▼B

VOLUNTARY PARTNERSHIP AGREEMENT

between the European Union and the Republic of Indonesia on forest law enforcement, governance and trade in timber products into the European Union

IN WITNESS WHEREOF, the undersigned, being duly authorised thereto, have signed this Agreement.

Съставено в Брюксел на тридесети септември две хиляди и тринадесета година.

Hecho en Bruselas, el treinta de septiembre de dos mil trece.

V Bruselu dne třicátého září dva tisíce třináct.

Udfærdiget i Bruxelles den tredivte september to tusind og tretten.

Geschehen zu Brüssel am dreißigsten September zweitausenddreizehn.

Kahe tuhande kolmeteistkümnenda aasta septembrikuu kolmekümnendal päeval Brüsselis.

Έγινε στις Βρυξέλλες, στις τριάντα Σεπτεμβρίου δύο χιλιάδες δεκατρία.

Done at Brussels on the thirtieth day of September in the year two thousand and thirteen.

Fait à Bruxelles, le trente septembre deux mille treize.

Sastavljeno u Bruxellesu tridesetog rujna dvije tisuće trinaeste.

Fatto a Bruxelles, addì trenta settembre duemilatredici.

Briselē, divi tūkstoši trīspadsmitā gada trīsdesmitajā septembrī.

Priimta du tūkstančiai tryliktų metų rugsėjo trisdešimtą dieną Briuselyje.

Kelt Brüsszelben, a kétezer-tizenharmadik év szeptember havának harmincadik napján.

Magħmul fi Brussell, fit-tletin jum ta’ Settembru tas-sena elfejn u tlettax.

Gedaan te Brussel, de dertigste september tweeduizend dertien.

Sporządzono w Brukseli dnia trzydziestego września roku dwa tysiące trzynastego.

Feito em Bruxelas, em trinta de setembro de dois mil e treze.

Întocmit la Bruxelles la treizeci septembrie două mii treisprezece.

V Bruseli tridsiateho septembra dvetisíctrinásť.

V Bruslju, dne tridesetega septembra leta dva tisoč trinajst.

Tehty Brysselissä kolmantenakymmenentenä päivänä syyskuuta vuonna kaksituhattakolmetoista.

Som skedde i Bryssel den trettionde september tjugohundratretton.

Dibuat di Brussel, pada tanggal tiga puluh bulan September tahun dua ribu tiga belas.

За Европейския съюз

Por la Unión Europea

Za Evropskou unii

For Den Europæiske Union

Für die Europäische Union

Euroopa Liidu nimel

Για την Ευρωπαϊκή Ένωση

For the European Union

Pour l'Union européenne

Za Europsku uniju

Per l'Unione europea

Eiropas Savienības vārdā –

Europos Sąjungos vardu

Az Európai Unió részéről

Għall-Unjoni Ewropea

Voor de Europese Unie

W imieniu Unii Europejskiej

Pela União Europeia

Pentru Uniunea Europeană

Za Európsku úniu

Za Evropsko unijo

Euroopan unionin puolesta

För Europeiska unionen

Untuk Uni Eropa

За Република Индонезия

Por la República de Indonesia

Za Indonéskou republiku

For Republikken Indonesien

Für die Republik Indonesien

Indoneesia Vabariigi nimel

Για τη Δημοκρατία της Ινδονησίας

For the Republic of Indonesia

Pour la République d'Indonésie

Za Republiku Indoneziju

Per la Repubblica di Indonesia

Indonēzijas Republikas vārdā –

Indonezijos Respublikos vardu

Az Indonéz Köztársaság részéről

Għar-Repubblika tal-Indoneżja

Voor de Republiek Indonesië

W imieniu Republiki Indonezji

Pela República da Indonésia

Pentru Republica Indonezia

Za Indonézsku republiku

Za Republiko Indonezijo

Indonesian tasavallan puolesta

För Republiken Indonesien

Untuk Republik Indonesia

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ANNEX I

PRODUCT COVERAGE

The list in this Annex refers to the Harmonised Commodity Description and Coding System established by the International Convention on the Harmonised Commodity Description and Coding System of the World Customs Union.

ANNEX IA

THE HARMONISED COMMODITY CODES FOR TIMBER AND TIMBER PRODUCTS COVERED UNDER THE FLEGT LICENSING SCHEME

Chapter 44:

Chapter 47:

Chapter 48:

Chapter 94:

Chapter 97:

ANNEX IB

THE HARMONISED COMMODITY CODES FOR TIMBER PROHIBITED FROM EXPORT UNDER INDONESIAN LAW

Chapter 44:

ANNEX II

LEGALITY DEFINITION

INTRODUCTION

Indonesian timber is deemed legal when its origin and production process as well as subsequent processing, transport and trade activities are verified as meeting all applicable Indonesian laws and regulations.

Indonesia has five legality standards articulated through a series of principles, criteria, indicators and verifiers, all based on the underlying laws, regulations and procedures. These standards can be further divided into sub-standards as described in the TLAS Guidelines.

The Indonesian legal framework also includes sustainable forest management standards defined for permit holders operating within production forest zones on state-owned land. All permit holders must comply with the criteria of legality as stipulated in the legality standards. Not later than the date when their first legality certification expires, permit holders operating within production forest zones on state-owned land must comply with both the legality standard and the sustainable forest management standard, as stipulated in the TLAS Guidelines.

Indonesia is committed to regularly review and improve the legality standards through a multistakeholder process.

The five legality standards are:

—	Legality Standard 1 : the standard for concessions within production forest zones on state-owned lands: Natural Forests, Plantation Forest, Ecosystem Restoration, Forest Management Right (Hak Pengelolaan);

—	Legality Standard 2 : the standard for community plantation forests and community forests within production forest zones on state-owned lands;

—	Legality Standard 3 : the standard for privately-owned forests;

—	Legality Standard 4 : the standard for timber utilisation rights within non-forest zones or from convertible production forest on state-owned lands;

—	Legality Standard 5 : the standard for primary and downstream forest based industries and traders.

