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GLOBAL FOREST &TRADE NETWORK

Country Profiles - 2015 Bolivia, Cameroon, China, Colombia, Indonesia, Lao PDR, Malaysia, Myanmar, Panama Peru, Russian Far East, Vietnam The Global Forest & Trade Network is a WWF initiative to combat illegal logging and drive improvements in forest management while transforming the global marketplace into a force for saving the world’s valuable and threatened forests. By strengthening the links between companies committed to achieving and supporting responsible forestry, GFTN creates market condi- tions that help conserve forests while providing economic and social benefits to the businesses and people that depend on them. First established in 1991 by WWF, GFTN is the world’s lon- gest-running and largest forest and trade program of its kind, providing structured support for a wide range of players involved in forest products markets. WWF, through GFTN’s global-to-local approach and on-the-ground presence, provides a framework that combines market stimulation and application of field-based technical assistance in over 25 countries.

More information about GFTN is available at gftn.panda.org.

Cover image: Kerinci Seblat National Park in the tropical rainforest Sumatra, Indonesia, © Mauri Rautkari / WWF - Cannon GLOBAL FOREST &TRADE NETWORK

Bolivia Information to support responsible trade in forest products

Bolivia’s Amazon and montane forests Common types of forest-level are home to some of the most diverse life illegalities on Earth, but illegal and unsustainable • Logging by unlicensed companies logging pose a significant threat to these • Illegal logging-related corruption forests and the biodiversity they host. • Logging outside of licensed areas and Fortunately, wood products buyers can in prohibited areas, including illegal play a key role in forest conservation logging in protected areas within through their purchasing decisions. licensed areas This fact sheet is designed to assist wood • Forged orest management documents products buyers with evaluating and (Plan Operativo Anual Forestal – POAF reducing their sourcing risk in Bolivia. and Informe Anual de los Planes FOREST FACTS Operativos Anuales Forestales – Bolivia has 53 million Regions with high levels of illegal IAPOAF) hectares (130,965,852 logging activity acres) of forest, of which Bolivia • Guarayos and El Choré municipalities Other common illegalities 28.8 million ha (71,166,350 *La Paz in Santa Cruz Province • Forged/falsified documents (e.g., acres) are considered permanent productive • Ixiamas in La Paz Province management plans that don’t reflect the reality of the area under management, forests, distributed throughout • Chiquitanía in Velasco Municipality seven productive regions. wood sawn in different areas than what Bolivia had a timber product export High-risk species is stated in wood transport permits, harvest authorizations in ‘ghost areas’) of over US$60 million in 2013. The US • Ochoó (domestic) (Hura crepitans) was the largest importer, followed by • Legalization of unlawful activities • Tajibo (Tabebuia spp.) China and Chile. (e.g., illegal clearings are penalized with Bolivia has 830,500 ha (2,052,210 • Roble (Amburana cearensis) fines but products are sold afterwards) acres) of FSC-certified forest (2014). • Morado (Machaerium scleroxylon) • Corrupt actions by local forest agents For more information about GFTN- • Spanish cedar (Cedrela odorata) • Corrupt actions by public officials Bolivia: gftn.panda.org/gftn_worldwide/ CITES Appendix III latin_america/bolivia/index.cfm • Tarara (Centrolobium microchaete) Points in the supply chain where timber is likely to become “legal” WWF CONTACTS • Almendrillo (Dipteryx odorata) GFTN-Bolivia • Wood on the black market is “legalized” • Paquió (Hymenaea courbaril) WWF-Bolivia/Maria del Carmen Carreras (meaning made to appear legal) with Av. Beni entre 2º y 3º anillo • Hoja de Yuca/Kapok (Ceiba pentandra) false transport permits for logs prior Calle Los Pitones, #2070 to transformation Santa Cruz de la Sierra, Bolivia Primary forest product exports Email: [email protected] • Wood is legalized in sawmills by Tel: 591-3-3430609 • Sawn wood falsifying the percentage of a tree that GFTN-North America • Doors is first quality and then inflating the Linda K. Walker second-level quality Email: [email protected] • Furniture Tel: +1 202-495-4693 Note: It is illegal to export logs from Bolivia. General Inquiry [email protected] This document is for educational and informational purposes only and is not intended and should not be construed as legal advice. Persons seeking legal advice on compliance with the Lacey Act or any other law should consult with a qualified legal professional. Bolivia

Additional comments procurement, which may include Much of the illegal activity in the forest ▪▪ compliance with Forestry Law 1700 sector of Bolivia takes place at the forest ▪▪ certificates to demonstrate forest level. Because there are only a few forest of origin (CFOs) rangers responsible for monitoring ▪▪ CEFO Forest Certification of Origin large forest areas, enforcement of forest (CFO 4 for exports) laws and harvest plans is challenging. Historically, companies have been able to ▪▪ CITES permits self-declare wood volumes per log in the • Demand a credible, third-party-verified forest, allowing overestimates of height forest management and chain of and diameter to lead to inflated wood custody certificate volumes. • Verify certified wood claims with This type of intentional error has relevant online databases allowed bad actors to gain access to more • Contact personnel on the ground, such Tapir with young transport permits than are warranted as local NGOs and forest authorities. © DAVID LAWSON / WWF-UK based on harvest plans and legal log • Sawmilling and transformation factors volumes. Recently, the Authority for Online resources are overestimated to allow legalization Fiscalization and Social Control of Global Forest & Trade Network of wood coming from the sawmill Forests and Land (ABT) has begun an gftn.panda.org electronic system for transport permits CITES Primary government agencies that mandates a field inspection of the cites.org/eng/disc/species.php charged with enforcing timber legality forest management area and log yard. FOREST LEVEL This is believed to be producing positive APHIS and the Lacey Act • Autoridad de Fiscalización y Control results in controlling illegal logging. aphis.usda.gov/plant_health/lacey_act Social de Bosque y Tierra – ABT Currently no reliable estimates for Global Forest Registry (Supervision and Social Control illegal trade in forest products in Bolivia globalforestregistry.org Authority for Forests and Land) are available. Previous estimates have • Unidades Forestales Municipales – suggested that over 50% of Chatham House UFM (Forestry Units in some timber traded was illegal or suspicious illegal-logging.info Municipalities) in some way. IUCN Red List iucnredlist.org TRADE/EXPORT LEVEL Recommendations for companies • Cámara de Exportadores de Bolivia – sourcing forest products from Bolivia CANEB (Bolivian Chamber of • Require suppliers to provide Exporters) © 2015 WWF. All rights reserved by World Wildlife Fund, documentary evidence of legal Inc. • Cámara de Exportadores de Santa Cruz – CADEX (Santa Cruz Chamber of Exporters) • Servicio Nacional de Verificación de Exportadores – RUEX (National Service of Exporters Verification), where RUEX (the only registry of exporters) can be obtained

Corruption Perceptions Index 35 (103rd out of 175 countries) The Corruption Perceptions Index scores countries on a scale from 0 (highly corrupt) to 100 (very clean). It is a composite index, a combination of polls, drawing on corruption-related data collected by a variety of reputable institutions. http://www.transparency.org/ cpi2014/results

Jaguar

Cameroon Information to support responsible trade in forest products

Cameroon’s Congolian rain forests are Common types of forest-level home to some of the most diverse life illegalities on Earth, but illegal and unsustainable • Artisanal (small-scale) logging logging pose a significant threat to these • Logging-related corruption (petty forests and the biodiversity they host. or political) Fortunately, wood products buyers can • Logging outside of licensed areas and play a key role in forest conservation in prohibited areas, including illegal through their purchasing decisions. logging in protected areas within This fact sheet is designed to assist licensed areas wood products buyers with evaluating • Illegal contractual logging in communal and reducing their sourcing risk forests FOREST FACTS in Cameroon. • Forged annual cutting licenses (outside Cameroon has 14,561,000 system of concessions) hectares (35,981,014 acres) of Regions with high levels of illegal production forests, of which logging activity • Use of community forest documents to 7,900,000 ha are allocated to transport illegal wood industrial logging and 942,462 • Eastern region of Cameroon hectares are Note: Most illegal logging occurs in non- Other common illegalities FSC-certified (2015). permanent forest areas, which are outside ameroon Cameroon had timber C of allocated forest concessions. • Forged/falsified documents

• Unpaid or underpaid taxes product exports of * Yaounde US$701.5 million in Top five high-risk species • Corruption (petty or political) 2013. China is the largest export • Ayous (Triplochiton scleroxylon) destination, accounting for over 31% of • Iroko (Chlorophora spp.) Points in the supply chain where wood exports from Cameroon. Over 43% timber is likely to become “legal” of Cameroon’s wood exports go to seven • Sapeli mahogany (Entandrophragma EU countries. The US and Turkey are FOREST LEVEL cylindricum) IUCN-listed also export markets for Cameroon. • Documents are forged to misrepresent • Bilinga (Nauclea spp.) the origin of the wood For more information about GFTN- IUCN-listed Central Africa: gftn.panda.org/gftn_ CUSTOMS LEVEL • Bubinga (Guibourtia spp.) worldwide/africa/central_africa_ • Wood that has not been properly taxed IUCN-listed is exported WWF CONTACTS Note: A ban on log exports was introduced GFTN-Cameroon in 1999 for all species except Triplochiton Primary government agencies WWF Central Africa/Norbert Sonne scleroxylon. charged with enforcing timber legality WWF–CARPO, Cameroon Country Office Panda House, Rue La Citronelle Primary forest product exports FOREST LEVEL P.O. Box 6776 Yaounde, Cameroon • Ministère des Fôrets et de la Faune E-mail: [email protected] • Sawn timber (Ministry of Forestry and Wildlife) Tel: 237 96630616 • Roundwood GFTN-North America CUSTOMS LEVEL • Plywood Linda K. Walker • Customs authority controls all exports Email: [email protected] Tel: +1 202-495-4693

