Compatibility Assessment of
SVLK to the VPA
Preparatory for the TWG and DVC,
Yogyakarta, 3-4 June 2010
SVLK – Regulatory Background
•
Permenhut No. P.38/Menhut-II/2009 dated on
12 June 2009,
•
Perdirjen BPK No. P6/VI-Set/2009 dated on 15
June 2009,
•
Perdirjen BPK No. P02/VI-BPPHH dated on 10
VPA Processes
•
Joint Statement
(Menhut RI & EU Commissioners),
January 2007
•
26 Jan. 2007, the
Chatham House
, SecDitjen BPK (Dr.
Hadi Daryanto) made a presentation on
“Preparing VPA
in Indonesia through Multi-stakeholders Process”
Indonesia stands ready to negotiate the VPA
•
SOM: I-March 2007, II-June 2007
•
TWG: I-April 2008, II-Dec 2009, III-March 2010, all in
Jakarta
5-Main Components of a VPA
1. Definition of Timber Legality
2. Control of Supply Chain
3. Verification System
4. Licensing System
Technical Assessment of SVLK
(through the TWGs and JEMs)
1. Legality Definition: [JEM-1] suggest to provide additional description on administration throughout the supply chain
2. Control of the Supply Chain: [JEM-1 & 2] suggest additional guidance to help operators develop timber information system (databases)
3. V & ER: [JEM-1 & 2, TWG-3] suggest a clearer guideline on the
compliance on legality verification once a company is certified for SFM performance and the violation after the issuance of a certificate. [JEM-3] the issues are very well addressed by issuing a handbill (Surat Edaran) on VER SE.8/VI-Set/2010, 31 May 2010
4. FLEGT Licensing: [JEM-1 & 2] aware that this is beyond P.38. [TWG-3] look forward to the development of the scheme that is recognized as the FLEGT-VPA licensing system. [JEM-3] review and understand the
principles being developed by Indonesia (inspection bodies accredited to ISO 17020)
Compatibility of SVLK and VPA
1. Definition of Timber Legality
OK. Need to summarize
P.38 and related regulations
2. Control of Supply Chain
OK. Need to insert this onto
the summary of regulations
3. Verification System
OK. Accredited LPVI
4. Licensing System
Ideally OK, until the regulation(s) on
the conduct of inspection bodies are issued/finalized
5. Independent Monitoring System
IM Indonesia OK.
Periodic Evaluation (PE) to replace IM as expected by EU is
most likely acceptable as Indonesia is also of the view and
plan to conduct multi-stakeholders evaluation (on SVLK)
to improve its credibility in the future. TOR for PE is
Challenges
Permenhut P.38: enter into effect on June 2009, shall be implemented beginning in 1 September 2009:
• If Indonesia sets the target for the (pilot) implementation of SVLK (including the licensing system) by 1 January 2011, the regulation on the licensing system (revised Permendag 20) must be enacted the latest by Sep 2010 Indonesia’s need
• Need to continue readiness of all (regulatory: cost standard,
accreditation of LPVI and ‘inspection bodies’, product coverage, etc; capacity: management unit including the industries, auditors,
forestry officials, CSO/IM, etc) Indonesia’s need
What’s Next?
SVLK
•
Finalize the Licensing
System
conduct tech
discussion with KAN (re:
‘Inspection Bodies’),
followed with drafting
Permenhut, proposal to
revise Permendag 20/2008,
etc
VPA
•
Remaining technical issue
PE in lieu of IM to be
agreed
•
Prepare Ina’s counter-draft
Focused on SVLK
(Final Proposal on the
Licensing System)
As was first discussed in Bandung
(March 11-13), reported in Yogyakarta
(March 19-20), and finalized in
Definition
•
Licensing Scheme in Indonesian context:
procedure/protocol on the issuance of “logo”
(shape, size, color, placement etc) for the purpose
of “PHPL/LK” verication
•
“Verification” is an activity to issue a document
(that a shipment come from sustained/legal
source) by filling (standardized) form/document
•
“Verification” as a replacement of the old
The (Proposed) Licensing Scheme
•
For Industries who have not have Legality Certificate
(LK): Verification by BRIK (until its termination) or
independent inspection bodies accredited to ISO/IEC
17020
•
For Industries with “brown” or “red” LK Certificate:
Verification by inspection bodies accredited to ISO/IEC
17020
•
For Industries who have “green”, “blue” or “yellow” LK
Focused on VPA
Prepare TWG-4 (21-22 June 2010)
and DVC (14 June 2010)
FGD led by DEPLU,
Mercure Hotel, Ancol,
Generic VPA Text
• Preamble
• Article 1 Objective
• Article 2 Definitions
• Article 3 FLEGT Licensing Scheme
• Article 4 Licensing Authority
• Article 5 EU Competent Authorities
• Article 6 FLEGT Licenses
• Article 7 Definition of Legally Produced Timber
• Article 8 Verification of Legally Produced Timber
• Article 9 Consultations on Validity of Licenses
• Article 10 Third Party Monitoring
Generic VPA Text (Cont’d)
• Article 12 Irregularities
• Article 13 Date of Operation of the FLEGT Licensing Scheme
• Article 14 Application of FLEGT Licensing Scheme to Timber Products Manufactured from Timber Imported into Indonesia
• Article 15 Schedule for Implementation of the Agreement
• Article 16 Supporting Measures
• Article 17 Stakeholder Involvement in the Implementation of the Agreement
• Article 18 Social Safeguards
• Article 19 Market Incentives
• Article 20 Joint Implementation Committee
Generic VPA Text (Cont’d)
• Article 22 Communication on Implementation of the Agreement • Article 23 Confidential Information
• Article 24 Territorial Application • Article 25 Settlement of Disputes • Article 24 Territorial Application • Article 25 Settlement of Disputes • Article 26 Suspension
• Article 27 Amendments
• Article 28 Duration and Extension • Article 29 Termination
• Article 30 Annexes
Generic List of VPA Annexes
• Annex IA Products Covered by the FLEGT Licensing Scheme • Annex IB Products not covered by the FLEGT Licensing Scheme
• Annex II Legislation to Be Taken Into Account in Determining the Legality
of a Shipment of Timber, documentation to be used as proof of compliance, and forest policy and legislative reform aspiration
• Annex III Community Importation procedures including verification of
Licenses
• Annex IV FLEGT License Specifications
• Annex V Legality Assurance Scheme, including the procedure for issuing
FLEGT Licenses (wood tracking system, verification, licensing and independent monitoring)
• Annex VI Terms of Reference for Independent Monitoring
• Annex VII Criteria for assessment of the Legality Assurance Scheme • Annex VIII Schedule for Implementation of the Agreement
Deplu’s Observation of Draft VPA Text
•
An agreement consists of legal and technical
(substantial) components
•
In terms of its legal aspect, the VPA has no significant
problem. Some improvements are, however, suggested
•
Technically, the VPA needs to be supported with
sufficient domestic regulatory measures and well
coordinated with other sector (interdepartmental
consultation) and stakeholders
•
The FGD produces counter draft (
“Bahasa
Final Update/Suggestion
•
DVC (June 14) to adopt the results from JEM-3
(PE and its TOR development by Ina/EU experts)
and to seek clarifications over articles of the VPA
legal text (and annexes preparation by Ina/EU
expert). Not to discuss and agree the language
•
TWG-4, Brussels (21-22 June 2010) to start
Thank You – Terima Kasih
