1. Version:19 Sep 2008
Transfer System
FSC-STD V2 Key Topic

2. Definition of the Transfer System
Contents 1
Definition of the Transfer System 2
Defining FSC Product Groups 3
Inputs to the Transfer System 4
The System 5
Sales & FSC Claims 6
FSC-labeling 7
Exercises

3. 1. Definition
1 of 3 optional systems for making FSC Product Group claims
Raw material claim is carried forward
Segregation is required
Shall be used for FSC Pure
Shall be used for FSC Recycled 100%
Shall be used for trading finished products
Shall be used for organizations without sites
Typical for
Brokers, traders
Distributors, wholesalers
Printers, paper merchants
3 possible systems are Transfer, Percentage, Credit.
Companies may implement more than one system for different product groups.
Brokers, traders can implement the percentage or credit system for inputs (that are not finished products) going through one physical site.
Printers can implement the percentage system.

4. 1. Definition Important Terms: Conversion Factor (C.F.)
Ratio between input and output volume of a product/component
Controlled Wood (CW)
FSC CW – non-FSC virgin material controlled by an FSC-certified organization
Controlled material – non-FSC virgin material controlled by the organization using the input
Eligible Input
Inputs eligible for use in FSC Product Groups (see material category)
FSC Claim
FSC Pure, FSC Mixed X%, FSC Mixed Credit, FSC Recycled X%, FSC Recycled Credit, FSC Controlled Wood
Material Category
Category of inputs: FSC Pure, FSC Mixed, FSC Recycled, FSC CW, Controlled material, post-consumer reclaimed, pre-consumer reclaimed (Uncontrolled material is ineligible)
Minor Component
Uncontrolled wood-based component <5% of the product volume and specifically approved for use in an FSC Product Group
Site
A single physical unit located at one locality geographically unique from other units
Post-consumer Reclaimed (PCR)
Reclaimed from a consumer or commercial product that has gone through its final end-use

5. 2. Defining FSC Product Groups
Transfer system provides flexibility
Products grouped based on
General product type,
Species, &
FSC claim
Product groups may fluctuate based on customer order and availability of FSC inputs in the marketplace
General product groups shall be approved by the CB and represented in the Product Group Schedule (PGS)
FSC Product Group
Product Type
FSC Claim
Species
Printed material
3259
FSC Mixed
N/A
FSC Recycled
Restrictions are lessened in the transfer system since there is no basis for obtaining credit or calculating a percentage based on inputs.
Certain companies (like brokers, custom manufacturers) may have product groups that change with every customer order. The PGS can be general by listing the main category of product and various species. Then a clarifying statement is good to qualify the generalities, e.g., products and species vary depending on customer order and availability of supply as FSC-certified.

6. All eligible inputs are possible:
Input Material Category
Potential FSC Claims
FSC Pure
FSC Pure, FSC Mixed
FSC Mixed
FSC Recycled
FSC Mixed, FSC Recycled
FSC Controlled Wood
FSC Mixed, FSC Controlled Wood
Post-consumer / Pre-consumer Reclaimed
Controlled Material
Minor Component
This table shows where inputs may be applied to final product group claims. See information in later slides regarding use of different input material categories for one product group and determining the FSC claim.
It is possible to make FSC CW claims for any eligible inputs/combinations

7. Brokers, traders, distributors, etc.
4. The System
Brokers, traders, distributors, etc.
(No product transformation)
Companies of this category will most often be under the transfer system, however, it is an option to assemble mixed units using the percentage or credit system.

8. Inputs of the same material category are transformed
4. The System
Inputs of the same material category are transformed
(or combined), e.g.,
Input Material Category
FSC Claim
FSC Pure
FSC Mixed Credit
FSC Recycled 85%
Controlled material
FSC Controlled Wood
This is a very simple scenario and is most common when only one type of input is used for the product, e.g., lumber input for solid wood moulding.
“or combined” refers to operations that do not transform the product in a production system, but combine the same input type which may be from different suppliers. E.g., a distributor may combine existing inventory of FSC Mixed Credit chips with a new unit of FSC Mixed Credit chips to complete a customer order.