This document is for educational and informational purposes only and is not intended and should not be General Inquiry construed as legal advice. Persons seeking legal advice on compliance with the Lacey Act or any other law [email protected] should consult with a qualified legal professional. Cameroon

Recommendations for companies sourcing forest products from Cameroon • Require suppliers to provide documentary evidence of legal procurement, which may include an Exportation Authorization Document (the certificate of origin: DF10, which is issued in the forest and must be presented to customs for export) • Demand a credible third-party-verified forest management and chain of custody certificate • Verify certified wood claims (forest management and legality) with relevant online databases • Inquire if companies participate in Mandrill initiatives for responsible forestry © MARTIN HARVEY / WWF-CANON (e.g., GFTN or TFT) Corruption Perceptions Index Sales of standing volumes (SSVs): • Contact personnel on the ground, such 27 (136th out of 175 countries) SSVs are given out for the time period as local NGOs and forest authorities of one year and the legal obligations/ The Corruption Perceptions Index restrictions are less than those for scores countries on a scale from 0 Online resources FMUs. Often this type of management (highly corrupt) to 100 (very clean). It Global Forest & Trade Network goes along with illegal activities is a composite index, a combination of gftn.panda.org (over-logging, disregard of minimum polls, drawing on corruption-related diameters, etc.). CITES data collected by a variety of reputable cites.org/eng/disc/species.php institutions. http://www.transparency.org/ Most of the illegal timber harvesting cpi2014/results in Cameroon is perpetrated by small APHIS and the Lacey Act companies or by individuals who have aphis.usda.gov/plant_health/lacey_act Additional comments their own harvesting equipment. They Global Forest Registry Cameroon has two forest designations. cut wood illegally and then pay off globalforestregistry.org The first type - permanent forest - is the officials at forest checkpoints to legalize property of the state and includes large it. The wood may be illegal because there Chatham House forest management units, protected is no documentation, because they have illegal-logging.info areas and conservation units. Large exceeded their permitted volume, or IUCN Red List commercial logging companies operate because they have harvested outside of in these areas, and there are high levels the permitted area. Often the wood is iucnredlist.org of government control on the forest legalized through falsified documents © 2015 WWF. All rights reserved by World Wildlife Fund, resources. The second type of forest is that are obtained via bribes. Inc. non-permanent forest that is similar to agro-forestry areas. These forests are Much of the timber harvested under home to small communities and have these circumstances is destined for been heavily logged. The species in domestic use, but some does cross into both types of forests are the same, but international trade. The UK-based the quantity and density of trees in the Chatham House’s 2010 report, “Illegal latter is lower. Logging and Related Trade,” states that there is believed to be limited illegal The Cameroonian government gives logging in the large concessions, out two types of forest management although certain types of illegal activity concessions: are not ruled out (e.g., cutting of undersized trees). The report confirms Forest Management Units (FMUs): that the domestic market for illegal FMUs have a rotaion of 30 years timber is the major problem and and an obligation to develop and estimates that between 22% and 47% implement a management plan for of all timber harvested in 2010 was the prescribed period. Western lowland gorilla illegal in some way. © NATUREPL.COM / T.J. RICH / WWF-CANON GLOBAL FOREST &TRADE NETWORK

China Information to support responsible trade in forest products

As the world’s largest importer of industrial roundwood, second largest importer of sawnwood and wood pulp (outranked only by the US), and the largest exporter of finished wood products, China has a substantial ecological footprint across the world’s forests both as a producer and a consumer. China imports half of its timber products from countries like Russia, Papua New Guinea, the Solomon Islands, Indonesia, Burma and Cameroon, among others, where illegal logging and other serious environmental and social issues are prevalent. In recent years, alarmed by the severe ecological impacts of deforestation, the Chinese Government took strong measures to halt the clear-cutting of Chinese forests and promote tree planting. However, there is currently no law to curb imports of illegally harvested wood into FOREST FACTS ✪ China. Fortunately, wood products buyers can play a key role in forest conservation China has 195 million Beijing through their purchasing decisions. This fact sheet is designed to assist wood products hectares of forest buyers with evaluating and reducing their sourcing risk in China. land, accounting for 20% of the nation’s land area. Over 60% of these forests Primary forest product exports Primary government agencies charged are natural forests. • Furniture with enforcing timber legality

• Plywood In 2013, China exported over US$12.7 National Level: billion in timber products and US$16 billion • Flooring • State Forestry Administration in pulp and paper products. The US and • Paper products (国家林业局) Japan were the largest export markets. Common types of illegalities • Ministry of Commerce (商务部) China imported over US$9.3 billion in • Importation of illegally harvested timber, • Ministry of Environmental Protection roundwood in 2013, with the three leading including timber stolen from protected (环境保护部) suppliers—New Zealand, Russia and the US—accounting for nearly 47% of the total. areas Regional Level: China’s 2013 imports of wood pulp • Importation of endangered and vulnerable • Customs species exceeded US$17.3 billion. The leading • Importation of roundwood from countries Additional comments on timber supplier was the US, followed by Canada, Brazil, Indonesia and Chile. that mandate domestic processing prior to China currently has no prohibition on imports export of illegal timber. As a result, Chinese customs China has 2,997,706 hectares (7,407,493 acres) of FSC-certified forest and 3,715 • Importation of timber through allows timber companies and traders to chain of custody certificates (Nov. 2014). unauthorized agencies import wood products as long they pay taxes and import duties, without requiring that they • Importation of timber from conflict areas WWF CONTACTS check compliance with laws in the country where government has little control GFTN-China WWF CHINA/Ms. Jessica Wang of origin. In recent years, pressure from Room 1609, Wen Hua Gong, Beijing China’s main export markets has forced some Working People’s Culture Palace Chinese manufacturers to avoid sourcing Beijing, China, Postal code 100006 wood from countries with a high risk of illegal E-mail: [email protected] logging. However, the vast majority of Chinese Tel: 0086 65116220 log imports continues to be sourced from GFTN-North America countries where forest governance is weak. Linda K. Walker Email: [email protected] Tel: +1 202-495-4693 General Inquiry [email protected]

This document is for educational and informational purposes only and is not intended and should not be construed as legal advice. Persons seeking legal advice on compliance with the Lacey Act or any other law should consult with a qualified legal professional. China

Orangutans Wanglang Nature Reserve, Sichuan Province, China

High risk species imported into China from other countries Additional comments on paper Country of origin High risk species In addition to timber products, pulpwood Brazil Araucária (Araucaria angustifolia) IUCN-listed and pulp and paper imported from certain Native brazilwood/pernambuco (Caesalpinia echinata) CITES & IUCN-listed countries may also be high risk. For example, Jacarandá/Brazilian rosewood (Dalbergia nigra) CITES & IUCN-listed Maçaranduba (Manilkara huberi) although illegal logging in Indonesia has Jatobá (Hymenaea courbaril and Hymenaea parvifolia) declined significantly in recent years, there Ipê-roxo (Tabebuia impetiginosa) is a high likelihood that pulp and paper products imported from Indonesia—either Cameroon Ayous (Triplochiton scleroxylon) Iroko (Chlorophora spp.) directly or indirectly through Malaysia, Sapele (Entandrophragma cylindricum) IUCN-listed Vietnam and Singapore—have come from Bilinga (Nauclea spp.) IUCN-listed forests that have been unsustainably managed, Bubinga (Guibourtia spp.) which poses significant reputational risk. Democratic Wengé (Millettia laurentii) IUCN-listed Republic of Congo Sapele (Entandrophragma cylindricum) IUCN-listed Afrormosia (Pericopsis elata) CITES & IUCN-listed Recommendations for companies sourcing forest products from China Gabon Okoume (Aucoumea klaineana) IUCN-listed • Require suppliers to provide documentary Kevazingo/bubinga (Guibourtia tessmannii) evidence of legal procurement and Moabi (Baillonella toxisperma) traceability Indonesia Kapur (Dryobalanops aromatica) • Demand Forest Stewardship Council (FSC) Meranti, balau, bangkirai, lauan (Shorea spp.) IUCN-listed forest management or controlled wood Marsolok (Shorea platyclados) IUCN-listed and chain of custody certificates Ulin or Borneo ironwood (Eusideroxylon zwageri) IUCN-listed • Verify certified wood claims with relevant Keruing or Asian mahogany (Dipterocarpus spp.) IUCN-listed Merbau (Intsia bijuga) online databases Ramin (Gonystylus spp.) CITES & IUCN-listed • Contact personnel on the ground, such as local NGOs and forest authorities Malaysia Kapur (Dryobalanops aromatica) • Contact GFTN Meranti, balau, bangkirai, lauan (Shorea spp.) IUCN-listed Marsolok (Shorea platyclados) IUCN-listed Other resources: Ulin or Borneo ironwood (Eusideroxylon zwageri) IUCN-listed Keruing or Asian mahogany (Dipterocarpus spp.) IUCN-listed Global Forest & Trade Network Merbau (Intsia bijuga) IUCN-listed gftn.panda.org Ramin (Gonystylus spp.) CITES & IUCN-listed GFTN-China Myanmar (Burma) Teak (Tectona grandis) gftn.panda.org/gftn_worldwide/asia/china_ Rosewood (Dalbergia spp.) IUCN-listed ftn Himalayan yew (Taxus wallichiana) CITES & IUCN-listed CITES Papua New Guinea Taun (Pometia pinnata) Merbau (Intsia bijuga) cites.org/eng/disc/species.php Calophyllum inophyllum Bintangor ( ) APHIS and the Lacey Act Peru Mahogany (Swietenia macrophylla) CITES & IUCN-listed aphis.usda.gov/plant_health/lacey_act Spanish cedar (Cedrela odorata) CITES & IUCN-listed Cumarú (Dipteryx micrantha) Global Forest Registry Lupula (Ceiba pentandra) globalforestregistry.org Estoraque (Myroxylon balsamum) Chatham House Russian Far East Mongolian oak (Quercus mongolicus) CITES-listed illegal-logging.info Manchurian ash (Fraxinus mandshurica) CITES-listed Korean pine (Pinus koraiensis) CITES-listed IUCN Red List Amur linden (Tilia amurensis) iucnredlist.org Manchurian linden (T. mandshurica) Japanese elm (Ulmus japonica)

