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PEFC LITHUANIA CERTIFICATION SCHEME OF SUSTAINABLE FOREST MANAGEMENT AND CHAIN OF CUSTODY OF FOREST BASED PRODUCTS

(Technical document)

Submission to the Pan-European Certification Council

September, 2004

Contents

1. Introduction

2. Aims and objectives

3. Standard setting process

4. Scope

5. Scheme structure and key elements

5.1. Scheme operation

5.1.1. Key elements

5.1.2. Certification Process

5.1.3. Levels of implementation

5.1.3.1. Individual certification.

5.1.3.2. Group certification.

5.1.3.3. Regional certification.

5.2. Suspension,cancellationand renewal of certificates

5.3.Use of PEFC Logo

5.4. Appeals, complaints and disputes

6. Chain of custody certification

7. Certification Standard

1. Introduction

Sustainable forest management (SFM) has represented the central concept of managing forests and was commonly recognized as one of the central goals of the society in the early 1990s. It was especially evident since the UNCED in Rio in 1992. The result today is a broad consensus on principles, guidelines, criteria and indicators for SFM on international governmental level. One such process is the Ministerial Conference on the Protection of Forests in Europe (MCPFE), ongoing process in which hundreds of experts from a very wide range of stakeholder groups have been involved.The aim of forest certification is to prove to the buyer of timber products that the timber used for them is derived from a well managed forest. This is proved by the certification of the forest management on the one hand and the chain of custody of timber on the other, and is made visible by the appropriate label on the product or its package.

Lithuania is a country with ample forest resources and an important role of the forest sector in economy. Forest certification is an important tool to prove that forest sector is on the right way of sustainable development.The international certification schemes have been analyzed in Lithuania since 1997.TheDepartment of Forests and Protected Areas under the Ministry of Environmental Protection started to analyze the possibilityto implement international forest certification schemes (PEFC and FSC) in Lithuanian forest sector. Consequence of those analyses was the report "The overview of forestcertification schemes and the possibility to implement it in Lithuania" has beenprepared in 1998. Since 1999 representatives from Lithuaniastarted to participate inthe PEFC processas observers. Since 2000 Forest Owners Association of Lithuania put efforts to introduce PEFC certification system in Lithuania. In 2002 during the General Assembly of PEFCC it was decided to invite Lithuania to join PEFCC as a member. SinceMay 20, 2003 public institution “PEFC LIETUVA” became the member of PEFCC.

2. Aims and objectives

The strategic aim of the PEFC Lithuania Sustainable Forest Management Scheme (further called Scheme) is to provide a credible and accessible national certification system as a practical tool for promoting sustainable forest management in Lithuania, and in doing so to provide Lithuanian market access to the PEFC label as appropriate.

The scheme labours for following objectives:

1. To provide opportunity to all forest owners regardless the size of their property to participate in the forest certification process.

2. To support the improvement of forest management methods in Lithuania by setting the requirements which meet the internationally recognized criteria and indicators for sustainable forestry practice.

3. To facilitate wood market access to certified timber by increasing its quantities.

3. Standard setting process

The process of setting the Scheme was coordinated by non-profit organization “PEFC LIETUVA” which was established by the Forest Owners Association of Lithuania (FOAL) on November 15, 2002. The Statute of PEFC LIETUVA is presented in Annex 1 (The Statute of PEFC LIETUVA). All relevant interested parties were invited to participate in this process and PEFC LIETUVA Council, the consulting body of PEFC LIETUVA, had been created from their representatives. The invited parties represent the different aspects of sustainable forest management and include, e.g. forest owners, representatives of governmental organizations, forest industry, environmental NGOs, trade unions and retailers at national and sub-national levels. Experts contracted by PEFC LIETUVA developed the Scheme. The pilot testing of the Standard was carried out.The final draft of the Standard was sent out for formal national consultation process on December 1, 2003 by posting it on the Internet. In 2004 the PEFC LIETUVA Council met several time in order to discuss improvements and recommendations for the final version of the standard.

4. Scope and structure of PEFC LITHUANIASFM Scheme’s documentation

The document was adopted by the PEFC LIETUVAGeneral Assembly after the consultations with PEFC LIETUVA Council and other concerned organizations on September XX 2004.

The document covers the base requirements and implementation framework required for the forest and chain of custody certification.The other documentation of the Lithuanian PEFC Certification Scheme is presented in the following Annexes to the Technical Document:

  1. Statute of the PEFC LIETUVA (Annex 1).
  2. International C-o-C Standard of Forest Based Products (Annex).
  3. Compatibility of Lithuanian Operational Level Guidelines with Pan-European Operational Level Guidelines (Annex).
  4. Certification Standard of PEFC Lithuania(Annex).
  5. Declaration of Commitment to Comply with the Principles and Criteria of PEFCLIETUVA(Annex).

5. Scheme structure and key elements

The relationship between the various bodies and their functions within the operational structure of the Scheme are shown in the following flow chart overleaf.