9. Inputs from different material categories are transformed
4. The System
Inputs from different material categories are transformed
(or combined), e.g.,
Input Material Category
FSC Claim
FSC Pure + FSC Mixed 70%
FSC Mixed 70%
FSC Recycled 100% + post-consumer
FSC Recycled 100%
Controlled material + FSC CW
FSC Controlled Wood
When different inputs are used the company must choose the “lowest” claim for its FSC product group. See slide later in presentation for determination of lower claims.
“or combined” refers to operations that do not transform the product in a production system, but combine the same input type but different input material categories. E.g., a distributor may combine FSC Pure and FSC Mixed lumber for a FSC Mixed unit of lumber.
It is possible to use the transfer system with non-FSC inputs. The most common scenarios may be:
Controlled material input = FSC CW product group
Post-consumer reclaimed input = FSC Recycled product group
FSC Recycled + Post-consumer reclaimed = FSC Recycled
[Note: If the organization prefers to re-calculate the percentage claim, the Percentage System shall be used]

10. Ensuring traceability
4. The System
Ensuring traceability
Transfer system requires segregation
In space
Secure, identifiable
Storage areas
Production lines
Facilities
In time
Batch runs
Days / weeks of production
Identification
Labeling / marking
Segregation
Documentation
It is acceptable to co-mingle inputs for the same product group.
It is crucial that FSC Pure is always separate and secure throughout the system for FSC Pure Product Groups.
It is crucial that FSC Recycled 100% (&/or post-consumer reclaimed) are always separate and secure throughout the system as long as the product group will be claimed as FSC Recycled 100%.

11. Transfer system - essentials
4. The System
Transfer system - essentials
Purchasing & Receiving
Processing
Final Storage & Sales
Specify material category
Check supplier documentation for FSC claim
Ensure distinguishing marks (labels)
Record volume in tracking system
Use distinguishing marks, &/or
Distinct batch runs
Record time period
Record conversion
Record volume in tracking system
Use distinguishing marks (labels), &/or
Designated areas
Lowest FSC claim used
Record volume in tracking system: inventory, sales
Final product cross-references with invoice & transport docs

12. 5. Sales & FSC Claims The invoice essentials
Each FSC Product Group is clearly identified with the applicable FSC claim
FSC certificate code of the Organization is clearly represented
SW-COC-00XXXX for FSC Pure, FSC Mixed, FSC Recycled
SW-CW-00XXXX for FSC Controlled Wood
Transport / shipping documents
Same details required for transport docs when invoice does not accompany product

13. 5. Sales & FSC Claims Choosing the “lowest” FSC claim
when different inputs
are used for the same
FSC Product Group
Look at FSC’S #47

14. 6. FSC-labeling
The Organization must demonstrate an
understanding of the minimum eligibility
requirements for FSC-labeling!

15. 6. FSC-labeling FSC 100% Label (FSC Pure)
FSC Pure = 100% of raw materials originated in an FSC-certified forest, no exceptions!
Exclusive use of FSC Pure inputs allows FSC Pure labeling

16. FSC Mixed Sources Label (FSC Mixed)
6. FSC-labeling
FSC Mixed Sources Label (FSC Mixed)
FSC Mixed = any combination of eligible inputs, including some virgin content
To apply a variation of the FSC Mixed Sources label, inputs shall allow one of the following FSC claims:
FSC Mixed 70% (or greater)
FSC Mixed 50% (or greater for chip and fiber until end of 2009)
FSC Mixed Credit
NB: the mixed % always refers to FSC-certified and/or post-consumer reclaimed content;
The label with the recycled moebius loop always refers to the post-consumer content

17. 6. FSC-labeling FSC Recycled Label
FSC Recycled = 100% reclaimed content (may include some pre-consumer)
To apply a variation of the FSC Recycled label, inputs shall allow one of the following FSC claims:
FSC Recycled 85% (or greater)
FSC Recycled Credit
Label as shown here is only allowed for FSC Recycled 100% (100% post-consumer content)
If any virgin content is included, the product automatically becomes FSC Mixed (assuming the virgin is an eligible input)
NB: the recycled % always refers to post-consumer reclaimed content; the remaining content shall be pre-consumer reclaimed only!

18. 7. Exercises LINK TO EXERCISES
Note: you must exit presentation mode and double-click on the ‘word’ icon to open exercises

19. THANK YOU!