Colombia Information to support responsible trade in forest products

Colombia’s Amazon and coastal forests Common types of forest-level are home to some of the most diverse life illegalities on Earth, but illegal and unsustainable • Illegal logging-related corruption logging pose a significant threat to these • Logging by permissionaries (e.g., forests and the biodiversity they host. permits granted for legitimate volumes Fortunately, wood products buyers can of timber, but used for different play a key role in forest conservation harvests than were permitted) through their purchasing decisions. This fact sheet is designed to assist wood Other common illegalities products buyers with evaluating and • Forged/falsified documents reducing their sourcing risk in Colombia. • Corrupt actions by local forest agents FOREST FACTS Colombia’s 60,728,000 Regions with high levels of illegal • Illegal sawmilling and smuggling hectares (150,062,156 Colombia logging activity acres) of natural forest Bogota • Amazon region (between Peru and Points in the supply chain where cover 50% of the * Brazil) timber is likely to become “legal” country. • Choco Darien region (the Pacific • Wood is legalized before leaving the Colombia’s wood product coast between Ecuador and Panama) forest by obtaining harvest permits for exports totaled nearly specific volume and then harvesting US$43 million in 2013. India was the largest export market with High-risk species a different species/area 31%, followed by Panama, China and AMAZON REGION • Sawn timber placed on the black market Venzuela, but regional markets also • Spanish cedar (Cedrela odorata) is legalized with false documentation account for a significant share of exports. CITES Appendix III and then sold as legal in major cities Colombia has 132,249 hectares CHOCO REGION Primary government agencies (326,794 acres) of FSC-certified • Cativo (Prioria copaifera) forest (Nov. 2014). charged with enforcing timber legality • Abarco (Cariniana pyriformis) For more information about GFTN NATIONAL LEVEL in Colombia: gftn.panda.org/gftn_ • Ministerio de Ambiente y Desarrollo Primary forest product exports worldwide/latin_america/gftn_nacd Sostenible (Ministry of the Environment • Pulp and paper (mostly Pinus patula and Sustainable Development) WWF CONTACTS and Eucalyptus globulus) GFTN-Northern Amazon-Choco Darien REGIONAL LEVEL WWF Colombia/Miguel Pacheco • Furniture, doors, door and window • Corporaciones Autónomas Regionales Carrera 28 #5B-13 frames Cali, Colombia (Regional Autonomous Authorities) Tel: 202-293-4800 • Wood from natural forests and E-mail: [email protected] plantations (20% of Colombia’s timber Tel: 57- 2-558-2577 ext. 123 harvest is exported) GFTN-North America Linda K. Walker Note: Colombia has maintained an export ban on Email: [email protected] roundwood from natural forests since 1997. Tel: +1 202-495-4693 General Inquiry This document is for educational and informational purposes only and is not intended and should not be [email protected] construed as legal advice. Persons seeking legal advice on compliance with the Lacey Act or any other law should consult with a qualified legal professional. Colombia

is to promote traceability in timber timber in Colombia, led by the Ministry supply chains and support companies of Environment in establishing chain of custody for their products. Online resources Global Forest & Trade Network Recommendations for companies gftn.panda.org sourcing forest products from WWF-Colombia Choose Legal Timber Colombia elijamaderalegal.blogspot.com • Require suppliers to provide CITES documentary evidence of legal cites.org/eng/disc/species.php procurement, which may include ▪▪ management plan APHIS and the Lacey Act ▪▪ harvest permission document aphis.usda.gov/plant_health/lacey_act (Plan de Aprovechamiento) Global Forest Registry ▪▪ Salvocunducto (this is the trade globalforestregistry.org report, i.e., how much timber Chatham House has been authorized; this should illegal-logging.info be consistent with the harvest document) IUCN Red List iucnredlist.org • Demand a credible, third-party-verified Cotton top tamarin forest management and chain of © MARTIN HARVEY / WWF-CANON custody certificate Corruption Perceptions Index • Verify certified wood claims with 37 (94th out of 174 countries) relevant online databases • Contact personnel on the ground, such The Corruption Perceptions Index as local NGOs and forest authorities scores countries on a scale from 0 © 2015 WWF. All rights reserved by World Wildlife Fund, (highly corrupt) to 100 (very clean). It • Follow the progress of defining legal Inc. is a composite index, a combination of polls, drawing on corruption-related data collected by a variety of reputable institutions. http://www.transparency.org/ cpi2014/results

Additional comments Much of the illegal activity in the forest sector of Colombia is believed to be related to corruption in the government agencies managing the harvest permit system. In addition, in large management areas such as the Amazon region, there are too few resources for enforcement of management plans and legal application of harvest permits. In 2010, 24 groups (government agencies, private companies and NGOs, including WWF) signed the Pact for Legal Timber in Colombia. The agreement was endorsed by groups with unique expertise in addressing challenges at different points in the timber supply chain. Jaguars

The intention of the ongoing project © MICHEL GUNTHER / WWF-CANON GLOBAL FOREST &TRADE NETWORK

Indonesia Information to support responsible trade in forest products

Indonesia’s rain forests are home Primary forest product exports to some of the most diverse life on • Sawn timber Earth—including Sumatran tigers, • Pulp orangutans and pygmy elephants―but • Boards illegal and unsustainable logging pose a significant threat to these forests and Common types of forest-level the biodiversity they host. Fortunately, illegalities wood products buyers can play a key • Logging by concessionaires role in forest conservation through their • Logging by unlicensed companies purchasing decisions. This fact sheet is • Artisanal (small-scale) logging designed to assist wood products buyers FOREST FACTS with evaluating and reducing their • Logging of protected species Indonesia has 94,432,000 hectares sourcing risk in Indonesia. • Logging outside of licensed areas or (233,346,554 acres) of forest, covering in prohibited areas, including illegal 52% of the country. Regions with high levels of illegal logging in protected areas or zones Logging is permitted on 55% logging activity within licensed areas where logging is (48 million ha or 118 million acres) • East, Central and West Kalimantan prohibited (e.g., in riparian of the country’s remaining forests. Provinces areas) Indonesia exported US$3.6 billion of • Riau Province • Misclassification of species that are wood products and US$5.6 billion of being harvested in order to reduce tax • Jambi Province pulp and paper products in 2013. Japan, payments or because harvest of the China and the US are the largest • Papua and West Papua Provinces species is prohibited importers of Indonesian forest products. • Forged/falsified documents (e.g., Indonesia has 1,999,959 hectares High-risk species management plans that don’t reflect the (4,942,006 acres) of FSC-certified forest • Kapur (Dryobalanops aromatica) reality of the area under management, (Feb. 2015). • Meranti, balau, bangkirai, lauan wood sawn in different areas than what For more about GFTN-Indonesia: (Shorea spp.) IUCN lists nearly all is declared in wood transport permits, gftn.panda.org/gftn_worldwide/asia/ Shorea species as endangered or harvest authorizations from “ghost areas”) indonesia_ftn/ critically endangered Other common illegalities WWF CONTACTS • Marsolok (Shorea platyclados) GFTN-Indonesia • Ulin or Borneo ironwood • Illegal sawmilling and smuggling Joko Sarjito (Eusideroxylon zwageri) • Corrupt actions by public officials Gedung Graha Simatupang Tower 2 Unit C 7 Floor JI • Keruing or Asian mahogany Letjen TB Simatupang Kav 38 (Dipterocarpus spp.) IUCN lists the Points in the supply chain where Jakarta 12540, Indonesia timber is likely to become “legal” Email: [email protected] majority of Dipterocarpus species as Tel: 62 21 782 9461 endangered or critically endangered • When illegal timber is confiscated by GFTN-North America authorities, it goes to auction and • Ramin (Gonystylus spp.) CITES Linda K. Walker Appendix II becomes legal Email: [email protected] Tel: +1 202-495-4693 General Inquiry This document is for educational and informational purposes only and is not intended and should not be [email protected] construed as legal advice. Persons seeking legal advice on compliance with the Lacey Act or any other law should consult with a qualified legal professional. Indonesia

