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					            SFI GRADING RULES FOR FIJI MAHOGANY VISUAL GRADE EXPORTS, effective May 1, 2004
Sustainable Forest Industries Limited

     GRADES          WIDTHS                          FEATURES                                                          PE

                            Plantation Feature            Sound
                           Sound Knots to 3/8"            Knots            Sapwood      Pin Worm
                            (Pin & Bud Knots)         7/16" to 1 1/2"      % of Width     Holes
                           Max. Per 3 Lin. Feet       Max. / 5 Lin. Ft.   Graded Face   Back Face

   Tabua Grade       Narrows        2                        Nil             25%           Nil
    (Premium)         Wides         4                        Nil             25%           Nil


    Ratu Grade       Narrows        3                        1               33%           Nil
     (Feature)        Wides         6                        1               33%           Yes


    Bula Grade       Narrows        4                        1               50%           Yes
   (All Purpose)      Wides         8                        2               50%           Yes


   Vinaka Grade      Narrows    Unlimited                    1             Unlimited       Yes
      (Paint)         Wides     Unlimited                    2             Unlimited       Yes


Grading           Grading is to best face only.
Drying            All timber is supplied kiln-dried 8% +/-2% moisture content at time of shipment.
Grade Variation   Variations to grade not exceeding 4% inferior grade is allowed in any delivery.
Thickness'        1", 1 1/2" & 2". A price premium applies to thickness' exceeding 2" (Premium calculated on Application).
Widths            2" incremented by 1" up to 14".
Std. Lengths      6' incremented by 1' up to 20'.
Shorts            Shorts are lengths 2', 3', 4' and 5'
Overcut           Mill overcut allows for drying shrinkage to the thicknesses and widths above. Excess overcut is not charg
                  unless ordered and is not subject to any claim if excess shrinkage arises.
Undercut          Any boards of any consignment found to be undersize but not exceeding 5% of thickness and 3% of width
                  on any board or part thereof shall be accepted in the charged size.
Other Defects     Our graders use their best endeavours to avoid the inclusion of boards that cannot be surfaced to standar
                  and widths. Boards containing warp, twist, cup, bow or any other defect, whether permitted or not, may be
                  claim when after surfacing the affected volume of defects exceeds 5% of the consignment of that thicknes
Narrows           Narrows are boards of call size (charge size) widths 2" up to 5"
Wides             Wides are boards of call size (charge size) widths 6" and wider.
Permitted Defects In grades other than Vinaka Grade individual permitted defects shall not be contained in excess of 33% o
                  of that grade in a consignment.
, effective May 1, 2004


                                 PERMITTED DEFECTS


             Pin Worm     Pith          Wane                   Stain         Stain
               Holes   Boxed & or   lack of wood            Graded Face   Back Face &
              1 Edge Back Face Only                                         1 Edge

                 Nil           Nil             Nil              Nil           Nil
                 Nil           Nil             Nil              Nil           Nil


                 Nil           Nil             Nil              Nil          Yes
                 Nil           Yes             Nil              Nil          Yes


                Yes            Nil             Nil              Nil          Yes
                Yes            Yes             Nil              Nil          Yes


                Yes            Yes             Nil             Yes           Yes
                Yes            Yes             Nil             Yes           Yes




Premium calculated on Application).



 above. Excess overcut is not charged

ding 5% of thickness and 3% of width

ds that cannot be surfaced to standard dressed thickness'
ect, whether permitted or not, may be subject to
% of the consignment of that thickness and grade.


not be contained in excess of 33% of pieces

				
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