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Keep It Legal Country Guide Keep it Legal Country Guide PRACTICAL GUIDE FOR VERIFYING TIMBER ORIGIN LEGALITY RUSSIA THIRD EDITION Moscow 2010 About WWF,Russia Forest Programme WWFRussia Programme is part of the global WWFInternational Forest Programme. Its aim is to conserve Russian forests through sustainable forest management and restoration. The Programme objectives are to: • promote sustainable forest management; • improve forest legislation; • prevent illegal logging; • conserve biodiversity and high value conservation forests; • support responsible forest business; • implement forest carbon projects; • promote voluntary Forest Stewardship Council certification. References: Keep It Legal Country Guide: Practical Guide for Verifying Timber Origin Legality. Russia. 2010, WWF Russia. Third edition. Edited by Josh Newell, Nikolay Shmatkov, Yury Shuvaev. This publication was developed by Nadezhda Efimova, Elena Kopylova, Elena Kulikova, Josh Newell, Viktor Pankratov, Nikolay Shmatkov, Yury Shuvaev and Alexander Voropaev. The authors gratefully acknowledge the assistance of Anna Belyakova, Roman Kurakin and Tatyana Yanitskaya (WWF Russia) and other colleagues in the preparation of this document. Peer review by Mikhail Kreyndlin and Alexey Yaroshenko (Greenpeace(Russia), Pavel Trushevsky (Forest Certification Ltd.). Cover photos by Mikhail Guriyanov, Nikolay Shmatkov, Dariya Lugonaya, Galina Gorbacheva English version technically edited by Josh Newell and Daniel Newell Translated by Nikolay Shmatkov Computer design by Ekaterina Kozlova This publication is developed with “WWF(IKEA Partnership on Forests” project support This publication is distributed free of charge Circulation: 500 copies © WWF Russia, 2010 CONTENTS INTRODUCTION ................................................................... 4 LIST OF TERMS AND ABBREVIATIONS ............................ 29 1. FORESTRY IN RUSSIA ....................................................... 5 LIST OF ANNEXES ................................................................30 1.1. Brief Outline of Russian Forests and the Russian Annex 1. Tree and Shrub Species Forbidden From Harvest Forest Sector ................................................................. 5 at the all Territory of the Russian Federation ...................... 30 1.2. Challenges of the Russian Forest Sector .........................6 Annex 2. Trees and Shrubs Listed in Regional Red Data 1.3. The Forest Management and Forest Use Framework ..... 6 Books of Subjects of the Russian Federation ....................... 31 Annex 3. Russian Timber Illegality Risk Assessment Scale ........ 33 2. ILLEGAL LOGGING IN RUSSIA ....................................... 8 Annex 4. Forest Area Rent Agreement ...................................... 37 Annex 5. Forest Stands Sale Agreement .................................... 45 2.1. Scale and Origins of Illegal Logging in Russia ................ 8 Annex 6. Forest Pathology Act .................................................. 50 2.2. Trade with China and Illegal Logging ............................ 8 Annex 7. Technological Map .................................................... 53 2.3. Forms of Illegal Harvesting ............................................ 9 Annex 8. Felling Area Allocation Plan ...................................... 56 2.3.1. Felling of Protected Species .................................10 Annex 9. Spreadsheet for Financial and Material Assessment 2.3.2. Logging in Protected Areas ................................. 10 of a Felling Area ................................................................. 58 2.3.3. Bogus “Improvement” Harvesting ...................... 10 Annex 10. Forest Use Report .................................................... 60 2.3.4. Felling in Breach of Permit Annex 11. Forest Regeneration and Reforestation Report ......... 64 and/or Technological Conditions ........................ 11 Annex 12. Forest Declaration ................................................... 67 2.3.5. Illegal Trading and Corruption ............................11 Annex 13. Timber Sales Contract .............................................. 70 2.3.6. Smuggling and Laundering of Illegally Annex 14. Sample Form Across All Industries for Russia .......... 75 Harvested Timber ................................................12 Annex 15. Rail Transportation Bill ............................................ 77 2.3.7. Commercial vs. Subsistence Timber Annex 16. Specification ............................................................ 79 Harvesting by Local Communities ...................... 12 Annex 17. Passport of the Deal ................................................. 80 2.4. Measures taken by the Government of the Russian Annex 18. Cargo / Transit Customs Declaration Form ............. 