the legal timber circulating in the market custody certificates comes from natural forests that have • Verify certified wood claims with been harvested unsustainably, which relevant online databases poses considerable reputational risk. • Avoid sourcing from Asia Pulp & Paper Tracking timber to its origins through (APP) and APRIL traders and intermediaries is difficult in • Contact personnel on the ground, such Indonesia, as mandatory documentation as local environmental NGOs and forest of timber transport is cumbersome authorities and does not cover all situations. This documentation can be unreliable unless Online resources verified by a third party. Global Forest & Trade Network gftn.panda.org Recommendations for companies sourcing forest products from CITES Indonesia cites.org/eng/disc/species.php • Require suppliers to provide APHIS and the Lacey Act documentary evidence of legal aphis.usda.gov/plant_health/lacey_act procurement, which may include Orangutan with young ▪▪ validity certificates for logs (SKSKB or Global Forest Registry © ANUP SHAH / WWF-CANON Surat Keterangan Sahnya Kayu Bulat) globalforestregistry.org ▪▪ processed timber transportation Chatham House Primary government agencies charged invoices (FA-KO or Faktur Angkutan illegal-logging.info with enforcing timber legality Kayu Olahan) FOREST LEVEL IUCN Red List • Kementerian Kehutanan Republik ▪▪ log transportation invoices (FA-KB) iucnredlist.org Indonesia (Ministry of Forestry) ▪▪ Indonesian timber legality verification • Kepolisian Negara Republik Indonesia system SVLK (Police) ▪▪ CITES permits • Demand Forest Stewardship Council TRADE/EXPORT LEVEL © 2015 WWF. All rights reserved by World Wildlife Fund, • Customs officials (FSC) forest management and chain of Inc. • Kementerian Perdagangan Republik Indonesia (Department of Trade)

Corruption Perceptions Index 34 (107th out of 175 countries)

The Corruption Perceptions Index scores countries on a scale from 0 (highly corrupt) to 100 (very clean). It is a composite index, a combination of polls, drawing on corruption-related data collected by a variety of reputable institutions. http://www.transparency.org/ cpi2014/results

Additional comments There are no current statistics on illegal logging in Indonesia, though it is apparent that illegal logging and timber trade in the country has declined significantly over the last five years. Confirmation of legality is currently provided through Indonesia’s timber legality assurance system (Sistem Verifikasi Legalitas Kayu or SVLK). However, companies sourcing from Indonesia should be aware that much of Sumatran forest elephant

Lao PDR Information to support responsible trade in forest products

Covering 40% of Lao PDR’s land area, • Mersawa (Anisoptera spp.) forests directly support the livelihoods of • Hinoki cypress (Chamaecyparis spp.) two-thirds of the Lao population, and the Primary forest product exports forestry sector accounts for a significant • Industrial roundwood share of the country’s economy. As • Sawnwood its economy grows and demand for • Wood charcoal land and timber intensifies, Lao PDR’s valuable forest resources are rapidly Common types of forest-level succumbing to unsustainable and illegalities • Logging outside of licensed areas and in illegal logging. Forest loss in Lao PDR FOREST FACTS threatens not only many endangered protected areas According to a 2010 Vientiane wildlife species, but also the livelihoods • Logging of protected species or over- Lao government * of forest-dependent communities. harvesting assessment, Lao PDR Lao PDR has 9.5 million hectares of Fortunately, wood products buyers can • Artisanal (small-scale) logging forests (40.3% of land area), play a key role in forest conservation Other common illegalities all of which belong to the state. through their purchasing decisions. This • Irregularities in the award of log quotas In 2013, Lao PDR exported nearly fact sheet is designed to assist wood to private companies US$518 million in wood products. products buyers with evaluating and • Abuse of power by public officials China was the biggest export market reducing their sourcing risk in Lao PDR. • Operation of sawmills and processing with 84%, followed by Thailand and Japan with an additional 14%. Regions with high levels of illegal facilities without authorization Note: The Lao government banned the logging activities Points in the supply chain where export of all unfinished wood products Although illegal logging is a country-wide timber is likely to become “legal” in 2007, but numerous government- problem, it is concentrated in protected FOREST LEVEL issued exemptions allow the continued areas in the central and southern regions • Bribing public officials to secure log export of unprocessed and semi- processed wood. where the remaining populations of high- quotas or obtain other approvals value timber species such as rosewood • Overstatement of volumes in forest Lao PDR has 154,605 hectares (Dalbergia spp.) are located. (382,037 acres) of FSC-certified forest inventories and one chain of custody certificate High-risk species • Legal purchasing of confiscated illegal (Nov. 2014). • Rosewood (Dalbergia spp.) timber • Burma padauk (Pterocarpus • Misrepresentation of species or volumes WWF CONTACTS WWF-Greater Mekong: Thibault Ledecq macrocarpus) of usable timber WWF Cambodia Country Programme • Afzelia (Afzelia xylocarpa) • Incorrectly classifying fallow land and House #21, Street 322, Boeung Keng Kang I • Pyinkado (Xylia xylocarpa) village forestland as degraded or barren PO Box 2467, Phnom Penh, Cambodia [email protected] • Keruing (Dipterocarpus spp.) TRADE/EXPORT LEVEL GFTN-North America • Yellow balau (Shorea spp.) • Bribing public officials to obtain export Linda K. Walker • Merawan (Hopea spp.) permits Email: [email protected] Tel: +1 202-495-4693 • Merbau (Intsia spp.) • False customs declarations General Inquiry: [email protected] This document is for educational and informational purposes only and is not intended and should not be construed as legal advice. Persons seeking legal advice on compliance with the Lacey Act or any other law should consult with a qualified legal professional. Lao PDR

Primary government agencies charged Corruption Perceptions Index with enforcing timber legality: 25 (145th out of 175 countries) • Ministry of Agriculture and Forestry The Corruption Perceptions Index (MAF) - Responsible for the protection, scores countries on a scale from 0 management and development of (highly corrupt) to 100 (very clean). It production forests. is a composite index—a combination of • Ministry of Industry and Commerce polls—drawing on corruption-related (MoIC) - Oversees the sale, transport, data collected by a variety of reputable processing and export of logs, processed institutions. http://www.transparency.org/ timber and finished wood products. cpi2014/results • Department of Forestry (DoF) - Under Additional Comments MAF, responsible for managing Lao Under Lao PDR’s 2007 Forestry Law PDR’s production forest estate, oversees (currently under revision), timber forest production, designates areas for harvesting is permitted in three restoration and commercial plantations, circumstances: 1) inside demarcated and contributes to the monitoring production forest areas in line with of forest cover. Lead agency for FSC Indochinese Tiger approved sustainable management certification. © CONNIE LEMPERLE / WWF-GREATER MEKONG plans; 2) plantations; and 3) forest • Department of Forest Inspection (DoFI) areas allocated for construction of • Log lists and log sales contracts - Lead agency under MAF for forest and infrastructure or clearance for • Log sales receipts and tax receipts wildlife law enforcement, investigation agriculture. The Law also stipulates • Log removal and transport permits and prosecution. that plantations can only be established • Log delivery lists maintained by • Provincial Agriculture and Forestry on degraded or barren forest lands. In sawmills/processing facilities Office (PAFO)/District Agriculture and practice, however, weak governance • Business and operating licenses of Forestry Office (DAFO)/Provincial and the lack of a clear definition of sawmills/processing facilities Office of Forest Inspection (PoFI) - degraded or barren land has led to • Export permits and tax receipts The local offices of central agriculture widespread unsustainable logging and • CITES permits (if the timber species is and forestry agencies, charged with forest conversion—both legal and illegal— CITES-listed) managing, monitoring and controlling throughout the country. In addition, importers should: production forestry activities at • Demand Forest Stewardship Council provincial, district and village levels. Since 2007, Lao PDR has banned the (FSC) forest management and chain of export of all unfinished and semi- custody certificates finished wood products, although official • Verify certified wood claims with exemptions to the ban are common. The relevant online databases country’s wood processing industry is • Contact personnel on the ground, such still at an early stage of development, as local NGOs and forest authorities with limited incentives for expansion due to an opaque and unpredictable log quota Online resources allocation system and high demand Global Forest & Trade Network for raw materials from neighboring gftn.panda.org countries. Together, these factors CITES continue to drive a thriving cross-border cites.org/eng/disc/species.php trade in logs, much of it illegal, with APHIS and the Lacey Act Vietnam, China and, to a lesser extent, aphis.usda.gov/plant_health/lacey_act Thailand and Cambodia. Global Forest Registry Recommendations for companies globalforestregistry.org sourcing forest product from Laos Importers should ask thier suppliers to Chatham House provide the following documentation: illegal-logging.info • Evidence of legal procurement, which IUCN Red List may include logging licenses and iucnredlist.org Mekong River contracts © 2015 WWF. All rights reserved by World Wildlife Fund, Inc. © PETER DENTON / WWF-CANON GLOBAL FOREST &TRADE NETWORK

