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Sustainability FWPA coc certification guide sellers (2007)

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Forest and Chain of Custody certification enables consumers to make informed purchasing choices, giving them confidence that the certified products they purchase have come from forests t

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demonstrating environmental leadership and product stewardship

FOresT mAnAGer PrimAry PrOCessOr seCOnDAry PrOCessOr

3 WHOlesAlers | 3 merCHAnTs | 3 reTAilers | 3 PuBlisHers |

TimBer Chain of Custody

Certification

product tracking from the forest to the consumer

Forest Manager Processor Primary Secondary Processor Seller

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Forest and Chain of Custody certification enables consumers to make informed purchasing choices, giving them confidence that the certified products they purchase have come from forests that have been managed in accordance with a certification standard that meets specified management criteria This brochure explains the concept of Chain of Custody certification for timber products in Australia and how easy it is to implement it into your business

Chain of Custody (CoC)

Chain of Custody refers to all the steps in the process of taking certified products from the forest, through the various manufacturing and distribution stages and ultimately to the point where the final consumer purchases the product This includes manufacture, trading, broking, wholesaling and retailing Importantly, the Chain of Custody includes all steps of ownership, not just those involving physical possession

Certifying the Chain of Custody

The concept behind certification of the Chain of Custody is to:

• describe (in the form of a documented ‘standard’) the requirements expected at each stage in the process, and

• provide recognition of an organisation’s compliance with the ‘standard’ through a system of accredited, independent third party certification

For a product to be labelled as being made from certified material or to have claims regarding forest management, there must be an unbroken chain of certified organisations covering every change in legal ownership of the product from the point labels are applied or claims are made (which may be the retailer or the manufacturer) right back to the certified forest

Note: Transport companies do not generally have legal ownership of products and so do not require separate certification.

Chain of Custody certification in Australia is available through two schemes:

• the Australian Forest Certification Scheme (AFCS), and

• the Forest Stewardship Council (FSC) program

AFCS and FSC have developed their own ‘standards’ – documents that set down the requirements that each enterprise in the supply chain needs to meet in order to protect the integrity of the claim that “products are from certified forests”

Using these standards individual companies within the supply chain are able to implement a Chain of Custody system within their own operations Once implemented, the final step is actual “certification” which then allows supply chain companies to label and advertise their involvement within the certified scheme

Timber

Chain of Custody Certification

There is growing awareness of certification in the marketplace for forest products and an increasing desire by consumers to support sustainable forest management

by buying certified products.

Chain of Custody certification enables companies to:

• identify and control their sources of certified, non-certified and recycled timber;

• demonstrate to their customers the environmental integrity of their products; and

• use the relevant trademarks, labels and claims to promote the social and

environmental qualities of their products to the market.

CONSUMER

CoC CERTIFICATE Assumes retailer adds own labels/claims

RETAILER

FOREST

MANAGEMENT

CERTIFICATE

FOREST SAWMILL

CoC CERTIFICATE Assumes logs purchased

at stump, timber delivered

CoC CERTIFICATE Assumes timber delivered

WHOLESALE DISTRIBUTOR

CoC CERTIFICATE Assumes furniture delivered

FURNITURE FACTORY

Example of a fully certified chain of custody (furniture)

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1 QuAliTy sysTems: Addresses the company’s internal procedures, staff

Companies need to have: FsC AFCs Policies

Management policies covering – certification claims, integrity of the CoC system, compliance with laws and/or regulations, recognition of collective bargaining rights and continuous improvement No

Documented procedures Documented procedures for all aspects of its Chain of Custody activities, including staff assignment of task responsibilities. 3 3

responsibilities A single person is assigned overall responsibility for the CoC system and all key staff know and understand their responsibilities. 3 3

scope of the system A publicly available schedule of certified products 3 No

Training

• All staff at an appropriate level of skill and competency to implement CoC responsibilities

• Training is provided where required

records Detailed records of all aspects of CoC system implementation Records are retained for a minimum of five years. 3 3