PEFC LIETUVA is responsible for:

  1. Developing and submission of the Scheme for endorsement by PEFC Council in Luxemburg.
  2. Promoting the Scheme as the national certification standard for sustainable forest management in Lithuania.
  3. Maintaining a register of all forest owners, governors or users as well as organizations certified under the Scheme.
  4. Maintain the register of all accredited certification bodies.
  5. Reviewing the design of the Scheme with a view to continuous improvement.
  6. Issuing and updating of all the documentation relating to administration and implementation of the Scheme.

OPERATIONAL STRUCTURE OF PEFC LITHUANIASFM SCHEME

5.1. Scheme operation

5.1.1. Key elements

PEFC LIETUVA works consulting with PEFC LIETUVA Council. After the endorsement of the Scheme by the PEFC Council in Luxemburg, National Accreditation Bureau (NAB) under the Ministry of Environment of Republic of Lithuaniawillaccreditrelevant (qualified) certification bodies. NAB realizes the policy of the Government of the Republic of Lithuania in the field of accreditation and it is the member of European Accreditation (EA).The accredited certification bodies will receive applications from forest owners or managers to carry out independent audit against PEFC Lithuania Certification Standard on individual, group or regional level as well as from forest products processors, manufactures, retailers and wholesalers to carry out chain of custody certification against International C-o-C Standard of Forest Based Products. If the criteria set by the standards (Lithuanian Certification Standard and International C-o-C Standard) are met the certification body issues certificate. Then certification body sends PEFC LIETUVA information about forest owners or managers as well as forest products processors, manufactures, retailers and wholesalers who got the certificates. After getting this information PEFC LIETUVA(if it is requested) gives the permission to use of PEFC logos, claims or labels.

5.1.2. Certification Process

The following are the steps of the certification process:

  1. Enquiry about PEFC Lithuania Certification Scheme.

Potential applicants may seek information about PEFC LithuaniaCertification Scheme. PEFC LIETUVA and/or certification bodies provide potential applicants with all necessary documents and explain how the Scheme operates.

  1. Application for certification.

Certification body gets written application to carry out certification. Agreement concerning the costs of certification is made. Certification contract is signed.

  1. Certification assessment (audit).

Qualified team of auditors appointed and contracted by certification body carries out an audit of forest management and usage against PEFC LithuaniaCertification Standard or an audit of chain of custody operations against an International C-o-C Standard of Forest Based Products.

  1. Certification report.

Following the assessment, the team of auditors writes the certification report providing a summary of the key findings of the audit, including all non compliances with the requirements of the standard and submits it to certification body.

  1. Independent review of the certification report.

Certification body submits the certification report to one or two appropriately qualified experts(independent reviewers) in order to check the quality of assessment. Although these expertsare appointed by the certification body, they operate independently from it. The expertsmay endorse the report or may return it to the certification body asking to correct the shortcomings noticed or even to repeat the audit. In case the report is returned to certification body it has to ask auditing team to correct the shortcomings or to repeat certification assessment and within two weeks period to submit the improved certification report to independent reviewers again.

If auditors and independent reviewers agree that, basing on the auditors findings, certificate may be awarded to the applicant the next steps of the certification process follow.

  1. Applicant’s agreement to take corrective actions and to comply with the principles and criteria of PEFC Lithuania Certification Standard.

After the endorsement of the certification report by an independent reviewer, certification body gives the report to an applicant. The applicant will be required to sign a written agreement to undertake corrective actions described in the certification report within the defined time-scale. He also has to sign Declaration of commitment to comply with the principles and criteria of PEFC Lithuania CertificationStandard. The text of the commitment is presented in Annex 6 (Declaration of commitment to comply with the principles and criteria of PEFC Lithuania Forest CertificationStandard).

  1. Award of certificate.

After required documents are signed and all certifications costs are paid by the applicant the certification body issues him the Certificate. The maximum validity of the certificate is 5 years and after this period a new certification assessment has to be done. The award of forest management and chain of custody certificates under PEFC Lithuania Certification Scheme is responsibility of the certification body concerned.

  1. License to use PEFC LIETUVA label.

It is issued by PEFC LIETUVA to the certificate holder on request, in accordance with the procedures for use of the PEFC logo.The PEFC logo usage is subject to monitoring carried out by the PEFC LIETUVA.

  1. Monitoring during the period covered by the Certificate.

Auditors contracted by the certification body carry out regular monitoring (at least annual) of the certificate holder, using the assessment report as the source of reference, in order to ensure continued compliance with the requirements of the certification standard.

  1. Public reporting.

To ensure transparency PEFC LIETUVA will require certification bodies to produce “Public Summary Report” after each certificate is issued. Public Summary Report will contain key information and results of the auditors findings, e.g. it will be the summary of certification report. Commercially confidential information will not be included into the Public Summary Report. The Public Summary Report will be available to all interested parties by posting it on internet in both PEFC LIETUVA and relevant certification body web pages.