Malaysia Information to support responsible trade in forest products

The forests in Malaysia are mostly Primary forest product exports dominated by trees from the family of • Furniture Dipterocarpaceae. Malaysia is home to • Plywood some of the world’s most endangered • Sawntimber species, including the Malayan Tiger • Logs (Panthera tigris jacksoni), Orangutan (Pongo pygmaeus) and Asian and Common types of forest-level Borneo Pygmy Elephants (Elephas illegalities maximus). Illegal logging and forest • Logging in protected areas conversion pose a significant threat to • Logging without adequate FOREST FACTS high conservation value habitats and compensation to indigeous peoples for Malaysia has 18,480,000 hectares species. Fortunately, wood products their customary forest rights (45,665,074 acres) of forest, covering ✪ Kuala Lumpur buyers can play a key role in forest • Logging in conflict with indigenous about 56% of the peoples’ customary rights conservation through their purchasing country (FAO). Note: These numbers decisions. This factsheet is designed to • Logging by licensed parties outside do not include other tree crops, such as assist wood product buyers in evaluating licensed areas or felling of prohibited rubber, oil palm, cocoa and coconut. and reducing their sourcing risk in tree species Commercial harvesting of timber on a predetermined rotational cycle is Malaysia. • Logging by unlicensed parties permitted on 53% (10,870,000 hectares) of the country’s remaining forests (MTC). Regions with high levels of illegal Other common illegalities Malaysia’s total forest product exports logging activity • Sawmills operating without government reached nearly US$4.4 billion of wood • Sarawak and Sabah, especially along the permits products and over US$999 million of borders with Kalimantan • Sawmills hiring workers without proper pulp and paper products in 2012. The Asia Pacific region accounted for 74% of • Forest reserves in conflict with permits (e.g., illegal immigrants) Malaysia’s export of wood and 84% of its indigenous peoples’ land claims • Sawmills renting facilities to illegal export of pulp and paper products. The operators US is the single most important market High-risk species • Falsified documents for Malaysia outside the Asia Pacific. • Balau (Shorea spp.) IUCN lists nearly Malaysia has 519,765 ha (1,284,367 all Shorea species as Endangered or Points in the supply chain where acres) of FSC-certified forest (Nov. 2014). Critically Endangered timber is likely to become “legal” WWF CONTACTS • Ramin (Gonystylus spp.) CITES • When illegal timber is confiscated by GFTN-Malaysia Han Kwai Hin Appendix II authorities, it goes to auction and 1 Jalan PJS 5/28, Petaling Jaya Comercial Cntr • Chengal (Neobalanocarpus heimii becomes legal 46150 Petaling Jaya, Selangor • Karas/Gaharu (Aquilaria spp./Gyrinop Email: [email protected] gftn.panda.org/gftn_worldwide/asia/malaysia_ spp.) CITES Appendix II ftn/ • Merbau (Intsia palembanica) GFTN-North America Linda K. Walker Email: [email protected] Tel: +1 202-495-4693 This document is for educational and informational purposes only and is not intended and should not be General Inquiry construed as legal advice. Persons seeking legal advice on compliance with the Lacey Act or any other law [email protected] should consult with a qualified legal professional. Malaysia

Primary government agencies charged Additional Comments with enforcing timber legality: The Australian Illegal Logging Prohibition FOREST LEVEL Act (AILPA) of 2012 is now fully • Forestry Departments (FD) for implemented. The Act aims to reduce Peninsular Malaysia, Sarawak and the harmful environmental, social and Sabah economic impacts of illegal logging. • Sarawak Forestry Corporation (SFC) Importers in Australia will refer to the Malaysian Country Specific Guide TRADE/EXPORT LEVEL • Royal Customs Department (MCSG) for documentation of due • Ministry of International Trade and diligence. The MCSG contains guidance Industry (MITI) on legality documentation for Peninsular • Sarawak Timber Industry Development Malaysia, Sabah and Sarawak. According Corporation (STIDC) to the MCSG, the Export Licenses • Malaysian Timber Industry Board issued by these three regions shall be Rafflesia pricei (MTIB) used to verify compliance with legal © GERALD S. CUBITT / WWF-CANON requirements. • Sabah Forestry Department • Check the certified wood claims with relevant online databases The National Forestry Policy (NFP), Corruption Perceptions Index • Consult relevant government adopted by all states in Peninsular 52 (50th out of 175 countries) authorities and local environmental Malaysia and supported by Sabah and NGOs The Corruption Perceptions Index Sarawak, aims to promote sustainable harvesting and efficient utilization of scores countries on a scale from 0 Online resources forest resources in Malaysia. Despite the (highly corrupt) to 100 (very clean). It Global Forest and Trade Network government’s efforts to tighten legislation is a composite index, a combination of Sourcing.gftn.panda.org polls, drawing on corruption-related on forestry operations and trade, some of CITES data collected by a variety of reputable the country’s valuable lowland rain forests cites.org/eng/resources/species.html institutions. http://www.transparency.org/ have been converted to other uses such as cpi2014/results agriculture and oil palm plantations, and APHIS and Lacey Act most remaining forests have been logged. aphis.usda.gov/plant_health/lacey_act/ Global Forest Registry Determining legality of imported timber globalforestregistry.org is difficult due to the lack of proper documentation to establish legality. Chatham House There is no legal need to establish chain illegal-logging.info of custody back to the harvesting area in IUCN Red List many cases, and for most laws, chain of www.iucnredlist.org custody may only extend from forest to Forestry Department-Peninsular Malaysia mill and not onwards. www.forestry.gov.my

Recommendations for companies Sabah Forestry Department sourcing forest products from www.forest.sabah.gov.my Malaysia Sarawak Forestry Department • Check with the Forestry Departments www.forestry.sarawak.gov.my in Peninsular Malaysia, Sarawak and Sarawak Forestry Corporation Sabah, and the Malaysian Timber www.sarawakforestry.com Industries Board on the exporting company’s status (manufacturers have Malaysian Timber Industries Board to register with MTIB) www.mtib.gov.my • Demand Forest Stewardship Council Malaysian Timber Certification Council (FSC) forest management or controlled www.mtcc.com.my wood certificates and chain of custody certificates Borneo pygmy elephant © 2015 WWF. All rights reserved by World Wildlife Fund, Inc. © NATURELP.COM / JUAN CARLOS MUNOZ / WWF-CANON GLOBAL FOREST &TRADE NETWORK

Myanmar Information to support responsible trade in forest products

Myanmar is one of the most forested • Pyinkado (Xylia spp.) countries in Southeast Asia, home • Burmese rosewood (Dalbergia spp.) to diverse and valuable ecosystems. • Merbau (Intsia spp.) However, it also has one of the region’s • Ramin (Gonystylus spp.) highest deforestation rates, driven • Sepetir (Sindora spp.) by agricultural expansion, fuelwood Primary forest product exports collection and uncontrolled commercial • Industrial roundwood logging. Myanmar is an important • Sawnwood regional producer of roundwood and • Wood charcoal sawnwood, with products bound for the FOREST FACTS US and the EU through China, Malaysia, Common types of forest-level Myanmar’s natural illegalities forests cover Myanmar Thailand and Vietnam. However, much 30.8 million hectares * Naypyidaw of the domestically harvested timber • Artisanal (small-scale) logging (47% of total land area), exported from Yangon’s ports does • Logging of protected species, over- but dense closed forests cover harvesting less than 20% of total and area. not originate from legally designated About 22 million hectares of forest are production forests. Fortunately, wood • Unauthorized logging outside of state- designated as a permanent forest estate product buyers can play a key role managed production forests for production and protection objectives. in forest conservation through their Other common illegalities Myanmar is home to about 45% of the world’s natural teak (Tectona grandis) purchasing decisions. This fact sheet is • Abuse of power by public officials forests, and teak is one of its most designed to help buyers evaluate and • Irregularities in the award of harvesting valuable timber species. Exports of reduce their sourcing risk in Myanmar. sub-contracts to private companies wood products reached over US$1.59 billion in 2013, with industrial roundwood Regions with high levels of illegal • Unauthorised export of timber across accounting for 88% of this value. land borders instead of MTE channels logging activities Note: Effective April 2014, exports of logs, Concentrated illegal logging occurs Points in the supply chain where baulks, boules and hewn timber are prohibited by law. These products must be further processed in border areas, notably along the timber is likely to become “legal” locally before export. The operation of this ban Thai border (Kayin/Karen State and • Clearing of natural forests for timber remains unclear. Tanintharyi Region) and the Chinese production is legalized by designating India is the main buyer of teak and other border (Kachin State, Shan State and the forests as concessions for industrial hardwoods from Myanmar. Other importers Sagaing Region). Illegality can be difficult include China, Thailand, Bangladesh, commodity crop plantations Vietnam, Taiwan, Malaysia and Singapore. to discern because timber sourced from • Timber that does not originate from Myanmar has no FSC-certified forests or different areas is mixed in the same pool state-owned production forests or is CoC certificates. when exported from Yangon. otherwise illegal is filtered through MTE WWF CONTACTS High-risk species when it is exported from Yangon port WWF-Greater Mekong: Thibault Ledecq • Teak (Tectona grandis) • Unprocessed timber is illegaly WWF Cambodia Country Programme transported across borders and mixed House #21, Street 322, Boeung Keng Kang I • Keruing (Dipterocarpus spp.) PO Box 2467, Phnom Penh, Cambodia • Balau/Selangan batu (Shorea spp.) with MTE timber [email protected] • Burma padauk (Pterocarpus GFTN-North America Linda K. Walker macrocarpus) Email: [email protected] Tel: +1 202-495-4693 This document is for educational and informational purposes only and is not intended and should not be construed as legal advice. Persons seeking legal advice on compliance with the Lacey Act or any other law General Inquiry: [email protected] should consult with a qualified legal professional. Myanmar

