CELEX: 52011PC0371
Language: en
Date: 2011-06-17
Title: 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

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		52011PC0371
		
			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 /* COM/2011/0371 final - NLE 2011/0160 */
			
				
		
		
			
			   	EXPLANATORY MEMORANDUM
The Action Plan on Forest Law Enforcement,
Governance and Trade (FLEGT)[1],
endorsed by the Council in 2003[2],
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 2173/2005[3]
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 countries[4]. 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 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. 
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 Parliament[5],
Whereas:
(1)       In May 2003 the European
Commission adopted a Communication to the European Parliament and to the
Council entitled ‘Forest Law Enforcement, Governance and Trade (FLEGT):
Proposal for an EU Action Plan’[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 2003[7] and Parliament adopted a resolution on the
subject on 11 July 2005[8].
(2)       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,
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.
Article 5
This Decision shall enter into force on the
day of its adoption. 
Article 6
This Decision shall be published in the Official
Journal of the European Union. 
Done at Brussels, […]
                                                                       For
the Council
                                                                       The
President
                                                                       […]
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 2000[11], 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 forest[13];
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 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 Community[14];
CONSIDERING the framework established by
Liberia’s National Forestry Reform Law[15] 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,
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)          ‘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 Code[16]
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 Code[17];
(b)          ‘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;
(c)          ‘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;
(d)          ‘timber products’ means the
products listed in Annex I;
(e)          ‘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 Harmonised Commodity
Description and Coding System of the World Customs Organisation;
(f)           ‘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;
(g)          ‘licensing authority’ means the
authority designated by Liberia to issue and validate FLEGT licenses;
(h)          ‘competent authorities’ means the
authorities designated by the Member States of the Union to receive, accept and
verify FLEGT licenses;
(i)           ‘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;
(j)           ‘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;
(k)          ‘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;
(l)           ‘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
1.           A
Forest Law Enforcement, Governance and Trade Licensing Scheme (hereinafter referred
to as ‘the FLEGT licensing scheme’) is hereby established between the Parties
to this Agreement. 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. 
Article 4
Licensing authority
1.           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.
2.           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.
3.           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.
4.           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 
1.           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.
2.           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.
3.           The competent
authorities shall maintain and publish annually a record of FLEGT licenses
received.
4.           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.
5.           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
therein[18], as the FLEGT license also attests that the
timber in question has been legally produced or acquired.
Article 6
FLEGT licenses
1.           FLEGT
licenses shall be issued by the licensing authority as a means of attesting
that timber products have been legally produced or acquired.
2.           FLEGT licenses
shall be made out and completed in English.
3.           The Parties
may, by agreement, establish electronic systems for issuing, transmitting and
receiving FLEGT licenses.
4.           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 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. 
Article 9 
Application of the FLEGT licensing scheme
to timber products not exported to the Union
1.           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.
2.           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
1.           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.
Article 11
Independent auditor
1.           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.
2.           Liberia shall
engage the services of an independent auditor, after consulting the Union.
3.           The independent
auditor shall refer complaints arising from its work to the Joint
Implementation Committee.
4.           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.
5.           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.
2.           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
1.           The Parties
agree to the implementation schedule set out in Annex VII.
2.           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
1.           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.
2.           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. 
3.           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. 
4.           Liberia shall
ensure that capacity-building to implement this Agreement is included in its national
planning instruments, such as poverty reduction strategies and budgets. 
5.           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+). 
6.           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. 
Article 16
Stakeholder involvement in implementation
of the Agreement
1.           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.
2.           Liberia shall
establish a national committee to monitor implementation of this Agreement, made
up of representatives of relevant Government agencies and other relevant
stakeholders. 
3.           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
1.           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.
2.           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.
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.
Article 19
Joint Implementation Committee
1.           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. 
2.           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.
3.           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)     ensure that its work is transparent
and that information about its work and decisions is made available to the
public; 
(f)      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.
4.           The specific
functions of the JIC are described in Annex X.
5.           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. 
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.
Article 21
Reporting and public disclosure of
information
1.           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.
2.           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. 
3.           The terms of
reference and procedures guiding the functioning of the JIC shall be published.
Article 22
Confidential information
1.           Each Party
undertakes, within the limits of its laws, not to disclose confidential
information exchanged under this Agreement. Neither Party shall disclose to the
public, nor permit its authorities 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: 
(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.           The Parties
shall seek to resolve any dispute concerning application or interpretation of
this Agreement through early consultations.
2.           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.
3.           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.
4.           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. 
5.           The
arbitrators’ decisions shall be taken by majority vote within six months of the
third arbitrator being appointed.
6.           The award
shall be binding on the Parties and shall be without appeal.
7.           The JIC shall
establish the working procedures for arbitration.
Article 25
Suspension
1.           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. 
2.           The
conditions of this Agreement shall cease to apply 30 calendar days after
such notice is given.
3.           Application
of this Agreement shall resume 30 calendar days after the Party that has
suspended its application informs the other Party that the reasons for the
suspension no longer apply and the Parties jointly agree to resumption of this
Agreement.
Article 26
Amendments
1.           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.
2.           Any amendment
so approved by both Parties shall enter into force on the first day of the
month following the date on which the Parties notify each other of completion
of the procedures necessary for this purpose.
3.           The JIC may
adopt amendments to the Annexes to this Agreement.
4.           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.
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.           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.
2.           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.
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 
ANNEX I
LIST OF
PRODUCTS SUBJECT TO FLEGT LICENSING
 HS CODES || COMMERCIAL DESCRIPTION 
 4401 || Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms, including rubber wood chips 
 4403 || Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared 
 4406 || Railway or tramway sleepers (cross-ties) of wood 
 4407 || Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness exceeding 6 mm 
 4408 || Sheets for veneering (including those obtained by slicing laminated wood), for plywood or for similar laminated wood and other wood, sawn lengthwise, sliced or peeled, whether or not planed, sanded, spliced or end-jointed, of a thickness not exceeding 6 mm 
 4409 || Wood (including strips 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 
 4410 || Particle board, oriented strand board (OSB) and similar board (for example waferboard) of wood or other ligneous materials, whether or not agglomerated with resins or other organic binding substances 
 4411 || Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other organic substances 
 4412 || Plywood, veneered panels and similar laminated wood 
 4414 || Wooden frames for paintings, photographs, mirrors or similar objects 
 4415 || Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums of wood; pallets, box pallets and other load boards, of wood; pallet collars of wood 
 4416 || Casks, barrels, vats, tubs and other coopers’ products and parts thereof, including staves. 
 4417 || Tools, tool bodies, tool handles, broom or brush bodies and handles, of wood; boot or shoe lasts and trees, of wood. 
 4418 || Builders’ joinery and carpentry of wood, including cellular wood panels, assembled flooring panels, shingles and shakes 
 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 
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.
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 
 - Railway sleepers || - Packing cases/boxes 
 - Sawn timber || - Joinery 
 - Veneer ||  -Furniture 
 - Plywood ||   
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).
 Figure 1.        Institutional set-up
for verification and licensing

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.

