NATIONAL PREPARATORY WORKSHOP

NATIONAL PREPARATORY WORKSHOP

Guyana’s Engagement with the European Union Forest

Law Enforcement Governance and Trade Initiative

GFC’s Multiplex, 1 Water Street, Kingston, Georgetown

27 – 28th September, 2012

Prepared by: Guyana Forestry Commission

Draft Version 4th October, 2012

TABLE OF CONTENT List of Acronyms 1

1. Background 2

2. Workshop Objectives and Approach 3-4

3. Summary of Presentations 5-16

3.1 Opening Session

3.2 Feature Presentations

3.3 Working Group Presentations

4. Discussion and Conclusion 17-18

5. Recommendations 19

6. Next Steps 20-21

7. Annexes 22-83

7.1 List of Participants

7.2 Workshop Agenda

7.3 Terms of Reference Document

7.4 Independent forest Monitoring Document


7.6 Working Group presentations

7.7 Photographs

List of Acronyms

AAC Annual Allowable Cut

CCDA Climate Compatible Development Agency

EU European Union

FI Forest Inventory

EFI European Forestry Institute

FLEGT Forest Law Enforcement Governance and Trade

FAO United Nations Food and Agriculture Organization

FSC Forest Stewardship Council

GCNET Ghana Customs Community Network

IFM Independent Forest Monitoring

IM Independent Monitoring

LAS Legality Assurance System

LCDS Low Carbon Development Strategy

NTWG National Technical Working Group

NTC National Toshao Council

NTFP Non Timber Forest Product

SBB Suriname Forest Service

SFM Sustainable Forest Management

SFP State Forest Permission

TFT The Forest Trust

TSA Timber Sales Agreement

VLO Verified Legal Origin

VPA Voluntary Partnership Agreement

WCL Wood Cutting Lease

WTS Wood Tracking System

1. BACKGROUND

Illegal logging and its associated trade, leads to worldwide unsustainable economic, social, and

environmental damage, involving financial, technical and trading links between companies and

individuals in both timber-producing and timber-consuming countries. Therefore, the combat

against these illegal activities is not solely the responsibility of the producing countries but is

also the responsibility of consuming countries.

In fulfilling common objectives of strong forest governance, sustainable forest management and

forest legality, Guyana has engaged in strategic partnerships and alliances with like-minded

countries and regional groupings. The EU being a major global market for timber and timber

products, with approximately 500 million potential consumers, has adopted its FLEGT Action

Plan in 2003, in recognition of increasing public concerns of the impacts of illegal logging and

related trade worldwide. A key element of the Action Plan is a proposal to establish bilateral

VPA’s between the European Union and timber producing countries, with the aim of ensuring

only legally-sourced timber products are imported into the EU from these partner countries.

In 2009, the Government of Guyana engaged the European Union to provide information on the

EU FLEGT Programme and has since conducted several formal and informal multi stakeholder

consultation to determine the major issues that need to be addressed. For example: the

implications of the VPA on multiple land uses such as agriculture, forestry, and mining, the

impact on indigenous peoples and their titled lands in regard to commercial and subsistence

activities, potential cost associated with meeting the requirements of the VPA as a country,

potential synergies with existing processes, among others. Taking into consideration the results

and views expressed by stakeholders, the Government of Guyana and European Union have

agreed to commence formal negotiations by the latter part of 2012, with the objective of

concluding negotiations on a VPA by September 2015 according to an agreed roadmap.

Hence, prior to negotiations between the two (2) countries, the Government of Guyana through

the Guyana Forestry Commission (GFC) has embarked on a multi stakeholder preparatory

workshop with the aim of seeking inputs from key stakeholders on the process.

2. WORKSHOP OJECTIVES & APPROACH

Participation

During the period September 27th to 28th, 2012, a wide cross section of stakeholders participated

in a workshop dedicated to guide Guyana’s engagements with the European Union Forest Law

Enforcement Governance and Trade (EU FLEGT) initiative. Among the participants present

were Guyana’s Minister of Natural Resources and the Environment, Chairman of the Guyana

Forestry Commission’s Board of Directors, EU FLEGT Resource Expert from Ghana, FAO

Representative to Guyana, Representatives of the Delegation of EU to Guyana, Delegates from

Suriname, Staff of the Guyana Forestry Commission, Forestry Training Centre Incorporated,

Guyana Geology and Mines Commission, the Forest Products Association, the Guyana

Manufacturing Services Association, Forest Products Marketing Council, several Community

Logging Associations, Small and Large Concession Holders, Indigenous People Association,

among many other stakeholders. A complete list of participants for the workshop is provided in

Appendix 1.

Workshop Agenda

Given Guyana’s intentions in the near future, to enter into formal negotiations with the EU, the

workshop was designed to capture the views and perspectives of as many stakeholder groups as

possible. The workshop followed a well organized Agenda, which included several informative

presentations, shared experiences by members of Guyana’s Forest Industry, as well as lessons

learnt by Ghana in their EU FLEGT negotiation process. Appendix 2 provides an outline of the

agenda of the workshop.

The workshop was declared open by the Minister of Natural Resources and the Environment of

the Cooperative Republic of Guyana, Hon. Robert M. Persaud, MBA, MP and Chaired by Mr.

Kenny David, an official of the Guyana Forestry Commission.

Specific Objectives of the Workshop

The National Preparatory Workshop was aimed at achieving several specific objectives. These

include:

o To solicit key stakeholders inputs prior to starting formal negotiations with the EU

FLEGT initiative.

o To analyze current systems of Forest Law Enforcement Governance and Trade in Guyana

and to establish relevance to the VPA process and possible requirements.

o To gain guidance from Ghana’s experiences with EU FLEGT since it is one of the first

developing countries to have successfully completed the negotiation process and have an

established VPA with the EU.

o To seek stakeholders’ input on key processes expected to take place during the

negotiations with the EU. These include:

Finalizing the Terms of Reference for the National Technical Working Group and

the Sub-committees.

The VPA objectives and structure.

The legality definition and Legality Assurance System (LAS).

The legal framework and existing regulatory and institutional systems.

o To develop a proposed road map for Guyana entering into the negotiation process to

establish a VPA with the EU.

3. SUMMARY OF PROCEEDINGS 3.1 Opening of the National Preparatory Workshop (EU FLEGT)

The opening session of the workshop comprised of the feature address by the Minister of Natural

Resources and Environment and remarks by representatives of the EU delegation to Guyana,

Food and Agriculture Organization (FAO) and the Forest Industry of Guyana. The Chairman of

Guyana Forestry Commission Board of Directors also made brief remarks as he welcomed all

participants to the two days workshop.

A synopsis of the EU FLEGT was given, along with its objective and the pivotal role it is

expected to perform in the sustainable management of the forest.

During this session, the Minister of Natural Resource and Environment affirmed Guyana’s

commitment to the sustainable management of its forest resource and highlighted that Guyana

already has a robust system as it relates to sustainable forest management policies.

The importance of stakeholder’s participation was emphasized by all speakers and it was pointed

out that the success of any initiative relies on the ‘buy in’ by stakeholders. Unanimous support

was also declared for the EU FLEGT initiative as a technique of combating illegal logging. It

was however stated that based on strong forest management principles, Guyana has always

gained access to markets and that the issue of illegal logging is insignificant in Guyana.


3.2.1 Summary of Steps taken by Guyana under EU-FLEGT, Results of EFI Assessment, Next

Steps. Ms. Pradeepa Bholanath, Head of Planning & Development Division, GFC.

- A brief background to Guyana’s engagement with the EU FLEGT was given. It was

explained that the Government of Guyana has embarked on a national programme that

aims to protect and maintain its forests, in an effort to reduce global carbon emissions,

while at the same time extract resources to foster growth and development along a low

carbon emissions path.

- With Norway, Guyana had signed a Memorandum of Understanding (MoU) to establish a

partnership on issues of climate change, biodiversity and sustainable low carbon

development. The MoU and its related Joint Concept Note include statements for Guyana

to engage in a formal dialogue with the European Union (EU) on a VPA.

- In December 2009, the Government of Guyana wrote to the European Union and

requested to be provided with information on the EU FLEGT Programme.

- On 28-29th September, 2010, the Guyana Forestry Commission (on behalf of the

Government of Guyana) coordinated the Exploratory Workshop on the EU FLEGT

Programme; with the primary purpose of providing stakeholders with the opportunity to

voice their ideas and concerns on the potential impacts of the EU FLEGT programme.

This will have served to inform the Government of Guyana on the next possible steps in

the EU FLEGT dialogue.

- In 2011, the GFC requested for more specific information to be provided in the form of

an assessment of Guyana’s forest monitoring and legality system. The objectives of this

assessment were:

1) To provide Guyana with specific information on the application and relevance

of the country’s current systems of legality and monitoring with respect to the

FLEGT VPA requirements,

2) To advise Guyana on ways forward to develop their Legality Assurance

System (LAS).

- The outcome of the assessment was to advance the national dialogue on a possible

engagement of Guyana in VPA negotiations with the EU.

- On July 27, 2011, the GFC delivered a presentation to the National Toshao’s Council,

and it was expressed to the National Toshao Council (NTC) that the GFC is inviting

feedback from villages, communities and the NTC on EU FLEGT.

- In March 2012, a Policy decision was made to enter into formal negotiations with the EU

on a Voluntary Partnership Agreement (VPA).

- To date, drafted Terms of References (ToRs) have been developed for the National

Technical Working Group and Sub Committees – for stakeholder feedback. An initial

meeting was held of the National Technical Working Group in September 2012. A

National Preparatory Workshop was held on the 27th – 28th September, 2012.

- Tentative date for first negotiation is late 2012 (end of November/December); after

which, the next steps to be taken include: finalization of ToRs for National Technical

Working Group and Sub Committees, direct engagement with stakeholder groups, at least

two more meetings with the National Technical Working Group, stakeholder level

discussions (10th October, 2012), and a roadmap for EU FLEGT. Additionally, a detailed

discussion on the formulation of Guyana’s positions on the presentation of VPA objective

and structure, legal framework and existing regulatory and institutional systems from

which the VPA will be developed, roadmap and logistics, discussion on legality

definition and legality assurance system (LAS), and the conducting of field visits by the

EU team, to better comprehend country procedures.

3.2.2 Summary of Efforts undertaken by the Government of Suriname on FLEGT -

Representative of SBB

- The main objectives of the SBB are to promote sustainable, optimum utilization of the

forests of Suriname in general and the intended timber production forests, by applying the

Forest Management Act and other relevant laws and regulations (guidelines); and also the

foundation is responsible for the detection of offenses under the Forest Management Act

and the enforcement of regulations prescribed in the forest act.

- The responsibilities of the SBB are to monitor compliance with the Forest Management

Act, collect forest taxes, monitor and facilitate production and export of timber, wood and

NTFP’s, advise policy makers on forest issues.

- SBB is not the focal point for FLEGT. The Climate Compatible Development Agency

(CCDA) is responsible for FLEGT in Suriname. CCDA falls directly under the Office of

the President.

3.2.3 Experiences of Variety Woods and Greenheart Limited in Verified Legal Origin Audits. Mr.

Romel Niamatalli, Variety Woods and Greenheart Limited.

- Variety Woods and Greenheart Limited is a Guyanese owned integrated forestry and

saw-milling enterprise. It has been in operation for more than 25 years in Forest Resource

Management and timber utilization. All feedstock and raw materials are predominantly

sourced from our forest concessions (SFP & WCL). Variety Woods and Greenheart

Limited produce a wide range of timber products for the export market. Markets drawn

mainly from USA, Europe and Asia.

- VLO was implemented due to global changes in Timber Trade, European market demand

for VLO Products and Certified Timber (EUTR March 03, 2013), access to New/Niche

Markets, a step towards FSC Certification.

- The benefits of the implementation of VLO are: local and international recognition as a

responsible corporate entity, access to new markets, and securing of existing markets,

more structured and cost effective management of business and production efficiency,

and trained and motivated staff.

- With regards to VWGL’s introduction to VLO process, the TFT was first contracted to

work with VWL (through an FAO (ACP-FLEGT) project, the TFT carried out GAP

Assessments of VWGL’s production sites, to determine the level of compliance against

the requirements of Legality and Chain of Custody Standards. An Action Plan was

implemented and a final audit was conducted.

3.2.4 Experiences of Barama Company Limited in Verified Legal Origin Audits. Mr. Mohindra

Chand, Barama Company Limited.

- The Verified Legal Origin system encompasses various components of the operation and

is embedded in the concept of good forest practices. It allows for independent auditors to

assess the system, identify possible failures and make recommendations where necessary.

- The Verified Legal Origin System covers operational activities from forest planning,

harvesting, scaling and data entry, transporting of produce, segregation, processing of

materials, input-output reconciliation, training and block closure.

- Verifications are made to ascertain that the operation is compliant with all applicable

laws and regulations and the rights of other parties are respected. One of the focal points

of this system is the reconciliation of the input- output data, proper record keeping and

internal audits. However, the importance of the other aspects cannot be underscored.

- Rather that this system being utilized as a marketing tool, it is done to assure customers

of good forest governance and of sustainable forest management practices. Though it

may seem as additional documentation, it promotes improved management of the

operation.

- A batch system is utilized in processing whereby one batch refers to produce generated

from the processing equipment (sawmill) per day. Identification of materials is

mandatory: during processing all materials are marked as “work in progress” separated

by the different batches; at all stages produce is separated by batch and status; VLO

material is segregated from non VLO materials; signs are used to separate raw materials

from finished products in the storage areas; finished products are labelled appropriately.

This system is dependent of the accuracy of record keeping.

3.2.5 Implementing Forest Law Enforcement, Governance and Trade at Indigenous

Community/Village Level – Toshao Derrick John, Chairperson of National Toshao Council

- When looking at global demands, EU FLEGT is a fundamental avenue. Guyana currently

has an effective mechanism in place; therefore, the EU FLEGT will facilitate what was

already implemented by the GFC.

- This initiative will help to curb illegal logging, thus facilitating the livelihood of

indigenous people. Thus, the Amerindian communities are highly supportive of this

initiative.

3.2.6 Perspective on EU FLEGT VPA Process. The experience of Ghana. Dr. Alhassan Attah,

International Resource Expert on EU FLEGT

- The country of Ghana committed itself to the VPA due to the need to improve upon

control interventions in the sector to reduce illegal harvesting, the need to realise true

revenue from the harvested resource and its trade, the need to take steps to achieve

sustainable forest management (SFM) in Ghana, and in-country regulatory requirements

consistent with VPA expected outcomes as indicated in EU FLEGT Action Plan.

- Ghana’s overall vision is to create an environment that promotes sustainable forest

management, improves rural livelihoods and equity as well as enabling industrial

efficiency in a good governance environment.

- A key strength appreciated by the EU is the engagement of broad stakeholder groups

through the development of a VPA Steering Committee (VPA-SC) used as vehicle to

drive the preparatory work in Ghana as well as negotiations, and a VPA Multi

Stakeholder Implementation Committee (M-SIC) leading post negotiations and

implementation.