Primary government agencies charged Although the Myanmar government with enforcing timber legality claims that it is sourcing exclusively FOREST LEVEL from state-managed forests, experts • The Ministry of Environmental believe that a large percentage of timber Conservation and Forestry (MOECAF) comes from natural production and - Responsible for forest management conversion forests where controls are and policy, including conservation and weak, allowing illegal timber to be mixed exploitation into supply chains. Notably, the Myanmar • Forest Department (FD) - Under government does not administer most MOECAF, authorizes harvesting and logging in natural forests outside of carries out post-harvest assessments state-managed forests (which are largely TRADE/EXPORT LEVEL teak-bearing). • Myanmar Timber Enterprise (MTE) - A In areas lacking central government state-owned enterprise under MOECAF, control, timber is still being smuggled to Myanmar forest © STEPHEN KELLY / WWF-US solely responsible for extraction, neighboring countries, especially from the following documentation: transport and trade of timber unofficial concessions in natural forests • Evidence of legal harvest, which may in ethnic areas. Teak from Myanmar Corruption Perceptions Index include harvest permits and harvest is also re-labelled in some regional 21 (156th out of 175 countries) verifications (by FD and MTE) importing countries as coming from The Corruption Perceptions Index • Evidence of legal processing and sales, domestic sources, allowing for processing scores countries on a scale from 0 which may include MTE sales records (if and onward export without revealing its (highly corrupt) to 100 (very clean). It the timber is controlled by MTE) and/ true origin. is a composite index, a combination of or FD authorization for the processing polls, drawing on corruption-related Systems exist to track timber from the (if the timber is auctioned by MTE to data collected by a variety of reputable forest of origin to the point of export, private companies), as well as Customs/ institutions. http://www.transparency.org/ but they are complex and only patchily Commerce authorization for the export cpi2014/results implemented. Recent assessments point • Transport permits to a lack of data on forest resources Additional Comments • CITES permits (if the species is CITES- Logs and rough-sawn timber account and production, limited management listed) capacities, and fragmented and for a vast majority of Myanmar’s export In addition, importers should: politicized decision making as the main of forest products, though this is likely • Verify any certified wood claims with hurdles to ensuring legality. to change with the recent export ban. relevant online databases Technically, the only legal route for Recommendations for companies • Contact personnel on the ground, timber exports from Myanmar is through sourcing from Myanmar such as local NGOs, Forest Department Yangon under the authority of MTE. The lifting of economic sanctions officials and officials of the Myanmar means—in principle—there is no longer Timber Merchants Association (MTMA) any legal barrier to trading in timber from Myanmar. However, some countries Online resources Global Forest & Trade Network still prohibit dealing with certain gftn.panda.org Myanmar individuals and entities, some of whom may be involved in the timber CITES trade. Buyers should contact their cites.org/eng/disc/species.php relevant government agency to review APHIS and the Lacey Act the sanctions list before making any aphis.usda.gov/plant_health/lacey_act transaction. This advice applies to US buyers in particular, as the MTE is on the Global Forest Registry US government’s Specially Designated globalforestregistry.org Nationals (SDN) list (http://www.treasury. Chatham House gov/resource-center/sanctions/SDN-List/ illegal-logging.info Pages/default.aspx). IUCN Red List Importers of processed wood products, iucnredlist.org such as wood panels and furniture, Young man on elephant should also ask their suppliers to provide © 2015 WWF. All rights reserved by World Wildlife © STEPHEN KELLY / WWF-US Fund, Inc. GLOBAL FOREST &TRADE NETWORK

Panama Information to support responsible trade in forest products

As a bridge between two continents, • Purple heart (Peltogyne purpurea) Panama’s tropical rainforests are • Cativo (Prioria copaifera) home to some of the most diverse life on • Fiddlewood (Vitex cooperi) Earth, including iconic species such as Note: Panama has maintained a ban on the the jaguar, the harpy eagle and Baird’s export of logs, stumps, roundwood or sawnwood tapir. These forests form part of the of any species from natural forests since 2002. Mesoamerican Biological Corridor and are particularly important for bird Primary forest product exports species migrating between North and • Rough sawn green tropical timber South America. With over 8,000 plant • Five- to ten-year-old plantation teak logs/ species and nearly 1,000 sighted bird blocks (from thinnings) FOREST FACTS species, Panama’s Darien region, which • Sawn timber from coniferous plantations Panama’s 3.8 million borders with Colombia, contains over (mainly Pinus caribaea) hectares (7.66 * Panama 41% of the country’s mature natural million acres) of • Tropical wood flooring and decking City forests and is part of WWF’s Choco- natural forest cover (balsam, ipe) Panama Darien priority Ecoregion; not only one 51% of the country. In 2013, Panama exported US$39 million of the most biologically diverse regions Common types of forest-level on Earth, but also home to several in wood products and nearly US$31 illegalities million in pulp and paper products. indigenous groups. However, illegal and • Subsistence permits and transport Panama has 43,413 hectares (107,276 unsustainable logging practices pose a guides granted on a discretionary basis acres) of FSC-certified forest (Nov. 2014). significant threat to these forests and (without required inspections) authorize WWF is currently working, in collaboration the biodiversity they host. Fortunately, overestimated volumes and species not with its strategic partners ANAM and the buyers of wood products can play a key found in the permit’s harvest area ITTO, to strengthen governance and traceability in Panama’s forestry sector. role in forest conservation through their • Accumulation of subsistence permits by purchasing decisions. This fact sheet is The project includes a pilot program local wood traders results in large-scale aimed at testing and refining a new designed to assist wood products buyers “legalization” of illegally harvested species traceability system, as well an outreach with evaluating and reducing their and volumes campaign for promoting sustainable forest management and responsible trade. sourcing risk in Panama. • Logging outside of licensed areas and in prohibited areas, including illegal logging For more information about GFTN in Regions with high levels of illegal in protected areas within licensed areas Panama: http://gftn.panda.org/gftn_ logging activity worldwide/latin_america/gftn_nacd/ • Illegal land clearing of natural forest for • Panama East and Darien regions cattle ranches (cleared wood sold) WWF CONTACTS (between Atlantic and Pacific coasts) GFTN-Northern Amazon and Choco-Darien Miguel Pacheco Other common illegalities Email: [email protected] High-risk species • Logging by unlicensed/unregistered Tel: +57 (2) 558-2577 Ext. 123 • Mahogany (Swietenia macrophylla) individuals (e.g., informal logging GFTN-North America • Cocobolo (Dalbergia retusa) by indigenous or afro-darienite Linda K. Walker Email: [email protected] • Spanish cedar (Cedrela odorata) communities) Tel: +1 202-495-4693 General Inquiry: [email protected] This document is for educational and informational purposes only and is not intended and should not be construed as legal advice. Persons seeking legal advice on compliance with the Lacey Act or any other law should consult with a qualified legal professional. Panama

Primary government agencies charged • Environmental Impact Assessment with enforcing timber legality (EIA) NATIONAL LEVEL ADMINISTRATION • Annual Operations Plan (POA) • ANAM - Autoridad Nacional del • Annual Harvest Permit (PAC) Ambiente (National Environmental Authority) • Guia de Transporte or transport permit (specifies how much timber JUDICIAL LEVEL has been authorized and should be • Ministerio Público - Fiscalía consistent with the PAC) Ambiental (Public Prosecutors Office Environmental Division) • Guia de Exportacion (export permit) REGIONAL LEVEL In addition, importers should: • Regional ANAM offices • Demand credible, third-party-verified ENFORCEMENT forest management and chain of • SENAFRONT (National Border Service) custody certificates Tapir • Policía Nacional (Police Force) • Verify certified wood claims with © ANTHONY B. RATH / WWF-CANON relevant online databases • Logging and smuggling of endangered Corruption Perceptions Index • Inquire if companies participate in species (e.g., mahogany or cocobolo) 37 (94th out of 175 countries) initiatives for responsible forestry • Lack of enforcement of export • Contact personnel on the ground, regulations (exports permits given for The Corruption Perceptions Index such as local NGOs and ANAM’s forest rough sawn/green timber where only scores countries on a scale from 0 authorities finished products are permitted) (highly corrupt) to 100 (very clean). It is a composite index, a combination of • Issuing of CITES export permits based polls, drawing on corruption-related Online resources on false declarations of origin (“dead data collected by a variety of reputable Global Forest & Trade Network tree” permits for previously felled trees) institutions. http://www.transparency.org/ gftn.panda.org cpi2014/results Points in the supply chain where CITES timber is likely to become “legal” Additional comments cites.org/eng/disc/species.php ADMINISTRATIVE LEVEL Much of the illegal activity is believed APHIS and the Lacey Act • Corrupt forest inspectors facilitate to be related to corruption in the aphis.usda.gov/plant_health/lacey_act harvest and transport permits without government agencies managing the Global Forest Registry inspections pre- and/or post-harvest harvest permit system. In addition, in globalforestregistry.org • The large number of permits overloads large management areas such as the the environmental authority’s ability to Darien region, there are too few resources Chatham House carry out the required inspections for for enforcement of management plans illegal-logging.info and legal application of harvest permits. permit approval (lending these permits Forest Legality Alliance for laundering of illegally harvested Recommendations for companies risk.forestlegality.org/countries/vietnam wood) sourcing forest products from Vietnam IUCN Red List FOREST LEVEL Importers should ask their suppliers to iucnredlist.org • Wood is legalized before leaving the provide the following documentation: forest by obtaining subsistence permits • General Management Plan (PGM) © 2015 WWF. ALL RIGHTS RESERVED BY WORLD WILDLIFE for specific volumes and then harvesting FUND, INC. a different species or area • Companies/permit holders falsify information (e.g., species and volumes) TRADE/EXPORT LEVEL • Larger volumes or different species are legalized when they go through check points because of the lack of appropriate control mechanisms for verification of harvest permits and transport guides • Containers for export are loaded with green timber near the extraction site, and then bypass check points and export controls through arrangements with corrupt enforcement agents Young Harpy eagle on his nest

