TRAFFIC/GFTN Legality Framework Ulrich Malessa, TRAFFIC Ian Gray, WWF GFTN

Background to TRAFFIC & GFTN GFTN Works towards eliminating illegal logging and driving improvements in forest management Facilitates trade linkages and partnerships Provides support for committed companies TRAFFIC Aims to enhance transparency of the timber trade Developed the legality framework for GFTN Analysis and recommendations to improve Customs controls CITES

The Problem – What is Legal? No agreed definition Increasing attention on legality Governmental initiatives e.g. EC and US Public and private procurement policies Legality verification services Capacity in multi-stakeholder processes Demands from business for clarity GFTN need - common approach but based on local legislation Funding: EC Programme on Environment in Developing Countries and Programme on Tropical Forests and other Forests in Developing Countries

Legality Framework - Goals Support efforts to improve governance and reduce illegal logging Provide sub-set of forest-focused laws and regulations in a clear and accessible manner Help regulators, companies, GFTN members verify what is legal Support the development of a more consistent and common framework for assessing legality Provide a tool covering the whole supply chain

Common Legality Framework: Principles 1.Access, use rights and tenure 2.Harvesting regulations 3.Transportation of logs and wood products 4.Processing regulations 5.Import and export regulations 6.Environmental regulations 7.Conservation regulations 8.Social regulations 9.Taxes, fees and royalties 10.Subcontractors and partners (specific to Africa)

E.g. Principle 1: Access, use rights and tenure Criteria: 1.1The company is legally registered with the relevant administrative authorities 1.2Use, access and tenure rights applications are subject to stated pre- conditions within the laws and regulations 1.3Clear evidence of forest and/or land use, access and tenure rights shall be demonstrated in accordance with laws and regulations 1.4Use, access and tenure rights are subject to stated conditions within the laws and regulations

Indicators and guidance notes/verifiers – specific to each country Example for the Central African Repulic Principle 1: Criterion 1.1: The company is legally registered with the relevant administrative authorities Indicator 1.1.1: Registration with the economic, social and forest authorities Guidance notes/Verifiers: Verify that documentation held by the company includes: (example for CAR) An official agreement to exercise commercial activities in CAR issued by the Ministry of Trade and the Registry of the Commercial Court Certificates, licences and written evidence of tax payment issued by the General Directorate for Taxes Documentary evidence of contributions to the Social Security Agency.

Process of developing the Common Legality Framework Needs assessment Draft Principles for agreement by stakeholders Develop criteria, indicators, guidance notes and verifiers Identify legal references Stakeholder consultation Revision of PC&I Harmonization to develop a single common legality framework Peer review Validation workshop in Republic of Congo Review by lawyer in each target country Review by expert auditor

Framework uses Advice for producer and trade participants on what legality means in 7 countries Commercial legality verification schemes Certification standards development A reference for discussions on legality Capacity building for stakeholders defining legality

WWF and TRAFFIC are grateful for funding from the EC Programme on Environment in Developing Countries and Programme on Tropical Forests and other Forests in Developing Countries, in support of this project.