74ffd6341a2b626cd3dd17027f42f661

(1)

DIRECTOR GENERAL REGULATION OF

SUSTAINABILE PRODUCTION FOREST MANAGEMENT

NO:P.14/PHPL/SET/4/2016

CONCERNING

STANDARDS AND GUIDELINES FOR THE ASSESSMENT PERFORMANCE

OF SUSTAINABLE PRODUCTION FOREST MANAGEMENT (PHPL) AND

VERIFICATION OF TIMBER LEGALITY (VLK)

WITH THE BLESSING OF ONE ALMIGHTY GOD

THE DIRECTOR GENERAL OF SUSTAINABILE PRODUCTION FOREST

MANAGEMENT

Considering : a. that in order to implement the provisions of the

Ministry of Environment and Forestry regulation No.

P.30/Menlhk/Setjen/PHPL.3/3/2016 on the

Assessment Performance of Sustainable Production

Forest Management and Verification of Timber Legality

for License Holders or in Private Forests;

b. that in connection with the letter a above, it is

necessary to stipulate the Director General Regulation

of the Standards and Guidelines for the Assessment

Performance of Sustainable Forest Management (PHPL)

and Timber Legality Verification (VLK) .;

In View of : 1. Law No. 41 Year 1999 on Forestry (State Gazette of

(2)

to State Gazette of Republic of Indonesia No. 3888) as

already amended by Law No. 19 Year 2004 on

Stipulation of Government Regulation in Lieu Of Law

No. 41 Year 1999 on Forestry into a Law (State Gazette

of Republic of Indonesia Year 2004 No. 86,

Supplement to the State Gazette of Republic of

Indonesia No. 4412);

2. Law Number 18 Year 2013 on Preventing and

Combating Deforestation (Supplement to the State

Gazette of the Republic of Indonesia Number 5432);

3. Law No. 20 of 2014 on Standardization and

Conformity Assessment (Supplement to the State

Gazette of the Republic of Indonesia Number 5584);

4. Government Regulation Number 6 Year 2007

regarding Forest Management and Forest Management

Planning and Forest Utilization (State Gazette of the

Republic of Indonesia Year 2007 Number 22,

Supplement to the State Gazette of the Republic of

Indonesia Number 4696) as amended by Government

Regulation No. 3 of 2008 (State Gazette Indonesia Year

2008 Number 16, Supplement to the State Gazette of

the Republic of Indonesia Number 4814);

5. Presidential Regulation No. 24 Year 2010 concerning

Position, Duties and Functions of State Ministries and

Organization Structure, Duties and Functions of

Echelon I of State Ministries as already amended by

Presidential Decree No. 135 of 2014;

6. Presidential Decree No. 165 of 2014 on Duties and

Functions Arrangement of the Working Cabinet;

7. Regulation of the Ministry of Environment and

(3)

Organization and Administration of the Ministry of

Environment and Forestry (Official Gazette of the

Republic of Indonesia Year 2012 Number 779);

8. Ministry of Environment and Forestry Regulation No.

P.30/Menlhk/Sekjen//PHPL.3/3/2016 on the

Performance Assessment of the Sustainable Production Forest Management and Verification of Timber Legality for License Holders or Private Forests (Official Gazette of the Republic of Indonesia Year 2016 No. 368 );

DECIDED

TO STIPULATE : THE DIRECTOR GENERAL REGULATION ON THE

SUSTAINABLE PRODUCTION FOREST MANAGEMENT

CONCERNING STANDARDS AND GUIDELINES ON

THE PERFORMANCE ASSESSMENT OF SUSTAINABLE

PRODUCTION FOREST MANAGEMENT (PHPL) AND

VERIFICATION OF TIMBER LEGALITY (VLK).

Article 1

Definitions of terms in this regulation:

1. Auditee is the license holder or holders of the management rights or

private forest owner or IRT / Craftmen whose performance is assessed

and / or verified by LPPHPL or LVLK.

2. Import Declaration is a written statement from the importer stating

the forestry products to be imported is in accordance with the results

of the implementation of the due diligence undertaken by the

(4)

Article 2

(1) PHPL Performance Assesment Standards on:

a. Holders of IUPHHK-HA as listed in Annex 1.1;

b. Holders of IUPHHK-HT as listed in Annex 1.2;

c. Holders of IUPHHK-RE as listed in Annex 1.3; and

d. Management right holders as listed in Annex 1.4.

