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REPORT OF THE THIRD MEETING OF THE ASEAN CONSULTATIVE COMMITTEE FOR STANDARDS AND QUALITY PRODUCT WORKING

GROUP ON WOOD-BASED PRODUCTS

15 – 16 December 2005, Bangkok

INTRODUCTION

The Third Meeting of the ASEAN Consultative Committee for Standards and Quality (ACCSQ) Product Working Group on Wood-Based Products (WBPWG) was held on 15 – 16 December 2005 in Bangkok.

2. The Meeting was chaired by Dr. Hadi Daryanto, Secretary of Directorate General of Forestry Product Utilization, Ministry of Forestry of Indonesia and Co-Chaired by Dato’ Mohd. Nazuri Hashim Shah, Director General of Malaysian Timber Industry Board (MTIB) of Malaysia.

3. The Meeting was attended by delegates from Brunei Darussalam, Indonesia, Malaysia, Thailand, Viet Nam, and representatives from the ASEAN Secretariat. Officials from the EC, Japan, and New Zealand were invited to present information papers on existing standards and conformance schemes worldwide to the Meeting. The list of delegates appears as ANNEX 1.

AGENDA ITEM 1: ADOPTION OF AGENDA

4. The Meeting revised and adopted the Agenda, which appears as ANNEX 2.

AGENDA ITEM 2: BUSINESS ARRANGEMENT

5. The Meeting was held in plenary.

AGENDA ITEM 3: MATTERS ARISING FROM SEOM/AEM MEETINGS

6. The ASEAN Secretariat briefed the Meeting of the relevant outcomes of SEOM 4/36 and AEM 37th which was held on 22-26 August 2005 in Bangkok, Thailand and on 28 September 2005 in Vientiane, Lao PDR respectively. The information paper and the reports of the Meetings appear as ANNEX 3.

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respective sectors. Priority has also placed on developing the necessary infrastructure and capacity to implement standardization activities, particularly in Cambodia, Lao PDR, Myanmar, and Viet Nam (CLMV).

8. The Meeting also noted that the AEM had endorsed the ASEAN Policy Guideline on Standards and Conformance, which appears as ANNEX 4. The Guideline aims to provide the guiding principles for the implementation of joint efforts of Member Countries in the area of standards and conformance both in the regulated and non- regulated sectors as one of the measures for accelerating economic integration towards establishing the ASEAN Economic Community (AEC). The Guideline focuses on harmonization of standards and the implementation of the relevant conformity assessment schemes as well as their adoption and use in technical regulations.

AGENDA ITEM 4: FOLLOW-UP FROM 26th ACCSQ MEETING

9. The ASEAN Secretariatbriefed the Meeting on the outcomes of 26th ACCSQ Meeting held 4 – 5 August 2005 in Manila, Philippines. The information paper and Report of the Meeting appear as ANNEX 5.

10. The Meeting took note that ACCSQ is in the process of revising its Terms of Reference (TOR). The purpose is to take into account the emergence of new issues, challenges and tasks to be undertaken by ACCSQ to enhance the role of all relevant stakeholders in ACCSQ activities; and to strengthen the networking between ACCSQ and other ASEAN relevant bodies.

11. The Meeting also took note that as a follow-up to the decision of ACCSQ and SEOM that the ASEAN MRAs be developed to facilitate intra ASEAN trade for AFTA, ACCSQ had adopted the definition on ASEAN Manufactured Products as follows: “A manufacturer incorporated and operating within the boundary of ASEAN that carry out manufacturing activities and are responsible for the quality of the product concerned. An “ASEAN Manufactured Product” is a product manufactured by the said ASEAN Manufacturer.”

12. As requested by ACCSQ, the Meeting will discuss issues on the facilitation of trade of wood-based products to markets such as the EU, USA, Australia-New Zealand and Japan in the subsequent agenda.

AGENDA ITEM 5: PROGRESS ON THE IMPLEMENTATION OF THE ACTION PLAN OF THE PRODUCT WORKING GROUP

5.1. Strengthen and enhance networking among ASEAN Member Countries on standards; technical regulations and conformity assessment procedures

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wood-based products. The purpose of this exercise is to help identify the differences and the similarities amongst Member Countries in this field so that harmonisation initiatives can be undertaken.

14. In this regard, Member Countries report can be summarized as follows:

Brunei Darussalam

15. National standards for specific wood-based products are prepared by the Technical Committee on Timber, under the authority of the Standards Committee, Ministry of Development. The Committee comprises experts from the government, private sectors and higher institutions/technical schools. The Committee produces standards and timber design guidelines with special attention to the timber to be used for construction purposes.

16. Standards are voluntary except for sawn-timber importation and certain timber specifications used in construction other than scaffolding such as species, moisture and chemical treatment content. The Forestry Department is the authority responsible for testing and ensuring that requirements are met before being used in construction. The country report appears as ANNEX 6.