Continuous improvement Mechanisms to ensure continuous improvement of their CoC system No 3

internal audits Internal audits of CoC system and implement corrective actions to address non-conformities. No 3

Occupational health and

safety OH&S policies that meet applicable laws and/or regulations. No2 3 Final inspection A final inspection of certified products prior to distributing to next link No 3

Certifying the Chain of Custody –

sellers

If, for example, a retailer wants to add its own labelling or claims (for instance in promotional material) above and beyond that applied by certified organisations further up the supply chain, the retailer is required to obtain certification

If, on the other hand, the retailer simply wanted to stock and sell certified material that had been packaged by the (certified) manufacturer and make no additional claims about the products and did not attach its own labels, there would be no need for the retailer to be certified The end consumer could make an informed decision based on the labelling and/or claims already made by the manufacturer and demonstrated through the manufacturers own packaging or product information

In regards to simply selling a product, certification requirements are much more straightforward than they are for processors and manufacturers

Once a timber product is in its final form, controlling and verifying the Chain of Custody is a much simpler task Products are mostly packaged in some way, greatly assisting storage and identification As merchants and retailers often deal with products from a wide range of manufacturers, maintenance of the paper trail and product identification and labelling become the Chain of Custody activities

Companies seeking to obtain Chain of Custody certification are required to demonstrate that they meet a series of

requirements under five separate components:

Enterprises that do not transform paper or timber products, rather they simply sell them - be they wholesalers, timber merchants, product retailers or publishers – may also be required to obtain Chain of Custody certification.

1 FSC has policy commitment requirements with respect to the purchase of controlled wood.

The FSC standard does not address occupational health and safety issues However, some certification bodies have introduced their own basic health and safety requirements.

1

QUALITY

SYSTEMS

2

MATERIAL SOURCING

3

PRODUCTION CONTROLS

4

TRANSACTION DOCUMENTATION

5

LABELLING

Though the scope of both the AFCS and FSC schemes is essentially the same it should be noted that neither scheme recognises certified material from the other scheme as a legitimate certified source Companies that wish to support both schemes will therefore require separate Chain of Custody certification

Fortunately, the requirements of the FSC and AFCS standards are highly similar, minimising additional requirements on companies keen to pursue both schemes.

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2 mATeriAl sOurCinG: Deals with identifying the wood that goes into a certified

product – a fundamental concept of Chain of Custody. reQuiremenT

Companies need to: FsC AFCs receipt and storage of material Verify and record quantities of materials and store certified material separately to non-certified material. 3 3

3 PrODuCTiOn COnTrOls: Addresses the company’s requirements in terms of

Production controls are not relevant at this point in the supply chain for Chain of Custody certification

4 TrAnsACTiOn DOCumenTATiOn: Accurate documentation ensures that the Chain of Custody is

maintained from one company to the next

Companies need to:

sales invoices

Record the following information:

• Date;

• Name and address of buyer;

• Description of certified products sold;

• Type of certified products (FSC – Pure, Mixed, certified %) (AFCS – category of input material’s origin,

% certified raw material);

• Quantity of certified products sold;

• Cross-reference to shipping documents (if invoiced separately); and

• Chain of Custody certificate number

3 3 3 3

3 3 3

3

No3

3 3

3 3 3

shipping documentation Ensure if products shipped separately to invoice, that shipping documents contain same set of details required of invoices. 3 3

sales records

Ensure that sales records include:

• quantities of certified products sold and that these records are kept; and

• the names of buyers

3 3

3

No3

5 lABellinG:Allows certified product to be branded and recognised by the market.

Companies need to:

labelling rules Conform with the relevant rules based on the materials used in the product. 3 3

The Australian taxation system, though use of ABNs and the GST, covers the provision of this information on an invoice.

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Frequently asked questions for

sellers

Who needs Chain of Custody certification?

Sawmillers, manufacturers of wood products, wholesalers,

importers, retailers, builders, printers – in fact, all those

supply chain organisations that want to advertise their

products as certified or whose customers request certified

products

if i’m a seller receiving branded certified

products do i need Chain of Custody

certification?