The five legality standards apply to different types of timber permits as set out in the following table:

LEGALITY STANDARD 1: THE STANDARDS FOR CONCESSIONS WITHIN PRODUCTION FOREST ZONES

LEGALITY STANDARD 2: THE STANDARD FOR COMMUNITY PLANTATION FORESTS AND COMMUNITY FORESTS WITHIN PRODUCTION FOREST ZONES

LEGALITY STANDARD 3: THE STANDARD FOR PRIVATELY-OWNED FORESTS

LEGALITY STANDARD 4: THE STANDARD FOR TIMBER UTILISATION RIGHTS WITHIN NON-FOREST ZONES OR FROM CONVERTIBLE PRODUCTION FOREST

LEGALITY STANDARD 5: THE STANDARD FOR PRIMARY AND DOWNSTREAM FOREST-BASED INDUSTRIES AND TRADERS

▼B

ANNEX III

CONDITIONS FOR THE RELEASE FOR FREE CIRCULATION IN THE UNION OF INDONESIAN FLEGT-LICENSED TIMBER PRODUCTS

1.   LODGING OF THE LICENCE

2.   ACCEPTANCE OF THE LICENCE

3.   VERIFICATION OF THE VALIDITY AND AUTHENTICITY OF THE LICENCE

4.   VERIFICATION OF THE CONFORMITY OF THE LICENCE WITH THE SHIPMENT

5.   OTHER MATTERS

6.   EU CUSTOMS DECLARATION

7.   RELEASE FOR FREE CIRCULATION

ANNEX IV

REQUIREMENTS AND TECHNICAL SPECIFICATIONS OF FLEGT LICENCES

1.   GENERAL REQUIREMENTS OF FLEGT LICENCES

2.   TECHNICAL SPECIFICATIONS WITH REGARD TO PAPER-BASED FLEGT LICENCES

3.   COPIES OF FLEGT LICENCES

4.   FLEGT LICENCE LOST, STOLEN OR DESTROYED

5.   TECHNICAL SPECIFICATIONS WITH REGARD TO ELECTRONIC FLEGT LICENCES

Appendices

Appendix 1

LICENCE FORMAT

Appendix 2

NOTES FOR GUIDANCE

General:

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ANNEX V

INDONESIAN TIMBER LEGALITY ASSURANCE SYSTEM

1.    Introduction

Objective: To provide assurance that harvesting, transportation, processing and selling of round logs and processed timber products comply with all relevant Indonesian laws and regulations.

Known for its pioneering role in combating illegal logging and the trade in illegally harvested timber and timber products, Indonesia hosted the East Asia Ministerial Conference on Forest Law Enforcement and Governance (FLEG) in Bali, in September 2001, which resulted in the Declaration on Forest Law Enforcement and Governance (Bali Declaration). Since then, Indonesia has continued to be at the forefront of international cooperation in combating illegal logging and associated trade.

As part of international efforts to address these issues, a growing number of consumer countries have committed themselves to take measures to prevent trade in illegal timber on their markets, whilst producer countries have committed themselves to provide a mechanism assuring the legality of their timber products. It is important to establish a credible system to guarantee the legality of harvesting, transportation, processing and trade of timber and processed timber products.

The Indonesian Timber Legality Assurance System (TLAS) provides assurance that timber and timber products produced and processed in Indonesia come from legal sources and are in full compliance with relevant Indonesian laws and regulations, as verified by independent auditing and monitored by civil society.

1.1.   Indonesian laws and regulations as foundation of the TLAS

The Indonesian regulation on the ‘Standards and Guidelines on the Assessment of Performance of Sustainable Forest Management and the Verification of Timber Legality in the State and Privately-owned Forests’ (Forestry Minister's Regulation P.38/Menhut-II/2009) establish the TLAS. The TLAS also includes the Indonesian sustainability scheme and targets to improve forest governance, to suppress illegal logging and the associated timber trade to ensure credibility and to improve the image of Indonesia's timber products.

The TLAS comprises the following elements:

TLAS is the basic system used to assure the legality of timber and timber products produced in Indonesia for export to the Union and to other markets.

1.2.   Development of the TLAS: a multi-stakeholder process

Since 2003, a wide range of Indonesian forestry stakeholders have been actively engaged in developing, implementing and evaluating the TLAS, thereby providing better oversight, transparency and credibility in the process. In 2009, the multi-stakeholder process resulted in the issuance of Forestry Minister's Regulation P.38/Menhut-II/2009, followed by DG Forest Utilization Technical Guidelines No 6/VI-SET/2009 and No 02/VI-BPPHH/2010, which were revised by Forestry Minister's Regulation P.68/Menhut-II/2011, P.45/Menhut-II/2012, P.42/Menhut-II/2013, DG Forest Utilization Technical Guidelines P.8/VI-SET/2011 and P.8/VI-BPPHH/2012.

Based on lessons learned from initial TLAS implementation, the results of the joint assessment in accordance to Annex VIII of this Agreement, and recommendations from various stakeholders, the regulations were again revised through a multi-stakeholder process to become Forestry Minister's Regulation P.43/Menhut-II/2014 in June 2014 and P.95/Menhut-II/2014 in December 2014, followed by DG Forest Utilization Technical Guidelines No.P.14/VI-BPPHH/2014 in December 2014 and No.P.1/VI-BPPHH/2015 in January 2015 (hereinafter referred to as the TLAS Guidelines).

The process of engagement with all stakeholders will be continued during implementation of the TLAS.

2.    Scope of the TLAS

Indonesian production forest resources can broadly be divided into two types of ownership: state forests and privately owned forests/lands. State forests consist of production forests for long-term sustainable timber production under a variety of permit types and forest areas that can be converted for non-forestry purposes such as for settlement or agricultural plantations. The application of TLAS on state forests and privately owned forests/lands is set out in Annex II.

The TLAS covers timber and timber products from all permit types as well as the operations of all timber traders, downstream processors, exporters and importers.

The TLAS covers timber products destined for domestic and international markets. All Indonesian producers, processors, and traders will be verified for legality, including those supplying the domestic market.

The TLAS requires that imported timber and timber products are cleared at customs and comply with Indonesia's import regulations. These regulations require that imported timber and timber products must be accompanied by documents and other pieces of evidence providing assurance of the legality of the timber in its country of harvest. All timber and timber products imported into Indonesia must be included in a supply chain whose controls comply fully with all relevant Indonesian regulations.

Certain timber products may contain recycled materials. Specific legality requirements for recycled timber are described in the legality standards and TLAS Guidelines.

Impounded timber may be sold for use exclusively on the domestic market, with the exception of impounded timber that was harvested in conservation forest, which must be destroyed. Any industry receiving impounded timber must implement measures to segregate that timber from other supplies and duly inform a conformity assessment body (CAB), which will promptly conduct a special audit to ensure that this timber does not enter the export supply chain. No impounded timber may be covered by an export licence.

Changes in the procedures for utilization and/or administration of timber from Customary Forests, to address implementation of Constitutional Court Decision (MK) No 35/PUU-X/2012, shall be introduced after the adoption of related implementing legislation.

Timber and timber products in transit are strictly kept outside the gazetted Principal Customs Areas (PCA). Thus, such transit timber does not enter the PCA and furthermore will not be included in the timber supply chains of Indonesia. No transit timber will be issued with an export licence.

2.1.   TLAS legality standards

The TLAS is based on specific timber legality standards covering all types of timber sources (permits and operators) and all operators' activities. These standards and their verification guidelines are set out in Annex II.

The TLAS also incorporates the ‘Standard and Guidelines on Assessment of Performance in Sustainable Forest Management (SFM)’. The assessment of sustainable forest management using the SFM standard also verifies that the auditee complies with the relevant legality criteria of the TLAS. Permit holders operating within production forest zones on state-owned lands (permanent forest domain) must adhere to both relevant legality and SFM standards. They can opt for complying with the legality standard at first, but they must comply with both the legality standards and the sustainable forest management standards not later than the date when their initial legality certification expires.