- Some challenges identified are: lack of clarity on intentions of EU and its member states

on competency, limited support measures from the EU, process for defining legal timber

and adopting legal standard can be time consuming, and lack of consultations among

countries pursuing VPAs.

3.2.7 Legality Definition and Legality Assurance System, Legal Framework, and Existing

Regulatory and Institutional Systems – Mr. Tasreef Khan, Deputy Commissioner of Forests,

Forest Monitoring Division, GFC.

- GFC’s Forest Monitoring System has among its main objectives, the enforcement of

forest legality. Some of the main aspects are: forest concession monitoring, monitoring

of forest produce in transit, Sawmills and Lumberyards and Export.

- Tools and Systems Used in Monitoring Legality in the Forestry Sector are Legal

Concession Agreement, Boundary Demarcation, Forest Management Plan – Strategic

Forest Inventory, Business Plan, Annual Operational Plan – AAC, FI, Stock Maps, Quota

System, Log tracking and tagging, Removal Permitting, Production Register, Licensing –

Sawmill, Timber Dealer Export and Codes of Practice.

- The log tracking system provides detectable evidence on the legitimacy, location and

magnitude of forest operations and is currently applied to all forestry operations including

State Forests, Amerindian Reservations and Private Properties.

3.2.8 VPA Objective and Structure. The Ghana VPA. The Legal Framework and Regulatory and

Institutional Systems – Dr. Alhassan Attah, International Resource Expert on EU FLEGT

- FLEGT Action Plan sets out a range of measures that aim to combat illegal logging and

associated trade. These focus on seven (7) broad areas such as support to timber-

producing countries, activities to promote trade in legal timber, promoting public

procurement policies, support for private sector initiatives, safeguards for financing and

investment, use of existing legislative instruments or adoption of new legislation to

support the plan, addressing the problem of conflict timber.

- VPAs aim is to contribute to timber-producing countries’ commitments to promote

sustainable forest management by supporting improvement in forest law enforcement and

governance and the issuance of FLEGT Licenses.

- VPA intended outcomes are as follows:

1) Improved forest governance,

2) Improved access to markets within EU,

3) Increased revenue collected by partner countries governments,

4) Increased access to support and development for partner countries governments,

5) Implementation of more effective enforcement tools in Partner Countries,

6) Improved foundations for sustainable forest management.

- VPA rests on commitments of Partner countries to develop credible legal and

administrative structures and technical systems to verify that timber is produced in

accordance with national laws.

- The Implementation of a Legality Assurance System is determined by a definition of

legal timber according to existing and applicable laws, mechanism for control of supply

chain (e.g. wood tracing systems or chain of custody), verification systems, licensing

systems, and Independent Monitoring.

3.2.9 FLEGT Licensing and Process – Dr. Alhassan Attah, International Resource Expert on EU

FLEGT

- The EU FLEGT Action plan requires that under the VPAs, partner countries to

implement licensing scheme which would guarantee commercial and reputational risk not

only for the partner countries but also for the EU.

- Under the VPAs there are FLEGT licensing regulations:

1. This is the EC regulations which provides for the establishment of the

FLEGT licensing scheme for the imports of timber to the EU and all VPA

partner countries should have a FLEGT license for their produce to enter

into the EU market.

2. This deals with the competencies of the authorities within the monitoring

system to verify each shipment of timber covered by the FLEGT Licenses

and charge penalties for infringements.

3. This allows for various digits of harmonized code, the designation of

licensing and competent monitoring system authorities within partner

countries.

- As much as there are regulations, there are also requirements for the FLEGT Licenses

and the issuance of same are based on the LAS components. There are two types of

licenses, the “Operator based licenses and “Shipment based licenses”.

o Ghana FLEGT Licensing

- During the VPA process with Ghana and the EU there were various challenges such as:

Inability to link up to Ghana Customs Community Network (GCNET)

Both service provider (SP) and client got lost in details and missed the overall

objective for WTS design (VPA)

Possibility of a unifying software platform for wood tracking and compliance

monitoring

A phased deployment of electronic system could better handle the shock - migrate

large companies first

Poor project management with timelines not being met

3.2.10 Independent Monitoring (IM) – Dr. Alhassan Attah, International Resource Expert on EU

FLEGT

- The process of appointing the IM is transparent and the procurement strategy utilized

should be done according to the applicable laws and regulations. This body which

identified by the partner country and is impartial of the regulatory body and partner

country government.

- The IM operates on a documented management structure with policies and procedures

that meet international – accepted best practices. It ensures that systems/ terms agreed

upon in the Voluntary Partnership Agreement are functioning, identifies failures and

provides recommendations and advice when necessary.

- The IM utilizes a system of robust monitoring and includes unannounced monitoring.

This body also reports to a reporting body on non compliance, corrective actions to be

taken and submits a summarized and detailed report on findings.

- Ghana and Independent Monitoring: The IM is used as the external auditor since Ghana

also utilizes an internal auditor. The IM reports all finding along with corrective actions

to the Timber Validation Council and the Ministry of Lands and Natural Resource.

- The road map adopted by Ghana for the selection of an IM spanned over a four months

period. However, the contract, the only outstanding component, is yet to be awarded to

the selected firm. This map outlined the advertisement for the IM, evaluation of the

Expressions of Interest, short listing of the Expressions of Interest and submission of

proposals from the shortlisted firms.


3.3.1 Group # 1- Structure and Terms of Reference for the National Technical Working

Group and the Sub-committees and Perceived Roles and Contribution of Stakeholders in the

VPA process

- Must include technical people (Forestry and legal)

- Ministry of Amerindian Affairs and Environmental Protection Agency should be

involved on a part time or full time basis.

- Membership should increase so as to reflect the broad scope of stakeholder engagement.

- Some sub-committees should go beyond the negotiation period.

(b) Perceived roles and contribution of stakeholders in the VPA process

Identify training needs

- Identify areas of capacity building with reference to VPA aspects and simplify FLEGT

and VPA technical aspects in an understandable and culturally compatible manner.

- Advice on compatibility of the VPA with other Agreement (Trade Agreement) that

Guyana has entered.

3.3.2 Group # 2- VPA Objectives and Structure

The main objective of the group is to discuss the main vision that Guyana sees for the VPA-what

it wants out of the VPA.

Another objective of the group is to discuss the main areas that there is a preference to see

reflected in the overall VPA

- To guarantee access of Guyana’s timber and timber products in the EU markets by

observing strong forest governance, sustainable forest management and forest legality

- A definition of legality must be included that caters for all levels of stakeholders or users

of the forest.

- Chain of custody should be reflected in the overall VPA since it ensures the integrity or

legality of produce from stump to end user

- Negotiators must note that validation by GFC declares the legality of lumber and timber

products

- The EU FLEGT license should fall under the GFC, building on existing mechanisms.

- An Impact Analysis- must allow for capacity building at all relevant levels in the VPA

process and must be tailored to specific stakeholders.

3.3.3 Group # 3- Legality definition and the Legality Assurance System

Main Objective: Discuss what the group thinks should be the main tenants of the legality

definition and the Legality Assurance System.

Specific Objective: Examine the Independent Forest Monitoring (IFM) legality definition and

provide insights on the suitability and applicability of this for the VPA process.

- The group requested for some changes to be made for the Indicators for Monitoring in

this section.

- The group recommended that more consultations be hosted among Amerindian groups to

have their contributions on this aspect. All stumps should be tagged for both domestic

and commercial purposes so that the GFC can also manage their tags allocation system

- The group has recommended that each section be given to their respective counterparts so

that they can have consultations in order to reduce some of the indicators. The main

objective is to make it more manageable for the negotiating teams.

3.3.4 Group # 4- Legality Framework and Existing Regulatory and Institutional Systems

The group was tasked to: (a) discuss the suitability of the existing legal framework as it relates to

FLEGT and identify potential challenges, areas of improvement and what aspects are working

efficiently/well and should remain in place for the VPA and (b) Discuss any institutional systems

that can further be developed to advance the process.

- There is need for clear legislations before entering into the agreement since there are

some which are overlapping. There needs to be clear land use policy to avoid overlapping

- Improve communication between land allocation agencies

- The function of the GFC should shift to a more facilitating role rather than a more

regulatory function. More efforts should be placed on demonstrating, research, etc.

- There should be a standard operational procedure to combat timeliness of Monitoring

operations.

4. DISCUSSION AND CONCLUSIONS

During the sessions of the EU FLEGT Preparatory Workshop, facilitated by the Guyana Forestry

Commission a number of issues were discussed in relation to the presentations, shared

experiences and group discussions. The following can be considered the major issues arising

from this workshop:

o Developing the VPA- Given Guyana’s advancement in several processes (GLAS, IFM,

etc) that ensure legality of forest produce, the basis of negotiations should seek to

integrate and build on these systems. This is believed to be highly influential on the

successful implementation of the VPA process and the timeframe in which it can be done

and as such should not be underscored in any way.

o Setting of realistic goals and standards for the VPA- the Government of Guyana in

negotiating the VPA should be as realistic as possible as it relates to projects and their

associated timeframe for completion.

o Inclusion of Impact Studies in VPA negotiations-Provision should be made for impact

studies to be conducted to analyze the possible effects of the implementation of the VPA

on all stakeholder groups.

o Review of legal framework and improvement of institutional systems- Some of the

existing Laws and Codes of Practices currently in place in the Forest Sector may require

revision to establish relevance to conditions of the VPA. There is also need for

improvement of institutional capacity in areas of collaboration and communication

between other Natural Resource agencies; improved technology to be used in monitoring

processes and training within the sector.

o The cost for implementation of projects to measure up to VPA requirements- The

associated cost for implementing project such as capacity building within the industry,

impact studies, consultations with stakeholders; especially indigenous and forest based

communities, review/development of systems such as the LAS, can be extremely

expensive. It is expected that this is an issue to be discussed at the negotiation table.

o Range of products to be included in the VPA- The scope of products that should be

included under the VPA need to be reviewed. It was expressed that the current range of

products being exported to the EU as well as products identified during consultations

process be included in the VPA.

o Independent Monitoring- The possibility should be explored in having possible synergies

between current GFC systems of Independent Forest Monitoring (IFM) and Independent

Monitoring for EU FLEGT

Conclusion:

The workshop on the FLEGT Workshop was a success especially as it relates to capturing the

views of a wide cross section of the populace. There are however, a few areas highlighted which

the government especially needs to be cognizant of, especially as it relates to setting proper time

lines for completion of projects. The level of inputs during this process should be of the highest

quality and therefore adequate times being given to ensure all views are aired and proper

representation made.

Legally produced timber entering the EU is a long term goal of the EU and ultimately a long

term goal of the Guyanese governments and people. Studies therefore on its impacts, both long

and short term on the economy is of paramount importance.

Effective communication and capacity building needs to take place at all levels and therefore the

settings up of systems to ensure these are done needs to be taken on board immediately.

5. RECOMMENDATIONS

The following are recommendations from Guyana’s Preparatory Workshop on EU FLEGT

initiative:

1. Continue consultation process to capture the views of all stakeholder groups. This will

allow for easier implementation and compliance with projects and ultimately the VPA.

2. The information disseminated to indigenous and forest-based communities should be in a

form or language that they can fully understand the issues/messages being

communicated. Choosing the wrong “language” can negatively impact support for this

project by key stakeholder groups.

3. The VPA negotiations should be geared at strengthening existing systems rather than

developing new systems. Efforts should be made to ensure that as much of the existing

tracking systems are kept in place since they have been scrutinized and have found to be

working.

6. NEXT STEPS FOR GUYANA

The activities and sub-activities for the proposed road map are as follow:

1. Preparatory work for VPA negotiations and awareness creation:

- Establish National Technical Working Group (NTWG)

- Hold stakeholder meeting and develop ToR for sub-committees of NTWG

- Agree internally on vision, VPA objectives and structure

- Develop communications strategy

- Implement Communications strategy

- Establish Secretariat for VPA

Key Milestones

- NTWG operational and functioning

- Draft VPA objectives & structure developed

- Communications strategy circulated to stakeholders

- VPA Secretariat fully functional

Responsible party – GFC

2. Launch of Negotiations in Brussels

- Hold 1st session with EU to formalise negotiations

- Presentation of VPA structure, legal framework and existing regulatory and institutional

systems

- Agree with EU on Roadmap and Logistics

Key Milestones

- Joint statement released by EU and GoG

- Agreed Roadmap

Responsible party – GoG/EU

3. Develop Legality Assurance System (LAS)

- Draft Legality Definition

- Review legislation to meet VPA requirements

- Draft Legality assurance system

- Determine scope of agreement

- Establish verification system

- Develop FLEGT licensing procedures and structures

Key Milestones

- Draft Legal Standard Developed

Responsible party – NTWG/GFC

4. Hold Second Negotiation Session

- Video Conferences will be held in between Negotiation Session by the Technical Teams