Peru Information to support responsible trade in forest products

Peru’s Amazon forests are home to some Common types of forest-level of the most diverse life on Earth, but illegalities illegal and unsustainable logging pose • Logging by unlicensed companies a significant threat to these forests and • Illegal logging-related corruption the biodiversity they host. Fortunately, • Logging protected species wood products buyers can play a key • Logging outside of licensed areas and role in forest conservation through their in prohibited areas, including illegal purchasing decisions. This fact sheet is logging in protected areas within designed to assist wood products buyers licensed areas with evaluating and reducing their • Issuing CITES export permits based on sourcing risk in Peru. false documents and declaration FOREST FACTS Peru has vast tropical Regions with high levels of illegal forest cover spanning Other common illegalities logging activity 64.6 million hectares • Forged/falsified documents (159,630,076 acres); • Loreto (e.g., transport or export documents) 92% of Peruvian forests Peru • Ucayali • Corrupt actions by local forest agents are part of the Amazon. * Lima • Madre de Dios Peru had a timber product Points in the supply chain where export of US$152 million in 2013. Top five high-risk species timber is likely to become “legal” The top three export destinations were China, the US and Mexico. Peru also • Mahogany (Swietenia macrophylla) FOREST LEVEL exported nearly US$102 million of pulp CITES Appendix II • Documents are forged to misrepresent and paper products that year. Most of • Spanish cedar (Cedrela odorata) the origin of the wood these exports ended in Latin American CITES Appendix III FOREST OR FACTORY LEVEL regional markets. • Cumarú (Dipteryx micrantha) • Companies/concessionaires Peru has 743,513 hectares (1,837,260 • Lupuna (Ceiba pentandra) misrepresent information such as acres) of FSC-certified forest (Mar. 2015). species and volumes • Estoraque (Myroxylon balsamum) For more information about GFTN-Peru: gftn.panda.org/gftn_worldwide/latin_ Note: Peru has maintained a log export ban INSPECTION POINTS america/peru/ since 1972. • Volumes are forged WWF CONTACTS Primary forest product exports Primary government agencies GFTN-Peru • Logs charged with enforcing timber legality WWF-Peru/Rafael Venegas Calle Trinidad Moran 853 • Sawn wood FOREST LEVEL • Servicio Nacional Forestal y de Fauna Lince, Lima 11, Peru • Limited flooring and decking E-mail: [email protected] Silvestre – SERFOR (National Forest Tel: 511-440-5550 • Few finished products and Wildlife Service) GFTN-North America Linda K. Walker Email: [email protected] Tel: +1 202-495-4693 General Inquiry This document is for educational and informational purposes only and is not intended and should not be [email protected] construed as legal advice. Persons seeking legal advice on compliance with the Lacey Act or any other law should consult with a qualified legal professional. Peru

management plans and enforce forest • Verify certified wood claims with laws are challenged by the vastness and relevant online databases physical geography of Peru’s forests. • Inquire if companies participate in The lack of resources to enforce proper initiatives for responsible forestry documentation of legally harvested (e.g., GFTN, TFT) wood through the supply chain presents • Contact personnel on the ground, such a challenge to tracing products back to as local NGOs and forest authorities the forest of origin. Currently there are no reliable estimates Online resources for the scale of illegal activity in the forest Global Forest & Trade Network sector in Peru. Estimates from 2005 gftn.panda.org stated that up to 80% of Peruvian timber trade was suspicious in some way. CITES cites.org/eng/disc/species.php Recommendations for companies APHIS and the Lacey Act sourcing forest products aphis.usda.gov/plant_health/lacey_act • Require suppliers to provide evidence of legal procurement, which may include Global Forest Registry globalforestregistry.org ▪▪ verification by Organismo de Supervisión de los Recursos Chatham House Forestales y de Fauna Silvestre – illegal-logging.info Amazon river dolphin OSINFOR (entity in charge of natural IUCN Red List © NATUREPL.COM / MARK CARWARDINE / WWF-CANON resources and wildlife supervision) iucnredlist.org FOREST TRANSPORT ▪▪ authorization by DGFFS or ATFFS, • Permits are issued by the Dirección depending on the region Regional Forestal y de Fauna Silvestre • Demand a credible, third-party-verified – DGFFS (Forest and Wildlife Regional forest management and chain of © 2015 WWF. All rights reserved by World Wildlife Fund, office) or the Administrador Técnico custody certificate Inc. Forestal y de Fauna Silvestre – ATFFS (Technical Administration for Forests and Wildlife), depending on the region

Corruption Perceptions Index 38 (85th out of 175 countries) The Corruption Perceptions Index scores countries on a scale from 0 (highly corrupt) to 100 (very clean). It is a composite index, a combination of polls, drawing on corruption-related data collected by a variety of reputable institutions. http://www.transparency.org/ cpi2014/results

Additional comments Forest governance in Peru has been criticized for a lack of transparency in forest-related activities and inefficiency of forest harvest and transport permitting systems. Although local forest authority offices maintain records on sawmills and location of harvest, this information is not currently integrated into national forest authority systems, nor is it available to the public. Furthermore, Ocelot the personnel needed to review forest © ANTHONY B. RATH / WWF-CANON GLOBAL FOREST &TRADE NETWORK

Russian Far East Information to support responsible trade in forest products

Russia’s temperate forests in the Common types of forest-level Russian Far East are important areas illegalities for biodiversity conservation – home to • Logging by unlicensed loggers the endangered Amur tiger and Amur • Logging beyond authorized harvest leopard. But illegal and unsustainable areas, including protected areas logging poses a significant threat to • Logging above permitted volumes on these forests and the biodiversity they authorized logging sites host. Fortunately, wood products buyers • Harvesting unauthorized species (e.g., can play a key role in forest conservation high-quality timber instead of through their purchasing decisions. sick, dying and poorly-formed trees This fact sheet is designed to assist authorized for harvest) FOREST FACTS wood products buyers with evaluating • Logging in protected areas Russia has the ✪ Moscow and reducing their sourcing risk in the • Commercial logging under the guise of largest forest area in

Russian Far East. logging to meet local community needs the world with 809 million hectares (1.99 billion acres) of

Regions with high levels of illegal Other common illegalities forests; the area managed by the Federal Forestry Service is 797 million ha (1.97 logging activities • Under-declaration of volumes billion acres) (Federal State Statistics • Primorsky Kray • Under-declaration of value (including Service 2011). • Khabarovsky Kray false labelling of species)

• Amurskaya Oblast • Corrupt actions by local forest agents Nearly 77% of Russia’s total forested area is in Siberia (60%) and the Far East • Zabaykalsky Kray • Customs agents do not check legality of (17%). roundwood High-risk species In 2013, Russia exported over US$7.3 • Mongolian oak (Quercus mongolica) Points in the supply chain where billion in wood products and nearly US$3.2 billion in pulp and paper products. CITES-listed timber is likely to become “legal” China was Russia’s largest export market, • Wood is legalized before leaving the • Manchurian ash (Fraxinus mandshurica) accounting for 30% of wood products and CITES-listed forest by falsifying documents 22% of pulp and paper products. • Amur linden (Tilia amurensis) • Wood placed in the market is legalized Russia has 37,725,963 hectares • Manchurian linden (T. manshurica) with false documentation and then sold (93,222,885 acres) of FSC-certified forest, • Wood becomes legal after sawmilling • Japanese elm (Ulmus japonica) mainly softwoods (Nov. 2014). • Korean pine (Pinus koraiensis) (e.g., customs officers have no right to CITES-listed check the origin of sawnwood if other WWF CONTACTS documents are correct) GFTN-Russia Primary forest product exports WWF-Russia/Alexander Voropaev • Roundwood Nikoloyamskaya ul., 19-3 • Sawnwood Moscow, 109240, Russia e-mail: [email protected] • Wood-based panels Tel: 7 495 959 00 27 GFTN-North America Linda K. Walker Email: [email protected] Tel: +1 202-495-4693 General Inquiry This document is for educational and informational purposes only and is not intended and should not be [email protected] construed as legal advice. Persons seeking legal advice on compliance with the Lacey Act or any other law should consult with a qualified legal professional. Russian Far East

Primary government agencies charged with enforcing timber legality FOREST LEVEL • Federal Supervisory Natural Resources Management Service • Ministry of Internal Affairs • Federal Taxation Service • Regional authorities TRADE/EXPORT LEVEL • Ministry of Internal Affairs • Federal Customs Service • Regional authorities