3.    Control of the Timber Supply Chain

The permit holder (in the case of concessions) or landowner (in the case of private land) or company (in the case of traders, processors and exporters) shall demonstrate that every node of their supply chain is controlled and documented as set out in the Minister for Forestry Regulations P.30/Menhut-II/2012, P.41/Menhut-II/2014 and P.42/Menhut-II/2014 (hereinafter referred to as the Regulations). These Regulations require provincial and district forestry officials to undertake field verification and validate the documents which are submitted by permit holders, landowners, or processors at each node of the supply chain.

The key documents for operational controls at each point in the supply chain are summarised in Diagram 1.

All consignments in a supply chain must be accompanied by relevant transport documents indicating whether the material is covered by a valid SVLK certificate, or declared legal by use of Suppliers' Declaration of Conformity (SDoC), or originates from impounded sources. The owner or custodian of any consignment of timber or timber products at each point in a supply chain must record whether that consignment is SVLK certified, declared legal by use of Suppliers' Declaration of Conformity, or from an impounded source. If a consignment includes any impounded timber, the owner or custodian of that consignment must apply an effective system to segregate timber or timber products from verified legal sources, from impounded timber or timber products, and maintain records that distinguish between these sources.

Operators in the supply chain are required to keep complete records on received, stored, processed and delivered timber and timber products. These records must be sufficient to enable subsequent reconciliation of quantitative data between and within nodes of the supply chain. Such data shall be made available for provincial and district forestry officials to carry out reconciliation. Main activities and procedures, including reconciliation, for each stage of the supply chain and the role of the CABs in assessing the integrity of the supply chain, are further explained in the Appendix of this Annex.

Diagram 1

Control of the supply chain which shows the required key documents at each point in the supply chain where data reconciliation takes place

4.    Institutional set-up for Legality Verification and Export Licensing

4.1.   Introduction

The Indonesian TLAS is based on an approach known as ‘operator-based licensing’ which has much in common with product or forest management certification systems. The Indonesian Ministry of Forestry nominates a number of conformity assessment bodies (Lembaga Penilai/LP and Lembaga Verifikasi/LV) which it authorizes to audit the legality of operations of timber producers, traders, processors, and exporters (‘operators’).

The conformity assessment bodies (CAB) are accredited by the Indonesian National Accreditation Body (KAN). CABs are contracted by operators who want their operations to be certified as legal. CABs are required to operate according to the ISO/IEC 17065 guideline. They report the outcome of the audits to the auditee and to the Ministry of Forestry. Summaries of reports are made publicly available.

A CAB checks that the operator that is audited is operating in compliance with the Indonesian legality definition as contained in Annex II, including effective implementation of controls to prevent material from unknown sources entering its supply chains. When an auditee operating in state forests or a large industry (primary industry with a capacity above 6 000 m3/year, secondary industry with an investment above IDR 500 million) is found to be compliant, an SVLK legality certificate with a validity of 3 (three) years is issued. During this period, the CAB conducts annual surveillance visits to check that compliance is being maintained. For auditees operating small industries (primary industry with a capacity below 6 000 m3/year, secondary industry with an investment below IDR 500 million) the validity of the legality certificate is 6 (six) years, and 10 (ten) years for operators in privately owned forests/lands. In these cases CAB surveillance visits take place every second year (biennial).

Operators in privately owned forests/lands, household industries, craftsmen/artisans, primary industry that exclusively processes timber from privately-owned forests/lands and cannot directly export, registered depots (trading timber or processed timber that is exclusively sourced from privately owned forests/lands or from SVLK certified operations under Perum Perhutani), and importers can use Suppliers' Declaration of Conformity to demonstrate the legality of their timber and timber products and are therefore not audited by the CABs (refer to section 5.3).

LVs also act as export Licensing Authorities. They check the validity of the exporters' SVLK certificate and export registration, and the consistency of exporters' data declarations (monthly balance sheets) before issuing export licences in the form of V-Legal Documents or FLEGT licences. Thus exports of timber products covered by Annex I without an export licence are prohibited. Exports to the European Union that meet these conditions are issued with FLEGT licences, while exports to other destinations are issued with V-Legal Documents.

The TLAS Guidelines specify that Indonesian civil society groups, individuals and communities have the right to monitor the implementation of the TLAS on the ground. Such Independent Monitors are allowed to assess the compliance of operations against the requirements of the legality definition and also the conformity of the auditing and licensing processes against TLAS requirements and file complaints to CABs, Licensing Authorities, KAN and the Ministry of Forestry.

Diagram 2

Relationship between different entities involved in implementing the TLAS

4.2.   Conformity assessment bodies and Licencing Authorities

The conformity assessment bodies (CABs) play a key role in the Indonesian system. They are authorized by the Ministry of Forestry and contracted by individual operators to verify the legality of the production, processing and trade activities of individual operators in the supply chain, including the integrity of the supply chain.

There are two types of CABs: (i) assessment bodies (Lembaga Penilai/LP) which audit the performance of Forest Management Units (FMUs) in state forests against the sustainability standards as well as the requirements of the legality standard; and (ii) verification bodies (Lembaga Verifikasi/LV), which audit FMUs, forest-based industries, traders and exporters against the legality standards.

In order to ensure that those audits that verify the legality standards as set out in Annex II are of the highest quality, the LP and LV are required to develop the necessary management systems addressing competency, consistency, impartiality, transparency, and assessment process requirements as outlined in ISO/IEC 17065. These requirements are specified in the TLAS Guidelines. The conformity assessment bodies (CAB) are accredited by the Indonesian National Accreditation Body (KAN).

LVs can also act as Licensing Authorities. In this case the LVs issue export licences to cover timber products destined to international markets. For non-Union markets, the Licensing Authorities will issue V-Legal Documents, and for the Union market, FLEGT licences will be issued in accordance with the requirements as outlined in Annex IV. Detailed procedures for the V-Legal Document and FLEGT licensing of export consignments are described in the TLAS Guidelines. LPs cannot act as Licensing Authorities and do not issue export licences.

All auditors working for CABs or Licensing Authorities must be registered and hold a valid certificate of competence from the Profession Certification Body (Lembaga Sertifikasi Profesi — LSP). The LSP will assess any alleged misconduct by an auditor brought to its notice, and may revoke the certificate of competence of that auditor.

4.3.   Accreditation body

The Indonesian National Accreditation Body (Komite Akreditasi Nasional — KAN) is an independent accreditation body established through Government Regulation (Peraturan Pemerintah/PP) 102/2000 concerning National Standardisation and Presidential Decree (Keputusan Presiden/Keppres) 78/2001 regarding the National Accreditation Committee. It operates under the guidance of ISO/IEC 17011 (General Requirements for Accreditation Bodies Accrediting Conformity Assessment Bodies). It has developed internal TLAS-specific supporting documents for the accreditation of LPs and LVs.