of EU & GoG

7. ANNEXES

7.1- List of Participants for the National Participatory Workshop on EU FLEGT

No. Name Company/Organization Designation Contact Details

1 Irfan Ally A Mazaharally & Sons Director 688-8272

2 Lawrence Anselma AFA P.R.P Assistant 227-0275

3 James Sinclair AFPA Chairman 685-7117

4 Krishna Basdeo Barama Co. Ltd Assistant Manager 603-7359

5 Devika Singh BJ Management Co. Secretary 233-1318

6 Preeya Rampersaud

Conservation International-Guyana EPC 227-8171 ext 13

7 A May DTL 225-3835

8 Natasha Jairam Durable Wood products Ent. Export Coordinator 227-0549/616-1332

9 Teij Pessaud Environmental Protection Agency Senior Environmental Officer 225-0506

10 Saudia Sodloo Environmental Protection Agency EOI 682-0423

11 A Castermans EU Officer

12 J. Milan EU Delegation

13 Lystra Fletcher-Paul

FAO Representative 227-3149

14 Khalawan FPA President 613-8319

15 Ragnarine Singh FPDMC -

16 Laura Singh FPDMC IPDO 690-5293

17 Godfrey Marshall FTCI Director 223-5062

18 Colin Klauky G.O.I.P P.R.O 671/3652 or 226-2818

19 Reggie Manbodh GBFR

20 Clinton Williams GFC Board of Directors Chairman 225-5398

21 Dylan Bess GL&SC Corporate Secretary 691-0925

22 Andrew Mendes GMSA - 226-8130

23 Simone Benn Guyana Forestry Commission CDO

24 James Singh Guyana Forestry Commission Commissioner Of Forest 226-7271

25 Tasreef Khan Guyana Forestry Commission Deputy Commissioner of Forest 226-7271

26 Edward Goberdhan

Guyana Forestry Commission Head of Finance GFC 226-7271

27 Pradeepa Bhalanath

Guyana Forestry Commission Head Planning and Development Division GFC

226-7271

28 Kenny David Guyana Forestry Commission ACF-Quality Control and Licences

29 Keith Austin Guyana Forestry Commission ACF-LMEU 661-0196

30 Alandia Warde Guyana Forestry Commission MI-LMEU 627-5447

31 Michelle Astwood Guyana Forestry Commission Project Officer 226-7271

32 Kevindra Tularam Guyana Forestry Commission EAO 226-7271

33 Luann Nero Guyana Forestry Commission EAO 226-7271

34 Nadine Rutherford Guyana Forestry Commission Admin Assistant to DCoF

35 Ramona Tenpow Guyana Forestry Commission Admin Assistant to CoF

36 Ganram Manoo Guyana Forestry Commission ACF-LCM

37 Jacy Archibald Guyana Forestry Commission Co. Secretary 226-7271

38 Quincy Thom Guyana Geology and Mines Commission

EO 225-6691

39 Colin Sparman Guyana Gold and Diamond Miners Association

Admin Coordinator 653-1045

40 Mohindra Chand Guyana Manufacturing and Services Association

Managing Director

41 Stanley Phillips Guyana Revenue Authority Manager 652-3478

42 A Haynes IPC CEO 231-5280

43 Raquel Thomas Iwokrama Director Resource Management 624-0297

44 Reuel Sumair Jettoo’s Lummberyard/Linear Woods Inc

Manager 261-5041/671-3535

45 Tasleem Drepaul Kuru Kuru/Waikabra Community Forest Products Association

Chairman 686-3794

46 John Raffel Kuru Kuru/Waikabra Community Forest Products Association

Representative

47 Patricia Boyle Kwakwani Natural Resources Organization

Representative 647-4443

48 R. Autar Linear Woods Managing Director 266-5031

49 Joel Fredricks Mainstay Village Toshoa 617-4385

50 Beverley Mc Donald

MFA 226-9086

51 Dexter Glosgur Ministry of Amerindian Affairs Project Officer 604-2836

52 K. Alli Ministry of Amerindian Affairs Project Officer 226-5167

53 Robert Persaud MNRE Minister

54 Gavin Agard MNRE Forestry Specialist 600-1012

55 Chad Ramsarup MTV 65 Reporter 226-3608

56 Derrick John National Toshoa Council Chairman 657-7728

57 Vanessa D’Aguiar New Haven Siriki Sand Association Chairperson 614-3464

58 Mohabir Singh Puruni Wood Products Director 220-8531

59 Dinesh Singh Puruni Wood Products Director 623-9761

60 Toney Buttoor RPLA Member 625-7005

61 Magessar Romeo SBB FEO

62 Lachman German SBB Forestry Manager 8501316

63 Thakoer Indernath SBB Forestry Manager

64 Kartowikromo Martin

SBB Communication Manager

65 Wijnerman Rayn SBB Senior Forestry Manager

66 Leroy Egerton SBB Junior Forestry Economics Officer

67 Peter Persaud TAAMOC Chairman 223-8032

68 A Mohaber Tropical Rich Resource/Durable Hardwoods

Manager 616-7820

69 L. McAlmont UBFAPA - 642-7144

70 Charles Chong Vaitarna Technical Consultant 231-4715/668-1405

71 Romel Niamatalli Variety Woods Operational Director 662-7856

72 Bryan Barnett Variety Woods Coordinator 600-3500

73 Rafeek Khan Willem Timber Manager Director 600 8509

74 Justin Habibullan Willems Timber Consultant 667-7871

75 Patrick Williams WWF Country Manager 223-7801

76 Alhassan Attah International Resource Expert on EUFLEGT

7.2- List of Participants for the National Participatory Workshop on EU FLEGT

AGENDA National Preparatory Workshop

Guyana’s Engagement with the European Union Forest Law Enforcement Governance

and Trade Initiative

27 – 28th September, 2012

Venue: GFC’s Multiplex, 1 Water Street, Kingston, Georgetown

Chairperson: Mr. Kenny David

Day 1 Thursday, 27th September, 2012 08:30 am – 09:00am Registration 09:00 am – 09:10am Welcome Mr. Clinton Williams, Chairman of the GFC Board of Directors 09:10 am – 09:20am Remarks Representative of the Delegation of the EU to Guyana 09:20 am – 09:30am Remarks on the FAO ACP FLEGT Programme Dr. Lystra Fletcher-Paul, FAO Representative to Guyana 09:30 am – 09:40am Remarks on International Experiences on EU FLEGT Dr. Alhassan Attah, International Resource Expert on EU FLEGT 09:40am – 09:50am Remarks on behalf of the Forest Industry of Guyana Mr. Mohindra Chand, Representative of the Forest Industry 09:50am – 10:05am Feature Address and Opening of the Workshop Hon. Robert M. Persaud, MBA, MP. Minister of Natural Resources and the

Environment, Guyana 10:05am – 10:30am Coffee Break 10:30am – 10:45am Summary of Steps taken by Guyana under EU FLEGT, Results of EFI

Assessment, Next Steps. Ms. Pradeepa Bholanath, Head Planning and Development Division, GFC

10:45am – 11:00am Experiences of the Barama Company Ltd. in Verified Legal Origin Audits Mr. Mohindra Chand, Barama Company Ltd.

1:00am – 11:30am Experiences of Variety Woods and Greenheart Ltd. In Verified Legal Origin Audits Mr. Romel Niamatalli, Variety Wood and Greenheart Ltd.

11:30am – 11:45am Implementing Forest Law Enforcement, Governance and Trade at Indigenous

Community/Village Level Toshao Derrick John, Chairperson of National Toshao’s Council 11:45am – 12:30pm Discussions 12:30pm – 01:30pm Lunch 01:30pm – 02:00pm Perspective on EU FLEGT VPA Process. The Experience of Ghana Dr. Alhassan Attah, International Resource Expert on EU FLEGT 02:00pm – 02:30pm VPA Objective and Structure. The Ghana VPA. The Legal framework and

Regulatory and Institutional Systems. Dr. Alhassan Attah, International Resource Expert on EU FLEGT 02:30pm – 03:00pm Discussions 03:00pm – 03:30pm Legality Definition and Legality Assurance System, Legal Framework, and

Existing Regulatory and Institutional Systems Mr. Tasreef Khan, Deputy Commissioner of Forests, Forest Monitoring Division,

GFC 03:30pm – 03:45pm Coffee Break 03:45pm – 04:30pm Working Group Session 1 (4) – Process Involved in VPA Negotiations VPA Objective and Structure, Legality Definition and the Legality Assurance System, the Legal framework and Existing Regulatory and Institutional Systems Day 2 Friday 28th September, 2012 09:00am – 10:00am Group Presentations and Discussions. 10:00am – 10:30am FLEGT Licensing and Process Dr. Alhassan Attah, International Resource Expert on EU FLEGT 10:30am – 11:00am Independent Audit Dr. Alhassan Attah, International Resource Expert on EU FLEGT 11:00am – 11:15am Coffee Break 11:15am – 12:00am Discussion 12:00pm – 12:15pm Wrap up and Closing Remarks (GFC representative) 12:15pm – 1:15pm Lunch

7.3 - TERMS OF REFERENCE

EU FLEGT Administrative Modalities Outline

EU FLEGT

4th

September, 2012

3.0 Terms of Reference (ToR) for National Technical Working Group

(Draft) Role: To Oversee the EU FLEGT Negotiation Process and Development of the

Voluntary Partnership Agreement (VPA) for Guyana

Membership: The membership is as follows:

1. Guyana Forestry Commission

2. National Toshaos’ Council

3. Guyana Revenue Authority (GRA) – Customs Division

4. Forest Products Association

5. Guyana Manufacturers and Services Association – Wood Products Sub

Group

6. Small Loggers Representative

7. Ministry of Natural Resources and the Environment

8. Indigenous People’s Commission

9. Forest Exporter to EU market destinations

10. Ministry of Foreign Affairs

11. Forest Products Development and Marketing Council

Administrative Coordination:

The Guyana Forestry Commission will perform all administrative and

coordination functions involving the work of the Group.

Duration of Work: The work of the group as guided by the ToR below will be for 3 years

(September 2012 to September 2015), and following this period, the ToR

of this Group will be re-assessed.

Functions: The following are the main functions of the Sub Committee (these will be

finalised at the first meeting of the National Technical Working Group):

1. To oversee the EU FLEGT process in Guyana including the immediate aspects

regarding the VPA.

2. To provide a communication link to the stakeholder groups that are represented and

to provide feedback on technical areas that will be discussed in the VPA negotiation

process, including, but not limited to the following:

a. VPA objective and structure;

b. Legal framework and existing regulatory and institutional systems from which

the VPA will be developed using

c. Roadmap and logistics for the EU FLEGT Process

d. Legality assurance system (LAS)

e. Legality definition

f. FLEGT licenses and on EU procedure to lodge licenses;

g. Independent Audit and Public information and transparency measures.

h. FLEGT licenses and EU procedures, and implementation.

3. To provide stakeholders groups that each member represent with updates on the

process

4. To provide guidance and direction to the Negotiating Team for each negotiation and

engagement session with the European Commission.

5. To support targeted Planning and Review Sessions, including Workshops, and Public

Engagement Sessions (the first session planned would be the National Preparatory

Workshop)

6. To provide technical inputs on the formulation of the VPA and the later

implementation of the Agreement in areas outlined in (2) above.

7. To advise on and guide the implementation of the VPA in areas including the

Independent Audit, as well as the Licensing System.

8. To support the overall review and progressive development of the EU FLEGT VPA

Process in Guyana, to take account of lessons learned, recommendations and

experiences.

9. Review text of VPA and give feedback to the Negotiating Team, through several

iterations.

3.1 Terms of Reference for Sub Committee on Stakeholder Engagement and

Coordination (Draft)

Role: To Oversee Stakeholder Engagement and Coordination efforts on the EU

FLEGT Negotiation Process on behalf of the National Technical Working

Group.

Membership: The membership will be agreed by consensus at the first meeting of the

National Technical Working Group and will be a subset of the Group.

The recommended number of members of this Committee is 5.



coordination functions involving the work of the Sub Committee.


(September 2012 to September 2015), which has been identified to be the

tentative completion date of the VPA negotiations.



1. On behalf of the National Technical Working Group, provide a communication

link to the stakeholder groups that are represented and to provide feedback and

solicit inputs on technical areas that will be discussed in the VPA negotiation

process, including, but not limited to the following:

a. VPA objective and structure;

b. Legal framework and existing regulatory and institutional systems from

which the VPA will be developed using

c. Roadmap and logistics for the EU FLEGT Process

d. Legality assurance system (LAS)

e. Legality definition

f. FLEGT licenses and on EU procedure to lodge licenses;

g. Independent Audit and Public information and transparency measures.

h. FLEGT licenses and EU procedures;

2. Identify options and modalities for VPA awareness amongst stakeholders.

3. To provide stakeholders groups that are directly or indirectly part of the EU

FLEGT process, updates on the progress and activities that have been undertaken,

and that are planned

4. Provide feedback and analysis to the National Technical Working Group on main

results and conclusions from stakeholder engagement exercises.

5. Under the advisement of the National Technical Working Group, develop and

disseminate communication materials, including but not limited to: Information

leaflets, Notices, Brochures, and Booklets summarising and soliciting updates and

feedback respectively on areas pertinent to the VPA negotiations.

6. Assist in the organising of stakeholder participation at national, regional and

community level workshop, meetings, and engagement sessions.

7. Provide a reporting and feedback function to the National Technical Working

Group on areas for stakeholder engagement as the process progresses.

8. Advise the National Technical Working Group on public information access and

supply.

3.2 Terms of Reference for Sub Committee on the Legality Assurance System (LAS)

(Draft)

Role: To coordinate the development of the Legality Assurance System on

behalf of the National Technical Working Group.












1. Scope the structure of the Legality Assurance System and definition of

legality, drawing on existing efforts in forest monitoring and management at

various forest uses including, but not limited to:

a. Current system of forest monitoring and management at large forest

concession level

b. Current monitoring framework for State Forest Permissions

c. The forest related activities conducted at the level of Mining Leases

and Agricultural Leases

d. Efforts undertaken at the private sector level in Legality of Origin

Verification

e. Independent Forest Monitoring

f. Forest Certification Initiative (FSC) of Iwokrama and other stakeholder

involved in a similar process in the past.

g. Discussing and making clear distinction between forest legality and

sustainable forest management, ascertaining the aspects that will be the

areas of focus in the definition of legality and the LAS.

2. Review existing aspects of the LAS that has been developed in the Guyana

Legality Assurance System Document.

3. Analyse existing structure of Independent Forest Monitoring including

outcomes of Scoping Mission.

4. Make recommendations for the definition of legality drawing on practical

experiences from operators in the flow of forest products from the point of

harvesting to export.

5. Examine practical field implementation of key aspects of the LAS to determine

the practicality and efficacy of implementation of identified standards.

6. Liaise with EU Team on behalf of the National Technical Working group, field

testing of legality definition.

7. Working in close collaboration with the Stakeholder Engagement and

Coordination Sub Committee, support the development of technical

information updates on the LAS and the definition of legality.

8. Liaise with partner agencies (such as the Ministry of Labour, Sawmillers and

added value Operators, etc.), in informing the structure on relevant aspects of

the LAS and definition of legality.

3.3 Terms of Reference for Sub Committee on the Voluntary Partnership Agreement

(VPA) Implementation (Draft)

Role: To oversee and advise on the development of the modalities for the VPA

Implementation on behalf of the National Technical Working Group.












1. On behalf of the National Technical Working Group, support the development

of the FLEGT Licensing procedure under the EU FLEGT VPA.

2. Support the development of public information documents (information notes)

on procedures for FLEGT licences and EU procedures to lodge licences.

3. Scope current procedures for licensing at the level of Guyana Forestry

Commission and Guyana Revenue Authority.

4. Make recommendations to the National Technical Working Group on types

and requirements for various options for EU FLEGT licensing (arrangement).

5. Working through the National Technical Working Group, facilitate discussion

on the LAS and the licensing procedures.

6. Following decision on final modalities for FLEGT Licensing, advise on

instituting of structure necessary to operationalise the FLEGT Licensing

Authority.

7. On behalf of the National Technical Working Group, liaise with the Joint

Implementation Committee on areas of implementation schedule and other

relevant areas.

8. Lead on the assessment of VPA Implications (implementation) and needs

assessment.

9. Review draft text in related Annexes in VPA that addresses VPA

implementation and modalities

3.4 Terms of Reference for Sub Committee on the Independent Audit under the EU

FLEGT VPA (Draft)

Role: To advise on and support the development of the mechanism for

Independent Audit under the EU FLEGT VPA, on behalf of the National

Technical Working Group.












1. Review existing mechanisms that are currently in place for forest monitoring

through the chain of custody, including, but not limited to the following, and

the accompanying types of Audit checks that are currently in place:

a. Log tracking and Tagging System

b. Removal documentation and permitting

c. Export Procedures

d. Procedures at added value forestry operators level

2. Review current system for Independent Forest Monitoring along with initial

results.

3. Assess the recommendations from the European Forestry Institute supported

assessment on the GLAS.

4. Advise on the structure and modalities for Independent Audit for the VPA as

would be reflected in the VPA text.

5. Explore synergies that can be established between the current efforts of

Guyana Legality Assurance System (GLAS), IFM and the Independent Audit

of the VPA which will be required.

6. Advise on follow up steps that are recommended to prepare for Independent

Audit activities.

7. Support the development of public information materials on the structure of the

Independent Audit and assist with overall preparedness for the Audit.