5.1.3. Levels of implementation

There are three main levels at which forest owners, governors or users may apply for forest management certification under the PEFC Lithuania Certification Scheme:

  1. Individual certification
  2. Group certification
  3. Regional certification

5.1.3.1. Individual certification.

This is where individual forest owner, governor or user seeks the certification for the forest he/she owns or manages. This method is available for any size and type of forest.

An individual forest owner, governor or user may apply for certification by submitting an application to a certification body which is accredited by NAB. The individual forest owner, governor or user shall submit for the certification all the forest area under his/her ownership or management.

5.1.3.2. Group certification.

Group certification is a tool by which several forest owners or users can be certified together under an identifiable group.All group members have to commit themselves to comply with the requirements of the PEFC Lithuania Certification Standard in respect of all forest areas included within particular group.Responsibilities for meeting elements of PEFC Lithuania Certification Standard may not be shared between different group members or forest areas- e.g. with one group member meeting all criteria of particular chapter of the Standard requirements whilst another member does not meet any. The rational for group certification is to spread the costs of certification between a number of forest owners or users for whom the costs of being certified individually are too high. A sample of the forest areas within the group can be audited each year.

In case of group certification the applicant and participants of the group shall be clearly defined. In group certification the applicant is responsible for administrative and forest management policies that are relevant to the whole group. A register recording all group members and forest areas participating in the group certification shall be established and maintained by the applicant. Ideally the applicant could be an umbrella organization (for example forest owners cooperative) that has the resources to carry an internal control of the group members and to establish/maintain group register. Application for group certification should be made to the certification body by umbrella organization or by the group manager appointed to act on behalf of the group members. Umbrella organization/ group manager has following responsibilities:

1. To accept contractual responsibility to the certification body for ensuring that the requirements of the Standard are implemented by all group members.

2. To obtain contractual commitment from each group member to comply with the requirements of the Standard.

3. To maintain register of all group members. This includes: name and address of group member, date of joining and leaving the group, reason of leaving the group (if applicable), area (in hectares) of certified forest belonging to each group member, locations of certified forest areas (map).

4. Regularly provide information (3) to PEFC LIETUVA register.

In case of group certification a forest management certificate is issued only to the applicant, but not to the individual group member. Participating group members may receive (if he/she requests) from PEFC LIETUVA the document stating that: “PEFC LIETUVA confirms that individual forest owner or user is the member of given group having a PEFC LIETUVA forest management certificate”.

Inclusion of new group members. New participants may join the group at any moment, during the 5 years validity period of group certificate, but not later than the last annual audit should be undertaken. The confirmation that they are group members may be sent to the new participants only after an annual audit of their forest areas will show that management of these areas meets the criteria of PEFC Lithuania Certification Standard.

5.1.3.3. Regional certification.

Regional certification is the certification of forests within delimited geographic boundaries, being applied for by the authorized organization (the applicant) for the specified region and providing voluntary access for the participation of individual forest owners and other actors. In regional certification the applicant organization shall be a legal entity and should represent forest owners, governors or users managing more than 50 % of forest area of the region. Regional certificate may be particularly appropriate or the preferred option for larger management units- for example, forest enterprises. The applicant is responsible:

1. To accept contractual responsibility to the certification body for ensuring that the requirements of the Standard are implemented by all participants.

2. To obtain contractual commitment from each participant to comply with the requirements of the Standard.

3. To ensure that credible registers are kept of participants to certification and of the certified forest area.

4. Regularly provide information (3) to PEFC LIETUVA register.

The forest owners, governors or users may join the regional certification by either entering into an individual signed commitment or based on the majority decision of a forest owner’s organization on behalf of forest owners they represent in the region. Regardless of the basis of the commitment, participation in certification is fully voluntary and a forest owner or users may at any stage resign from it.

Forest owners, governors or users should submit all the forest area under his/her management in the region for certification, butaudit has to be carried out surveying only the representative sample, i.e. some part of the forest under certification. During the field work a certain number of places are visited. This number depends on the area of forest under certification, extent of forestry operations, number of protected objects and territories. All places which have to be visited can be grouped into 6 main categories: fellings done before the certification, forestry operations ongoing during the auditing process, reforestation works done before the certification, damaged forest areas protected objects and other important objects. The forest holdings owned, governed or used by forest owners, governors or uses who participate in the certification as well as the forest holdings owned, governed or used by forest owners, governors or uses who do not participate in the certification have to be visited during the audits.

In case of regional certification a forest management certificate is issued only to the applicant, but not to the individual participant. Participants in regional certification may receive (if he/she requests) from PEFC LIETUVA the document stating that: “PEFC LIETUVA confirms that the forest of the participant is within the area covered by PEFC LIETUVA regional certificate”. Only the timber harvested from the forests of the participating forest owners, governors or users is considered as coming from a certified forest.

Inclusion of new participants.New forest owners, governors or users may be included to the list of participants at any moment, during the 5 years validity period of regional certificate. The confirmation that their forest comes from the PEFC LIETUVA certified region has to be sent to the new participant within 15 working days after receiving his/her request (together with the copy of signed contractual commitment to comply with the requirements of the Standard).