KAN is internationally recognised by the Pacific Accreditation Cooperation (PAC) and the International Accreditation Forum (IAF) to accredit certification bodies for Quality Management Systems, Environmental Management Systems and Product Certification. KAN is also recognised by the Asia Pacific Laboratory Accreditation Cooperation (APLAC) and the International Laboratory Accreditation Cooperation (ILAC).

On 14 July 2009, the KAN signed a Memorandum of Understanding with the Ministry of Forestry to provide accreditation services for the TLAS. This makes it responsible for the accreditation of CABs to ensure their continued compliance with ISO/IEC 17065.

Complaints concerning the performance of a LP or LV can be submitted by any interested party, including operators and independent monitors, to the KAN.

4.4.   Auditees

Auditees are operators which are subject to legality verification. They include forest management units (concessionaires or timber utilization permit holders, community-based or village based forest permit holders, private forest/land owners), registered timber depots, forest-based industries, non-producer registered exporters. The forest management units and forest-based industries must comply with the applicable legality standard. For export purposes, the forest-based industries and non-producer registered exporters must comply with export licensing requirements. The TLAS allows auditees to submit appeals to the LP or LV on the conduct of or results of audits.

4.5.   Independent monitor

Civil society plays a key role in the Independent Monitoring (IM) of the TLAS. Civil society groups, individuals and communities acting as Independent Monitors have the right to assess and report on the compliance of operations against legality requirements, as well as on accreditation, verification and licensing activities. Findings from an Independent Monitor can also be used as part of the Periodic Evaluation (PE) which is required under this Agreement (Annex VI).

In the event of an irregularity related to the legality of an operator, complaints by an Independent Monitor shall be submitted directly to the concerned LP or LV. If they consider the response to a complaint by the LP or LV to be unsatisfactory, an Independent Monitor may file a report to the KAN and to the government. In case of complaints about the issuance of export licences, the Independent Monitor may directly file complaints with the Licensing Authority or with the Ministry of Forestry.

4.6.   The Government

The Ministry of Forestry (as of October 2014, the Ministry of Forestry was merged with the Ministry of Environment to become the Ministry of Environment and Forestry) regulates the TLAS and authorises the accredited LPs to undertake SFM assessment and LVs to undertake legality verification.

The Ministry of Forestry also authorises the LVs to issue export licences (V-Legal Documents or FLEGT licences).

The Ministry of Forestry has issued a set of Guidelines providing the requirements related to verification and licensing activities. These Guidelines also include provisions for Ministry of Forestry's control over LVs verification, and specify the Ministry's procedures to authorize and oversee their licensing activities.

Furthermore, the Ministry of Forestry shall establish an ad-hoc follow-up team in charge of investigating on a case-by-case basis any reported violation in relation to the issuance of a legality certificate and/or V-Legal Document/FLEGT licence. The composition of the follow-up team depends on the nature of the violation reported. It can comprise different government agencies and civil society actors. Based on the follow-up team findings and recommendations, the Ministry of Forestry may revoke the authorization of the CAB resulting in an immediate cessation of their verification and licensing activities.

The Minister of Forestry will also immediately revoke their authorization of a CAB based on a KAN decision on withdrawal of its accreditation (e.g. resulting from KAN's annual surveillance activities of the CABs). CABs can appeal to KAN but not to the Ministry.

The Ministry of Forestry also regulates the Licence Information Unit (LIU) as an information management unit which validates information concerning V-Legal Document/FLEGT licence issuance. The LIU is also responsible for general information exchange on the TLAS, and receives and stores relevant data and information on the issuance of certificates of legality and V-Legal Documents/FLEGT licences. It also responds to queries from competent authorities of trading partners and stakeholders. The LIU also manages the due diligence based import recommendation process through its SILK online system.

In addition, the Ministry of Forestry controls the registration of technical governmental field supervisors (Wasganis) and technical company field staff (Ganis). Wasganis are tasked to carry out the supervision and control of log measurements. They also terminate the mandatory transport documents and carry out data reconciliation (for further details refer to the Appendix of this Annex). Ganis prepare the production and transport documents from all production in state forests. Ganis can also terminate the mandatory transport documents in the case of Wasganis' absence for more than 48 hours. Both Wasganis and Ganis are registered with the Ministry of Forestry. On a yearly basis, they are evaluated by the Ministry of Forestry through an official examination.

5.    Legality Verification

5.1.   Introduction

Indonesian timber is deemed legal when its origin and production process as well as subsequent processing, transport and trade activities are verified as meeting all applicable Indonesian laws and regulations, as set out in Annex II. CABs carry out conformity assessments to verify compliance. To reduce the burden on private forest owners, as well as traders and household industries/craftsmen/artisans fully depending on timber from privately owned/privately utilized forests (private land permit), such operators are allowed in clearly described cases to issue a Supplier's Declaration of Conformity as an alternative to obtaining an SVLK certification (see paragraph 5.2 below for more detail).

5.2.   Legality verification process by CABs

In accordance with ISO/IEC 17065 and the TLAS Guidelines, the legality verification process consists of the following:

Application and contracting: The operator submits to the CAB an application that defines the scope of verification, operator's profile and other necessary information. A contract between the operator and the CAB, setting out the conditions for verification, is required prior to the commencement of the verification activities.

Verification plan: After the signing of the verification contract, the CAB prepares a verification plan, which includes nomination of the audit team, verification programme and schedule of activities. The plan is communicated to the auditee, to the relevant Provincial Forestry Authority and other relevant authorities at provincial and regional levels, and the dates of verification activities are agreed upon. This information shall be made available in advance for the independent monitors and to the public through the websites of the CABs and the Ministry of Forestry, and/or mass media or letters.

Verification activities: The verification audit consists of three stages: (i) opening audit meeting and coordination, (ii) document verification & field observation and (iii) closing audit meeting.

Reporting and decision making: The audit team draws up a verification report, following a structure provided by the Ministry of Forestry. The report, which includes a description of any findings of non-compliances and the decision on certification taken, is shared with the auditee within fourteen calendar days after the closing audit meeting and submitted by the CAB to the Ministry of Forestry.

The audit team findings are used primarily to decide on the outcome of the verification audit by the CAB. The CAB takes the decision on whether to issue a legality certificate based on the verification report prepared by the audit team.

In cases of any non-compliance, the CAB will refrain from issuing a legality certificate, which will prevent the timber from entering the supply chain of verified legal timber. Once the non-compliance has been addressed, the operator may resubmit a request for legality verification.

Infringements, which are discovered by a CAB during the verification, are reported to the Ministry of Forestry and handled by the responsible authorities in accordance with administrative or judicial procedures. If an operator is suspected of breaching regulations, the national, provincial and district authorities may decide to halt the operator's activities.

Issuance of the legality certificate and recertification: the CAB will issue a legality certificate if an auditee is found to fully comply with all the indicators and verifiers in the legality standard, including the rules on control of the timber supply chain.