8. Support preparations towards the first field implementation of Independent

Audit under the VPA

9. Review draft text in related Annexes in VPA that addresses Independent Audit.

3.5 Terms of Reference for Negotiating Team for Guyana’s EU FLEGT VPA Negotiations

(Draft)

Role: To lead Guyana’s national level negotiations on the EU FLEGT VPA

Membership: The membership of the National Negotiating Team will minimum 3

persons, and to a maximum of 5 persons. This Team will be led by the

representative or nominated representative of the Government of Guyana.



coordination functions involving the work of the Negotiating Team.




Functions: The following are the main functions of the Negotiating Team (these will

be finalised at the first meeting of the National Technical Working

Group):

1. To lead negotiation efforts on behalf of Guyana on the EU FELGT VPA

2. To receive feedback from the National Technical Working Group on

various technical and administrative (implementation areas) of the VPA

and to table positions on these at the negotiations

3. To report back to the National Technical Working Group, areas in which

inputs are sought for the VPA text

4. Assist in reviewing the VPA text, in collaboration with the National

Technical Working Group and various Sub Committees, and presenting

outcomes of discussions at the negotiations

5. Advise the National Technical Work Group on field activities and tests that

are to be implemented

6. To give updates on next steps scheduled in the negotiations process

7. Participate in national workshops sessions, meetings of the National

Technical Working Group, and to the extent possible, Stakeholder

meetings

8. Advise on and support the overall guidance and development of the VPA

structure and implementation activities

Joint statement on a Voluntary Partnership Agreement (VPA)

on Forest Law Enforcement, Governance and Trade (FLEGT)

between Guyana and the European Union

Strong forest governance that exemplifies the principles of sustainable forest management, forest legality, and sustainable development of forest resources, and concurrently balances the social, economic and environmental dimensions, has been a top priority for the Government of Guyana

and the European Union. This priority is reflected in the existing and expanding legislative structures, strategies, policies and operational programmes. As part of executing this common

mandate, Guyana and the EU are seeking to form a partnership under the existing EU FLEGT Action Plan, that place direct emphasis on recognizing the importance of forest legality in: ensuring that the benefits from forest resources utilization flow to the right beneficiaries, preventing unfair competition between illegal and legal produce, maintaining a low rate of

deforestation and forest degradation, ensuring sustainable development of forest dependent communities, and mitigating against climate change in a REDD+ framework.

Guyana possesses approximately 18.3 million hectares of tropical rainforest, which cover roughly 87% of the country (21.1 million hectares). Guyana has put in place, a legal and policy framework, to practice forest management resulting in one of the lowest deforestation rates in the world. Its forests are among the most pristine on the planet. Illegal logging and its associated trade, leads to worldwide sustainable economic, social, and environmental damage, involving financial, technical and trading links between companies and individuals in both timber-producing and timber-consuming countries. Therefore, the combat against these illegal activities is not solely the responsibility of the producer countries, but is also the responsibility of consumer countries. In fulfilling common objectives of strong forest governance, sustainable forest management and forest legality, Guyana has engaged in strategic partnerships and alliances, with like-minded countries and regional groupings. Over the past few years, Guyana has made significant strides in building this foundation and has been doing so, both at the national level and through collaboration with international partners, including with the United States of America, the European Union, Norway, South American Partners and the Caribbean Community. An important part of Guyana’s approach has been to look at available international programmes that exemplify the objectives that Guyana aims to achieve, and build partnerships that are mutually beneficial and nationally appropriate to Guyana’s circumstance. The EU is a major global market for timber and timber products, with about 500 million potential consumers. The EU adopted its FLEGT Action Plan in 2003, in recognition of the increasing public concern with the social, economic and environmental consequences of illegal logging and related trade worldwide. A key element of the Action Plan is a proposal to establish bilateral VPA's between the European Union and timber-producing countries. These will ensure that only legally-sourced timber products are imported into the EU from these partner countries. A VPA will be legally binding on both parties once negotiations are completed and the agreement is concluded. When fully operational, the system provides confidence to the EU buyers that Guyana's timber products were legally sourced. The VPA will be applied to all timber exports on a list of forest products defined during negotiations with the European Union. The system can optionally be developed to cover forest products to all other exporting markets.

Informal consultations to date have resulted in an understanding amongst Guyanese stakeholders on the major issues that needs to be addressed during the negotiation process. These include the implications that a VPA would have on multiple land uses such as agriculture, forestry and mining; the impact on indigenous peoples on their titled lands in regard to commercial and subsistence activities. Further, the potential costs, associated with meeting the requirements of the VPA both from the public and private sectors, particularly as it relates to additional compliance requirements for the extractive sectors and indigenous communities. The potential synergies with existing processes such as Independent Forest Monitoring are important factors to consider. The Government of Guyana and the European Union recognize the complexities involved in negotiating a VPA and emphasises the importance of stakeholder involvement during the negotiation process to ensure a credible and implementable agreement. The legality assurance system that will be developed under the VPA must be simple, pragmatic and built on existing procedures. It has to be sufficiently robust to ensure its credibility and financial sustainability. The contribution of Guyana's domestic timber market in the socio-economic life of forest communities as well as in the provision of industrial timber for local purposes should be considered in the development of the VPA. Taking the above considerations into account, Guyana and the European Union have agreed to commence formal negotiations by the latter part of 2012, with the objective of concluding negotiations on a VPA by September 2015, according to an agreed roadmap which will be developed jointly. Guyana and the EU will work towards an agreement which should define clear objectives of adding value to forest governance, forest industry development and sustainability of the forestry sector. Negotiations will also take into account the implications on the non-timber sector, in particular the extractive sector. Guyana and the EU anticipate that the conclusion and effective implementation of the VPA will contribute to the sustainable management of Guyana's forests rural employment and economic development. A FLEGT VPA between Guyana and the EU would be an important step which will support this programme of work on forest legality and governance and will link to existing national scale efforts like Independent Forest Monitoring, that are currently being undertaken in Guyana. The Government of Guyana is aware of the benefits of EU FLEGT such as stimulating markets, enabling Guyana’s exporters to retain markets, and expanding reporting requirements and existing systems in the chain of custody management. It is the intention that the efforts made over the past two year to engage with stakeholder will be further expanded over the course of the negotiation period. The expectation of both parties is that this process will lead to a Voluntary Partnership Agreement under the EU FLEGT Action Plan, that is nationally appropriate, fully reflective of national laws, guidelines, customs and traditions (e.g. with reference to Guyana’s Indigenous Peoples), and existing efforts, whilst developing an internationally credible framework.

7.4 – INDEPENDENT FOREST MONITORING DOCUMENT ON DEFINITION OF LEGALITY

7.5 – FEATURE PRESENTATIONS &

WORKING GROUP PRESENTATIONS

Slide

1

VPA OBJECTIVE & STRUCTURE Ghana’s VPA: The Legal and

Regulatory FrameworkALHASSAN N. ATTAH (PhD) & RICHARD GYIMAH (PhD)

September 2012

Guyana

Slide

2 Presentation Outline

• VPAs in the context of EU FLEGT Action Plan

– Aim & Objective of VPA + Intended outcomes

– Structure of VPAs

• Selected FLEGT partner countries’ VPA compared in terms of:

• Objectives

• Legality Assurance System

• The Ghana VPA process described

– The Legal and Regulatory Framework

Slide

3 VPAs in the Context of EU FLEGT

Action Plan

FLEGT Action plan Sets out a range of measures that aim to combat illegal logging and associated trade. These focus on 7 broad areas:

1. Support to timber-producing countries;

2. Activities to promote trade in legal timber (e.g. VPAs)

3. Promoting public procurement policies;

4. Support for private sector initiatives;

5. Safeguards for financing and investment;

6. Use of existing legislative instruments or adoption of new legislation to support the Plan;

7. Addressing the problem of conflict timber

Slide

4 VPA Aim/Objective

1. VPAs aim to contribute to timber-producing countries’ commitments topromote sustainable forest managementby supporting improvement in forest lawenforcement and governance.

2. Issue FLEGT License

Slide

5 VPA Intended Outcomes

VPAs sets out commitments and actions of both FLEGT partner countries and EU to tackle illegal logging.

The intended outcomes are as follows:

• Improved forest governance

• Improved access to markets within EU

• Increased revenue collected by partner countries governments

• Increased access to support and development for partner countries governments

• Implementation of more effective enforcement tools in Partner Countries;

• Improved foundations for sustainable forest management

Slide

6 VPA Structure & Coverage

VPA rests on commitments of Partner countries to develop:

• Credible legal and administrative structures

• Technical systems to verify that timber is produced in accordance with national laws.

This implies:

• Applicable forest laws is consistent, understandable, enforceable and promotes SFM;

• Developing technical & administrative systems to monitor logging, identify and track timber from the point of harvest to the market or point of export;

• Transparency and accountability in forest governance

• Effective licensing system especially for export of legally harvested timber + Independent monitoring system

• Consideration for social safeguards

• Stakeholder consultation

VPA-LAS Implementation Pillars

Implementation of a Legality Assurance System

– Definition of legal timber according to existing and applicable laws

– Mechanism for control of supply chain (e.g. wood tracing systems or chain of custody)

– Verification systems

– Licensing system

– Independent Monitoring

Slide

8

Elements of a Legality Assurance System

1. A definition of legally-produced timber through the use of a standard (checklist of Principles, criteria and indicators) that is country-specific

2. Control of the supply chain-system to trace wood products through the production chain from harvesting to point of export or sale

3. Verification of both the legality definition and control of the supply chain

4. Issuance of licenses and how it will be done

5. Independent monitoring of the system by a third-party

A Typical Timber Legality Assurance System

Slide

9

FLEGT PARTNER COUNTRIES COMPARED IN TERMS OF VPA

OBJECTIVES AND LAS

Slide

10

Some FLEGT Partner Countries’ VPA Objectives Compared

PARTNER COUNTRY

VPA OBJECTIVE REMARKS

Ghana 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 Community from Ghana of timber products covered by this Agreement have been legally produced and in doing so to promote trade in timber products.Addition ally to provide a basis for dialogue and co-operation between the Parties to facilitate and promote the full implementation of this Agreement and enhance forest law enforcement and governance.

Ghana-EU VPA document, 2009 Article 1- VPA objective

Cameroon To provide a legal framework aimed at ensuring that all imports into the Union from Cameroon of timber and derived products covered by this Agreement have been legally produced or acquired.

FLEGT VPA between Cameroon & EU. Briefing Note, May 2010

Indonesia To tackle the problem of illegal logging and to improve market opportunities for Indonesian timber and timber products in response to new market regulations in the US, EU and other consumer markets.

FLEGT VPA between Indonesia & EU. Briefing Note, May 2011

Republicof Congo (ROC)

To demonstrate its commitment to forest governance and sustainable forest management.

FLEGT VPA between ROC & EU. Briefing Note, June 2010

Slide

11

VPA-LAS Compared among 3 FLEGT Partner CountriesVPA-LAS ELEMENTS (EU REQUIREMENTS)

GHANA LIBERIA INDONESIA

Legality definition Adopted 7 principles which followed existing forestry and related laws

Adopted 11 principles with a wider scope that uniquely included a criteria based information disclosure

Adopted 7 principles which followed existing forestry and related laws which uniquely included agriculture regulation that impact forestry and type of forest ownership

Mechanism for control of supply chain

Collated existing Forestry manual of procedures into one CoC system which will be supported by electronic WTS

Chain of Custody, based on the existing LiberFor system

Relied heavily on existing Indonesia Timber Legality Assurance System (TLAS)

Verification system 1st line verification to be performed by an FC-internal audit body called TVD

Function of 1st line verification outsourced to external service provider initially

Relied heavily on existing Indonesia Timber Legality Assurance System (TLAS)

FLEGT Licensing system Primarily shipment-based licensing system and covers exports of all timber products to the EU

Primarily shipment-based licensing system

A combination of shipment & market participant based licensing system feasible.Covers all timber products to the EU and other markets

Independent Monitoring

Third-party IM Third-party IM Adopts a monitoring & evaluation system involving civil society, Ministry, third party & market monitoring

VPA Implementation oversight

JMRM concept JIC concept JIC concept.

Slide

12

Ghana’s VPA: The Legal & Regulatory Framework

Sharing Ghana’s experience in the VPA implementation

The Ghana VPA Journey

• 1

In-country consensus

building

• 2

Bilateral Negotiations • 3

Ratification• 4

Development

• 5

Implementation

Jan. 2007

Nov. 2005

Sept. 2008

Mid. 2010

Nov. 2009

End of 2012?

Slide

14

Year1 1 Year 2 Year 3

No. Milestones Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12

1 Capacity building

2 VPA Awareness

campaign

3 WTS Provider

Selected

4 Subsidiary

Legislation

Introduced

5 TVD Established

6 Piloting of LAS

begins

7 LAS Pilot Reviewed

8 LAS Implemented

Nationwide

9 FLEGT Products

Promotion begins

10 FLEGT licensed

products exported

11 EU ready to import

FLEGT products

12 Independent Monitor

appointed

13 Procurement Policies

Introduced

14 Promotion of

verified legal on

Domestic Market

15 Forestry laws

reviewed and

consolidated

Month

48

1 Year 1 starts when the agreement is signed

VPA IMPLEMENTATION SCHEDULE FOR GHANA WHICH HAS CHANGED OVER TIME

Slide

15 Ghana’s LAS System Components

Wood Tracking System

•CoC(under

development)

Application of Legal

Standard•Record of

Compliance(verification

manual drafted for adoption)

Licensing System (TIDD)•FLEGT Licenses

(Licensing system Regulation drafted

for cabinet approval)

Independent Monitor

(procurement process almost

complete)•IM Reports

TIMBER VALIDATION DEPT (TVD) AS INTERNAL AUDITOR OF FC.