Amur or Siberian tiger

Corruption Perceptions Index © CHRIS MARTIN BAHR / WWF-CANON 27 (136th out of 175 countries) logged and traded. It is estimated that suppliers, including: The Corruption Perceptions Index approximately 75% of hardwood timber - The Forest Declaration (лесная scores countries on a scale from 0 from this region is illegally logged декларация), which specifies logging (highly corrupt) to 100 (very clean). It (harvested by small companies which area, volumes, species and name of the is a composite index, a combination of hold small leases and are usually not lessee polls, drawing on corruption-related certified). - The Lease Contract (договор аренды), data collected by a variety of reputable signed by the provincial government Traceability for hardwood timber is institutions. http://www.transparency.org/ - The Goods Transport Document (for all difficult, partly because of the complex cpi2014/results goods transported via roads) and ambiguous flow of wood products 2. Field verification: documents provided from the Russian Far East through China Additional Comments by suppliers need to be field checked to the US and EU markets. Logs extracted Illegal timber in the Far East Region by an independent third party with from the Russian Far East are almost mainly comes from two sources. Firstly, experience in legality verification exclusively exported to China where they logging in protected areas or prohibited - If no legality confirmation is possible, are processed into furniture and sold to areas (e.g., parks, steep slopes and avoid furniture, flooring and other both Chinese and Western markets. riparian areas) has become a serious issue wood products made from hardwoods because legal commercial timber zones that could be of Russian Far East origin Recommendations for companies are already depleted. Secondly, there are (especially oak, ash, elm and linden) sourcing from the Russian Far East widespread cases of illegal activities by Global companies that are importing Other Resources companies and state agencies logging on Chinese furniture and flooring made from WWF Russia – Keep it Legal authorized sites, including over-logging Far Eastern hardwoods, which may be wwf.ru/resources/publ/book/eng/409 and logging of export-quality species in manufactured and exported from Russia places where only intermediate logging or China, face high risk of purchasing Global Forest & Trade Network is permitted. In addition, endangered products made from illegally obtained gftn.panda.org species, such as Korean pine (Pinus wood. Firms can mitigate these risks by CITES koraiensis), which is listed under CITES adopting the following approaches: cites.org/eng/disc/species.php and illegal to harvest, are still being • Verify certified wood claims with relevant online databases APHIS and the Lacey Act • For products made with Russian oak, aphis.usda.gov/plant_health/lacey_act ash, elm or linden, exclusively purchase Global Forest Registry wood products certified by the Forest globalforestregistry.org Stewardship Council (FSC), realizing Chatham House the supply of certified Russian Far illegal-logging.info Eastern hardwoods is extremely limited • If FSC is not available, establish IUCN Red List rigorous legality confirmation systems. iucnredlist.org Such a system should adhere to the following principles: Pacific Coast, Southern Primosky Province, Far East, Russian Federation 1. Documentation: request stimber © 2015 WWF. All rights reserved by World Wildlife Fund, © HARTMUT JUNGIUS / WWF-CANON logging authorization documents from Inc. GLOBAL FOREST &TRADE NETWORK

Vietnam Information to support responsible trade in forest products

Vietnam has emerged as an important High-risk species player in the wood processing industry, • Yellow balau (Shorea spp.) exporting finished wood products like • Burma padauk (Pterocarpus indoor and outdoor furniture to around macrocarpus) 120 countries. Vietnam’s dry evergreen, • Sua (Dalbergia tonkinensis) montane and rain forests are home to • Keruing (Dipterocarpus spp.) some of the most diverse life on Earth, but much of its original forest cover • Pyinkado (Xylia xylocarpa) was lost in the second half of the 20th • Lim (Erythrophleum fordii) century to unsustainable exploitation. • Sepetir (Sindora spp.) FOREST FACTS Vietnam has 13.95 million In 1992, Vietnam responded to a * Hanoi Forest product exports hectares of forest, of which dramatic decline in its forest cover by 10.4 million hectares are imposing laws to limit logging in natural • Wooden furniture (outdoor and indoor) considered natural forest. forests and launching nationwide and parts (including wooden seats) Vietnam’s total wood exports reforestation programs. As a result, • Hardwood wood chips reportedly reached US$6.2 Vietnam local manufacturers began relying on billion in 2014. It is the sixth- largest exporter of wooden other countries for their timber supply. Common types of forest-level furniture in the world. This demand has fueled illegal and illegalities • Artisanal (small-scale) logging Vietnam was China’s fifth-largest source of unsustainable logging in some key forest wood and articles of wood in 2013. Over regions such as the Lower Mekong. • Logging of protected species 51% of China’s hardwood chip imports by Fortunately, wood products buyers can • Logging outside of licensed areas and in value in 2013 came from Vietnam while 81% of Vietnam’s roundwood and play a key role in forest conservation protected areas sawnwood exports went to China. through their purchasing decisions. This • Logging more than allowed volumes Note: There is a ban on exporting logs and sawntimber fact sheet is designed to assist wood from natural forests. However, logs and other primary wood products from plantations and logs imported for products buyers with evaluating and Other common illegalities re-export can be exported. reducing their sourcing risk in Vietnam. • Abuse of power by low-level and mid- The country has 133,823 hectares (330,683 level public officials (e.g., demanding acres) of FSC FM-certified forest and 530 Regions with high levels of illegal bribes) FSC CoC certificates (Mar. 2015). logging activity • Illegal sawmilling For more information visit: gftn.panda.org/ • Central highland and coastal provinces gftn_worldwide/asia/vietnam_ftn including Kon Tum, Gia Lai, Dak Lak, Points in the supply chain where WWF CONTACTS Quang Nam, Quang Tri, Nghe An and timber is likely to become “legal” GFTN-Vietnam Ha Tinh (Note: From 2014 onwards, the WWF-Vietnam / Dr. Le Thuy Anh FOREST LEVEL Vietnamese government has decided to D13, Thang Long International Village stop all harvesting in natural forests, • Wood is legalized when harvest permits Cau Giay Dist., Hanoi IPO Box 151 are issued in advance for the forest area Hanoi, Vietnam except for two companies holding FSC Email: [email protected] FM certificates for natural forests.) to be harvested and for wood volume. Tel: +84915066668 GFTN-North America Linda K. Walker Email: [email protected] This document is for educational and informational purposes only and is not intended and should not be Tel: +1 202-495-4693 construed as legal advice. Persons seeking legal advice on compliance with the Lacey Act or any other law General Inquiry: [email protected] should consult with a qualified legal professional. Vietnam

Additional comments • Timber delivery lists issued by Vietnamese companies source wood from sawmills more than 100 countries worldwide, • CITES permits (if the timber species is including countries with a high risk of CITES-listed) illegality, such as Laos, Cambodia and In addition, importers should: Myanmar. The Vietnamese importers • Demand a Forest Stewardship Council of natural timber with a high risk of (FSC) forest management and chain of illegality sell mostly to China and other custody certificate regional markets, and most are indoor furniture manufacturers. Also, there are • Verify certified wood claims with companies sourcing from plantations. relevant online databases Plantation timber imports come • Contact personnel on the ground, such primarily from South America, Southeast as local NGOs and forest authorities Asia and South Africa, and much of it (an estimated 90%) is FSC-certified. Online resources Global Forest & Trade Network Recommendations for companies gftn.panda.org sourcing forest products from Vietnam CITES Gibbon Importers should ask their suppliers to cites.org/eng/disc/species.php © B. HAYES / WWF-US provide the following documentation: TRADE/EXPORT LEVEL • Evidence of legal procurement, which APHIS and the Lacey Act • Local traders/importers (e.g., through may include harvest permits and aphis.usda.gov/plant_health/lacey_act harvest verifications (the latter are sophisticated forged documentation) Global Forest Registry issued by local forest rangers) • Sawmill (e.g., through auctioning of globalforestregistry.org confiscated timber to sawmills) • VAT invoices (in Vietnam, only registered businesses can issue VAT Chatham House illegal-logging.info Primary government agencies charged invoices; farmers and community with enforcing timber legality forest producers cannot) Forest Legality Alliance • People’s committees (Ủy ban nhân dân) • Sales contracts for timber between risk.forestlegality.org/countries/vietnam at province and community levels issue forest company and sawmill or IUCN Red List the approvals for forest harvesting of secondary wood processor iucnredlist.org natural forest, state enterprises, and • Transport permits (depending on plantations province) © 2015 WWF. ALL RIGHTS RESERVED BY WORLD WILDLIFE • The Department of Forest Protection FUND, INC. (Cục Kiểm Lâm) at the central government level (and its branches at province and district levels) oversees logging, transportation, monitoring and handling of wood to the point of sale • The Ministry of Industry and Trade (Bộ Công Thương) and the General Department of Customs (Tổng cục Hải quan) oversee imports and exports of wood and wood products

Corruption Perceptions Index 31 (119th out of 175 countries) The Corruption Perceptions Index scores countries on a scale from 0 (highly corrupt) to 100 (very clean). It is a composite index, a combination of polls, drawing on corruption-related data collected by a variety of reputable institutions. http://www.transparency.org/ cpi2014/results Tropical forest in northern Vietnam

GFTN Contact

Linda K. Walker Director, GFTN - North America [email protected] +1 202-495-4693

List of regional contacts is available at gftn.panda.org

Why we are here To stop the degradation of the planet’s natural environment and to build a future in which humans live in harmony with nature. www.worldwildlife.org