The CAB may report at any time to the Ministry of Forestry on issued, changed, suspended and withdrawn certificates and every three months shall issue a report. The Ministry of Forestry will then publish these reports on its website.

According to the type of permit held by the auditee, a legality certificate is valid for a period of three to 10 years, after which the operator is subject to a re-certification audit. The re-certification shall be done prior to the expiry date of the certificate.

Surveillance: According to the type of permit held by the auditee, operators with a legality certificate are subject to annual or biennial surveillance that follow the principles of the verification activities summarised above. The CAB may also carry out surveillance earlier than scheduled if the scope of the verification has been extended.

The surveillance team draws up a surveillance report. A copy of the report, including a description of any non-compliance found, is submitted to the Ministry of Forestry. Non-compliances detected by the surveillance will result in suspension or withdrawal of the legality certificate.

Special audits: Operators with a legality certificate are obliged to report to the CAB any significant changes in ownership, structures, management, and operations that may affect the quality of its legality controls during the period of validity of the certificate. The CAB may carry out special audits to investigate any complaints or disputes filed by the independent monitors, government institutions or other stakeholders or upon receipt of the operator's report on changes that affect the quality of its legality controls. CABs also carry out special audits if the operator reports that he intends to process impounded timber.

5.3.   Legality verification using Supplier's Declaration of Conformity (SDoC) and internal checks

Supplier's declaration of conformity based on SNI/ISO 17050 is a ‘self-declaration’ as defined in ISO/IEC 17000, i.e. first-party attestation following review that fulfilment of specific requirements has been demonstrated.

The SDoC can be used by (i) private forest owners, (ii) registered timber depots (only timber depots that exclusively receive timber from privately owned forests/lands or receive SVLK certified timber from Perum Perhutani), (iii) household industries/craftsmen/artisans, (iv) primary and secondary industries that exclusively process timber from privately owned forests/lands and hold no export permit. The SDoC applies to (a) timber from privately-owned forests/lands, (b) timber from regenerations of roadsides and graveyards, (c) recycled/demolished timber, and (d) imported timber or timber products.

The SDoC contains information about the supplier, products and their sources, transport document, recipient of the products, and date of issuance. The SDoC by private forest owners shall also include a proof of ownership of the land the timber comes from. The SDoC is attached to the transport document based on timber administration regulations. Detailed procedures for SDoC issuance and related checks are provided in the TLAS Guidelines.

The recipient of the SDoC from privately owned forest shall undertake and document internal checks on the validity of the information to be declared in the SDoC prior to signing of the purchase contract and at least once a year after the contract has been signed. Information contained in SDoCs issued by timber depots is checked by the recipient of the SDoC (primary or secondary industries) in intervals of three months for the traceability of log sources. This is verified by CABs when conducting an SVLK audit of the recipient through document review in case the recipient is certified. In addition, the Ministry of Forestry can carry out random inspections, which may be contracted to competent third parties. In indications of fraud and irregularities, the Ministry of Forestry can conduct special inspections of the operator which uses SDoC.

All timber products covered by a V-Legal Document or FLEGT licence must come from a SVLK certified and or SDoC supply chain. Timber and timber products covered by SDoC cannot directly access international markets. Such access is only possible through a SVLK certified operator.

5.4.   Legality verification of imported timber and timber products

Minister for Trade regulation 78/M-DAG/PER/10/2014 states that imported timber and timber products require proof of legality in the country of harvest. In this context, the SDoC template is also used for imports. Only registered importers (traders) and processing operators can import timber and/or timber products into Indonesia. These operators must exercise due diligence on imported timber and/or timber products to minimize the risk of illegal timber entering the Indonesian supply chain. They are required to provide information such as HS codes of products, Bill of Lading, countries of harvest, country of origin, proof of timber legality, and port of export in the declaration template. The due diligence procedures encompass data collection, risk analysis and risk mitigation. Procedures are carried out using the SILK online system of the Ministry of Forestry. The Ministry issues an import recommendation to the Ministry of Trade after assessing each due diligence process conducted by an operator.

CABs when conducting audits of the importer carry out document review of the due diligence system applied. Detailed procedures for the due diligence system and related checks will be provided in the TLAS guidelines and related import regulations.

5.5.   Government responsibility for enforcement

The Ministry of Forestry, as well as provincial and district forestry offices are responsible for the control of timber supply chains and checking of related documents (e.g. annual work plans, log felling reports, log balance-sheet reports, transport documents, logs/raw material/processed products balance-sheet reports and production tally sheets). In the event of inconsistencies, forestry officials may withhold approval of the control documents resulting in a suspension of operations.

Infringements detected by forestry officials or by independent monitors are communicated to the CAB, which upon verification may lead the CAB to suspend or withdraw the awarded legality certificate. Forestry officials may take appropriate follow-up action in accordance with the regulatory procedures.

The Ministry of Forestry also receives copies of the verification reports and subsequent surveillance and special audit reports issued by the CABs. Infringements discovered by the CABs, by forestry officials or by independent monitors are communicated between the involved actors and handled in accordance with administrative and judicial procedures. If an operator is suspected of breaching regulations, the national, provincial and district authorities may decide to suspend or halt the operator's activities. CABs immediately revoke the legality certificates if the requirements of the legality standard are no longer met.

The Ministry of Forestry shall establish an ad-hoc task force in charge of inquiring and investigating any reported violation in relation to the issuance of a legality certificate and/or V-Legal Document/FLEGT licence (follow up team) on a case-by-case basis.

6.    FLEGT Licensing

The Indonesian export licence for legal timber products is known as the ‘V-Legal Document’. This is an export licence that provides evidence that the timber products exported meet the requirements of the Indonesian legality standard as set out in Annex II and were sourced from a supply chain with adequate controls against the inflow of timber from sources not verified as legal. The V-Legal Document is issued by the LVs who act as Licensing Authorities (LA) and will be used as a FLEGT licence for shipments to the Union once the parties have agreed to start the FLEGT licensing scheme.

The procedures for issuing FLEGT licences/V-Legal Documents are provided in the TLAS Guidelines.

The Ministry of Forestry has established a Licence Information Unit to maintain an electronic database with copies of all V-Legal Documents/FLEGT licences and LA non-compliance reports. The Licence Information Unit will grant on-line access to its database to the competent authorities of the Union. In the event of an inquiry concerning the authenticity, completeness, and validity of a specific FLEGT licence, the competent authority in the Union will be able to verify the licence information by using the SILK on-line database. For further information, the competent authorities of the Union can contact the Licence Information Unit, which will communicate with the relevant LA if needed.

The V-Legal Document/FLEGT licence is issued at the point at which the consignment is consolidated prior to export. The procedure is as follows:

7.    Monitoring

The Indonesian TLAS includes civil society monitoring (Independent Monitoring). To make the system even more robust for a FLEGT-VPA, a Period Evaluation (PE) component is added.