If you simply want to stock and sell certified material that

has been packaged by a (certified) manufacturer and make

no additional claims about the products and do not attach

your own labels, then there would be no need for you to

be certified The end consumer could make an informed

decision based on the labelling and/or claims already

made by the manufacturer and demonstrated through the

manufacturers own packaging or product information

What if i want to promote the fact that i

sell certified products and use the brands

in my promotional programs?

Then you will need Chain of Custody certification for your

company

What are the benefits of certification?

Certification satisfies the requirements of those customers

who wish to purchase certified products - there appears

to be an emerging trend in the use of new environmentally

based design specifications, these generally require timber

products to be certified Certification also provides added

value to the products you sell, giving them a verifiable

environmental and social quality and it demonstrates that

your company takes the environmental concerns of its staff

and customers seriously

How much will the process cost?

Costs vary according to the nature of the operation, but

comprise two components:

1 Certifier costs – costs of main assessment and annual

surveillance audits For a single site operation, the main

assessment cost is likely to be in the range $1,500 to

$3000 Costs for annual surveillance audits will be less

– around 60% of main assessment costs

2 Licence/logo use fees to AFCS or FSC – these are

based on turnover (for AFCS a <$10million turnover,

issuance fee is $55 and annual fee is $2500) Annual FSC

accreditation fees also vary by turnover – for a company

with annual turnover between US$5 million and 25 million,

the annual fee is US$400

Costs above are indicative and may be subject to change;

contact an Accredited Certifier for a quotation

Can i have single certification for a business that operates on multiple sites?

Yes, multi-site certification is available

How long will the actual certification process take?

Assuming that your procedures are in place and there are

no major non-conformances identified, a period of one to three months from accepting a quote from a certifier should

be sufficient For single site operations, a site assessment will normally last 1-2 days

How long does my Chain of Custody certificate last – how often do i have to be re-audited?

Your Chain of Custody certificate lasts for five years under FSC and three under AFCS The schemes require a process of annual surveillance audits

What happens if i buy both AFCs and FsC certified timber and i want to promote certified products?

If you buy both AFCS and FSC certified timber and you want

to claim and promote certification on the timber you on-sell, then you would have to undertake both AFCS and FSC Chain of Custody certification and undertake the appropriate processes in compliance with these standards

Can i un-package AFCs and FsC certified products and re-bundle them into new job lots?

Yes However, you can only claim AFCS status for products sold that are produced from material inputs that are AFCS certified and the same applies for FSC – products sold as FSC certified must be derived from FSC certified inputs Each scheme requires that material certified under the other scheme is treated as uncertified For products that contain both, each scheme has minimum percentage requirements that must be met for the products to be sold as certified

Chain of Custody certification for your timber products is a simple process easily integrated with good business practices.

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For most companies with established product and accounting processes the

implementation of Chain of Custody certification is both simple and straight-forward Basic steps include:

GuidES iN THiS SEriES

ANd A Full rEporT ArE

AvAilABlE From

www.fwpa.com.au

Certifying Chain of Custody

for Timber

The consumer demand for certified timber products is growing rapidly Chain of Custody certification is the process that allows consumers to be confident that the timber products that they purchase come from well-managed forests

Internal procedures, staff responsibilities and record keeping

Processes that clearly identify the wood that goes into a certified product

Accounting for the company’s monthly records of production

Tracking products through sales invoice and transportation documents

Branding certified product which allows clear market recognition

1 QUALITY SYSTEMS

2 MATERIAL SOURCING

3 PRODUCTION CONTROLS

4 TRANSACTION DOCUMENTATION

5 LABELLING

For further information or contact details for accredited certifiers, refer to:

Australian Forest Certification Scheme

www.forestrystandard.org.au

T (02) 6281 3455

E afs@forestrystandard.org.au

Forest Stewardship Council www.fscaustralia.org

T (03) 8636 2661

E info@fscaustralia.org For further information or contact details for accredited certifiers, refer to:

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yOu

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