Indonesia

17. The Government has taken efforts to improve the Indonesian National Standards (SNI) including the standards of wood products in light of the rapid development of standards in the global market.

18. The National Accreditation Body of Indonesia (KAN) is a signatory to the MRA/MLA PAC/IAF in the field of Quality Management System (QMS), Environment Management System (EMS) and HACCP System. KAN is also a signatory to the MRA/MLA APLAC/ILAC in the field of calibration laboratories and testing laboratories and to the MRA APLAC in the field of inspection bodies.

19. To improve the performance of conformity assessment bodies accredited by KAN, some of their guidelines have been made into National Standardization Guide. This is to allow the guide to be used nationally by all institutions concerned. In order to coordinate the National Program for Standards Development (NPSD) and to control the development of Indonesian National Standards (SNI), BSN has established the National Technical Management for Standards Development. The country report of Indonesia appears as ANNEX 7.

Malaysia

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21. The DSM has appointed SIRIM Berhad as the national standards development agency. In turn, SIRIM Berhad had appointed the MTIB as the Standards Writing Organisation to undertake development of standards on timber and timber products. MTIB participates actively in various standards development activities at the international level. Currently, there are more than 60 Malaysian Standards (MS) related to timber and its process. These standards were designed and developed in such a way that they are in alignment and in conformity with the relevant international standards. Currently, the adoption or application of the requirements of Malaysian Standards for the wood-based sector is voluntary.

22. On export of timber products, Malaysia highlighted certain technical regulations such as the Building Standards Law in Japan with regards to formaldehyde emission for panel products as specified in the JAS/JIS as well as the EU Construction Products Directive and CE marking for certain products. Efforts with the Japanese authorities are on-going for the accreditation of relevant agencies in Malaysia as Registered Foreign Certification Organisation (RFCO), to facilitate and assist the manufacturers and exporters of wood-based panel products. The country report of Malaysia appears as ANNEX 8.

Thailand

23. The Thai wood industries can be categorised into three groups, namely (i) sawing mill, wooden trade mill, small wood products; (ii) furniture production industries and value-added wood industries; and (iii) pulp and paper, particleboard, hardboard and MDF industries.

24. Thailand has no technical regulations only voluntary standards for the wood-based sector. There are currently 41 standards for wood-wood-based products. Some standards refer to international standards or apply national specific requirements. Exported products are based on the importing country requirements. The country report of Thailand appears as ANNEX 9.

Viet Nam

25. Viet Nam has three kinds of standards, namely National Standards, Ministerial Standards, and Company Standards. Development, endorsement and implementation of National Standards (TCVN) in Viet Nam have been carried out by STAMEQ. Ministerial Standards (TCN) on wood products are carried out by the Ministry of Agriculture and Rural Development.

26. For wood and wood-based products, there are currently 48 standards for wood-based products (include standards for sawn-timber, plywood, panel, flooring, etc.). In addition, there are about 10 standards relating to wood and wood-based products, but they are safety field related. As for now, the standards for wood and wood-based products in Viet Nam are voluntary.

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standards are in consideration and may be aligned to standard of US or EN depending on the export markets.

28. Viet Nam has no regulation for imported wood and wood-based products. However, the application of standards on exported products will depend on the importing country’s requirements. As an exporter of wood-based products, Viet Nam has to fulfil demands of exporting consumers or buyer groups to apply mandatory requirements (such as CE-marking, JAS standards, PEFC, and others). The country report of Viet Nam appears as ANNEX 10.

5.2. Comparative study of standards, technical regulations and conformity assessment procedures among Member Countries

29. As was agreed at the Second Meeting of ACCSQ Wood-Based PWG, Indonesia and Malaysia were assigned to develop and distribute a template questionnaire to ASEAN Member Countries to collect necessary information on Member Countries’ wood-based Products standards, technical regulations and conformity assessment procedures.

30. The Meeting was informed that only three countries had completed the questionnaire on transparency of wood and wood-based products standards, technical regulations and conformity assessment procedures circulated by Indonesia. The response from Malaysia, Indonesia and Viet Nam appear as ANNEX 11.

31. Based on the submitted information, the Meeting noted that no technical regulations were imposed on trade in the wood-based sector among ASEAN Member Countries. The Meeting also noted that most of the national standards in the specific category products are not equivalent (NEQ) with the relevant of International Standards. However, the Meeting was of the view that the findings were not yet conclusive and requested the other Member Countries to submit the completed questionnaire to Indonesia so that a thorough evaluation and comprehensive analysis can be conducted. The summary and findings will be presented in the next WB PWG Meeting.

Action Line: Member Countries Indonesia

32. The Meeting also took note of the report from Malaysia on the on-going comparative study, which appears as ANNEX 12.

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look for possible technical and financial assistance to help in this undertaking. Should there be any developments, Malaysia would be informed accordingly.

