Placing Value on legal timber
                         Fighting illegal logging
                       A first step towards sustainability

            The Certified Source Timber Programme (CertiSource) is an industry-driven initiative which provides
  independent third party verification services that enable responsible consumers to purchase legal timber. Our lot-based
       verification services focus on legality and are a logical first step towards promoting timber from well-managed
   forestry concessions via a transparent market place. Working with all sections of the supply chain, our long term goal
   is to move interested parties towards international certification schemes such as the Forest Stewardship Council (FSC).
          In this way we see Certisource as being complimentary to accepted global timber certification schemes.

                             The primary aim of Certisource is to reduce the traffic in stolen logs.
   Our Chain Of Custody verification systems follow recommendations from the Environmental Investigation Agency (EIA)
report ‘Timber Trafficking’, published in 2002, to allow the differentiation of legal and illegal timber within the market place.

                Certisource tracks timber from legal concessions to the port of export using the most effective
            genetic and physical methodologies available. Our services include Source Assurance which assures
     the timber in question was harvested within a specified concession area and License & Documentation Assurance,
         which establishes that the source concession and the lot in question meet all necessary legal requirements.
            Certisource Certification is only issued once all of our internal compliance standards have been met.

            Certisource provides credible, efficient and cost effective independent third party verification services
          to assist the responsible timber purchaser. We believe that our methods and the technologies we employ
                 ensure that the Certisource certificate carries a level of assurance unchallenged worldwide.

                                   Certisource Source Timber S.E Asia
                                                                                                                                    A PRACTICAL BUSINESS APPROACH
                                  20 Coldstream Avenue Singapore 459610
                                 Phone: +65 6243 1174 Fax: +65 64498 027
                                                                                                                                      TO COMBAT ILLEGAL LOGGING
                                  E-mail: andrew@cstp.org / kevin@cstp.org
                                            Website www.cstp.org
                                                                                                                                            • Verifies legality of individual timber lots
                                        Certified Source Timber UK                                                                       • Tracks timber lots from concession to customer
                                       15 All Saints Mews, Uxbridge Road
                                        Harrow Weald, London HA3 6DY                                                                 • Independent audits for official certification of legality
                                    E-mail: darrell@cstp.org / julian@cstp.org
                                              Website www.cstp.org
                                                                                                                                      • A recognized first step on the road to sustainability
       CertiSource is working together with
   other industry representatives and prominent
 environmental groups to help curb illegal logging

Illegal logging of tropical hardwoods is devastating tropical forests. In 2000 the Environmental

                                                                                                                                                          OUR SERVICES AND COC SYSTEMS
Investigation Agency (EIA) claimed illegal logging represented between 50% and 80% of
Indonesia, Brazil and Cameroons entire log production. Causing the loss of huge tracts
                                                                                                                                                          Certisource is a logical first step towards comprehensive forest resource management.
of forests in these countries. Various efforts to tackle illegal logging such as forest certification
                                                                                                                                                          Our field audit teams employ the most effective methodologies available to physically track
and better law enforcement are being undertaken, however the problem of illegal logging
                                                                                                                                                          parcels of timber through the entire custody chain. These systems and our market driven
continues to increase.
                                                                                                                                                          pricing keep certification costs low, prices can be as low as 4% of the raw material value,
                                                                                                                                                          depending on the volume and the complexity of the operation. Our services include;

MARKET FAILURES                                                 OUR APPROACH
                                                                                                                                                          Provision and verification of Log Concession Documentation; CSTP obtains copies of relevant
                                                                                                                                                          documentation to verify the concession has required license(s) and permit(s) to supply the
                                                                                                                                                          purchased timber. For each timber lot this can include; Log disposal permits, Tally receipts
Currently, the only way consumers can be assured                The Certified Source Timber Programme is an industry                                      (royalties), Government issued licenses.
they are buying legal logs is to purchase certified             driven initiative, which enables responsible consumers to
timber. However certified timber only accounts for 2%           purchase legal timber. Our focus on legality is a logical
to 3 % of total timber supply. According to EIA’s               first step towards sustainability. CertiSource is therefore      VERIFICATION AT CONCESSION / LOG POND – CHAIN OF CUSTODY AUDIT

figures, this means that between 47% to 17% of timber           complimentary to sustainable timber schemes such as FSC.         CSTP inspectors visually check logs to ensure they are from the specified concession (in

is legal but has no differentiation from illegal timber.        The primary aim of the CertiSource is to reduce the traffic      the license) and logs match shipper's log list. Logs are only released to a saw mill upon

This lack of differentiation encourages illegal logging.        in stolen logs. Our Chain Of Custody systems follow              verification of the chain of custody. Provision of Tracking Systems for logs in transit CSTP

Illegal logs are cheaper to produce than legal timber.          recommendations from the EIA’s “D4Timber Trafficking”            tracking includes genetic testing, GPS markers, Bar code and RF tags. We confirm each

Perpetrators pay no license fees nor do they implement          report published in 2002 to differentiate legal and illegal      lot under audit is from a verified source

any kind of forest management. The supply of illegal            timber in the market place. Certisource tracks timber from                                PROVISION OF TRACKING IN DOWNSTREAM PRODUCTION
logs therefore reduces the market price of timber and           legal concessions and ensures bona fide documents are                                     CSTP checks relevant saw mill production records such as daily material input/output
subsequently the profits of responsible legal producers.        issued by the government agencies. Our transparent chain                                  records to confirm finished timber is produced from the audited log lot. Non-conforming
This unfair competition encourage illegal production.           of custody tracks specific timber lots from concession until                              timber is rejected. When satisfactory compliance is established a certificate of conformity
In 1999 the EU imported 10 million cubic metres of              the port of export to certify specific shipments of legal                                 is issued to the seller/exporter.
tropical timber (almost half from Indonesia, Brazil and         timber. Our certificate of legality carries an assurance
Cameroon). It is estimated that half of these imports           unchallenged worldwide. Our long term goal is to move
                                                                                                                                 ISSUANCE OF CERTIFICATE OF LEGALITY
were illegal, representing around a $1.5 billion                concessions towards International certification such as
                                                                                                                                 CSTP provides an audit report and issues a specific certificate with seal and serial number
turnover annually.                                              FSC. In the short term our focus on legal timber is a first
                                                                                                                                 for each tracked lot. Our certificates are counter endorsed by CSTP U.K who have the final
                                                                step on the road to a transparent market place to give a
                                                                                                                                 approval on all certificates issued by regional representatives.
                                                                deserved premium to legal timber and to penalize the
                                                                production of illegal logs via market prices. With our
                                                                system, legal and illegal timber can be clearly differentiated
                                                                by the discerning and responsible buyer.

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