82 Federation to Tackle Illegal Logging ............................ 12 Annex 19. Domestic Market Invoice ......................................... 84 Annex 20. Phytosanitary Certificate .......................................... 85 3. DOCUMENTS TO PROVE TIMBER ORIGIN AND Annex 21. International Transport Way(Bill .............................. 86 LEGALITY .............................................................................. 14 Annex 22 (a). List of Forest Products Obligatory for Licensing when Exported ................................................................... 88 3.1. Key Obligatory Documents to Prove Russian Timber Annex 22 (b). License for Forest Products Export ..................... 89 Origin and Legality ...................................................... 14 Annex 23. A Model Questionnaire ............................................ 90 3.2 Brief Outline of Key Documentsfor Timber Origin Annex 24. Recommendations for Purchasers for Verifying and Legality Verification .............................................. 14 the Russian Timber Origin Legality .....................................94 3.2.1 Rental Agreement ............................................... 14 Annex 25. Scenario Tables for Suppliers’ Risk Ratings .............. 97 3.2.2 Sale Agreement ................................................... 16 3.2.3 Technological Map and Felling Area REFERENCE AND USEFUL SOURCES ............................ 100 Allocation Plan ....................................................16 3.2.4 Spreadsheet of the Material and Financial Assessment of a Felling Area ................................16 3.2.5 Forest Declaration ...............................................16 3.2.6 Forest Use Report and Report on Forest Regeneration ....................................................... 17 3.2.7. Transportation Bill ..............................................17 4. AVOIDING TRADE IN ILLEGAL TIMBER ......................18 4.1. Step 1 — Risk Rate Suppliers ....................................... 18 4.1.1 Certified Timber and Timber Products .................18 4.1.2. Non(Certified Timber and Timber Products ....... 18 4.2. Step 2 — Select a Verification Approach .......................18 4.3. Step 3 — Make Further Queries Where Needed ........... 19 4.4. Step 4 — Improve Traceability and Verify Legality ........19 4.4.1. Working with Suppliers to Improve Traceability ...19 4.4.2. Key Points in Reducing Risk .............................. 20 4.5. Sources of Help in Russia ........................................... 20 5. EXAMPLES — TO ILLUSTRATE DIFFERENT APPROACHES TO RISK .................................................... 26 5.1. Company X buying DIY Products from a Middle(Sized Russian Manufacturer ......................... 26 5.2. Pulp and Paper Company Y Buying Pulpwood From a Large Russian Wood Supplier .......................... 27 INTRODUCTION This Country Guide is primarily designed to help keep mend using this practical guide to keep illegally illegally(sourced timber out of supply chains that begin sourced timber out of supply chains. in Russia. It is targeted specifically at those who pur( chase timber products (sheet materials, sawn timber, This guide looks at the existing regulatory structures pulp, paper, furniture, and other wooden manufac( and how these are being undermined by illegal prac( tured goods) from Russia. tices. It then goes on to propose a range of tactics spe( cific to situations found in Russia for identifying, This Guide is prepared for use in conjunction with the restricting, and ultimately stopping any illegal timber WWF Global Forest & Trade Network publication or timber products from entering your supply chains. “Keep it Legal”. The Keep it Legal manual (KIL) is an This practical guide maps out a practical way forward. international guide for timber buying organizations that wish to keep illegal timber out of their supply This guide has been developed specifically for those chains, and provides a generalized methodology to who purchase Russian timber and timber products. ensure legality.1 However, it may also help Russian producers to better understand responsible international purchase Country Guides for major timber exporting nations as requirements, as well as demonstrate what activities Indonesia and Malaysia have already been developed; could satisfy these requirements on the national level. a Country Guide for China is also being prepared. Moreover, the guide can be used by organizations and These Country Guides have a unified structure and are agencies of the Russian forest sector in order to designed to be universal guidebooks to identify and improve the legal basis for Russian timber origin since prevent the infiltration of illegal timber into supply
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