4.3.                
Legality verification of operators working under
an independent forest management certification scheme

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)     forests
regulated by the Community Rights Law; 
(b)     chainsaw
logging operations;
(c)     imported
timber; 
(d)     timber in
transit;
(e)     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
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)     the contract
area reference matches the contract-holder ID;
(b)     the four
corners of the block maps fall inside the gross contract area;
(c)     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)     the contract
area reference and contract-holder ID match those on the stock survey forms
submitted;
(b)     the dates
surveyed match the dates on the stock survey forms;
(c)     the
Universal Transverse Mercator (UTM) geographic coordinates match those on the stock
survey forms;
(d)     the scale is
correctly marked on the map, the distance between the cells is correct and the
distances are correctly marked on the map;
(e)     the
direction of the baseline has been correctly entered and the direction of the
north arrow is correct in comparison with the baseline;
(f)      the survey
line numbers and the distance numbers are correctly denoted;
(g)     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;
(h)     the tree
numbers on the map are in the correct cells, as indicated by the stock survey forms;
(i)      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
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.
(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)     the operator
keeps records of all wood raw materials entering the mill site and uploads the
corresponding data into the COCIS;
(b)     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;
(c)     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.);
(d)     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;
(e)     the operator
keeps records of all wood raw materials exiting the mill site and uploads the
corresponding data into the COCIS;
(f)      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;
(h)     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;
(i)      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 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:
(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.
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 violation of
the law;
(e)     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.

