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Chain-of-Custody

From Forest to Consumer

March 30, 2011

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Chain of Custody

Tracking wood

from the forest....

.... to the consumer

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Who Needs Chain of Custody Certification?

Anyone who processes, transforms, manufactures, converts or distributes products carrying an FSC logo or FSC claim must be Chain of Custody (CoC) Certified.

CoC follows ownership of the material

Companies that do no need CoC certification: • transport • Subcontractors for finishing• sales agents

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The Basics of the CoC Process (FSC-STD-40-004 V2)

Verify supplier’s FSC status Verify material upon receipt Storage, segregation, tracking of FSC material System for making FSC claims:

• transfer• percentage • credit

Passing on the FSC claim (invoices, shipping documents) Labelling: on-product, off-product

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Various types of inputs can be used:

FSC

PureFSC

Mixed

FSC

Recycled

FSC

Controlled

Wood

Controlled

material

FSC-certified inputs

Reclaimed

material

Non-FSC inputs

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Making FSC Claims: Transfer System

• Raw material claim (or lowest claim) is carried forward

• Segregation is required

• Used for FSC Pure claims

• Used for FSC Recycled 100% claims

• Shall be used for trading finished products

• Shall be used for organizations without sites

• Typical for

–Brokers, traders

–Distributors, wholesalers

–Printers, paper merchants

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Inputs of the same material category:

Input Material Category FSC Claim

FSC Pure FSC Pure

FSC Mixed Credit FSC Mixed Credit

FSC Recycled 85% FSC Recycled 85%

Inputs from different material categories:

Input Material Category FSC Claim

FSC Pure + FSC Mixed 70% FSC Mixed 70%

FSC Recycled 100% + post-consumer FSC Recycled 100%

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Making FSC Claims: Percentage System

Inputs of different material categories are transformed or combined with an FSC percentage claim calculated based on input volumes.

Input Material Categories FSC Claim

FSC Pure + controlled material FSC Mixed X%

FSC Mixed + FSC Mixed FSC Mixed X%

FSC Recycled + Pre-consumer FSC Recycled X%

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Input Material Categories FSC Claim

FSC Pure + controlled material FSC Mixed Credit

FSC Mixed + Post-consumer FSC Mixed Credit

Post-consumer + Pre-consumer FSC Recycled Credit

Inputs of different material categories are transformed (or combined) for

an FSC credit claim.

Making FSC Claims: Credit System

• No segregation required once received (except uncontrolled)• Most sawmills on this system• Requires set up and maintenance of FSC Credit Account

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... However there are some banking rules ...

BUY FSC (&/or PCR)

raw material

To

earn

cre

dit

SELL FSC products

To

sp

en

d c

red

it

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Where:

FSC Credit = FSC credit earned

Input = Amount of purchased material

C.F. = conversion factor for input to

output

FSC Credit = Input X C.F.

Sample:

Input = 40 cbm of logs

C.F. = 0.5

(0.5 fbm lumber produced from 1 fbm roundwood)

FSC Credit = 40(0.5)

= 20 fbm

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Illustration of a Credit Account

MonthFSC

Total

FSC C.F.

(0.9)

Total FSC

Credit

FSC

Sales

Balance

July 2018

(20X0.9)18 10

8

(18-10)

Aug 15 13.521.5

(13.5+8)20 1.5

Sept 25 22.5 24 5 19

New Credit Balance = [(Inputs X C.F.) + Previous Balance] – FSC Sales

Inputs New credit +

previous balance

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Supplementary Components

• Outsourcing

• Minor components

• Controlled wood (FSC-STD-40-005)

• Reclaimed material (FSC-STD-40-007)

• Multi-site certificates (FSC-STD-40-003)

• Group certificates (FSC-POL-40-002)

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What if not all the wood I buy is FSC-certified?

Controlled Wood

Non-FSC certified materials:• that avoid wood from 5 unacceptable categories• where the forest origin is known

FSC Controlled Wood

• non-FSC material• already verified by an FSC-certified supplier as being ‘controlled’• ie. district of origin verified and risk assessment conducted• sold by an FSC-certified company with ‘FSC Controlled Wood’ claim

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2. Wood harvested in violation of traditional and civil rights;

1. Illegally harvested wood;

3. Wood harvested in forests where high conservation

values are threatened by management activities;

4. Wood harvested in forests being converted to

plantations or non-forest use;

5. Wood from forests in which genetically modified trees

are planted.

Controlled Wood avoids:

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The Basics of the Controlled Wood Process

Verify ‘district of origin’ of non-FSC material

Conduct risk assessment for district of origin• low risk - wood considered ‘controlled material’

• not low risk - wood considered ‘uncontrolled’ material

Track controlled wood for use in FSC product groups

System for controlling FSC claims: • percentage - must segregate FSC vs. controlled wood

• credit - no segregation req’d

Can sell non-certified wood with ‘FSC Controlled Wood’

claim (to FSC-certified customers only)

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The Certification Process

Submit an application to SmartWood

Budget/Proposal prepared

Signed service agreement

Prepare documented control system & forms

Conduct training with staff

Assessment with SmartWood auditor

Report with findings (certificate recommended?)

Certificate issued

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Questions?