FC (DIVISIONS & UNITS) + INDUSTRY

TIMBER VALIDATION COMMITTEE-MULTISTAKEHOLDER BODY PRIMARILY FOR DISPUTE RESOLUTION-LI 2184

passed in 2012

Slide

16

Ghana’s Legality Assurance System Components

1. Legal Timber Definition: legality of timber is determined by 7 principles; 24 criteria and several indicators

Slide

17 Ghana’s Legality Assurance System

Components

2. Chain of custody:

a) Outlines how regulators and private operators (loggers/millers/wood processors) will document and keep track of the flow of wood through the various stages of the forestry sector business process

b) Wood Tracking System (WTS) + record keeping/documentation + Roles & Responsibilities constitute important aspects of the CoC under the VPA

c) WTS will cover all destination transactions; WTS yet to be deployed nation-wide but a pilot WTS (computer-based) for one key supply chain completed

b) CoC for the domestic market yet to be developed

Slide


Components

3. A new Timber Validation Department (TVD) as an internal Auditor for the Forestry Commission of Ghana has been established

• Key roles of TVD include:

– Remains at arm’s length as a verifier (i.e. an internal “auditor”)

– Validate all the control processes and outputs at the critical control points from source of timber to point of export or sale via conventional audit + WTS checks

Ghana’s Legality Assurance System

Components

4. Verification protocols drafted by Forestry Commission for adoption through stakeholder consultations

• Verification protocols presented as manual of procedures to guide regulators and operators in the forestry supply chain:– Section A of the manual: Verification Framework & FLEGT

License Issuance

– Section B of the manual: Chain of Custody Procedures forTimber and Timber Products

– Section C of the manual: Legal timber standards and guidance notes for auditors

• Verification protocols field-tested for a key supply chain (TUC) through the use of a legality checklist

Slide

20 Chain of Custody Procedures for Timber and Timber Products

Slide


Components

5. Introduction of Policy and Legal/Administrative Reform Agenda– New Legislative Instrument called Timber Resources (Legality

Licensing) Regulations, L.I. 2184 2012 has been passed to :

• establish the Timber Validation Committee (TVC)

• legal backing to the procedures for FLEGT license issuance (export market) and legality licensing locally (domestic market)

– VPA issues that relate to medium-long term forest governance incorporated into the new draft FORESTRY AND WILDLIFE BILL of 2011. Examples include:

• Tree tenure and benefit sharing issues

• Industry re-tooling

• Domestic market regulation and legal timber procurement

Slide

22

THANK YOU

Slide 2

Slide 3

Slide 4

Slide 5

Slide 6

FLEGT LICENSING AND PROCESS

ALHASSAN ATTAH

Guyana, 28th September, 2012

Presentation outline

Introduction

FLEGT licensing regulations

FLEGT License requirements

TYPES OF FLEGT Licenses

Ghana Licensing system

Challenges/lessons learned

Introduction

EU FLEGT Action Plan requires that under the Voluntary Partnership Agreements (VPAs) Partner Countries implement licensing scheme that :

– attests to the legality of their timber

– EU border control agencies will allow shipments of timber products from Partner Countries only if covered by FLEGT licences

System reduces commercial and reputational risk

FLEGT licensing regulation (I)

EC regulation EC No.2173/2005 of December 2005 provides for the establishment of a FLEGT licensing scheme for imports of timber to the EU

All imports from VPA partner countries should be covered by FLEGT Licenses to gain entry to the EU

FLEGT licensing regulation (II)

Competent authorities in the MS to verify that shipments of timber are covered by FLEGT licenses

Penalties charged for infringements but these are the competencies of MS

The regulation encourages for a narrow scope of products

FLEGT licensing regulation (III)

Makes provision for 4 and 6 digit harmonised codes

Licensing Authority in partner countries are to be designated

Competent Authority in MS also to be designated

Legal definition provide a reliable means from distinguishing legal from non legal timber products Verification bodies may be contacted by market participants – an operator in the timber sector in the partner country

Slide 8

Criteria and text to form a part of the text in the VPA Agreement

Slide 9

Slide 10

Shaded area is market based participants

Slide 11

Slide 12

Issuance of the FLEGT License based on the LAS components of :

Legal definition

Verification of legal compliance– GoG/PS verification agencies (certification bodies)

Verification of the supply chain controls from harvesting to exports

Issuance of license also requires Independent Monitoring to reassure markets

FLEGT License requirements

Types of FLEGT Licenses

Licensing Authorities (LA) in partner countries responsible for issuance of FLEGT Licenses:Operator based licenses

LA makes sure an operators system to control legal origin of wood meets LAS requirements

All operators shipments covered by FLEGT license

Periodic audits by LA

Shipment based licenses All consignments for exports individually checked by LA

Requires and National Wood Tracking system

Remember, monitoring the overall operation of the LAS is the responsibility of JIC

Alternatives of shipment based licensing

Supply chain stage

Full government verification

Market participant based legality verification with government supply chains

All market participant-basedcontrols

Verified legal forestmanagement

Legally checked by government verifiers

Legality verified through certificationscheme approvedby licensingauthority

Legality verified through certificationscheme approved by licensingauthority

Verified legal in supplychain

Supply chain covered by national wood tracking system

Supply chain coveredby nationaltimber tracking system

Supply chain covered by operator’stracking system verifiedand approved by licensing authority

Exportconsignment checked

Shipment checked by licensing Authority

Shipment checked by licensingauthority

Shipment checked by licensingauthority

Ghana FLEGT Licensing

TIDD designated as the licensing authorityFLEGT License for EU and export permit for

all other marketsTVD undertakes verification and validation

at all control point in forest, mill and export+ IM periodic visits

National wood tracking system will be in place

Electronic and paper based systems based on size of operator

Dispute resolution handled Timber Validation committee

Challenges/lessons learned In ability to link up to Ghana Customs Community

Network (GCNET)

Both service provider (SP) and client got lost in details and missed the overall objective for WTS design (VPA)

Possibility of a unifying software platform for wood tracking and compliance monitoring

A phased deployment of electronic system could better handle the shock - migrate large companies first

Poor project management with timelines not being met

Slide 14

Conclusion

• Developing the LAS/WTS is still a challenge

• Target of issuing FLEGT Licenses from Ghana by end December is challenging

• New service provider engaged and this will require time to study the Ghana systems before they can effectively design the system

THANK YOU

INDEPENDENT MONITOR UNDER THE VPA-LEGALITY ASSURANCE SYSTEM

ALHASSAN N. ATTAH (PhD) & R. GYIMAH (PhD)

September 2012

Guyana

Slide 2 Presentation Outline

• Independent monitoring in the context of the VPA-Legality Assurance System

• Guidelines for Independent Monitoring– Institutional Arrangements

– Third-party Monitor

• Ghana’s process for engaging Independent Monitor under the VPA

Slide 3 INDEPENDENT MONITORING

The Independent Monitoring component of the LAS, is a function that:

• Is independent of a Partner Country’s government forest sector regulatory bodies;

• Aims to provide credibility to the FLEGT licensing scheme by checking that all aspects of a Partner Country’s LAS are operating as intended;

• Points out systemic failures identified in the VPA-LAS and provides professional advice/recommendation

Slide 4 SHEMATIC REPRESENTATION OF THE VPA-LAS

Slide 5 Guidelines for Independent Monitoring-1

1. INSTITUTIONAL ARRANGEMENTS

• Designation of authority: The Partner Country Government formally authorizes the independent monitoring function and allows it to operate in an effective and transparent way;

– This implies for example: access to sites, individuals and available funding to perform duties

• Independence from other elements of the LAS: There is a clear separation between organisations and individuals that are involved in management or regulation of the forest resource and those involved in Independent Monitoring;

– For example IM has no conflict of interest- commercial or institution-wise


• Appointment of a third-party monitor: There is a transparent mechanism for the appointment of the Third-Party Monitor and clear, publicly-available rules regarding its operation; this implies for example– There is a transparent , publicly available information on

procurement process and an internationally-accepted system for engaging the services of the IM is demonstrated

– ToRs of IM are agreed by the Joint Implementation committee of the VPA

– Safeguards for the protection and use of commercially-confidential information

• Establishment of complaints mechanism: There is a mechanism established for handling complaints and disputes that arise from independent monitoring. This is adequate to deal with any complaints about the operation of the licensing scheme; examples– Complaints reporting principles and how they are addressed

Guidelines for Independent Monitoring-3

2. THIRD-PARTY MONITOR

• Organizational and Technical Requirements: The

Third-Party Monitor is an organisation that is independent of 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. This implies for example:

– the third-party is subject to external audit by a body which meets the requirements of ISO 17011 or its equivalent

– the third-party has considerable experience in forest management, chain of custody verification, etc.

• Monitoring methodology: The Third-Party Monitor’s methodology is evidence-based and carried out at minimum specified intervals. This implies for example:

– There is a documented monitoring methodology which is robust and considered as international best practice

– Monitoring is carried out at regular intervals and there is provision of unannounced monitoring


• Scope of monitoring: The Third-Party Monitor operates according to terms of reference that clearly specify what has to be monitored and which cover all agreed requirements for the issuance of FLEGT licences. This implies for example:– Checking all elements of the LAS - including legal compliance in forest

management, supply chain integrity, verification activities and issuance of licenses;

– Identifying and documenting non-compliance with LAS requirements

– Assessing the effectiveness of corrective actions taken to address non-compliance

• Reporting requirements: The Third-Party Monitor re-ports regularly to the Reporting Body on the integrity of the legality assurance scheme, including non-compliances, as well as its assessment of corrective actions taken to address them. This implies for example:– Preparing both detail and summarized report findings for public

consumption


3. THE REPORTING BODY (In Ghana, this role is performed by the Timber Validation Committee)• Structure and mode of operation: The structure of the Reporting Body,

including its relationship to the JIC, is clearly documented and publicly available. This implies for example:

– There are guiding principles for reporting with provision for feed back system and how it relates to the Partner Country Government, the Third-Party Monitor and the JIC.

– The Reporting Body and its members shall act objectively and should reject any political, commercial, financial and other pressures that could compromise their impartiality.

• Roles and responsibilities: There are clearly documented, publicly-available terms of reference setting out the Reporting Body’s roles and responsibilities. This implies for example:

– The Reporting Body receives and promptly reviews and comments as appropriate on the Third-Party Monitor’s reports.

– Preferably the Reporting body is a multi-stakeholder with an oversight responsibility on the IM reports; able to work on the recommendations of the IM

– The body has an accessible and functioning mechanisms for receiving complaints and other inputs from stakeholders (interest groups)

Slide 10

Ghana’s Process for engaging Independent Monitor under the

VPA

Slide 11 Ghana’s Approach for IM• Ghana negotiated a two-tier approach for verification

under the VPA– (1) TVD as an internal “auditor” of the Forestry Commission’s

(FC) business process and by extension verifying the timber industry’s chain of custody;

• Regular audits at a higher frequency combining field verification with a functioning wood tracking system

• Reports to the CE of FC and the Timber Validation Council

– (2) IM as an external “auditor” verifying the entire Ghana’s forestry sector business process including the work of the TVD;

• Regular audits at a lower frequency (at least once a year) combining field verification with a functioning wood tracking system; checking for systemic failures and advising accordingly

• Reports to the Timber Validation Council and the Ministry of Lands & Natural Resource

Slide 12 TENDERING PROCESS FOR GHANA’S IM UNDER THE VPA

The road map adopted for Ghana’s IMDATE ACTIVITY RESPONSIBILITY REMARKS

May 2011 Advertisement & calling for Expression of Interest (EOI) for the services of an Independent Monitor

MLNR/FC Followed the Public Procurement Act, 2003 (Act 663) of the Republic of Ghana.

June 2011 Receipt of EOI from 6 firms (local and international)

MLNR/FC

12/7/2011 Evaluating responsiveness of bids + short listing of applicants to 3 firms

Multi-stakeholder Evaluation Committee

Received technical Inputs from the EU side in developing evaluation criteria

15/7/2011 Invitation of short-listed applicants to submit proposals


19/8/2011 Deadline for submission of proposals

Applicants Received technical Inputs from the EU side in developing evaluation criteria

Ending of August- early Oct. 2011

Evaluation of proposals


Award of contract MLNR/FC Yet to be effected

THANK YOU

Slide 1 PERSPECTIVE ON EU FLEGT VPA PROCESS: The experience of Ghana

Alhassan N. Attah (PhD) and R. Gyimah (PhD)

Slide 2 Presentation outline Introduction

Multi stakeholder processes

Approach to preparations for VPA

negotiations – evolving and national position

Negotiations and key elements of Ghana VPA

with the EU

Policy implications

Key Challenges

lessons learned

Slide 3 Introduction (I)

Why did Ghana commit itself to the VPA?

In-country regulatory requirements consistent with

VPA expected outcomes as indicated in EU FLEGT

Action Plan

Need to improve upon control interventions in the

sector to reduce illegal harvesting

Need to realise true revenue from the harvested

resource and its trade

Need to take steps to achieve sustainable forest

management (SFM) in Ghana

Slide 4 The Ghana Vision

To create an environment that promotes

sustainable forest management, improves rural

livelihoods and equity as well as enabling

industrial efficiency in a good governance

environment

Key message – Align vision with EU expected outcomes but ensure that the country is not disadvantaged at the end

Slide 5 Multi Stakeholder Processes

Multi Stakeholder engagement is a key feature and expectation in the negotiations and implementation of the VPA.

VPA Steering Committee (VPA-SC) used as vehicle to drive the preparatory work in Ghana and the negotiations

VPA Multi Stakeholder Implementation Committee (M-SIC) leading post negotiations/implementation -

A key strength appreciated by the EU is the engagement of broad stakeholder groups

Ghana VPA Process Overview

Literature, Study outputs, Process Review

Multi-Stakeholder Steering Committee/Policy Sub-Committee

Technical Working Group Consolidation of Stakeholder Views

National Stakeholder Consultation/Consensus Building

Country Position on Elements of VPA Established at Ministerial Level

Slide 7 Approach to VPA negotiations (I)

Development of country strategy for negotiations:

Definition and understanding of the key components for the VPA

Legality definition – consultative/legal consultants

LAS – consider strengths of existing systems and experiences from other sectors

Domestic market – Strong GoG position

Market promotion for verified legal/FLEGT timber – initial challenges for the EU

Preparatory work to inform the negotiation position –use Technical and task teams on legal Framework/legal standard, Verification system (LAS/WTS), industry restructuring, domestic market etc.

Slide 8 Approach to VPA negotiations (II)

Impact studies and associated cost for migrating from

the current forest governance regime to a legality

assurance regime.

Develop policy options and make informed choice

Use of consultants (local and international)and technical

backstopping from international institutions with the

requisite knowledge and expertise (e.g. EFI) – however

remember that “he who pays the piper…”

Building the capacity of civil society indigenous people

to enhance constructive engagement in forest

governance related activities and negotiations

Slide 9 Approach to VPA negotiations (III)

Involve other regulatory agencies, particularly customs

EU has strong negotiators and therefore the need to develop

technical team to support negotiations. Should include

expertise in forestry, law, industry, trade, marketing and

management

Establish realistic timelines for activities and negotiations to

avoid loss of confidence in the negotiating process by the EU

e.g. Negotiations moved from programmed 1year (Dec

2006-Dec 2007) to 3 years (2006-2009)

Slide 10 Key elements of the VPA (I)

EU provided useful guidance through its briefing notes on key elements

Basis for establishing EU positioning and interests for the negotiations

Key Elements include: LAS – legal standard, control of supply chain,

verification, licensing scheme,

independent monitor

Joint Implementation Committee/JMRM (Ghana case)

Slide 11 Key elements of the VPA (II)

Key elements to consider by the partner country

Domestic market,

Support measures – EU never commits to extent and nature. Considered under budget support

Trade promotion for VLT

Industry restructuring and promoting value added processing

Other process issues for consideration

Capacity building of key stakeholders

Contracting during pilot phase

Review policy implications and legal requirements

Buy-in by the industry operatives

Slide 13 Key challenges (I)

Lack of clarity on intentions of EU and its member states on competency

Limited support measures from the EU

Process for defining legal timber and adopting legal standard can be time consuming

Lack of consultations among countries pursuing VPAs

Slide 14 Key challenges (II)

Redesign of business process and staff buy in slow

Agreeing on product scope – broad vrsnarrow scope of products

Trade vrs environment agreement?

Process lacks a champion and relegated to the background

Slide 15 Lessons learned (I)

Stakeholder engagement critical to the process

Agree on realistic targets and timelines

Need for legal reforms – divide into short and medium to long term

Keep legislature informed

Need for a strong communications strategy

Slide 16 Lessons learned (II)

WTS system design and development should build on existing systems

Engage industry early and make business case for their involvement

Industry should understand the need to balance business case with regulatory measures from Govt. side

Timber procurement policies for the domestic market critical

Slide 17 Lessons learned (III)

Pilot necessary for WTS and lessons learned should feed into the process

Balancing of social, environment and economic requirements under the VPA

Need for platform to share experiences

GUYANA FORESTRY COMMISSION

Presentation on:

European Union – Forest Law Enforcement Governance and

Trade Programme

(EU FLEGT)

National Preparatory Workshop

September 27-28, 2012

Slide 2 Background to Guyana’s Engagement with EU

FLEGT• The Government of Guyana has embarked on a national programme that

aims to protect and maintain its forests in an effort to reduce global carbon

emissions and at the same time attract resources to foster growth and

development along a low carbon emissions path.

• In 2006, initial work was done in the Guyana Legality Assurance System

working with a UK Based Company.

• The cooperation between the Governments of Norway and Guyana

expresses a willingness to work together to provide the world with a relevant,

replicable model for how REDD-plus can align the development objectives of

forest countries with the world’s need to combat climate change.

• With Norway, Guyana has signed a Memorandum of Understanding (MoU)

to establish a partnership on issues of climate change, biodiversity and

sustainable low carbon development. The MoU and its related Joint Concept

Note include statements for Guyana to engage in a formal dialogue with the

European Union (EU) on a VPA.

• In December 2009, the GoG wrote to the EU and requested to be provided

with information on the EU FLEGT Programme.

Slide 3 Initial Work on Exploring EU FLEGT

• An initial mission was conducted over the period 10-19th March, 2010 by a team from

the European Forest Institute (EFI) and the European Union Commission, which

facilitated preliminary discussions the EU team and key stakeholders in Guyana

including the MSSC, NTC, international NGOs, Amerindian NGO, GFC, the private

sector, EPA, donor agencies and high commissions, a number of government

agencies and ministries. A field trip was also conducted to one of GFC’s field stations.

• On 28-29th September, 2010, the GFC, on behalf of the Government of Guyana,

coordinated the Exploratory Workshop on the EU FLEGT Programme with the primary

purpose of providing stakeholders with the opportunity to air their ideas and concerns

on the potential impacts of the EU FLEGT programme which will serve to inform the

GoG on the possible next steps in the EU FLEGT dialogue.

More specifically, the workshop was coordinated with the following objectives:

- Facilitate information sharing between stakeholder groups and the EU, EFI

representatives

- Stimulate meaningful stakeholder participation towards decision making at a

national level by facilitating work-groups that allow stakeholders to air

their views on what are the requirements, -implications, advantages and

disadvantages of EU FLEGT to Guyana

- Develop a consolidated matrix from all different workgroup sessions

Slide 4 Steps taken in 2010 and 2011

• In 2011, the GFC requested for more specific information to be provided in the form of

an assess of Guyana forest monitoring and legality system. The European Forest

Institute organized a fact-finding mission to Guyana between June 13th and 17th 2011

to collect data, interview several key stakeholders, visit field operations and present

the preliminary findings to the Guyana Forestry Commission (GFC), the EU Delegation

in Georgetown and other parties identified by GFC.

• The objective of this assessment is:

1) to provide Guyana with specific information on the application and relevance

of the country’s current systems of legality and monitoring with respect to the

FLEGT VPA requirements and

2) to advice Guyana on ways forward to develop their Legality Assurance

System (LAS). The outcome of the assessment is expected to advance the

national dialogue on a possible engagement of Guyana in VPA negotiations

with the EU.

Slide 5 Formal Stakeholder Feedback Sought

• EFI Report circulated and formal inputs

sought

• Formal feedback, having completed

several engagements, and technical

assessments, sought on the entering into

a VPA

• Written Submission Received

• Comments made on areas that must be

considered.

• Overall support for joining a VPA

Slide 6 Stakeholder Engagement and Feedback Sought

• On 25th July, 2011, the Assessment Report

was forwarded to the MSSC.

• Additionally, the report was also sent

directly to stakeholders and written request

was made for feedback to be sent to GFC.

Feedback was sought by 25th August,

2011.

• Engagement with the National Toshao’s Council

• On July 27, 2011, the GFC delivered a presentation to the National

Toshao’s Council which was meeting at the International

Convention Center. Full presentation available.

• It was expressed to the NTC that the GFC is inviting feedback from

villages, communities and the NTC on EU FLEGT. The GFC

conveyed that if any village or the NTC requires for the GFC to

make visits or to give further explanations, the GFC would facilitate

this.

• The GFC also presented printed copies of the assessment report

and summary to each Toshao.

Slide 8 GFC’s Follow Up Steps in Early 2012

• Synthesis paper summarising all

stakeholders views from various

engagements.

• Policy Options and Implications outlined

• Recommendation made for each option

Slide 9 Policy Decision Taken

• In March 2012, a Policy decision to enter

into formal negotiations with the EU on a

VPA.

• In July 2012, a Joint Press Statement was

issued at a Press Conference held by the

GoG and EU.

• Initial Planning Discussions commenced –

2 VCs. Several email communications.

Slide 10 Preparatory Work for Commencement of

Negotiations

• Draft ToRs developed for National

Technical Working Group and Sub

Committees – for stakeholder feedback.

• Initial meeting held of the National

Technical Working Group in September

2012.

• National Preparatory Workshop

• Tentative date for first negotiation in late

2012 (end of November/December)

Slide 11 Next Steps

• Finalisation of ToRs for National Technical Working Group

and Sub Committees.

• Direct Engagement with Stakeholder Groups

• Several meetings (at least two more) with National Technical

Working Group.

• Stakeholder Level Discussions (FPA, GMSC, etc.) – 10th

October, 2012 – Tentative discussion at NTC level.

• Roadmap for EU FLEGT – discusses technical areas

• Detailed discussion on and formulation of Country Positions

on:– Presentation of VPA objective and structure;

– Legal framework and existing regulatory and institutional systems from

which the VPA will be developed;

– Roadmap and logistics.

– Discussion on legality definition and legality assurance system (LAS)

– Field visit of the EU team to better understand country procedures

Slide 12 Discuss Area of Focus that VPA Should Cover

• Communication Strategy

• Impact Analysis

• Areas of Technical Focus, Priorities, e.g.

– International Exports and/or Domestic Market

– Building Capacity at Forest Industry level

– Strengthening Chain of Custody at Processing

stage

– Supporting implementation at Indigenous

Community level, Capacity Building

– EFI Report Recommendations

– Addressing Points identified in Stakeholder

Feedback Process

De Stichting voor Bosbeheer en Bostoezicht Foundation for Forest Management and Production Control

Ds. Martin Luther Kingweg pc. 283 Tel:483131 Fax: 483051

E-mail:[email protected] Website: www.sbbsur.org

National Preparatory Workshop

Guyana, 27 – 28 september 2012

Slide 2 Main objectives

Promoting sustainable, optimum utilization

the forests of Suriname in general and the

intended timber production forests in particular,

by applying the Forest Management Act and other

relevant laws and regulations (guidelines).

The foundation is responsible for the detection of

offenses that by or under the Forest Management Act

and the enforcement of by or under regulations

prescribed in the forest act.

Slide 3 Responsibilities SBB

Monitoring compliance with the Forest

Management Act

Collection of forest taxes

Monitoring and facilitating production and export of

timber, wood and NTFP’s

Advise policy makers on forest issues

Slide 4 Forestry department

Sustainable Forest Management Guidelines

Forest inventory, logging plan, etc.

Cutting registry

fixed-and mobile transport control checkpoints

Sawmill control

Export control

Slide 5 Forestry departmentForest inventory


Logging plan

Forestry department

Logging plan


Cutting register


Transport control

Slide 10 Forestry departmentTransport form

SBB label


Sawmill control


Export control

FLEGT & Suriname

• SBB is not the vocal point for FLEGT

• CCDA (Climate Compatible Development

Agency) is responsible for FLEGT in

Suriname

• CCDA falls directly under the Office of the

President

Slide 14

Thank you

Slide 1

Working with Guyana for Guyana

BARAMA COMPANY LIMITED

VERIFIED LEGAL ORIGIN OVERVIEW

Forest Management

Timber Harvesting

Plywood Manufacturing

Finished Lumber

Log Supplies

Slide 2 • Barama Company Limited - Locally Registered

1991

• US Multi-million dollar Investment - >US$ 125m

• 1.6 million hectares of Forest Concession –

Northwest Region of Guyana

• 40 years cutting cycle

• Largest Investment to date in the Timber Sector

& 1 of the largest Company in Guyana

• Employment of over 800 persons

• Biggest customer internationally for the Forestry

Training Center Inc.

• OPERATIONS includes – SFM model,

Certification, Logging, Plywood, Sawmill, Kiln

Dry, Finishing, Wharves, Marine, Veneer, Roads,

Power Generation etc.

BCL’S BACKGROUND

Slide 3 Policies

• To adopt sustainable forest management (SFM)

• To be a responsible corporate citizen. Compliance with :

Investment Agreements

Taxation Laws

Labor Laws & Regulations

Health and Safety Regulations

Forestry Regulations & Guidelines

EPA Regulations & Guidelines

Environmental Management Plan & EPA Permit

National Insurance and Social Security Act

Maritime Laws

Factory Laws

GFC Licenses & Approvals

Other relevant Laws & Regulations

• To adhere to sound and ethical management, business and industrial practices

• To honor and respect the integrity and exclusivity of all Amerindian Lands, To allow

indigenous people to pursue their traditional lifestyle without hindrance, To be

sensitive and responsive to the rights and needs of nearby communities and other

genuine stakeholders

• To employ qualified Guyanese and to the training of Guyanese for jobs at all levels

FOUNDATION OF A LONG TERM INVESTMENT

Slide 4 Investment Strategies

• International experiences in SFM. Maintain a high standard of compliance to SFM

practices. Market & Uphold Guyana’s Internationally Recognized SFM practices.

LCDS Ready.

• Employment of Experts in the Field of Forestry, Certification, Engineering, Corporate

Social Responsibility, Business Management, Human Resource Management,

Operators, Mechanics and other Skilled Labour Force.

• Introduction of modern management systems and technology

• Expand the species range to maximize the utilization of the Timber resources

• Explore the value-added potential of the Timber resources

• Maintain & train a skilled localized workforce – mechanical, reduce impact logging,

electrical, forest survey, machine/equipment operators, engineering, OHS etc.

• Sustained value for stakeholders eg. Communities, Government, businesses etc.

• Penetrate & maintain strong market linkages

FOUNDATION OF A LONG TERM INVESTMENT – Con’t

INTEGRATED WOOD COMPLEX

Slide 6 Our Operations & VLO• Standard Operating Procedures• Licences & Approvals• Receipts & other proofs of compliance• Forest Planning• Harvesting• Scaling and Data Entry• Trucking and Other Transportation• Segregation• Lumber processing• Plywood processing• INPUT OUTPUT RECONCILIATION• Training

Slide 7 MAP OF OPERATIONAL FOREST AREAS

Slide 8 • 100 % - trees 35 cm dbh & above

-accuracy of identification and marking during Enumeration.- verification of field data and data entry.

• Skid Trail Alignment

• Pre Harvest/ Tree Selection

• Identification of log markets

• Post Harvest Block Inspection

• Road Alignment

• FMP & AOP

PLANNING

Slide 9 BLOCK HARVEST PLANS

Slide 10 • Felling - RIL

• Skidding - GFC Tagging

• Scaling- method of measurement.- verification of data.- SEGREGATION

• Transporting-Removal documents.- verification of document

HARVESTING OPERATIONS

Scaling &Trucking

HARVESTING OPERATIONS CON’T

Slide 12

• Block inspection

• Production Compliance

• RIL Compliance

• Harvesting efficiency

• Incentive Scheme

• Submit officially to GFCOld roads

BLOCK CLOSURE

Slide 13

13

Log piles delivered to Log Cutting Section cross-cut into required lengths

Log request from Log yard at Buckhall

Log Yard

Pony Saws, auto Saws and Band Saws then produce lumber of required dimensions

Kiln Dryer for specific markets Air DryTo required

lengths

Moulders

Packing and Strapping into

Bundles

Prime Saw

LUMBER MANUFACTURING PROCESS

Crosss Cut

Slide 14

14

Log piles delivered to Log Cutting Section cross-cut into 4’ and 8’ peeler blocks

Log request from Log yard at Buckhall

Log Yard

Rotary lathes then peels blocks into Veneer sheets

Continuous Veneer Dryer

Cut to width

Veneer reels

Veneer Composing,

repair/setting

Glue MixingSpreading, cold press

Hot Press, trimming, sanding, cosmetics,

grading, packing

peeling

PLYWOOD MANUFACTURING PROCESS

Slide 15 • Raw Material Request/Receive

– Verification of document against material received.

– Input data

• Tagging (Material Identification)- At all stages of any operation each piece of log/lumber/other products must be identifiable,

tags, signs and other markings help to achieve this.

• Work in Progress

– All material during processing have to be marked as WIP.

– WIP materials from different batches must be processed separately.

• Segregation- At all stages also, materials must be segregated by status and batch. VLO MATERIAL MUST NOT

MIX WITH NON-VLO MATERIAL

• Signage- Used to segregate raw material and finish product in storage areas.- During processing it is used to segregate materials from different batches.

BATCH SYSTEM

Slide 16 • Finish Product

– Packaging and Labeling.

– Output data

• Sales & Invoicing

• Record keeping

- The entire process depends on the accuracy and details to which records are kept.

• Internal Audit System

• INPUT OUTPUT• SPECIES & PRODUCTS

BATCH SYSTEM CON’t

PROCESSING & HANDLING

Batch Status Species

Input Logs Output Conversion

Pcs Vol. (m3) Bdls. Vol. Factor

Total

BATCH SUMMARY

Slide 18 • RIL

• Chain of Custody

• Verified Legal Origin

• Supervisory

• First Aid

• Firefighting

TRAINING

Slide 19 CHALLENGES

1. Quality of Manpower

2. Data control & management – excel base

3. Training & Supervision

4. Maintaining SEGREGATION

5. Controlling Work-In-Progress

6. Tagging

7. Space & Signage

8. Species Identification

9. Document control

10.Directional Felling

11.RECONCILIATION – INPUT TO OUTPUT

Slide 20

THANK YOU

BARAMA COMPANY LIMITED

Slide 1

Slide 2 OVERVIEW OF

VARIETY WOODS & GREENHEART LTD

• Guyanese owned integrated forestry and saw-milling enterprise.

• More than (25) years in Forest Resource Management and timber utilization.

• Medium-sized Operation

• Feedstock/Raw Materials predominantly sourced from our forest concessions (SFP & WCL)

• Produce a wide range of timber products for the export market.

• Markets drawn mainly from USA, Europe & Asia

•

Global Changes In Timber Trade

European Markets Demand For VLO Products/

Certified Timber (EUTR March 03, 2013)

Access to New/Niche Markets

A Step Towards FSC Certification

Slide 4 Local & International Recognition as a

Responsible Corporate Entity

Access to New Markets

Security of existing markets for our products.

More Structured & Cost effective Management of Business and Production efficiency

Trained and Motivated Staff – a bright and optimistic future for VWL.

Slide 5

Compliance with the different regulatory bodies –GFC, EPA, GRA.

Log Tracking System in place.

Have always demonstrated Responsible Forest Management.

Development of Human Resource through training.

Up-to-Date Record Keeping System.

5

BACKGROUND

Slide 6

Through an FAO (ACP-FLEGT) project the TFT was contracted to work with VWL.

The TFT carried out GAP Assessments of our Production Sites to determine the level of Compliance against the requirements of Legality and Chain of Custody Standards

Action Plan Implementation

Final Audit – Rainforest Alliance/Smartwood(Third Party)

Slide 7

VWL Audited according to the Rainforest Alliance Standards for Verification of Legal Origin as it applies to Guyana.

◦ Legal Right to Harvest

◦ Approved Planning Authorizations

◦ Payment of Fees and Taxes

◦ Traceability of Timber (CoC)

Slide 8

Creation And Adherence To A Standard Operational

Procedure (SOP)

Demonstrate Full Documentation Of All Processes -

Harvesting , Trucking, Sawmilling, Export Etc

Create And Maintain A Database System To Track

and Record VWL’s Entire Production

Implementation Of Systems For Complete

Separation/ Segregation Of Timber Products

Re-organize And Restructure Management Of The

Operations.

Employment Of Technical, Admin And Production Staff

Initiate New Approach To Training And Human Resource

Development At All Levels – Forest, Sawmill, Admin.

Pre-audits To Consistently Test And Upgrade Systems

Slide 10

Human Resource - Limitation of Support Staff and Expertise

Training and Retention of Staff

Additional Costs

Annual monitoring and evaluation by Rainforest Alliance in order to maintain Certificate.

Slide 11

Slide 1 Guyana’s forest law enforcement

governance and trade - Bridging Local and

Global Interests: Integration of Timber

production, REDD+ and Livlihood

‘Opportunities for Synergy’

Tasreef Khan

Deputy Commissioner

Forest Monitoring Division

Guyana Forestry Commission

September 2012

Slide 2 Structure of Presentation

Areas to be discussed:

• Overview of Forest Legality in Guyana

• Main Aspects of GFC’s Forest Monitoring System

• Forest Monitoring in Guyana and International

Requirements

• Relationship between EU- FLEGT VPA and

Legality Assurance System(LAS)

• Overview of Activities in Development

• Links among SFM, forest legality and REDD+

• Vision and Objectives

Slide 3 Overview of Forest Legality in

Guyana

• Forest Act

• National Forest Policy, Plan

• GFC’s Work Plan

• The GFC’s Forest Monitoring Division has as one of its main tasks, the regulating of forest legality

• Total staff complement of 230

• Divisional Stations: 4

• Field Stations: 32

• Mobile Stations: 17

Forest Operations in Guyana

Forest Activity Occurs through various stakeholder groups:

• Forest Concessions – these are issued in three categories: Timber Sales Agreement, Wood Cutting Leases and State Forest Permission. These also include community forestry associations.

• Amerindian Communities and Private Property Holders

• Holders of mining permits, and agricultural leases.

Slide 5 Main Aspects of GFC’s Forest Monitoring

System

GFC’s Forest Monitoring System has

among its main objectives, the

enforcement of forest legality. Some of the

main aspects are:

• Forest Concession Monitoring

• Monitoring of forest produce in transit

• Sawmills and Lumberyards

• Exports

Slide 6

Slide 7 Tools and Systems Used in Monitoring

Legality in the Forestry Sector

1. Legal Concession Agreement

2. Boundary Demarcation

3. Forest Management Plan – Strategic Forest

Inventory, Business Plan

4. Annual Operational Plan – AAC, FI, Stock Maps

5. Quota System

6. Log tracking and tagging

7. Removal Permitting

8. Production Register

9. Licensing – Sawmill, Timber Dealer, Export

10. Code of Practice

Slide 8 Log Tracking System

• In 2000 the GFC introduced the Log Tracking System to verify the origin of raw material and to control the level of harvesting within State Forests

• Guyana is probably one of the few countries in the world with a complete national log tracking system

• The log tracking system provides detectable evidence on the legitimacy, location and magnitude of forest operations and is currently applied to all forestry operations including State Forests, Amerindian Reservations and Private Properties.

Slide 9 Log Tracking System

• Forest produce originating from Guyana

and used in any part of the world can be

tracked directly to the stump of the tree the

wood was taken from

• The log tracking system is regulated by the

use of Log Tags which are assigned to all

concessionaires each year free of charge.

Log Tag

Slide 11 Log Tagging

• Log tagging is done at stump where half of the

tag is affixed to the stump at the time of felling

and the other part bearing the same sequence

of numbers as recorded on the stump tag is

affixed to the produce being conveyed.

Slide 12 Tagging

• All forest produce including logs, lumber

piles, poles and posts are tagged.

• It is the unique number of tag assigned that

indicates who the operator is and therefore is

able to indicate the geographic origin of the

forest produce within the forest estate.

• It is linked to a Quota System which is an

initiative to control the volume of produce

harvested.

Slide 13 Tagging

• An operator’s quota is calculated based on the sustained yield of the forest area which considers variables such as felling cycle, felling distance and minimum girth.

• Formula used to determine AAC or quota for concession is as follows

AC = area of SFP (Ha) x 0.133 tags per year.

• This works out to 0.267 m³ of logs per Ha per year, or 0.054 m³ lumber per hectare per year

Slide 14 Tagging

• The quota is equated to the number of

standing trees which will yield the

volume and the number of trees

computed indicates the number of tags

to be issued (one tag is equivalent to

one tree). Each operator is allocated a

number of tags equivalent to his

sustained yield and is recognized by a

unique sequence of numbers assigned

to that operations.

Slide 15 Essentials of the System

• Valid Concession or owner of forest area(Legal)

• Log Tags

• Removal Permit

• Harvesting (Operational Requirements)

• Tagging

• Production Register (Documentation)

• Submission of Removal Permit

• Review of Production Register

Importance to Guyana

• Better monitoring of forestry activities

• Forms the basis for chain of custody

requirements in timber trade

• It is one of the main marketing tool

• Enhances the environmental profile of Guyana

• Recognized Internationally

• Allows 3rd party scrutiny

Slide 17 Transport of forest produce

• Tripsheet

• Removal permits (including PP)

• Transshipment

• Detention and Seizure Form

• Custody Form

• Clearance Pass

• Bill of sale from sawmills and lumber yards

Slide 18 Restrictions on usage of removal

permits

• 30 days validity

• Any forest produce being transported after

validity date must be detained immediately

• Removal permit becomes void if an

investigation establishes produce transported

is illegal, it is then used as evidence

Slide 19 Restriction on surrendering removal

permits

• Permits should be surrendered no later than

24 hrs hours after reaching its final

destination.

• Failure to comply results in a compensation

fee of $1000.00 per day for everyday in excess

Slide 20

Slide 21

Production Register

• Permanent record

• Property of the GFC

• Must be available for inspection by GFC

• Electronic record keeping must include all

fields contained in the production register

• Electronic information must be printed and

stored properly/ made available for inspection

Slide 23 Production Register

Slide 24 The Licensing process

Namely:

1. Sawmill license

2. Timber dealer’s license

3. Sawpit license

4. Charcoal license

5. Firewood license

6. Timber depot license

Slide 25 Costs of licenses

License type Application

fee

License fee

Sawmill $10,000.00 $60,000.00 per mill

type

Timber dealer’s $10,000.00 $50,000.00

Sawpit $10,000.00 $40,000.00

Firewood $10,000.00 $4,000.00

Charcoal $10,000.00 $4,000.00

Timber depot $10,000.00 $10,000.00

Timber path $10,000.00 $10,000.00

Permit to

erect/modify

sawmill

$10,000.00 $50,000.00

Slide 26

Slide 27 Export of Forest Products

1. All exporters must be in possession

of a valid timber dealer license,

normally referred to as an export

license or a sawmill license which

currently function as an export

license as well. These licenses are

issued and renewed on an annual

basis by the GFC.

Slide 29

Slide 30

Slide 31

Slide 32

Guyana’s Legality

Assurance System

(GLAS) Draft

Slide 33 The FLEGT VPA

• Voluntary partnership (initiative of the partner country)

• But a legally-binding agreement, once signed:

– EU (all Member States) – partner country (all operators)

– FLEGT license assures EU market of legal compliance

• Targets/objectives :

– Work together to stop illegal logging

– Strengthen governance & transparency

– Improve control & verify legal compliance

– Reform policy and law where needed

A key element of the VPA is the

implementation of a Legality Assurance

System(LAS).

The LAS is expected to monitor, control

and verify the management and use of

Guyana’s Forest resources to ensure that

only legal products are produced, sold and

exported from Guyana.

Slide 35 Element of a LAS

• A definition of legally produced timber

through the use of a standard (check list

of principles, criteria and indicators) that

is country specific.

• Control of supply chain system to trace

wood products through the production

chain from harvesting to the point of sale.

• Verification of both the legality definition

and control of the supply chain.

• Issuance of Licenses and how it will be

done

• Independent monitoring of the system by

a third party.

Slide 36 In the context of forestry - What is a Legality

Assurance System?

Legality Assurance System = 1. Legality Definition 2. Control of the supply chain; 3.

Verification (supply chain and Legality Definition); 4. Independent monitoring of the entire system

• up

Slide 37

• Based on existing regulations/legislation

• Makes clear and visible what is legal timber

• Identifies what will be routinely verified to demonstrate timber is legal

• Ability to focus attention where current legislative enforcement challenges exist

• Based on a consultative process including stakeholder preparation of LD dialogue to define priorities.

1. The legality definition, what is a legal timber?

Slide 38 Definition Based on Principles of Sustainability

SOCIAL

ENVIRONMENT

ECONOMIC

Environmental

Requirements

Forest Management

requirements

Worker health, safety,

and labor,

requirements;

Customary and access

right requirements

Trade and Export

Taxes, registration, fee

requirements

Slide 39

Verifier(s)

Principle

Type

of

title

Legislative

reference

Criteria

Example of Legality Definition

Legality Definition Development

National consultation process consisting of multiple stakeholders and interests

• Promotes a multi stakeholder debate and analysis resulting in a more realistic and operational Definition

• Process helps identify gaps and inconsistencies that may exist in legislation could lead to a reform process

• Should integrate stakeholders affected by forestry legislation and operations

• Multi stakeholder process brings more credibility in the markets

Slide 41 2. The supply chain control system

Routinely ensures the integrity of timber product flows from the stump

or the point of import to the point of export using traceability

technologies, preventing unverified timber products from entering the

supply chain.

Slide 42 Principles of a supply chain control system 1/2

• For timber producing countries: mapping of the forest resource (back to stump traceability)

• For processing and transit countries: documented imported timber. Origin of each log/bundle of timber products identified

• Border controls including physical and documentary verifications

• Verification at different steps of the supply (including verification of transport and change of ownership)

Slide 43 Principles of a supply chain control system 2/2

• Prevent mixing with unverified timber

• Collect and reconciliation of information at different steps of the supply chain through an information system

• Monitoring of recovery rates at mill sites (input/output)

• Unique timber product marking and numbering systems

• Accessible to a third-party monitoring body

Slide 44

Forest Transport Processing Port

ControlControl

Control Control

1 2 3 4

Supply Chain Control System

Description of supply chain control systems

Border post

Forest

Slide 45 3. The verification system

Ensures the enforcement of the supply chain control system and the compliance of operators with each element of the Legality Definition

Verification at different steps of the chain is based on documented procedures and involved different people/administrations for cross-checking

Organisation: Carried out by one or several organisations which have adequate resources, management systems and skilled and trained personnel

Verification of legality: There is a clear scope setting out what has to be verified in the forest and at processing units. Documented verification methodology including both documentary and field verifications.

Timber Legality Assurance System Verification

Slide 47

Third-party organization appointed by Governments

• monitor the implementation of the Timber Legality Assurance System, identify possible system weaknesses, suggest improvements

• Report the monitoring results to the Government branch in charge

• Make available to the general public a report on its findings

A third-party monitoring organisation is

• A non-political, national or international conformity assessment body that monitors full implementation of the Timber Legality Assurance System according to specific terms of references.

4. Independent Monitoring

Slide 48 Overview of Activities in Development

Some of the activities that are being developed to strengthen the forest monitoring system include:

• Expansion of the forest monitoring base

• Expanding Mobile Monitoring at Large Concessions

• GPS tracking of removed forest produce

• Legality Monitoring and Extension Unit

• Bar coding in timber tracking

• Reconciliation of wood products sales and wood products supply

• Independent Forest Monitoring – IFM (External)

Slide 49 Forest Monitoring in Guyana and International

Requirements

• ITTO

• FAO

• UK Procurement Requirement for Timber

• US Lacey Act

• EU FLEGT

• Chain of Custody Systems

• Third Party Verification

Slide 50 Links – SFM, Forest Legality and REDD+

• The important links with sustainable forest management, forest legality, and REDD+ have been clearly established in key documents –LCDS, RPP – REDD+ strategies.

• SFM and forest legality impacts on deforestation and forest degradation

• Sustaining Livelihood

• Equitable benefits to stakeholders

• Maintenance of forest ecosystems

• Sustainable development of communities and the forests

• Legality, SFM and REDD+ are not the same but are closely linked programmes which are all needed to work towards the same objective.

Slide 51 Vision and Objectives

• Robust forest monitoring and legality framework

• Strong chain of custody management

• Effective forest governance and stakeholder

partnerships and ownership

• Allow for independent international third party

verification

• Continually improve and adapt to new and

emerging requirement, concepts, change, etc.

Thank you

Kaieteur National Park

Slide 1

WORKING GROUP SESSION

GROUP 2Group Chairperson: Mr. Lennox Cornette

Slide 2 MAIN OBJECTIVES of EU FLEGT VPA

• To ensure that Guyana’s pioneering role in the global climate change debate is recognised

• To operate in a framework of the LCDS

• Eliminate illegal logging

• Ensure access to EU markets

• Ensure Guyana receives development assistance

• Preservation and improvement of Systems implemented by GFC

Slide 3 Proposed Objective

1. To provide a legal and sustainable management framework that guarantees access of Guyana’s forest products to traditional and emerging EU and other international markets; and which further continues to promote Guyana as a global leader in pioneering replicable global climate mitigation innovations.


2. To advance trade relations with EU markets in the context of our Low Carbon Development Strategy through improved forest governance and sustainability whilst ensuring all forest products are legally produced or acquired.


3. To guarantee access of Guyana’s timber and timber products in the EU markets by observing strong forest governance, sustainable forest management and forest legality in keeping with Guyana’s Low Carbon Development Strategy and its leading role in climate change initiative.

PROPOSED NEGOTIATING STRUCTURE for VPA

• Legality definition to be included in negotiations

Legality must be defined after extensive consultations with all stakeholders

Slide 7 PROPOSED NEGOTIATING STRUCTURE for VPA (con’t)

• Chain of Custody to be included in negotiations

Negotiators must represent that GFC’s log tracking systems are excellent. However, lumber tracking system needs improvement.

Set chain of custody limits for the various categories of forest producers.

GPS tracking of logs and continuous forest inventory to be considered.


• Verification and licensing to be included in negotiations

Negotiators must note that validation by GFC declares the legality of lumber and timber products

GFC to continue issuance of License – build on existing mechanism

Other State Agencies have a say in the Regulatory process

Health and Safety debate to be carefully approached

Establish a National Forest Procurement Policy – to ensure that local lumber is legally obtained


• Independent Monitoring to be included in negotiations

Audit Plan to be jointly decided upon between GFC and EU

Criteria and Scope of Audit to be jointly agreed upon by GFC and EU

Adequate notice for audit to be given to GFC


• Communication Strategy to be included in negotiations

Must target and be beneficial to stakeholder groups.

Must be mindful of Guyana's topography and cost of travel internally.

Be mindful of various languages and dialects of indigenous communities.


• Impact Analysis to be included in negotiations

Must be tailored to specific stakeholders

Capacity building at all relevant levels in the VPA process, including indigenous peoples

PROPOSED NEGOTIATING STRUCTURE for VPA (con’t)

• Scope of Forest Products to be included in negotiations

GFC’s current range of products to the EU should be included in discussions

Further stakeholder consultations needed on this issue.

Slide 13 THE END

THANK YOU


Group # 1- Structure and Terms of Reference for the National Technical Working Group and

the Sub-committees and Perceived Roles and Contribution of Stakeholders in the VPA process

(a) Assessment on the ToR of the National Technical Working Group and Sub-committees

National Technical

Working Group

Sub- Committee

Stakeholder

Engagement and

Coordination

Legality

Assurance

System

Voluntary

Partnership

Agreement

Implementation

Independent

audit under EU

FLEGT VPA

Negotiation

Teams for

Guyana –EU

FLEGT

Ministry of Legal

Affairs to be full

member

Necessary for a

temporarily mandated

sub- committee to deal

with the impacts of

the Voluntary

Partnership Agreement

Must include

technical people

(Forestry and

legal)

Function 2 of the

ToR Should be

integrated in the

communication

strategy

Duration should

extend beyond the

negotiation period

The National

Technical Working

Group should

include the

Personal Relations

function.

Ministry of

Amerindian Affairs

and Environmental

Protection Agency

should be involved on

a part time or full

time basis.

Membership should

increase so as to

reflect the broad scope

of stakeholder

engagement.

Unique

requirement for

different

stakeholder group

should be related

in the LAS

At agency level,

different person

with their unique

skills may sit on

the different sub-

committee

Explore the

possibility of

involving Guyana

Geology and Mines

Commission in the

process.

Merge functions if

possible. Should

include the

implementation of a

communication plan.

Utilize local

experience (VLO

& FSC)

Utilization of

additional skills

and resources

University of Guyana

should also be

involved at strategic

points, especially as it

relates to research.

Duration should

extend beyond the

negotiation period

(b) Perceived roles and contribution of stakeholders in the VPA process

- Community Forest Organization, Forestry Training Centre Inc & Conservation

International:

- Provide expert opinion on SFM Practices and ensure compliance with VPA

requirement by “passing down” training that may be imparted at all levels.

- Identify training needs and conduct field audits to scrutinize standards for legality.

- Guyana Revenue Authority, Customs, & Environmental Protection Agency:

- Ensure compliance of licensing process should additional requirements become

necessary under the VPA and support the institutionalizing of these under GRA.

- Strengthen data sharing and inter-agency communication including country –

country communication.

- Extension activities, dissemination of information on wood products, trade and

exports including FLEGT licensing.

- Support the licensing process given the current mandates of the Environmental

Protection Agency Act and operations, assist in giving expert opinion on the

environmental standards when necessary, support monitoring activities related to

FLEGT.

- Ministry of Amerindian Affairs GOIP and National Toshao Council:

- Identify areas of capacity building with reference to VPA aspects and simplify

FLEGT and VPA technical aspects in an understandable and culturally

compatible manner.

- Assist with the dissemination of information of the VPA to ensure compliance by

the Amerindian Village Council and assist with actual monitoring to ensure

compliance with VPA standards.

- Facilitate communication at national level between Amerindian communities and

policy makers, advice on impacts of VPA on communities and ensure that VPA

does not compromise the unique indigenous cultural assets.

- In collaboration with other parties, the NTC can work to develop a community

strategy specific to indigenous communities involved in logging and share

information on biodiversity.

- Ministry of Foreign Affairs:

- Support the process for the ratification and signing of the VPA and share

experiences learned from EPA negotiation and process.

- Advice on compatibility of the VPA with other Agreement (Trade Agreement)

that Guyana has entered.

- Review the legal aspects of VPA with the focus on language and interpretation

and identify possible legal implication/ repercussions of VPA clauses.

- Suriname Forest Service (SBB):

- Information sharing on FLEGT and indigenous forest practices.

- Comments/Questions and Clarifications:

- It was noted that at least one person with knowledge on European Law should be

included should be included in the committee to deal with the legal aspect of the

VPA process.

- Members in the committee should not be fixed, it should allow for different

persons to enter the committee based on their expertise when the need arises.

Group # 2- VPA Objectives and Structure

The main objective of the group is to discuss the main vision that Guyana sees for the VPA-what

it wants out of the VPA.

Another objective of the group is to discuss the main areas that there is a preference to see

reflected in the overall VPA, for example:

Communication Strategy

Impact Analysis

International Exports and/or Domestic Market

Building Capacity at Forest Industry level

Strengthening Chain of Custody at processing stage

Supporting implementation at Indigenous Community level, capacity Building

EFI Report Recommendations

(a) The main vision that Guyana sees from the VPA:

To guarantee access of Guyana’s timber and timber products in the EU markets by observing

strong forest governance, sustainable forest management and forest legality in keeping with

Guyana’s Low Carbon Development Strategy and its leading role in climate change initiative.

The group used the five (5) main pillars of the timber Legality Assurance System as the basis for

further discussion as the proposed negotiating structure:

- Legality Definition

- A definition of legality must be included that caters for all levels of stakeholders or users

of the forest. This must only be defined after extensive consultations with all

stakeholders.

o Mechanism for control of supply chain/Chain of Custody

- Chain of custody should be reflected in the overall VPA since it ensures the integrity or

legality of produce from stump to end user. Negotiations must represent that the Guyana

Forestry Commissions log tracking systems are excellent. However, lumber tracking

systems need to be improved. Chain of custody limits must be set for various categories

of producers ranging from TSAs to private property owners and Amerindian titled lands.

It is important to note that we are entering negotiations with strong systems that may just

need improving.

o Verification and licensing system

- The GFC has a good internal verification system. Verification can be supported by sister

agencies such as the EPA and GGMC to provide verification at different levels within the

regulatory process/framework. It was discussed that within the parameters of monitoring

and verification that the Health and Safety debate should be carefully approached. We

can continue nationally in trying to address the issue; however it would be difficult to

adhere to at the EU-FLEGT level.

- Negotiators must note that validation by GFC declares the legality of lumber and timber

products. The establishment of a National Forest Procurement Policy to ensure that local

lumber is legally obtained was discussed as a possibility.

- The GFC already has a system for issuing export license therefore the EUFLEGT license

should fall under the GFC, building on existing mechanisms.

o Independent Monitoring

- For independent monitoring to be successful:

(a) An Audit Plan needs to be jointly decided upon between GFC and EU

(b) Criteria and Scope of Audit needs to be jointly agreed upon by GFC and EU

(c) Adequate notice for audit should be given to GFC

(b) Main areas to be reflected in the overall VPA for Guyana

Apart from the five pillars of the timber legality assurance system the group believes that

negotiations should include:

o A Communication Strategy- must target and be beneficial to stakeholder groups, be

mindful of Guyana’s topography and cost of internal travel and be mindful of the various

languages and dialects of indigenous communities.

o An Impact Analysis- must allow for capacity building at all relevant levels in the VPA

process and must be tailored to specific stakeholders.

o Scope of Forest Products- must allow for current range of products being exported as

well as any others that are highlighted during consultations.

Comments/Questions & Answers

Question- Does or will the EUFLEGT licence secure markets for exporters?

Answer- The licence will complement the process. However, exporters will still have to seek out

markets and develop relations with buyers.

Comment-As long as we sign an agreement and conform to the rules and regulations it makes it

easier for exporters by reducing cost of proving chain of custody on a case by case basis as you

export produce. All exporters will be covered band trade will be easily facilitated.

Comment- Trade promotion may be an issue to be addressed between the EU and the

Government of Guyana.

Comment- A communication strategy, especially one which captures the Amerindian people is

very important is very important to the consultation process.

Group # 3- Legality Definition and the Legality Assurance System

Objectives:

Main: Discuss what the group thinks should be the main tenants of the legality definition

and the Legality Assurance System.

Specific: Examine the Independent Forest Monitoring (IFM) legality definition and

provide insights on the suitability and applicability of this for the VPA process.

The Independent Forest Monitoring in Guyana Revised Principles, Criteria and Indicators -

Year 1 Audit (see Annex) were examined and discussed by members of Group 3. This document

clearly specifies the roles for the Forest Management Organization which also holds legal

logging rights to the forest.

Indicators for Monitoring

o Timber Sales Agreement and Wood Cutting Leases:

There were no clarifications or adjustments made for the Principles, Criteria and

Indicators listed for TSA and WCL. They were all accepted upon agreement.

o State Forest Permissions (SFPs):

There were no clarifications or adjustments made for the Principles, Criteria and

Indicators listed for SFP. They were all accepted upon agreement.

o Amerindian Villages if they opt in to the LCDS:

The group requested for some changes to be made for the Indicators for Monitoring in this

section.

During that discussion, points were raised to highlight the fact that if a miner (non-resident) is

interested in conducting any mining activities on titled Amerindian Lands, he/she had to submit a

written application to that Village Council, which will be addressed during their monthly

meetings for consent to be granted. That miner also has to fulfill the requirements of the Guyana

Geology and Mines Commission in attaining such permission.

Indicator 1.2.1 Final wording for Year 1 Audit stated – “Legal title to log source area by other

person is done in accordance with the Forest Act.”

The Group proposed that that indicator should also have an inclusion, as follows:

‘Legal title to log source area by other person is done in accordance with the Forest Act and the

Amerindian Act.”

It was noted that both acts should be applicable. In Amerindian villages, there are also village

rules which come under the Amerindian act.

Indicator 1.2.3 Final wording for Year 1 Audit stated – ‘There is a mechanism to ensure that logs

and stumps are tagged according to the national log tracking system.’

The group proposed that the indicator should also have an inclusion, as follows:

‘There is a mechanism to ensure that logs and stumps are tagged according to the national log

tracking system for both domestic and commercial purposes.’

The group recommends that more consultations should be hosted among Amerindian groups to

have their contributions on this aspect. All stumps should be tagged for both domestic and

commercial purposes so that the GFC can also manage their tags allocation system. This will

also be a mean for good record keeping.

Amerindians do not pay royalties to the GFC, they pay such to the Village Council.

o Agricultural Leases and Mining Property Owners:

Indicator 2.1.2 Final wording for Year 1 Audit – There is system in place to record production

volumes extracted, of logs in transit, and at point of export, that originate from Agriculture leases

and Mining Properties. There is a system in place to record production volumes extracted of

consignments of lumber in transit and at point of royalty assessment and declaration, that

originate from Agriculture leases and Mining properties.

The group has noted that that indicator is extensive. It should be separated into 2 indicators and

be more constricted. Indicator 2.1.2 should be for Logs and Indicator 2.1.3. for Lumber. E.g.

Indicator 2.1.2 – There is system in place to record production volumes extracted, of logs in

transit, and at point of export, that originate from Agriculture leases and Mining Properties.

Indicator 2.1.3 – There is a system in place to record production volumes extracted of

consignments of lumber in transit and at point of royalty assessment and declaration, which

originate from Agricultural leases and Mining properties.

o Processing and Export Stages:

The group has agreed that there should be an additional indicator.

Indicator 2.1.2 – The Exporter must be in possession of the relevant GFC Licence, and that

licence must be kept up to date.

o General Recommendations

With respect to the main sections for monitoring (TSA/WCL, SFP etc), the group has

recommended that each section be given to their respective counterparts so that they can have

consultations in order to reduce some of the indicators. The main objective is to make it more

manageable for the negotiating teams.

Group # 4- Legality Framework and Existing Regulatory and Institutional Systems

As part of the VPA development process, inclusive of the development of the definition of

legality, a regulatory framework, and institutional mechanism are required to be in place to

support the VPA implementation. The group was tasked to: (a) discuss the suitability of the

existing legal framework as it relates to FLEGT and identify potential challenges, areas of

improvement and what aspects are working efficiently/well and should remain in place for the

VPA and (b) Discuss any institutional systems that can further be developed to advance the

process.

The views of the group were summarized according to three (3) major headings as shown in the

table below:

Suitability of Existing Laws, potential

challenges and areas of improvement

What aspects are working well

and should remain for the VPA

Institutional systems that can further be

developed.

Revision of the Forest Act 2009 to

look for relevance to LCDS, FLEGT,

REDD+, etc.

The Chain of Custody System:

Log Tracking System,

permitting system.

The function of the GFC should shift to a

more facilitating role rather than a more

regulatory function. More efforts should be

placed on demonstrating, research, etc.

Codes of Practices for operations i.e.

harvesting, processing, NTFPs, etc

need to be reviewed in line with

FLEGT process.

The process of Concession

Allocation

There should be a standard operational

procedure to combat timeliness of

Monitoring operations.

There should be clear land use policy

to address issues of overlapping

resource use within a particular area.

The level of work and interest

in community groups and small

operators

Certification of operators should be a

necessity for all operations. The benefits of

this should be strongly promoted.

Laws in relation to Amerindian

communities and Private Properties

who are engaged in commercial

exploitation and export of forest

produce should be clearly sought out.

FTCI’s Training of operators

and other stakeholders in

Reduced Impact Logging (RIL).

There should be more collaborative efforts

with other organizations and sister agencies

in outreach programmes. A MSD type

approach should also be used.

There is need for clear legislations

before entering into the agreement.

Extension services provided by

the GFC e.g. GIS and mapping,

inventory, community

development activities, etc.

Improve communication between land

allocation agencies.

Network for monitoring

established by GFC, which

includes strategic locations of

Forest Stations, regular field

visits, among others.

Need to address improving technology for

processes/operation e.g GPS tracking in

inventory, etc.

Regularized chainsaw industry

o Questions & Answers

- Question: Who will stand the cost of training operators, given the tendency of operators

to leave the job after training?

- Answer: When operators are trained their performances are better which improves the

efficiency of the company. Hence, the employer should be responsible for the training of

its operators/employees. The issue of employees leaving the job cannot be solved, but

should be viewed as an operational cost.

7.5 – WORKSHOP PICTURES

NATIONAL PREPARATORY WORKSHOP

Documents

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