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. 
   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 || Contract or Permit Type 
 1.1.1.              For corporations and partnerships, current annual Business Registration certificate and license issued by the Ministry of Commerce and Industry (MOCI) || All contract or permit types whose holder is a registered business 
 1.1.2.              For corporate entities, articles of incorporation filed with Ministry of Foreign Affairs(MOFA) || All contract or permit types whose holder is a corporation. 
 1.1.3.              For holders who are not registered businesses, a certificate or letter of recognition issued by FDA || FMC/TSC under Community Forestry law, FUP/PUP, and chain saw permits issued to natural person or sole proprietorship 
 Verification Guidance || Verification method || Verification frequency 
 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. ||     Annually 
 References: GBL (4.3 to 4.5); COCS SOP(4) ||   
 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       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 || All contract and permit types 
 1.2.2       Current FDA-prepared list of current senior Government officials prohibited from holding forest license                pursuant to Section 5.2(b) of NFRL || All contract and permit types 
 1.2.3       Current List of shareholders and beneficial owners of corporate contract or permit holder || All contract and permit types 
 Verification Guidance/ Procedure (LAS-LVD-0.1.2) || Verification Method || Verification frequency 
 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 ||           Per shipment     
 References: NFRL (5.2b); Regulation 103-7(21-22) Regulation 104-07(62); Sections 44, PPC Act ||   
 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) 
 Verifier || Contract or Permit Type 
 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 || FMC, TSC and FUP having value of more than US$10,000.00 
 Verification Guidance/ Procedure: || Verification Method || Verification Frequency 
 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. || 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 ||       Once during the contract period 
 References: Sections 44, PPC Act ||   
   PRINCIPLE 2: FOREST ALLOCATION The Forest Use Rights covered by the contract was awarded pursuant to the National Forestry Reform Law and the Community Rights Law   
 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 || FMC,TSC, and FUP having a value of more than US$10,000.00 
 2.1.2       Written notices of the consultation meeting(s) (Radio or Newspaper announcements) || FMC,TSC, and FUP having a value of more than US$10,000.00 
 2.1.3       Minutes and attendance list of the meetings showing key points discussed and agreements reached || FMC,TSC, and FUP having a value of more than US$10,000.00 
 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 
 Verification Guidance/ Procedure (LAS-LVD-0.2.1) || Verification Method || Verification Frequency 
 Objective: 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 participatory preparation process, the affected communities include those within 3.0 kilometers of the concession area.   || Description: 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 to the conduct and discussions at the meetings. If necessary, other government agencies such as the Ministry of Internal Affairs and the relevant affected communities may be consulted. Verification means: 7.        1.     Consultation with the FDA and, if necessary, the Ministry of Internal Affairs and affected communities 8.        2.     Document Review ||                 Once during the contract period . 
 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 
 Verifier || Contract or Permit Type 
 2.2.1       Concession plan submitted by FDA to the Ministry of Planning & Economic Affairs (MPEA) in respect of                the contract holder’s concession || FMC, TSC, and FUP having a value of US$10,000.00 or more 
 2.2.2       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 
 Verification Guidance/ Procedure (LAS-LVD-0.2.2) || Verification Method || Verification Frequency 
 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 ||         Once during the contract period     
 References: Regulation 104-07 (5.2(a)(i)) PPC Act (46) ||   
 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 
 Verifier || Contract or Permit Type 
 2.3.1       Report of the prequalification committee regarding the prequalification process || FMC, TSC and FUP having a value of US$10,000.00 or more 
 2.3.2       Valid pre-qualification certificate issued the contract holder || FMC, TSC and FUP having a value of US$10,000.00 or more 
 2.3.3       Tax clearance showing no tax arrears at date of submission || FMC, TSC and FUP having a value of US$10,000.00 or more 
 2.3.4       Liquidity guarantee from reputable bank at date of submission || 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 || Verification Frequency 
 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. || 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   ||           Once during the Contract period 
 References: NFRL (5.2(a)(i); Regulation 103-07 (41-46) ||   
 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 
 Verifier || Contract or Permit Type 
 2.4.1       Public tender notice || FMC, TSC and FUP having a value of more than US$10,000 
 2.4.2       Concession bid evaluation panel report || FMC, TSC and FUP having a value of more than US$10,000 
 2.4.3       Due diligence report by FDA || FMC, TSC and FUP having a value of more than US$10,000 
 2.4.4       Final report of bid evaluation panel to the Inter-Ministerial Concessions Committee (IMCC) || FMC, TSC and FUP having a value of more than US$10,000 
 2.4.5       IMCC recommendations to the President || FMC, TSC and FUP having a value of more than US$10,000 
 Verification Guidance/ Procedure ( LAS-LVD-0.2.4) || Verification Method || Verification Frequency 
 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 ||           Once during the contract period   
 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 
 Verifier || Contract or Permit Type 
 2.5.1       The valid deed of the private land owner || PUP 
 2.5.2       The written permission of the private land owner || PUP 
 Verification Guidance/ Procedure ( LAS-LVD-0.2.5) || Verification Method || Verification Frequency 
 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.   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). || 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. Verification means: 15.     1.     Consultation with CNDRA 16.     2.     Document review ||       Once during the contract period 
 References: NFRL Section 5.6 ||   
 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. 
 Verifier || Contract or Permit Type 
 2.6.1       FDA map showing the subject concession area and indicates adjacent lands || FMC, TSC, FUP 
 2.6.2       FDA enforcement report (FDA compliance Audit Report) || FMC, TSC, FUP 
 Verification Guidance/ Procedure ( LAS-LVD-0.2.6) || Verification Method || Verification Frequency 
 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 ||     Once during the contract 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 
 Verifier || Contract or Permit Type 
 2.7.1       Bidder’s bond receipt issued the contract holder by FDA || FMC and TSC 
 Verification Guidance/ Procedure ( LAS-LVD-0.2.7) || Verification Method || Verification Frequency 
 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 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. || 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 ||         Once during the contract period   
 References: Regulation 104-07 (43 & 61(b)) COCS SOP (9) ||   
 Indicator 2.8         The contract holder posts an initial performance bond within the period specified by law after conclusion of contract negotiations 
 Verifier || Contract or Permit Type 
 2.8.1       Copy of performance bond posted within 90 days of conclusion of negotiations || FMC 
 2.8.2       Copy of performance bond posted within 30 days of conclusion of negotiations || TSC 
 Verification Guidance/ Procedure (LAS-LVD-0.2.8) || Verification Method || Verification Frequency 
 Objective: The aim of this procedure is to verify that the required performance bond was posted within the required time period. 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: 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. || Description: The LVD must verify that the above requirements were met by consulting with, and verifying existence and validity of the performance bond with the FDA Commercial and/or Finance Department. Verification means: 21.     1.     Consultation with FDA Commercial and/or 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 
 Verifier || Contract or Permit Type 
 2.9.1       The Act ratifying the forest contract , which is signed by the President and printed into hand bills || FMC and agricultural concessions/plantations 
 2.9.2       Contract signed by the contract holder and the Managing Director of FDA || TSC, FUP, PUP, Chainsaw permits 
 Verification Guidance/ Procedure (LAS-LVD-0.2.9) || Verification Method || Verification Frequency 
 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 LVD verifies that (1) every FMC has been signed and ratified, and (2) all other forest licenses are signed by the relevant contract holder and 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 ||         Once at start of contract period   
 References: NFRL (5.3); Regulations 104-07 (62); COCS SOP (5) ||   
   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 || Contract or Permit Type 
 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 
 3.1.2       Delivered or published notice of intent to negotiate with affected communities (Radio announcement or                Newspaper advertisements) || FMC, TSC, FUP having a value in excess of US$10,000.00 
 3.1.3       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: 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. Regulatory Control: 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.   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. || Description: The LVD must verify that the requirements are met through consultation and verification with the FDA Community Forestry Department. Verification means:   25.     1.     Consultation with FDA Community Forestry Department and affected communities 26.     2.     Document review ||             Per Cycle[19]   
 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 uthorized representatives, and           the agreement becomes effective prior to the start of felling operations 
 Verifier || Contract or Permit Type 
 3.2.1       Executed Social Agreement signed by contract holder and each affected community through its                Community Forestry Development Committee (CFDC) || FMC, TSC, and FUP having value in excess of US$10,000.00 
 3.2.2       Social Agreement that predates Annual Harvesting Certificate of contract holder || 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 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.   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.” || 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:   27.     1.     Consultation with FDA Community Forest Department and affected communities. 28.     2.     Document review 29.     3.     Field inspection     ||         Per cycle       
 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                to the affected communities (if there are others, specify) || FMC, TSC and FUP having a value in excess of US$10,000.00 
 3.3.3       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 
 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. || 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 cycle[20]         
 References: NFRL (5.3(b) &5.6(d)), Regulation 105-07 (33) ||   
 Indicator 3.4         The social agreement between the contract holder and the community or communities has been attested to by the FDA 
 Verifier || Contract or Permit Type 
 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 
 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 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.   || 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. 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 
 Verifier || Contract or Permit Type 
 3.5.1       Authenticated quarterly bank statements of escrow account || FMC, TSC and FUP having a value in excess of US$10,000.00 
 3.5.2       FDA Compliance Audits || 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 department 36.     2.     Document review 37.     3.     Field inspections ||           Per shipment   
 References: Regulation 105-07(36)10 Regulation 107-07 (33); ||   
   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 || Contract or Permit Type 
 4.1.1       Annual Harvesting Certificate || All Contract and permit types except agricultural concessions/plantations 
 4.1.2       Approved annual operational plan || All Contract and permit types except agricultural concessions/plantations 
 4.1.3       Approved Forest Management Plan || FMC 
 4.1.4       Written permission from land owner || PUP 
 Verification Guidance/ Procedure (LAS-LVD-0.4.1) || Verification Method || Verification Frequency 
 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. 2.                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. 3.                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. 4.                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 commence felling until they have an approved annual harvesting certificate and annual operational plan. || 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 ||         Annually (for operational plan); Per cycle (Management 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 || FMC 
 4.2.2       Compartment and annual coupe || All forest contracts except FMC 
 4.2.3       Felled trees data verification (SOP 11) || All contract and permit types except agricultural concessions/plantations 
 4.2.3       Annual compliance audit report of FDA || 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.                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. 2.                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. || 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. Verification means: 41.     1.     Consultation with the FDA Commercial Department 42.     2.     Field inspection ||       Annually       
