded.  

1.4. 

Information on forest resource production 

(a)  Volumes and monetary values (as determined by approved FOB price lists) of 
harvested  forest  resources,  processed  forest  products  and  exported  forest 
products, reported as: 

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• 
• 

total annual production,  
by species produced under each forest resources licence  

(b)  Annual  volume  of  timber  and  derived  products  imported  into  Liberia  or 

transited through Liberia.  

1.5. 

Information on forest fees and revenues 

(a)  Schedule of all forestry-related fees and taxes; 
(b)  FOB prices. 

1.6. 

Information on law enforcement in concession areas 

(a)  Penalties imposed and the list of those who actually paid and those who did not 

pay or complied; 

(b)  Annual  volume  of  timber  products  sold  at  public  auction  and  the  monetary 

value of the sales. 

2. 

INFORMATION AVAILABLE TO THE PUBLIC WHEN REQUESTED UNDER THE FREEDOM 
OF INFORMATION ACT 

The  procedures  for  granting  access  to  information,  records  or  documents  under  this  Annex 
will  follow  the  procedures  outlined  in  Chapter  3,  Sections  3.1-3.14  of  the  Freedom  of 
Information Act.  

2.1. 

Information on forest resource allocation 

(a)  Documents  relating  to  pre-qualification  which  will  be  made  available  upon 

request after completion of the pre-qualification process 

• 

List of pre-qualified companies. 

(b)  Documents  relating  to  competitive  bidding  which  will  be  available  upon 
request  after  the winning  bid  have been  selected  and all  who  submitted  a  bid 
have been notified: 

• 
• 

Bid documents; 
Bid evaluation panel report.  

(c)  List  of  prohibited  persons  (i.e.  persons  prohibited  from  holding  interests  in 

commercial logging companies due to currently holding public office); 

(d)  List  of  debarred  persons  (i.e.  persons  debarred  from  the  Liberian  logging 
industry  due  to  involvement  in  use,  management  or  harvesting  of  forest 
resources  while  aiding  or  abetting  civil  disturbances  involving  use  of 
weapons); 

(e)  List  of  suspended  persons  (i.e.  persons  suspended  due  to  default  on  financial 

obligations related to forest use); 

(f)  All  documents,  records  and  information  relating  to  approved  business  and 

forest management plans;  

(g)  Location and ownership of land subject to Forest Resources License; 
(h)  Names of forest resource holders and brief description of the areas covered by 
the  holder’s  forest  resource  licence  (size  of  the  area  and  type  of  forest 
resources). 

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2.2. 

Information on forest resource production 

(a)  Volume and location of wood available for harvest under the annual coupe per 

concession; 
Information held on the Liberian LAS database;  

(b) 
(c)  Annual volume of timber products consumed on the domestic market by type 

of product and species. 

2.3. 

Information on processing 

(a)  List of registered processing companies and their contact details;  
(b)  Production capacity per processing unit by company; 
(c)  Annual volume of logs processed by species and type of product per processor. 

2.4. 

Information on forest fees and revenues 

(a)  Amount  of  fees  and  taxes  assessed  on  business  entities  in  the  forestry  sector 
assessed by the Ministry of Finance and the amounts paid per forest resource 
contract–holder; 

(b)  Amount  of  money  received  and  disbursed  by  the  Government  to  the 

Community Forestry Development Funds; 

(c)  Amount of money received and disbursed by the National Community Benefit 

Sharing Trust; 

(d)  Amount of money received and disbursed by the Trust to Community Forestry 
Development  Committees,  with  a  breakdown  by  project,  date  and  affected 
community; 

(e)  Outcomes  of  complaints  from  the  public  in  connection  with  the  County 
Forestry  Development  Fund  and  the  National  Benefit  Sharing  Trust  or  any 
Community Forestry Development Committee. 

2.5. 

Information on law enforcement in concession areas 

(a)  Charges of violations, arrests, settlements and convictions associated with the 

operations under the forest resources licence as recorded by the FDA; 

(b)  Forest resources license fee invoices and payment information. 

3. 

PROCEDURE FOR ACCESS TO PUBLIC INFORMATION, RECORDS OR DOCUMENTS 

This Annex is in line with Liberia's Freedom of Information Act which makes it mandatory 
for  every  public  institution  and  private  entity  that  receives  public  resources  and  benefits  or 
engages in a public function to outline how the public can gain access to different pieces of 
information.  