Action Line: Member Countries ASEAN Secretariat

5.3. Development of common requirements and conformity assessment procedures for ASEAN Member Countries

34. The Meeting took note of the proposed list presented by Indonesia on the specific category products for (i) Panel products, (ii) Sawn timber, and (iii) Flooring Products for harmonization, which appears as ANNEX 14.

35. The list was based on the list provided by the ACCSQ WG1 (Working Group on Mutual Recognition Arrangements and Standards) on proposed standards for harmonisation and on the decision made at the Second Meeting of the ACCSQ Wood-based PWG to focus on the three products. Indonesia informed that the common standards should be selected for further follow up action by WG1.

36. The Meeting took note of the view by Malaysia of the need to prioritise the standards proposed in the list. A consideration would be to select on the basis of technical regulations that are trade related.

37. The Meeting was informed of the WG1 decision that in selecting standards for harmonization, priority should be given to those national standards, which are cited in technical regulations in the majority of Member Countries. Those standards, which are not cited in technical regulations but have significant impact on intra ASEAN trade should also be considered for harmonization exercise on a second priority basis.

38. In this regard, the Meeting was informed that Member Countries would require more time to consider and consult with their relevant authorities on the said list, and would provide comments to Indonesia accordingly.

39. The Meeting was informed that the next meeting of the WG1 is scheduled for February 2006 in Malaysia. In order to allow the views and comments of the ACCSQ Wood-Based PWG and Member Countries to be presented to the WG1, Member Countries were requested to submit comment to Indonesia by30 January 2006. This would allow Indonesia to compile and present them to WG1 for their consideration and harmonization.

Action Line: Member Countries Indonesia

AGENDA ITEM 6: REVIEW ON THE EXISTING INTERNATIONAL AND

REGIONAL STANDARDS, TECHNICAL REGULATIONS AND CONFORMITY ASSESSMENT

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40. As part of the efforts to obtain a better understanding of existing standards and product certification schemes worldwide, the Meeting held consultations with officials from the EC, Japan and the New Zealand. The consultation also provides an opportunity to explore possible future collaborations.

6.1. EC

41. The Meeting took note with appreciation the presentation by Mr. Hugh Pullen of DG Trade, European Commission on “EU-ASEAN cooperation on wood-based products”, which appears as ANNEX 15.

42. The presentation provided an overview of EU-ASEAN cooperation on trade and investment policy; trade in wood products; and future EU-ASEAN works on wood-based products. The TREATI (Trans-Regional EU-ASEAN Trade Initiative) is the framework for dialogue to address key trade barrier issues at the official level. TREATI has identified trade in wood-based products as a priority sector. In the area of standards, cooperation activities can be developed to enhance standards for wood and wood-based products.

43. The Meeting was informed that an EU-ASEAN workshop would be held in Kuala Lumpur in 2006. The objective and timing of the workshop would still need to be determined. In this regard, Member Countries were requested to submit possible themes or topics for discussion to the ASEAN Secretariat by 30 January 2006. The ASEAN Secretariat would compile and submit to the EC for consideration.

Action Line: Member Countries ASEAN Secretariat

44. The EC Delegate informed that all Member Countries are invited to the workshop. He also informed that there may be possible funding assistance provided for the participants from Cambodia, Lao PDR and Viet Nam. The Meeting would like to inquire if EC funding assistance can be accorded to all ASEAN Member Countries. In this regard the ASEAN Secretariat will consult with the EC on this matter and inform Member Countries accordingly.

Action Line: ASEAN Secretariat

45. The Meeting expressed appreciation to the EC for their efforts and initiative to enhance relations between ASEAN and EC.

6.2. Japan

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47. The presentation provided an overview of the reform in their Conformity Assessment System under the Industrial Standardisation Law, the Building Standard Law and the new JIS Mark System.

48. The Meeting thanked Japan for the comprehensive and detailed presentation and the opportunity to share information.

6.3. New Zealand

49. The Meeting took note with appreciation the presentations by Mr. Peter Morfee, Senior Policy Advisor, Regulatory & Competition Policy, Ministry of Economic Development, New Zealand and Dr. Bill Porteous, Chief Policy Advisor, Department of Building and Housing, New Zealand, which appears as ANNEX 17.

50. The presentations were on the ISO TC165 Committee Meeting in Rotorua which was held in New Zealand in November 2005 and the progress on a New Zealand / US proposal for reducing Non-Tariff Barriers (NTBs) in the Wood Products Sector.

51. New Zealand expressed their interest to undertake collaboration activities to improve dialogue and trade between ASEAN and New Zealand particularly for wood-based products. The objective of the collaborations is to facilitate consultations and sharing of information on TBT issues between ASEAN and New Zealand regulators.