 References: NFRL (3.2;3.4) & COCS SOP (7-11) ||   
   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. 
 Verifier || Contract or Permit Type 
 5.1.1       Environmental Impact Assessment report prepared by or for the contract holder or timber processor || All contract and permit types 
 5.1.2       Environmental Impact License issued by EPA to contract holder or timber processor prior to                commencement of harvesting operations || All contract and permit types 
 5.1.3       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 || All contract and permit types 
 Verification Guidance/ Procedure (LAS-LVD-0.5.1) || Verification Method || Verification Frequency 
 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. || 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 ||         Once during the validity of the EI License and Permit   
 References: EPML (6,21-23); Reg (105-107) COCS SOP (9) ||   
 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 
 Verifier || Contract or Permit Type 
 5.2.1       EPA environmental monitoring reports || All contract and permit types 
 5.2.2       FDA EIA inspection report || All contract and permit types 
 Verification Guidance/ Procedure (LAS-LVD-0.5.2) || Verification Method || Verification Frequency 
 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. || 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 ||         Annually 
 References: EPML (24-27), EPAA ||   
 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 
 Verifier || Contract or Permit Type 
 5.3.1       EPA inspection report || All contract and permit types 
 5.3.2       FDA Annual compliance audit report || All contract and permit types 
 Verification Guidance/ Procedure (LAS-LVD-0.5.3) || Verification Method || Verification Frequency 
 Objective: The objective of this procedure is to ensure that all waste is lawfully disposed of in an environmentally appropriate manner. Regulatory Control:   1.                Evidence of a record of decision and/or a positive environmental impact license was issued to the contract holder prior to commencement of operations. 2.                The EPA monitors compliance with the conditions of, and/or mitigation measures identified. 3.                The EPA conducts regular and/or periodic audits with the projects that may have a detrimental impact or affect. 4.                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) 
 Verifier || Contract or Permit Type 
 5.4.1       EPA inspection report || All contract and permit types 
 5.4.2       FDA Annual Compliance Audit Report || 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... 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.   || 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. 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. 
 Verifier || Contract or Permit Type 
 5.5.1       EPA inspection report || All contract and permit types 
 5.5.2       FDA Annual Compliance Audit Report || All contract and permit types 
 Verification Guidance/ Procedure (LAS-LVD-0.5.5) || Verification Method || Verification Frequency 
 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: 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. || 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. Verification means: 54.     1.     Consultation with EPA and FDA 55.     2.     Document review 56.     3.     Field inspections ||         Annually     
 References: Sections 9.11 and 9.12 of the NFRL; EPML (parts IV & V), Code of Harvesting Practices (3.1;3.2 et al) ||   
   PRINCIPLE 6: TIMBER TRANSPORTATION AND TRACEABILITY 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.   
 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 
 Verifier || Contract or Permit Type 
 6.1.1       Completed Waybill indicating place of harvest, chain of custody ID numbers, date and place logs were                loaded, and destination. || All contract and permit types 
 6.1.2       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 || Imported timber permit 
 Verification Guidance/ Procedure (LAS-LVD-0.6.1) || Verification Method || Verification Frequency 
 Objective: 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. || Description: 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 Information System (COCIS) (linking waybill and bar codes). Verification means: 57.     1.     Confirmation with COCIS 58.     2.     Field inspection ||         Per Shipment or load     
 References: COCS SOP (13-17, 19 & 20) 
 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 
 Verifier || Contract or Permit Type 
 6.2.1       Log data form (SOP 13) || All contract and permit types 
 6.2.2       Log data verification form (SOP 14) || All contract and permit types 
 6.2.3       Waybill for transportation of logs and timber products (SOP 16) || All contract and permit types 
 Verification Guidance/ Procedure (LAS-LVD-0.6.2) || Verification Method || Verification Frequency 
 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. . || 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   
 References: COCS SOP (13-17, 19 and 20) 
 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 
 Verifier || Contract or Permit Type 
 6.3.1       Log data form (SOP 13) || All contract and permit types 
 6.3.2       Standard form 14 (verification of cross cutting, dressing, and invoicing for Stumpage) || All contract and permit types 
 6.3.3       Annual compliance audit of FDA || All contract and permit types 
 Verification Guidance/ Procedure (LAS-LVD-0.6.3) || Verification Method || Verification Frequency 
 Objective: 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. 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.   || Description: The LVD verifies this requirement by obtaining confirmation from review of the relevant standard forms and the FDA Compliance Audit Report Verification means: 1.                Consultation with FDA Commercial Department 2.                Field inspections ||         Per shipment or load   
 References: COCS SOP (13-15) 
 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. 
 Verifier || Contract or Permit Type 
 6.4.1       Evidence of legal compliance with laws of country of harvest || Imported timber permit 
 Verification Guidance/ Procedure (LAS-LVD-0.6.4) || Verification Method || Verification Frequency 
 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         || 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 ||         Per import consignment     
 References: Regulation 108-07 (44(d)) ||   
 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 
 Verifier || Contract or Permit Type 
 6.5.1.      Customs documents from country of harvest. || Timber in transit 
 6.5.2.      Completed waybill indicating country of harvest and country of export || Timber in transit 
 Verification Guidance/ Procedure (LAS-LVD-0.6.5) || Verification Method || Verification Frequency 
 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. || 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 ||   Per unit of transport     
 References: Regulation 108-07 (44(a)-(c)) ||   
 Indicator 6.6         The FDA has complied with legal requirements for (i) seizure and or (ii) auctioning of abandoned logs wherever found.            
 Verifier || Contract or Permit Type 
 6.6.1       FDA petition to Court of competent jurisdiction for seizure and Court decree authorizing seizure || FMC, TSC and FUP 
 6.6.2       FDA Petition to Court of competent jurisdiction for auction and Court Decree of Auction || FMC, TSC, and FUP 
 6.6.3       Auction certificate || FMC, TSC, and FUP 
 6.6.4       Letter or statement verifying winning bidder. || FMC, TSC, and FUP 
 6.6.5       Registration of abandoned logs (SOP 37). || FMC, TSC, and FUP 
 Verification Guidance/ Procedure (LAS-LVD-0.6.6) || Verification Method || Verification Frequency 
 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 FDA Commercial Department 65.     2.     Document review ||     Every time abandoned logs are entered into the COCS     
 References: Regulation 108-07(51(d)&(e)) ||   
   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 
 Verifier || Contract or Permit Type 
 7.1.1 Processor’s application for sawmill permit || Sawmill permit 
 7.1.2 Payment of initial annual sawmill registration fees that predates sawmill permit || Sawmill permit 
 7.1.3 Environmental plan approved by the EPA || Sawmill permit 
 7.1.4 Sawmill permit issued by FDA to the operator || Sawmill permit 
 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 FDA Commercial Department 67.     2.     Document review 68.     3.     Field inspection ||       Annually   
 References: Regulation 107-07 (46); COCS SOP (26) ||   
 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. . 
 Verifier || Contract or Permit Type 
 7.2.1       Bar code issue report SOP 7 || All contract and permit types, including imported log and timber products 
 7.2.2       Verification of transported logs and wood products (SOP 17) || All contract and permit types, including imported log and timber products 
 7.2.3       Sawn wood registration report (SOP 15) || All contract and permit types, including imported log and timber products 
 Verification Guidance/ Procedure (LAS-LVD-0.7.2) || Verification Method || Verification Frequency 
 Objective: 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. || Description: The LVD must verify that all logs entering processing facilities are entered into the COCS. If further clarification is required, the FDA Commercial Department may be consulted. Verification means: 69.     1.     Consultation with FDA Commercial Department and COCS 70.     2.     Confirmation in COCIS 71.     3.     Field inspection ||     Per shipment or load       
 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 
 Verifier || Contract or Permit Type 
 7.3.1       Logging verification report || Sawmill permit 
 7.3.2       Production report || Sawmill permit 
 7.3.3       Sawmill log input form and sawmill output form (SOPs 31 and 32) || Sawmill permit 
 Verification Guidance/ Procedure (LAS-LVD-0.7.3) || Verification Method || Verification Frequency 
 Objective: 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. || Description: 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. Verification means: 72.     1.     Field inspections 73.     2.     Consultation with FDA Commercial Department ||     Per shipment or load     
 References: NFRL 13.5; COCS SOP (15) ||   
   PRINCIPLE 8: WORKERS RIGHTS, HEALTH SAFETY AND WELFARE The contract/ permit holder or timber processor meets its obligation under the Labour Law and any collective bargaining agreements of the timber industry   
 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 || All contract and permit types 
 8.1.2       Quarterly report submitted by contract holder or timber processor to the Ministry of Labour || All contract and permit types 
 8.1.3       Employment records, including register or employees along with their nationalities || All contract and permit types 
 8.1.4       Attestation of compliance issued by the Ministry of Labour in favour of contract holder or timber                processor || All contract and permit types 
 Verification Guidance/ Procedure (LAS-LVD-0.8.1) || Verification Method || Verification Frequency 
 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 ||         Per shipment     
 References: LLL (54 to 60,75, 1503) Code of Harvesting Practices (12.2) ||   
 Indicator 8.2         The contract/permit holder or timber processor pays to all its employees no less than the minimum wage established by law 
 Verifier || Contract or Permit Type 
 8.2.1       Published minimum wage || All contract and permit types 
 8.2.2       Payroll || All contract and permit types 
 8.2.3       Annual inspection reports and/or letter of compliance || All contract and permit types 
 8.2.4       Workers payslips || All contract and permit types 
 Verification Guidance/ Procedure (LAS-LVD-0.8.2) || Verification Method || Verification Frequency 
 Objective: The objective of this procedure is to verify whether employees receive fair wages as provided for by the Law. Regulatory Control: 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. || Description: The LVD needs to crosscheck and/or verify that fair wages are paid by liaising with the MOL Labour Inspectorate Section. Verification means: 76.     1.     Consultation with MOL 77.     2.     Document review ||       Per shipment   
 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 
 Verifier || Contract or Permit Type 
 8.3.1       Working hour schedule || All contract and permit types 
 8.3.2       Leave records || All contract and permit types 
 8.3.3       Payment of overtime || All contract and permit types 
 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 Regulatory Control: 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. || Description: The LVD needs to crosscheck and/or verify that prescribed working hours are complied with by liaising with the MOL Labour Inspectorate Section. 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 
 Verifier || Contract or Permit Type 
 8.4.1       Quarterly reports submitted to Ministry of Labour || All contract and permit types 
 8.4.2       Ministry of Labour inspection report || All contract and permit types 
 Verification Guidance/ Procedure (LAS-LVD-0.8.4) || Verification Method || Verification Frequency 
 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 ||       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. 
 Verifier || Contract or Permit Type 
 8.5.1       Quarterly report submitted to Ministry of Labour || All contract and permit types 
 8.5.2       Ministry of Labour inspection reports || All contract and permit types 
 8.5.3       Attestation from National Social Security & Welfare Corporation (NSSWC) || All contract and permit types 
 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. || 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     
 References: LLL (2500 to 2501) NSSL (89.9) ||   
 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 
 Verifier || Contract or Permit Type 
 8.6.1       FDA Compliance Audit Report || All contract and permit types 
 Verification Guidance/ Procedure (LAS-LVD-0.8.6) || Verification Method || Verification Frequency 
 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 ||         Annually 
 Reference: Code of Harvesting Practices (3.0 and 4.0) ||   