IM is carried out by civil society to assess compliance of the operators, LPs, LV, and LAs with the Indonesian TLAS requirements including accreditation standards and Guidelines. Civil society is defined in this context as Indonesian legal entities including NGOs, communities, and individual Indonesian citizens.

The objective of PE is to provide independent assurance that the Indonesian TLAS is functioning as described, thereby enhancing the credibility of the FLEGT licences issued. PE makes use of the findings and recommendations of IM. Terms of Reference for PE are set out in Annex VI.

Appendix

Control of the Supply Chain

As described in Annex V, all along the different supply chains, operators' declarations and record keepings (e.g. transport documents and balance-sheet reports) must indicate whether timber or timber products are SVLK certified, declared legal by use of Suppliers' Declaration of Conformity (SDoC), or from an impounded source.

1.   DESCRIPTION OF THE OPERATIONAL CONTROL OF THE SUPPLY CHAIN FOR TIMBER FROM STATE-OWNED FORESTS

Operational controls of the supply chain for state owned-forests (natural forests and plantation forests) are regulated by Minister for Forestry regulations P.41/Menhut-II/2014 and P.42/Menhut-II/2014 on timber administration. This includes Minister for Forestry regulation P.43/Menhut-II/2014 on SVLK standards, followed by DG Forest Utilization Technical guidelines P.14/VI-BPPHH/2014 and DG circulation letter SE 8/VI-BPPHH/2014 in August 2014.

All procedures and rules for decision making related to verification, data reconciliation and non-compliance management at each stage of the supply chain listed below apply to all kinds of forest permits granted on state-owned forests: natural forest concessions (IUPHHK-HA/HPH), industrial plantation forest concessions (IUPHHK-HT/HPHTI), ecosystem restoration concessions (IUPHHK-RE), management right for plantation forests (Perum Perhutani), community forest plantation concessions(IUPHHK-HTR) and community forest concessions (IUPHHK-HKM), village forest concessions (IUPHHK-HD), utilization of timber from reforestation area concessions (IUPHHK-HTHR)and utilization of timber from non-forest zones or convertible production forest (IPK).These procedures and rules are described in the technical guidelines provided in Minister for Forestry regulations P.41/Menhut-II/2014 and P.42/Menhut-II/2014 on timber administration.

All operators holding a harvesting permit for timber from a natural forest concession must declare all their production data in the national online-tracking system at each stage of the supply chain from the forest concession until intermediate log-yard and primary industry.

1.1.    Felling Site

1.2.    Log-Landing Site

1.3.    Log-Yard

Logs are transported from the log-landing site to log yards and then either directly transported to a processing mill, to an intermediate log-yard or to a registered timber depot.

1.4.    Intermediate Log-Yard

Intermediate log-yards are used if logs are not transported from the concession area directly to the mill yard. Intermediate log-yards are used in particular for inter-island transportation of logs or if the transport mode is changed.

The permit for establishment of an intermediate log-yard located in state forests is granted by the district forestry official based on a proposal submitted by the permit holder. An intermediate log-yard permit is valid for three years, but can be extended following review and approval by the forestry official. The establishment of an intermediate log-yard located outside state forests does not require any specific permit and is determined by the permit holder.

2.   DESCRIPTION OF THE OPERATIONAL CONTROL OF SUPPLY CHAINS OF TIMBER FROM FOR PRIVATELY OWNED FORESTS/LANDS

Timber harvesting operations on privately-owned forests/lands are regulated by Minister of Forestry Regulation P.30/Menhut-II/2012 (hereinafter referred to as the Regulation).

There are no legal requirements for the private owners of forests/lands to affix ID tags or marks on trees inventoried for harvesting. Log-yards and intermediate log-yards are generally not used for timber harvested from privately-owned forests/lands.

Control procedures for timber from privately-owned forests/lands differ between logs obtained from trees which were on the site when the land title was acquired and logs obtained from trees that have been established since the title was acquired. They also depend on the tree species harvested. The payment of the Forest Resources Fee, to the Reforestation Fund and stumpage fee apply to logs from trees already present on the site when the land title was awarded but does not apply to logs from trees established after the award of the land title.

In the case of logs harvested from trees established after granting of the land title, there are two scenarios:

In the case of logs harvested from trees present on a site before the granting of the land title, the district forestry official issues the Transport document. Such timber needs to be SVLK certified.

2.1.    Felling/Log-Landing Site

3.   DESCRIPTION OF THE OPERATIONAL CONTROL OF TIMBER SUPPLY CHAINS FOR DEPOTS AND INDUSTRY

Registered Timber and Processed-Timber Depots represent specific actors within the supply chain. Acting as traders, these operators buy, stock and sell timber and timber products to other operators without being involved in producing or processing activities.

There are three different types of permits for registered timber and processed-timber depots:

3.1.    Registered Timber Depot for timber from State forests and Imported timber (TPT-KB)

Registered Timber Depots for timber from State forests and imported timber (TPT-KB) are used if logs are not transported directly to the mill yard, from the concession area and/or intermediate log-yards and/or other TPT-KB or in the case of imported timber(logs).

The permit for the establishment of a TPT-KB is granted by the forestry official based on a proposal submitted by the permit holder. A TPT-KB permit is valid for three years, but can be extended following review and approval by the forestry official.

TPT-KB operators can use SDoC only if they use exclusively imported timber and/or SVLK certified Perum Perhutani timber. If only one of their timber sources contains timber from state forests (except the certified Perum Perhutani timber), they must be SVLK certified.

3.2.    Registered Timber and/or Processed-timber Depot for timber originating from Privately-owned forests/lands(TPT)

Registered Timber and/or Processed-timber Depots for timber from Privately-owned forests/lands(TPTs) are used if logs and/or processed-timber are not transported directly to the mill yard, from privately-owned forests/lands and/or other TPT.

The permit for the establishment of a TPT is granted by the forestry official based on a proposal submitted by the permit holder. A TPT permit is reviewed and approved by the forestry official.

Operators running TPTs can use SDoC only if they are not engaged into SVLK certification.

Operators running TPTs must use exclusively timber and/or processed timber from planted trees of privately-owned forests/lands.

3.3.    Primary/Integrated Industry

3.4.    Registered Processed-Timber Depots for timber originating from State Forest and/or Imports (TPT-KO)

Registered Processed-timber Depots for timber originating from State Forests and/or Imports (TPT-KOs) are processed-timber depots that receive processed-timber from primary processing units, and/or from other TPT-KOs, and/or imported processed-timber. Timber products from TPT-KOs are sold to secondary processing units, other TPT-KOs, household industries, registered exporters, and/or end users.

The permit for establishment of a TPT-KO is granted by the district forestry official based on a proposal submitted by the permit holder. A permit for TPT-KO is valid for three years, but can be extended following review and approval by the district forestry official.

TPT-KO operators can use SDoC only if they use exclusively timber products originating from imported processed-timber. If only one of their processed-timber products contains processed-timber originating from natural forests, they must be SVLK certified.

3.5.    Secondary Industry

4.   EXPORT

The procedures and data reconciliation processes for export of timber originating from state-owned forests and privately-owned forest/lands are identical.