52. To initiate this, New Zealand proposed the establishment of experts groups. The experts groups meeting could be convened to discuss issues of mutual interest and concern in the area TBT in wood-based products. Furthermore, New Zealand could assist, subject to funding availability, in organising capacity building activities for ASEAN and New Zealand regulators to advance the work of the ACCSQ and assist in the ASEAN –New Zealand trade facilitation.

53. The Meeting welcomed the proposals by New Zealand and would consider them seriously and in more detail. In this regard, Member Countries would provide their comments on possible collaboration activities with New Zealand at the next Meeting. Agreed activities would be informed to New Zealand accordingly.

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AGENDA ITEM 7: CONSIDERATION AND ADOPTION OF THE ACTION PLAN/ WORK PROGRAMME OF THE PRODUCT WORKING GROUP

54. The Meeting discussed and updated the Work Programme based on recent developments, which appears as ANNEX 18.

55. The Meeting agreed that to better facilitate for the request and submission of information from Member Countries on particular activities in the Action Plan/ Work Programme, Member Countries were requested to submit the names and full contact details of their respective focal point to the ASEAN Secretariat. The focal points would be responsible for providing the requested information. The ASEAN Secretariat will compile the names and forward the list to the respective Country in Charge i.e. Indonesia and Malaysia.

56. As a reminder, the ASEAN Secretariat would send a letter to Member Countries requesting nominations of their focal points.

Action Line: Member Countries ASEAN Secretariat

57. The Meeting considered the inclusion of a new activity in the area of collaboration with ASEAN dialogue partners. This was discussed in line with the request of the ACCSQ at their 26th Meeting to discuss issues on the facilitation of exports of wood-based products to markets such as the EU, USA, Australia-New Zealand, and Japan.

58. The Meeting recalled that the existing TOR of the working groups only covered trade activities in the ASEAN region. However, given the importance of enhancing trade with dialogue partners and the on-going negotiations on FTAs carried out with these countries, the Meeting agreed to consider implementing relevant activities.

59. In this regard, the Meeting agreed to revise the TOR to reflect this new activity. The ASEAN Secretariat was requested to make the necessary revisions and circulate to Member Countries for their consideration. The revised TOR would be submitted to the ACCSQ for their consideration at the next meeting. Following the approval, the Meeting could consider possible activities with the Dialogue Partners in the action plan/work programme.

Action Line: ASEAN Secretariat

AGENDA ITEM 8: OTHER MATTERS

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60. The Meeting noted the presentation on the ASEAN Forest Clearing House Mechanism (CHM). The CHM, which is currently hosted in Singapore, could serve as an information platform among ASEAN Member Countries for issues of common interest. Information in the form of manuals and a CD was distributed at the Meeting to Member Countries for their reference.

61. The features of the CHM are to facilitate communication among ASEAN officials in addressing specific forestry issues. Information and data can be uploaded to the system. Information would include ASEAN reports, national forest legislations and schedule of events. Documents will be in English with the flexibility of allowing supporting documents to be in the national language. It is understood that any information posted in the CHM will have obtained the necessary clearance from the respective national authorities.

62. As a platform for the exchange of information on matters of forestry, forestry professionals, researchers, policy makers and other interested individuals and organisations can be part of the CHM network. However, their names would need to be submitted for consideration and approval by the ACCSQ Product Working Group on Wood-Based Products.

63. The Meeting agreed that the CHM would be a useful web-based information system. To allow Member Countries to further look into the features of the CHM User IDs can be assigned to each Member Country to allow them or their officials to login and browse through the features. Interested member Countries can submit such requests to the ASEAN Secretariat.

Action Line: Member Countries ASEAN Secretariat

AGENDA ITEM 9: DATE AND VENUE OF THE NEXT MEETING

64. The Meeting recalled that the 2nd Meeting of the ACCSQ Product Working Group on Wood-Based Products agreed to convene the 4th Meeting of ACCSQ Product Working Group on Wood-Based Products in the mid year of 2006 tentatively in the Philippines subject to the Philippines confirmation . The exact date and venue will be communicated in due course.

65. The Meeting also recalled that the 5th Meeting of ACCSQ Product Working Group on Wood-Based Products would be tentatively held in Viet Nam.

AGENDA ITEM 10: CONSIDERATION AND ADOPTION OF REPORT

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ACKNOWLEDGEMENT

The delegates from Brunei Darussalam, Indonesia, Malaysia, Thailand, Viet Nam and ASEAN Secretariat expressed their appreciation to Thailand, in particular the Thai Industrial Standards Institute (TISI) and Federation of Thai Industries, Furniture Industry Club for the warm hospitality extended and the excellent arrangements made for the Meeting. The Meeting thanked ASEAN Secretariat for the assistance provided.

The Meeting was held in the traditional spirit of ASEAN solidarity.

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