   PRINCIPLE 9: TAXES, FEES AND OTHER PAYMENTS The contract holder or timber processor is current in its compliance with all fiscal obligations including payment of taxes and fees   
 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. 
 Verifier || Contract or Permit Type 
 9.1.1       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 || All contract and permit types 
 9.1.2       Report of any authorized representative of FDA || All contract and permit types except agricultural concessions/plantations 
 Verification Guidance/ Procedure (LAS-LVD-0.9.1): || Verification Method || Verification Frequency 
 Objective: 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.   || Description: The LVD must verify that the above requirements were met through consultation with the FDA Commercial and Finance Departments and verification of valid tax clearance. Verification means: 88.     1.     Consultation with FDA Commercial and Finance Departments 89.     2.     Document review ||     Once during the effective period of the contract or permit type 
 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 
 9.2.1       Receipt of payment for area fee by any authorized representative of FDA || FMC, TSC 
 9.2.2       Receipt of bid premium payment || FMC, TSC, FUP having value of more than US$10,000 
 9.2.3       Receipt of annual registration fee payment || Timber processors, chain saw operators 
 9.2.4       Copy of manager’s check || FMC, TSC, FUP, chain saw operators, timber processors 
 Verification Guidance/ Procedure (LAS-LVD-0.9.2) || Verification Method || Verification Frequency 
 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 and FDA Commercial Department ||       Annually   
 References: COCS SOP (9) ||   
 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       Tax clearance from the Ministry of Finance || All contract and permit types 
 9.3.2       Receipt of stumpage fees || All contract and permit types 
 9.3.3       Receipts of payment of contract administrative fees || All contract and permit types except agricultural concession/plantations 
 9.3.4       Receipts of payments of annual coupe inspection fees || All contract and permit types except agricultural concession/plantations 
 9.3.5       Receipts of payment of waybill fees || All contract and permit types 
 9.3.6       Proof of payment of chain of custody fees || 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: 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. || 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 check with the Registration Return Services Division at the Ministry of Finance. Verification means: 92.     1.     Confirmation in COCIS 93.     2.     Consultation with MOF ||       Annually       
 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 
 Verifier || Contract or Permit Type 
 9.4.1       Tax return || All contract and permit types 
 Verification Guidance/ Procedure (LAS-LVD-0.9.4) || Verification Method || Verification Frequency 
 Objective: 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. || 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. Verification means: 94.     1.     Consultation with MOF 95.     2.     Document review ||       Annually     
 References: Revenue Code of Liberia 109(c)(d)(e) ||   
   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   
 Indicator 10.1       Any person exporting logs, timber and/or timber products is duly registered with the FDA annually 
 Verifier || Contract or Permit Type 
 10.1.1     Valid Exporter Registration || 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 Department 97.     2.     Document review ||         Annually   
 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 || All exported logs and timber products 
 10.2.2     Export shipment specification log (SOP 20) || All exported logs and timber products 
 10.2.3     Export specification-sawn timber (SOP 21 || All exported sawn timber 
 10.2.4     Log export volume report || All exported logs and timber products 
 10.2.5     Proof of payment of export fees (SOP 26) || All exported logs and timber products 
 Verification Guidance/ Procedure (LAS-LVD-0.10.2) || Verification Method || Verification Frequency 
 Objective: The aim of this procedure is to verify that all export shipments have been included in the COCS. Regulatory Control: 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: 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. || Description: The LVD must verify through inspection of each consignment. Verification means: 100.  1.     Confirmation in the COCIS   ||     Per shipment     
 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 
 Verifier || Contract or Permit Type 
 10.3.1 Reference price as found in market intelligence data base (MIDB) maintained by LVD || All contract and permit types 
 Verification Guidance/ Procedure (LAS-LVD-0.10.3) || Verification Method || Verification Frequency 
 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 ||       Per load or shipment     
 References: Regulation 108-07 (43); COCS SOP (18 &21) ||   
   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. 
 Verifier || Contract or Permit Type 
 11.1.1     Copy of newspaper containing the publication || FMC, TSC, PUP, FUP and Chain Saw Permit 
 Verification Guidance/ Procedure (LAS-LVD-0.11.1) || Verification Method || Verification Frequency 
 Objective: 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 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. || Description: The LVD needs to crosscheck and/or verify that the publication of the aforesaid information took place and that the notices contained the required information with the FDA Commercial Department. Verification means: 106.  1.     Document review 107.  2.     Consultation with FDA Commercial Department ||         Semi-annually   
 References: NFRL (5.8) ||   
 Indicator 11.2       The contract or permit holder is currently participating in the Liberia Extractive Industries Transparency Initiative (LEITI) 
 Verifier || Contract or Permit Type 
 11.2.1     LEITI Report || All contract and permit types 
 11.2.2     LEITI Attestation || All contract and permit types 
 Verification Guidance/ Procedure (LAS-LVD-0.11.2) || Verification Method || Verification Frequency 
 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 ||       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 || Contract or Permit Type 
 11.3.1     FDA publication scheme listing the contracts and other documents of contract or permit holders it holds                and are available for public access || All contract and permit types   
 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 || Verification Frequency 
 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. || 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. || Annually 
 References: LEITI Act (4.1 & 5.4); Freedom of information Act (Section 2.6) ||   
LIST OF ACRONYMS
 AHC || Annual Harvesting Certificate 
 BOT || Build, Operate, Transfer contract type 
 CEO || 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 || Civil Society Organisation 
 EIA || Environmental Impact Assessment 
 EI || Environmental Impact License 
 EIP || Environmental Impact Permit 
 EPA || Environmental Protection Agency 
 EPAA || Environmental Protection Agency Act 
 EPML || Environmental Protection and Management Law 
 FDA || Forestry Development Authority 
 FMC || Forest Management Contract    
 FUP || Forest Use Permit 
 GBL || General Business Law 
 GSOP || General Standard Operating Procedure 
 IMCC || Inter-Ministerial Committee on Concessions 
 LAS || Legality Assurance System 
 LEITI || Liberia Extractive Industries Transparency Initiative 
 LLD || Liberia Licensing Department 
 LLL || Liberian Labour Law 
 LVD || Liberia Verification Department, FDA 
 MIDB || Market Intelligence Data Base 
 MOCI || Ministry of Commerce and Industry 
 MOF || Ministry of Finance 
 MOFA || Ministry of Foreign Affairs 
 MOL || Ministry of Labour 
 MPEA || Ministry of Planning & Economic Affairs 
 NFRL || National Forestry Reform Law 
 NSSL || National Social Security Law 
 NSSWC || National Social Security & Welfare Corporation 
 PDA || Personal Digital Assistant 
 PPCA || Public Procurement and Concessions Act 
 PPCC || Public Procurement and Concessions Commission 
 PUP || Private Use Permit 
 SOP || Standard Operating Procedure 
 TSC || Timber Sale Contract 
 UTM || Universal Transverse Mercator 
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) 
Appendix
B:   Overview of the chain of custody system (COCS)
 STAGE || RESPONSIBILITIES OF OPERATORS || VERIFICATION BY THE FDA 
 ACTIVITIES || DATA ENTERED IN COCIS || KEY OUTPUTS || ASSESSMENTS AND FIELD INSPECTIONS || DATA VALIDATION WITHIN COCIS[21] || RECONCILIATION BETWEEN AND/OR WITHIN STAGES OF THE SUPPLY CHAIN[22] 
 Pre-har­vest     || 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 || Contract holder TIN (Registration num­ber 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   || Block maps Sketch maps Stock survey re­sults and request for crop trees Annual opera­tional plan || Office: -Block maps/ com­partment maps, -Stock survey forms, -Sketch maps, -Validation of tree requested for har­vesting. Field: -5% of block area: tree location, di­ameter, height spe­cies. -Coordinates of block corners || ID numbers of trees, tree species, diameter at breast height, height and location Use of barcode tags ||   
 Harvesting   || 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 road­side) Identifying pro­posed road align­ment and inventory of trees on proposed route || Contract holder TIN Tree data: ID num­ber, species, di­ameters and length Stump ID numbers || Tree data forms Road alignment forms || Felling site: -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 dimen­sions;     || Between stock survey and tree data forms[23]: -comparing number of crop trees and number of trees actually har­vested 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   
 Forest log yard/any other log yard   || Cross-cutting or dressing of tree lengths or logs Affixing of COCIS barcode tags to cross-cut or dressed logs Scaling of logs || Contract holder TIN Log data: ID num­ber, species, di­ameters, length, volume and quality of log Link between tree lengths or long log and cross-cut or dressed logs. || Log data form || At log landing: -Sample verification of Log Data (Sam­ple intensity based on the per­formance of the company) || 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 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 
 Ownership transfer || Request from owner of the logs for change of own­ership Registration of timber product ID numbers by the new owner || ID numbers of pre­vious and current owners Timber product ID numbers subject to change of owner­ship || Declaration on change of owner­ship ||   ||   || Consistency of the log ID numbers and log data between the previ­ous and current owner 
 Transport   || Loading of logs onto truck Transport of logs Unloading of logs || Unique waybill ID Origin and destina­tion Log owner Transporter List of logs trans­ported, including ID number, species, dimensions, and vol­ume || Waybills (origin and destination) || Random waybill inspections along the transport route (e.g. in the log yard, or at roadside checkpoints)   ||   || Between log data form and waybill -comparing log ID numbers -comparing number of logs by species -comparing volume of logs by species 
 Processing site   || Reception of logs or other timber prod­ucts (raw materials) Storing of raw ma­terials Dressing of logs and affixing of new barcode tags Feeding of raw materials into proc­essing Handling of proc­essed goods, in­cluding affixing of COCIS barcode tag to product batches Storing of proc­essed goods || Data on raw mate­rial 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 products stored at mill site: Batch ID number, species, dimensions, vol­ume and grade   || Sawmill entry form Raw material in­ventory bookkeeping Production form specifying inputs and outputs by production lines Warehouse book­keeping || Monitoring of sam­ple production batches Random audits of mill operations and bookkeeping sys­tems   || Recovery rates/yields of processing lines   || Between sawmill entry form, raw material in­ventory bookkeeping and production form - comparing raw mate­rial ID numbers -comparing number of raw materials by spe­cies -comparing volume of raw materials by spe­cies Between inputs and outputs declared in the production form Between production form and warehouse bookkeeping - comparing ID num­bers -comparing number of products by species -comparing volume of products by species 
 Transport   || Loading of bundled processed products onto truck Transport of the bundles Unloading of the bundles || Unique waybill ID Origin and destina­tion Log owner Transporter Data on processed products stored at mill site: Batch ID number, species, dimensions, vol­ume   || Waybills || Random waybill inspections along the transport route (e.g. roadside check­points)   ||   || Between warehouse bookkeeping and way­bills - 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 
 Pre-export || Grading Trimming and mark­ing Tax payment Customs declaration Commerce declara­tion Phytosanitary treatment || Product IDs Product specifica­tions: type, species, and dimension Sales contract in­formation: buyer, and prices || FLEGT License application Products specifi­cations Sales contract   || At point of export: Sample inspection of products for ex­ports (Verification of specification data) || 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 
 Loading and ex­port || Loading of the products covered by the FLEGT license ||   ||   || At point of export: Overseeing the final loading of the ves­sel Checking specifica­tions of products loaded onto the ves­sel || Product specifications of export consignment (IDs, product type, species and, dimensions) || Between FLEGT li­cense and physical veri­fication of loaded prod­ucts. 
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 Community[24]
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.
Article 1
Lodging of the license
1.           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 circulation[26]. This may
be done electronically or by other expeditious means.
2.           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. 
Article 2
Checks
on validity of license documentation
1.           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.
2.           A license shall be considered
void if it is lodged on a date later than the expiry date indicated in the license.