▼B

ANNEX VI

TERMS OF REFERENCE FOR PERIODIC EVALUATION

1.   OBJECTIVE

Periodic Evaluation (PE) is an independent evaluation done by an independent third party, referred to as Evaluator. The objective of PE is to provide assurance that the TLAS is functioning as described, thereby enhancing the credibility of the FLEGT licences issued under this Agreement.

2.   SCOPE

PE shall cover:

3.   OUTPUT

The output of PE comprises regular reports presenting evaluation findings and recommendations on measures to be undertaken to address gaps and system weaknesses identified by the evaluation.

4.   MAIN ACTIVITIES

PE activities include inter alia:

5.   EVALUATION METHODOLOGY

6.   QUALIFICATIONS OF THE EVALUATOR

The Evaluator shall be a competent, independent and impartial third party that complies with the following requirements:

7.   REPORTING

8.   CONFIDENTIALITY

The Evaluator shall maintain the confidentiality of data it receives while carrying out its activities.

9.   APPOINTMENT, PERIODICITY AND FINANCING

ANNEX VII

TERMS OF REFERENCE FOR INDEPENDENT MARKET MONITORING

1.   OBJECTIVE OF INDEPENDENT MARKET MONITORING

Independent Market Monitoring (IMM) is market monitoring done by an independent third party referred to as Monitor. The objective of Independent Market Monitoring (IMM) is to collect and analyse information on the acceptance of Indonesian FLEGT-licensed timber in the Union market, and review impacts of Regulation (EU) No 995/2010 of the European Parliament and of the Council of 20 October 2010 laying down the obligation of operators who place timber and timber products on the market and of related initiatives such as public and private procurement policies.

2.   SCOPE

IMM shall cover:

3.   OUTPUT

The output of IMM will comprise regular reports to the Joint Implementation Committee (JIC) containing its findings and recommendations on measures to strengthen the position of Indonesian FLEGT-licensed timber in the Union market and to improve the implementation of market-related measures to prevent illegally harvested timber from being placed on the Union market.

4.   MAIN ACTIVITIES

IMM includes inter alia:

5.   MONITORING METHODOLOGY

6.   QUALIFICATIONS OF THE INDEPENDENT MARKET MONITOR

The Monitor shall:

7.   REPORTING

8.   CONFIDENTIALITY

The Monitor shall maintain the confidentiality of data it receives while carrying out its activities.

9.   APPOINTMENT, PERIODICITY AND FINANCING

ANNEX VIII

CRITERIA FOR ASSESSING THE OPERATIONALITY OF THE INDONESIAN TIMBER LEGALITY ASSURANCE SYSTEM

BACKGROUND

An independent technical evaluation of the Indonesian TLAS will be carried out before FLEGT licensing of timber exports to the Union starts. This technical evaluation will aim at: (i) examining the function of the TLAS in practice to determine whether it delivers the intended results and (ii) examining any revisions made to the TLAS after this Agreement was signed;

The criteria for this evaluation are set out below:

1.   DEFINITION OF LEGALITY

Legally produced timber should be defined on the basis of the laws applicable in Indonesia. The definition used must be unambiguous, objectively verifiable and operationally workable and, as a minimum, include those law and regulations which cover:

Key Questions:

In the event of amendments to the legality definition, key questions will include:

2.   CONTROL OF THE SUPPLY CHAIN

Systems to control the supply chain must provide credible assurance that timber products can be traced throughout the supply chain from harvesting or point of import to the point of export. It will not always be necessary to maintain physical traceability for a log, log load or timber product from the point of export back to the forest of origin, but it is always needed between the forest and the first point of mixing (e.g. a timber terminal or a processing facility).

2.1.   Rights of use

There is clear delineation of areas where forest resource use rights have been allocated and the holders of those rights have been identified.

Key Questions:

2.2.   Methods for controlling the supply chain

There are effective mechanisms for tracing timber throughout the supply chain from harvesting to the point of export. The approach for identifying timber may vary, ranging from the use of labels for individual items to reliance on documentation accompanying a load or a batch. The selected method should reflect the type and value of timber and the risk of contamination with unknown or illegal timber.

Key Questions:

2.3.

Quantitative data management: There are robust and effective mechanisms for measuring and recording the quantities of timber or timber products at each stage of the supply chain, including reliable and accurate pre-harvest estimations of the standing timber volume in each harvesting site. Key questions: —  Does the control system produce quantitative data of inputs and outputs, including conversion ratios where applicable, at the following stages of the supply chain: —  standing timber —  logs in the forest (at log landings) —  transported and stored timber (log yards/ponds, interim log yards/ponds) —  arrival at the processing facility and storing of materials —  entry into and exit from production lines —  storing of processed products at the processing facility —  exit from processing facility and transport —  arrival at point of export —  Which organisations are responsible for keeping records on the quantitative data? Are they adequately resourced in terms of personnel and equipment? —  What is the quality of the controlled data? —  Are all quantitative data recorded in a way that makes it possible to verify quantities with the prior and subsequent stages in the supply chain in a timely manner? —  What information on the supply chain control is made publicly available? How can interested parties access this information?

2.4.

Segregation of legally verified timber from timber of unknown sources Key Questions: —  Are there sufficient controls in place to exclude timber from unknown sources or timber which was harvested without legal harvesting rights? —  What control measures are applied to ensure that verified and unverified materials are segregated throughout the supply chain?

2.5.

Imported timber products There are adequate controls to ensure that imported timber and derived products have been legally imported. Key Questions: —  How is the legal import of timber and derived products demonstrated? —  What documents are required to identify the country of harvest and to provide assurance that imported products originate from legally harvested timber, as referred to in Annex V? —  Does the TLAS identify imported timber and timber products throughout the supply chain until they are mixed for manufacturing of processed products? —  Where imported timber is used, can the country of harvest origin be identified on the FLEGT licence (may be omitted for reconstituted products)?

3.   VERIFICATION PROCEDURES

Verification provides adequate checks to ensure the legality of timber. It must be sufficiently robust and effective to ensure that any non-compliance with requirements, either in the forest or within the supply chain, is identified and prompt action is taken.

3.1.   Organisation

Verification is carried out by a third-party organisation which has adequate resources, management systems, skilled and trained personnel, as well as robust and effective mechanisms to control conflicts of interest.

Key Questions:

3.2.   Verification with respect to the definition of legality

There is a clear definition that sets out what has to be verified. The verification methodology is documented and ensures that the process is systematic, transparent, evidence-based, carried out at regular intervals and covers everything included within the definition.

Key Questions:

3.3.   Verification of systems for controlling the integrity of the supply chain

There is a clear scope of criteria and indicators to be verified which covers the entire supply chain. The verification methodology is documented, ensures that the process is systematic, transparent, evidence-based, carried out at regular intervals, covers all criteria and indicators within the scope and includes regular and timely reconciliation of data between each stage in the chain.