The  FDA  and  all  other  public  agencies  have  developed,  or  are  developing,  procedures  for 
making information available to the public.  

To  make  this  Annex  operable,  the  procedures/guidelines/or  instructions  for  responding  to 
requests  for  information  need  to  be  developed  and  approved.  In  addition,  the  reporting  and 
public  disclosure  provisions  that  apply  to  the  LLD  and  the  LVD  will  be  further  developed 
during implementation of this Agreement.  

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ANNEX X  

FUNCTIONS OF THE JOINT IMPLEMENTATION COMMITTEE 

In  application  of  Article  19  of  the  Agreement,  the  Parties  shall  establish  a  monitoring  and 
decision-making  structure  designated  the  ‘Joint  Implementation  Committee’  (JIC).  The  JIC 
shall be responsible for oversight and monitoring implementation of the Agreement. The JIC 
shall facilitate dialogue and exchanges of information on the functioning of this Agreement. 
In particular, the JIC shall: 

(a) 

as regards to the management of this Agreement: 

1. 

2. 

3. 

4. 
5. 

6. 

7. 

8. 

publish  a  yearly  report  on  implementation  of  this  Agreement  in  accordance 
with Annex IX; 
following the evaluation of the functioning of the legality assurance system and 
based on the assessment criteria outlined in Annex VI, recommend the date on 
which the FLEGT licensing scheme will start operating;  
review progress towards achieving the objectives and the time-bound action in 
this Agreement and matters relating to implementation of the Agreement; 
propose and/or take measures to improve the performance of the Agreement; 
amend  Annexes  to  the  Agreement  in  accordance  with  Article  26  of  this 
Agreement; 
address matters of concern raised by either of the Parties and attempt to resolve 
any conflict that may arise in the course of implementation of Article 10 of the 
Agreement; 
address matters of concern raised by either of the Parties and attempt to resolve 
any conflict that may arise in the event of differences of opinion between the 
Parties in accordance with Article 24 of this Agreement; 
publish  reports  and  Aide  Memoire  making  the  workings  of  the  JIC  as 
transparent as possible; 

(b) 

as regards monitoring and assessment of this Agreement: 

1.  monitor  overall  progress  on  implementation  of  this  Agreement,  including  the 

2. 

functioning of the legality assurance system; 
conduct  regular  joint  missions  to  review  the  effectiveness  of  this  Agreement 
and its impact, based on the information available; 

4. 

3.  monitor and report on the market situation at regular intervals, commissioning 
studies  as  necessary  and  recommending  action  to  be  taken  in  response  to 
market intelligence reports; 
assess  the  social,  economic  and  environmental  impact  of  this  Agreement,  in 
accordance with relevant good practice and criteria to be agreed by the Parties 
and address problems raised by these reviews and assessments; 
identify  difficulties  associated  with  implementation  of  this  Agreement  and 
suggest suitable measures to address them; 

5. 

(c) 

as regards the independent audit of the Agreement: 

1. 

2. 

approve  the  independent  auditor’s  procedural  manual  in  accordance  with 
Annex V; 
review reports issued by the independent auditor and any complaint about the 
operation  of  the  FLEGT  licensing  scheme  on  the  territory  of  either  of  the 
Parties; 

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3. 

4. 

review reports or complaints relating to the working of the independent auditor 
and agree appropriate action to be taken; 
publish reports of the independent auditor, as provided for in Annexes V and 
IX; 

5.  monitor,  when  applicable,  action  taken  to  address  the  problems  identified  by 

the independent auditor; 

(d) 

as regards involving stakeholders in implementing and monitoring this Agreement: 

1. 

2. 

3. 

for 

recommendations  on  capacity-building  needs 

successful 
provide 
implementation  of  this  Agreement  and,  if  applicable,  on  the  need  to  increase 
the  capabilities  of  and  participation  by  the  private  sector  and  civil  society  in 
monitoring  compliance  with 
to  forest 
management in Liberia; 
take  appropriate  measures  to  promote  participation  of  concerned  stakeholders 
in implementation of this Agreement; 
if  necessary,  establish  working  groups  or  other  subsidiary  bodies  for  areas  of 
work requiring specific expertise or stakeholder perspectives. 

laws  and  regulations  relating 

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