3.           Any erasures from or alterations
to a license shall not be accepted unless such erasures or alterations have
been validated by the licensing authority.
4.           Extension of the validity of a
license shall not be accepted unless that extension has been validated by the
licensing authority.
5.           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
1.           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. 
2.           A copy of the license, the
duplicate or the replacement license in question may be forwarded together with
the request.
3.           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
1.           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.
2.           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.
3.           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.
4.           The licensing authority may
request the competent authority to send a copy of the license or the
replacement in question.
5.           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.
6.           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. 
7.           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
1.           A license may be lodged before
the arrival of the shipment it covers. 
2.           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
1.           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. 
2.           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
1.           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.
2.           Where the customs declaration is
made by computerised means, the reference shall be provided in the appropriate
box.
3.           Timber products shall be released
for free circulation only after completion of the procedures described in this
Annex.
ANNEX IV
REQUIREMENTS
AND TECHNICAL SPECIFICATIONS FOR FLEGT LICENSES
Article 1
General requirements relating to
FLEGT licenses
1.           FLEGT licenses may be in paper or
electronic form.
2.           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.
3.           FLEGT licenses shall become valid
on the date on which they are issued.
4.           FLEGT licenses shall be numbered
in a manner that distinguishes between licenses intended for the Union and
those intended for non-Union markets.
5.           The period of validity of FLEGT
licenses shall not exceed six months. The expiry date shall be indicated
on the license.
6.           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.
7.           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
1.           Paper licenses shall conform to
the format set out in Appendix 1.
2.           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. 
3.           The licenses shall be completed using
a typewriter or computer. They may be completed by hand, if necessary.
4.           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. 
5.           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.
6.           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.
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’.
2.           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.
3.           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.
4.           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. 
5.           The fourth copy, marked ‘Copy for
Liberia customs’, shall be given to the Liberia customs authorities for their
records and for exportation purposes.
6.           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 
1.           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. 
2.           The licensing authority shall
issue a replacement within one month following receipt of the request from the licensee.
3.           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’.
4.           In the event that the lost or
stolen license is retrieved, it shall not be used and must be returned to the licensing
authority. 
Article 5
Technical specifications with
regard to electronic FLEGT licenses
1.           FLEGT licenses may be issued and
processed using electronic systems. 
2.           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
1.           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. 
2.           If considered necessary, the
licensing authority may ask the competent authority to send a copy of the
license or the replacement in question.
3.           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.
4.           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’.
5.           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
1.           License form.
2.           Notes for guidance.
Appendix 1
Format of the FLEGT license
 