Key Questions:

3.4.   Mechanisms for handling complaints

There are adequate mechanisms for handling complaints and disputes that arise from the verification process.

Key Questions:

3.5.   Mechanisms for dealing with non-compliance

There are adequate mechanisms for dealing with cases of non-compliance identified during the verification process or brought forward through complaints and independent monitoring.

Key Questions:

4.   LICENSING OF EXPORTS

Indonesia has assigned overall responsibility for issuing V-Legal Document/FLEGT licences to licensing authorities. FLEGT licences are issued for individual shipments destined to the Union.

4.1.   Organisational set-up

Key Questions:

4.2.   Issuing of V-Legal Documents and their use for FLEGT licensing

Adequate arrangements have been made to use V-Legal Documents for FLEGT licensing.

Key Questions:

4.3.   Queries on issued FLEGT licences

There is an adequate mechanism in place for handling queries from competent authorities with regard to FLEGT licences, as set out in Annex III.

Key Questions:

4.4.   Mechanism for handling complaints

There is an adequate mechanism for handling complaints and disputes that arise from licensing. This mechanism makes it possible to deal with any complaint relating to the operation of the licensing scheme.

Key Questions:

5.   INDEPENDENT MONITORING

Independent Monitoring (IM) is conducted by Indonesia's civil society and is independent from other elements of the TLAS (those involved in the management or regulation of forest resources and those involved in the independent audit). One of the key objectives is to maintain the credibility of the TLAS by monitoring the implementation of verification.

Indonesia has formally recognized the IM function and allows civil society to submit complaints when irregularities in the accreditation, assessment and licensing processes are found.

Key Questions:

ANNEX IX

PUBLIC DISCLOSURE OF INFORMATION

1.   INTRODUCTION

The Parties are committed to ensuring that key forestry-related information is made available to the public.

This Annex provides for this objective to be met by outlining (i) the forestry-related information to be made available to the public, (ii) the bodies responsible for making that information available, and (iii) the mechanisms by which it can be accessed.

The aim is to ensure that (1) JIC operations during implementation of this Agreement are transparent and understood; (2) a mechanism exists for the Parties as well as relevant stakeholders to access key forestry-related information; (3) TLAS functioning is strengthened through the availability of information for independent monitoring; and (4) larger objectives of this Agreement are achieved. The public availability of information represents an important contribution to reinforcing Indonesia's forest governance.

2.   MECHANISMS TO ACCESS INFORMATION

This Annex is in line with the Indonesian Law on Freedom of Information No. 14/2008. According to this Law, it is mandatory for every public institution to develop regulations on access to information by the public. The Law distinguishes four categories of information: (1) information available and actively disseminated on a regular basis; (2) information that should be made public without delay; (3) information that is available at all times and provided upon request; and (4) information that is restricted or confidential.

The Ministry of Forestry (Ministry of Forestry), provincial and district offices, the National Accreditation Body (KAN), the conformity assessment body (CAB), the licensing authorities are all significant institutions in the functioning of the TLAS and therefore obliged as part of their duties to disclose forestry-related information to the public.

To implement the said Law, the Ministry of Forestry, provincial and district offices and all other public agencies including KAN have developed or are developing procedures for making information available to the public.

The KAN is also required to make information available to the public under ISO/IEC 17011:2004, clause 8.2-Obligation of the accreditation body. Verification bodies and licensing authorities are required to make information available to the public under Minister for Forestry Regulations and ISO/IEC 17021:2006 clause 8.1-Publicly accessible information and ISO/IEC Guide 65:1996 clause 4.8-Documentation.

Civil society organisations function as one of the sources of forestry-related information under Minister for Forestry Regulations.

The Minister for Forestry has issued Regulation No. P.7/Menhut-II/2011 dated 2 February 2011, which provides that requests for information held by the Ministry of Forestry are to be addressed to the Director of the Centre for Public Relations of the Ministry of Forestry in a "one-door" information policy. Further implementing guidance is being developed by Ministry of Forestry. Information available at regional, provincial, and district forestry offices can be accessed directly.

To make this Annex operable, the procedures/guidelines/instructions for the mentioned institutions to respond to requests for information need to be developed and approved. In addition, the reporting and public disclosure provisions that apply to verification bodies and Licensing Authorities will be clarified.

3.   CATEGORIES OF INFORMATION USED TO REINFORCE MONITORING AND EVALUATION OF THE FUNCTIONING OF THE TLAS

Laws and regulations: All laws, regulations, standards, and guidelines listed in the legality standards.

Land and forest allocation: land allocation maps and provincial spatial plans, procedures for land allocation, forest concession or utilisation rights and other rights of exploitation and processing, and related document such as concession maps, forest area release permit, land title documents and land title maps.

Forest management practices: forest use plans, annual work plans including maps and equipment permit, minutes of consultation meetings with communities living in and around permit area required for the development of the annual work plans, forest timber exploitation work plan and annexes, Environmental Impact Assessment documents and minutes of public consultation meetings required for the development of the Environmental Impact Assessment reports, log production reports, and stand inventory data in state-owned forest land.

Transport and supply chain information, e.g. log or forest product transport documents and annexes and timber reconciliation reports, inter-island timber transportation registration documents, and documents showing ship identity.

Processing and industry information: e.g. company establishment deed, business licence and company registration number, report of the Environmental Impact Assessment, industrial business licence or industrial registration numbers, industrial raw material supply plans for primary forest product industries, registration of the exporter of forest industry products, raw material and processed product reports, list of holders of rights to processing, and information on companies in secondary processing.

Forest-related fees: e.g. area-based payment fees and payment slip invoices, payment orders and invoices for reforestation and forestry resource fees.

Verification and licensing information: quality guidance and standard of procedures for accreditation; name and address of each accredited CAB dates of granting accreditation and expiry dates; scopes of accreditation; list of CAB personnel (auditors, decision makers) associated with each certificate; clarification on what is considered commercially confidential information; audit plan to know when public consultations take place; announcement of audit by CAB; minutes from public consultations with CAB including list of participants; public summary of audit result; recap reports by auditing body of certificate issuance; status report on all audits: certificates passed, failed, those currently in process, granted, suspended and withdrawn certificates and any changes to the above; cases of non-compliance relevant to audits and licensing and the action taken to deal with them; issued export licences; regular recap reports from licensing authorities.

Monitoring and complaint procedures: standard operating procedures for complaints to KAN, verification bodies and licensing authorities, including procedures to monitor the progress of complaint reports and close out of complaint report.

A list of key documents of relevance to forest monitoring, the agencies that hold these documents as well as the procedure by which this information can be acquired is contained in the appendix to this Annex.

4.   CATEGORIES OF INFORMATION USED TO REINFORCE LARGER VPA OBJECTIVES

This information will be made available through the websites of the Parties.

5.   IMPLEMENTATION OF PUBLIC DISCLOSURE PROVISIONS

As part of the implementation of this Annex the Parties will assess:

Appendix

Procedures to acquire information: