FDS-TLAS-007

Sabah TLAS Audit Report Principles 5 & 6

Organisation Best Maxim Sdn. Bhd. (753619-D) Reference # GFSSBH 004-117 Contact Chew Beng Huat (Managing Director) Assessment Date 05 November 2019 Person Chew Inn Keat (Director) Date close out - Lot 3, 1st Floor, Block H, Sri Kepayan Office Commercial Centre, Phase 10A, Ruang Telephone +6012 810 1184 Address Ridgeview 2, , . Mill NA Fax +6088 255 906 Address Email [email protected] Approved By Dr. Kevin Grace

Statements Audit Statement # GFS 023 WTP Issuance Date 01 December 2019 Expiration Date 30 November 2020

Assessment Details

Company Type Timber trading (Pure exporter)

Scope of Assessment Sabah TLAS P5-6: FDS(KK)(E)089/2017

Product Group Kiln Dried Sawn Timber

Source of Material Sabah, . Species Parashorea spp. (White seraya), Shorea spp. (Red seraya)

Lead Assessor Priera Bagang

Assessor(s) Michelle Boyou Taib Arjani (FIT Kota Kinabalu), Justin Lohuji (MCEE Kota Kinabalu), PH FDS Staff Jepri Ibrahim (PPM Kota Kinabalu)

Terms of Assessment The scope of the evaluation is to verify compliance of the Best Maxim Sdn. Bhd. to the criteria within the Sabah Timber Legality Assurance System (TLAS) Principle 5 - Mill Operations and Principle 6 -Trade and Customs standards. Compliance is defined when the organization demonstrates that there is no non- compliance to any applicable criteria. Non-compliance to the Sabah Legality Standard occurs when the organization does not comply with 1 or more criteria. Non-compliance must be formally addressed prior to certification or within 2 months following a surveillance assessment.

Limitations of Assessment The information presented in this report is based on documentation and other information presented by the client and observations made during the field verification under the assessment. Auditor’s reporting of information presented by the client are taken as accurate, unless evaluated differently through the observations made during the assessment. All information presented in the report is accurate and complete to the best of knowledge of GFS.

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FDS-TLAS-007

Background Information: Best Maxim Sdn. Bhd. (Best Maxim) is registered in Kuala Lumpur, Malaysia with registration # 753619-D. The company trades sawn timber mainly for global market. Best Maxim has obtained FSC Chain of Custody certificate, certificate #: SGS-COC-009636 for their products (Purchase and sale of FSC 100% and FSC Mix sawn timber using transfer system) since October 2012, with expiry date on 14th January 2023.

Best Maxim purchases Kiln Dried sawn timber from local suppliers (Sabah) and exports only to The Philippines.

The previous assessment was conducted in November 2018 that resulted in 2 gap(s) and 0 observation(s) (report #: G162-493).

Associated Organizations & Subcontractors: Best Maxim does not engage any other subcontractor to provide or manufacture products (sawn timber). The company is associated with Pacific Asia Wood Industries Sdn. Bhd. and Ibarat Bumi Sdn. Bhd. that support the company’s management.

Description of the Supply Chain: From November 2018 to October 2019, Best Maxim purchased raw materials from suppliers as below: GFS Audit Raw FDS TLAS-CC Supplier License Statement # Material Location (Expiry Date) (Expiry Date) Sawn Kota Lusera Sdn. Bhd. JP(K)KK001/09(X39) Non-Compliance Non-Compliance timber Kinabalu Uni-Lumber Sdn. Sawn FDS(SCS)024/2019 GFS 233 WTP JP(N)KG001/12(X04) Bhd. timber (31/05/2020) (31/05/2020) Mastergroup Enterprise Sdn. Bhd. Sawn FDS to update their GFS 222 WTP JP(T)TW002/03(X07 (Rimba Kekal Sdn. timber website (31/10/2020) Bhd.) SRT Timber Sdn. Sawn Kota FDS(SCS)123/2018 GFS 206 WTP FDS(KK)(E)257/2018 Bhd. timber Kinabalu (31/12/2019) (31/12/2019) Sawn Kota FDS(SCS)011/2019 GFS 072 WTP Makeson Sdn. Bhd. JP(K)KK028/00(X22)R timber Kinabalu (31/03/2020) (31/03/2020)

Summary Results: (Major gap = 0, Minor gap = 0, Observation = 0) GAPs: GAP # Type Checklist Status Description November 2018: The removal passes for 4 out of 5 local sales documents were not available during the assessment.

004/2018 Minor 5.2.1 Closed November 2019: All sales were covered with valid Removal Pass. Based on export documents, all export consignments were covered with Removal Passes. November 2018: Inadequate implementation of the CoC system in their sawn timber trading. Batch units were not assigned between purchasing and sales in accordance to their CoC manual. 005/2018 Minor 5.2.7 Closed November 2019: Best Maxim has amended their CoC manual whereby bundle number will be used from the purchase invoice to indicate bundles to be exported through the sales invoice.

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FDS-TLAS-007

*Major = Non-Compliance

Obs # Checklist Description - - -

Highlights of Close-Out Visit (if applicable) Date - Not applicable

Recommendations

Best Maxim Sdn. Bhd. has demonstrated compliance with the Sabah Standard Principles 5-6 for Chain of Custody and is recommended to receive a GFS Audit Statement and STCC from FDS.

The next surveillance visit is scheduled for September 2020.

End of Summary Report

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