 
 

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 || Indicate the Liberian tax identification number and the destination of the export. Licenses will be issued for all market destinations, not only the European Union. 
 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 || 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. 
 Box 11 || Common or scientific name || 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). 
 Box 12 || Countries of harvest || 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. 
 Box 13 || ISO codes || 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 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. 
ANNEX V
FUNCTIONS
OF THE INDEPENDENT AUDIT: TERMS OF REFERENCE

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;
(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;
(c)     assess the
performance and effectiveness of the LVD and associated Government agencies
involved in the verification process to ensure compliance with the LAS
requirements;
(d)     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;
(e)     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;
(f)      assess how
reported infractions are addressed or not addressed by the relevant
authorities; 
(g)     evaluate the
effectiveness of any measures taken to correct those weaknesses;
(h)     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;
(i)      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)     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. 
(b)     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. 

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)     keep
appropriate records of audit evidence detailing performance, compliance,
non-performance and non-compliance; 
(b)     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;
(c)     record
observed system-related weaknesses, gaps and areas requiring improvement in the
LAS and ensure that each is appropriately distinguished from the others;
(d)     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:
(a)     report on
activities in line with the work schedule agreed with the JIC;
(b)     prepare its
report in accordance with internationally accepted auditing principles and as
specified in its agreement with the JIC;
(c)     present all
reports to the JIC, which shall comment on them; 
(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 

Primary sources of information shall
include document reviews, field visits and consultations/meetings with relevant
stakeholders who are identified in the legality definition of the legality
verification matrix (ref Annex II). 
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 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 the FDA and other relevant institutions involved in implementing the
legality assurance system and related law enforcement activities.
(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.
(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 17021[27]
or equivalent standards and conduct audits in accordance with procedures that
meet ISO 19011[28]
or equivalent standards;
(b)     have
experience in audits of management systems; 
(c)     have in
place a mechanism for transparently handling complaints or grievances;
(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; 
(e)     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;
(f)      have a
thorough understanding of the commercial forestry sector, preferably in Africa;
(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. 

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)     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;
(b)     recruit
qualified Liberians and build their individual capacity in how to conduct IAs
of the LAS. 
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?
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.
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?

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? 

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?
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?

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?
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?

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 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?
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 ||   || X X X X ||     X ||     X ||     X ||     X ||     X 
 National implementation structures: Cross department coordination mechanism(s) established National stakeholder committee for monitoring implementation of the VPA established ||   ||   X X ||     ||   ||   ||   ||   
 Liberia Licensing Department (LLD) fully equipped, staffed and operational ||   ||   || X ||   ||   ||   ||   
 Capacity improved || A comprehensive five-year training and investment plan || X ||   ||   ||   ||   ||   ||   
 Implementation of capacity-building investment plan ||   ||   || X || X || X || X || X 
 Training for commercial private sector ||   || X || X || X ||   ||   ||   
 Outreach to small-scale chainsaw operators ||   || X || X || X || X || X ||   
 Outreach by civil society to build capacity of communities || X || X || X || X || X || X ||   
 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 || X || X ||   ||   ||   ||   ||   
 Development of short-term and long-term implementation plan targeting potential sources of support for VPA action Support secured || X || X   X ||     X ||   ||   ||   ||   
 Long-term sustainable national financing secured for operation of the LAS ||   ||   ||   ||   ||   || X || X 
 Legality assurance system: legality verification established || Systems developed 
 COCS revised to incorporate VPA requirements ||   || X || X ||   ||   ||   ||   
 Legality verification procedures incorporating new regulatory requirements developed ||   || X || X ||   ||   ||   ||   
 Data management systems developed to incorporate VPA requirements ||   || X || X ||   ||   ||   ||   
 Detailed procedures and guidance developed for abandoned logs and confiscated timber ||   || X || X ||   ||   ||   ||   
 Detailed procedures and guidance for imported timber ||   || X || X ||   ||   ||   ||   
 Domestic market and informal sector integrated into the LAS Agriculture-sourced products integrated into the LAS (rubber and other plantation wood) ||   ||     ||   X ||     || X ||   ||   
 Institutions strengthened ||   ||   ||   ||   ||   ||   ||   
 External service provider (ESP) contracted Government body established to oversee service contract ||   X || X ||   ||   ||   ||   ||   
 ESP building and operating the LVD (including working with FDA staff seconded to ESP) ||   || X || X || X || X || X ||   
 ESP building capacity of different government agencies for legality verification as prescribed in detailed procedures ||   ||   || X || X ||   ||   ||   
 Transfer of verification functions to the LVD in the FDA (detailed transfer in key stages to be integrated into contract) ||   ||   ||   ||   || X || X ||   
 Legality assurance system: licensing established || Licensing procedures developed by the LLD ||   || X ||   ||   ||   ||   ||   
 Export permits phased out and application of the new licensing system by LLD ||   ||   || X ||   ||   ||   ||   
 FLEGT licensing for exports to EU and other markets ||   ||   ||   || X || X || X || X 
 Mechanisms to communicate with EU competent authorities established ||   ||   || X ||   ||   ||   ||   
 Legality assurance system: independent audit established || Independent auditor contracted ||   || X ||   ||   ||   ||   ||   
 Operating procedures developed and agreed with the JIC ||   ||   || X ||   ||   ||   ||   
 Independent audits initiated and reports published ||   ||   || X || X || X || X || X 
 FLEGT licenses accepted in the EU || External evaluation of functioning of the LAS and EU procedures; adjustments made if necessary (see Annex VI) ||   ||   || X ||   ||   ||   ||   
 JIC confirms date when EU starts to accept FLEGT licenses ||   ||   || X ||   ||   ||   ||   
 LAS operational and EU accepting licenses ||   ||   ||   || X ||   ||   ||   
 Civil society monitoring established || Capacity-building for civil society (CS) to conduct monitoring ||   || X || X ||   ||   ||   ||   
 CS monitoring designed in detail ||   || X ||   ||   ||   ||   ||   
 CS monitoring established ||   ||   || X || X || X || X || X 
 Law enforcement and regulatory framework improved || Community forest regulations adopted Legality definition (LD) updated ||   || X ||   X ||   ||   ||   ||   
 Chainsaw regulations adopted LD updated ||   || X ||   X ||   ||   ||   ||   
 Regulation on abandoned logs in concession areas adopted ||   ||   || X ||   ||   ||   ||   
 Regulations on transit timber adopted Detailed procedures and guidance for timber in transit adopted ||   ||   X || X X ||   ||   ||   ||   
 Regulations on timber imports adopted ||   ||   || X ||   ||   ||   ||   
 Regulations for confiscated timber adopted ||   ||   || X ||   ||   ||   ||   
 Refinement of procedures for social agreements and other social and environmental provisions in place ||   || X || X ||   ||   ||   ||   
 Amendments to the LD ||   ||   || X ||   ||   ||   || X 
 Review of regulations framed in the LD, based on practical experience of implementation of the LAS ||   ||   ||   ||   ||   || X ||   
 Law enforcement capacity strengthened ||   ||   || X || X || X ||   ||   
 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) ||   ||   || X || X ||   ||   ||   
 Establishment of information-gathering system ||   ||   ||   || X ||   ||   ||   
 Assessment of contribution by the informal sector to the national (local) economy (regular monitoring will be established subsequently) ||   ||   ||   ||   ||   || X ||   
 Training of chainsaw operators to work with new regulations and procedures ||   ||   || X || X || X || X || X 
 Monitoring the impact of the VPA || Monitoring organisation(s) for baseline studies engaged ||   || X ||   ||   ||   ||   ||   
 Monitoring framework agreed by the JIC ||   || X ||   ||   ||   ||   ||   
 Routine monitoring, with reporting to the JIC ||   ||   || X || X || X || X || X 
 Communication || A costed communication plan for raising public awareness prepared (P) and implemented (I) ||   || P || I || I || I || I || I 
 Trade shows with trading partners to promote the benefits of FLEGT-licensed timber ||   ||   || X ||   || X ||   || X 
 Public information sites and capacity established (see Annex IX) || X || X || X ||   ||   ||   ||   
 Guidelines for developing social agreements || X || X ||   ||   ||   || X ||   
 Targeted guidance for LAS compliance for different stakeholders ||   || X || X || X || X ||   ||   
 VPA monitoring and JIC reports published ||   || X || X || X || X || X || X 
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: 
(a)     establish
implementing structures to ensure effective coordination;
(b)     build
capacity of key stakeholders;
(c)     establish
the legality assurance system; 
(d)     strengthen
the legal and regulatory framework;
(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 operators;
(g)     monitor
implementation of the VPA;
(h)     communicate
with national and international stakeholders;
(i)      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 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:
(a)     establishing
the financial delivery mechanism;
(b)     developing a
comprehensive short-term and long-term budget and detailed proposals and
sources for funding implementation of the VPA ;
(c)     identifying
support from Liberia’s resources and support needed from the Union and other
development partners, including coordination of existing donor support where
relevant;
(d)     securing
funds.

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)     engage a
qualified client’s representative to assist with drawing up detailed
specifications and contract documents for the service provider and with
selection procedures;
(b)     advertising
for receiving, shortlisting and evaluating proposals for the service provider; 
(c)     negotiating
a contract with the service provider on a build-operate-transfer basis;
(d)     transferring
relevant FDA staff to the service provider;
(e)     establishing
an oversight structure to monitor the service provider;
(f)      building
and operating the LAS described in Annex II to this Agreement;
(g)     integrating
mill processes and production of rubber-wood chips into the COCS;
(h)     integrate imported timber and confiscated timber into COCS; 
(i)      extending
the LAS to include timber produced for the domestic market;
(j)      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;
(c)     recruiting staff
and a technical advisor;
(d)     drafting regulations
on export licensing;
(e)     phasing out
export permits;
(f)      issuing
FLEGT licences;
(g)     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 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);
(c)     initiating
independent audits;
(d)     establishing
capacity for reviewing and reporting.

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)     conducting an independent evaluation of the LAS, reviewing
results and adjusting systems if necessary;
(b)     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)     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;
(b)     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;
(c)     strengthening
the regulations on the safety and welfare of workers involved in the logging
industry;
(d)     any
necessary readjusting of the legality verification matrix described in annex II
of this Agreement as a result of changes to laws and regulations.

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)     organising
of the domestic timber market;
(b)     improving of
the legal framework relating to the domestic timber market;
(c)     establishing
an information system;
(d)     establishing
a suitable traceability system for timber sold on the domestic market;
(e)     integrating
domestic timber sales into the LAS.

8.                      
Monitoring the impact of the VPA impacts

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, including baselines and agreed 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. 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)     encourage
involvement and guarantee the coherence of actions by various stakeholders;
(b)     ensure
public access to information to facilitate monitoring;
(c)     promote the
image of Liberian timber on the international market;
(d)     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 
(e)     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)     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;
(b)     identifying
appropriate target groups and designing specific printed and electronic
messages concerning the VPA for each target audiences with regular updates;
(c)     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 benefits of
FLEGT-licensed timber;
(e)     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.
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;
(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
licenses issued, including 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);
(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:
·              
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).

2.2.                
Information on forest resource production

(a)     Volume and
location of wood available for harvest under the annual coupe per concession;
(b)     Information
held on the Liberian LAS database; 
(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. 
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.       publish a
yearly report on implementation of this Agreement in accordance with Annex IX;
2.       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; 
3.       review
progress towards achieving the objectives and the time-bound action in this
Agreement and matters relating to implementation of the Agreement;
4.       propose and/or
take measures to improve the performance of the Agreement;
5.       amend
Annexes to the Agreement in accordance with Article 26 of this Agreement;
6.       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;
7.       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;
8.       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 functioning
of the legality assurance system;
2.       conduct
regular joint missions to review the effectiveness of this Agreement and its
impact, based on the information available;
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;
4.       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;
5.       identify
difficulties associated with implementation of this Agreement and suggest
suitable measures to address them;
(c)          as regards the independent audit
of the Agreement:
1.       approve the
independent auditor’s procedural manual in accordance with Annex V;
2.       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;
3.       review
reports or complaints relating to the working of the independent auditor and
agree appropriate action to be taken;
4.       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.       provide
recommendations on capacity-building needs for successful 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 laws and regulations relating to forest management in Liberia;
2.       take
appropriate measures to promote participation of concerned stakeholders in
implementation of this Agreement;
3.       if
necessary, establish working groups or other subsidiary bodies for areas of
work requiring specific expertise or stakeholder perspectives.
[1]               COM(2003)
251.
[2]               OJ C
268, 7.11.2003, p. 1.
[3]               OJ L
347, 30.12.2005, p. 1.
[4]               Restricted
Council document 15102/05.
[5]               OJ C […], […],
p. […].
[6]               COM(2003)
251.
[7]               OJ C
268, 7.11.2003, p. 1.
[8]               OJ C
157E, 6.7.2006, p. 482.
[9]               OJ L [...], […],
p. […]; please insert the umber, date
and publication reference for the doc
[10]             OJ:
please insert date of signature
[11]             OJ L
317, 15.12.2000.
[12]             COM(2003)
251 final, 21.5.2003.
[13]             A/RES
62/98 of 31 January 2008.
[14]             OJ L
347, 30.12.2005.
[15]             National
Forestry Reform Law of 2006 (NFRL).
[16]             OJ L 302,
19.10.1992.
[17]             OJ L 253,
11.10.1993.
[18]             OJ EC L
61, 3.3.1997, p. 1.
[19]             Cycle: 5 years for FMC &FUP; 3 years for TSC.
[20]             Cycle: 5 years for FMC &FUP; 3 years for TSC.
[21]          Between declaration by contract-holder
and verification by COCIS.
[22]             On the
basis of data provided by the contract-holders 
[23]             Tree data forms are completed when trees are felled,
prior to cutting into initial long logs.
[24]             OJ EU L 347, 30.12.2005, p. 1.
[25]             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).
[26]             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.
[27]             ISO/IEC
17021:2006. Conformity assessment - Requirements for bodies providing audit and
certification of management systems.
[28]             ISO
19011:2002. Guidelines for quality and/or environmental management systems
auditing.