(2) VLK Standards on:

a. IUPHHK-HA, IUPHHK-HT, IUPHHK-RE, and Management right

holders as listed in Annex 2.1;

b. State forests that are managed by the Community

(IUPHHK-HTR, IUPHHK- HKm, IUPHHK-HD, IUPHHK- HTHR) as listed in

Annex 2.2;

c. Forests Rights, including leasehold, the Right to Use, Land of

Crooked, Titisara, forest that belongs to the village, Traditional

Forest, and Graves as listed in Annex 2.3;

d. Holders of IPK, including IPPKH as listed in Annex 2.4;

e. Holders of IUIPHHK with a production capacity of more than

6,000 (six thousand) cubic meters per year and IUI with an

investment of more than Rp500,000,000, - (five hundred million

rupiah) as listed in Annex 2.5;

f. Holders of IUIPHHK with production capacity of up to 6,000 (six

thousand) cubic meters per year and IUI with an investment of

up to Rp500,000,000, - (five hundred million rupiah) as listed in

Annex 2.6;

g. TDI holders as listed in Annex 2.7;

h. IRT / Craftsmen as listed in Annex 2.8;

i. TPT as listed in Annex 2.9; and

(5)

(3) Guidelines for the implementation of the PHPL Performance

Assessment as listed in Appendix 3.1.

(4) VLK implementation guidelines on:

a. IUPHHK-HA, IUPHHK-HT, IUPHHK-RE, Management Rights,

IPK including IPPKH or State Forest managed by the community

as listed in Annex 3.2;

b. Private Forest Owners, including leasehold, Right to Use, Land

of Crooked, Titisara, Forest that belongs to the village,

Traditional Forest, and Graves as listed in Annex 3.3;

c. Holders of IUIPHHK and IUI as listed in Annex 3.4;

d. TDI holders as listed in Annex 3.5;

e. IRT / Craftsmen as listed in Annex 3.6;

f. TPT as listed in Annex 3.7;

g. Exporters of non-manufacturers as listed in Appendix 3.8

(5) Guidelines for the Implementation of DKP Forest Rights, TPT, IRT /

Craftsmen, and forestry products that are imported from outside the

country of Indonesia as stated in Annex 3.9

(6) Guidelines for Testing DKP as listed in Annex 3:10.

(7) Guidelines of VLBB implementation as listed in Annex 3.11.

(8) Personnel Criteria and Requirement Guidelines and Auditor for the

Performance Assessment of Sustainable Production Forest

Management and Timber Legality Verification as listed in Appendix

3:12.

(6)

a. PHPL Performance Assessment as listed in Annex 3:13, and

b. VLK as listed in Annex 3:14

(10) Procedures and Guidelines for the Independent Performance

Assesment Monitoring of PHPL, VLK, due diligence result, VLBB and

DKP Publishing as listed in Annex 4.

(11) Submission guidelines and Settlement of Complaints and Appeals in

the implementation of PHPL Performance Assessment and VLK as well

as DKP Publishing as listed in Annex 5.

(12) Guidelines for the Use of V-Legal mark as listed in Annex 6.

(13) Publishing Guidelines of V-Legal documents as listed in Annex 7.

Article 3

(1) Holders of IUIPHHK, IUI, TDI, TPT, IRT / craftsmen, and

non-manufacturer exporters are mandatory to use raw material that has

S-PHPL or S-LK or DKP.

(2) Holders of IUIPHHK, IUI, TDI, TPT, IRT / craftsmen, and

non-manufacturer exporters who receive logs and / or wood that comes with

DKP, is to check the validity of the DKP to the suppliers and the origin

of the wood supplied, to ensure the legality of the timber received.

(3) The inspection referred to in paragraph (2), is to ensure the conformity

between the DKP form with suppliers accuracy, the origin of wood, type

of wood, and the volume supplied.

(4) The checking results as referred to in paragraph (2) and paragraph (3),

is made in the form of checking result reports.

(5) Recipients of wood and / or wood products that comes with DKP is

(7)

receipt to the Head of Service in charge of forestry in the province, with

copies to the Head of the Forest Production Management (BPHP).

(6) In order to maintain the credibility of the DKP at any time a random

inspection might be done by the government or by a third party such as

LVLK appointed by the government at the expense of the government or

other parties which are not binding.

(7) In terms of publishing DKP any suspected discrepancy and/or

incorrectness in of one of the declarations is found, a special inspection

shall be carried out by the government or by a third party such as LVLK

appointed by the government at the expense of the government or other

parties which are not binding.

Article 4

(1) PHPL preformance assessment and VLK by LP & VI towards the license

holder, management rights, IRT / craftsmen or private forest owner

financed by the Ministry according to the cost standard.

(2) In terms of Minstry cost limitations for assessment and / or

verification, license holders can take the initiative to apply

independently to LP & VI.

(3) For the implementation of the assessment and / or verification

financed independently, standard fees set by the Ministry may be

referred.

Article 5

(1) Private forest owners, concessionaires, holders of IUIPHHK with

production capacity of up to 6000 cubic meters per year, IUI, TDI, and

(8)

(2) Holders of IUIPHHK with production capacity of up to 6000 cubic

meters per year, IUI, TDI, and IRT / Craftsmen referred to in

paragraph (1) is those who entirely use wood from:

a. concessionaires who has had S-LK and / or

b. owner of private forest wood that has had S-LK or DKP.

(3) Implementation of multisite certifications for private forest owners and

license holders as referred to in paragraph (1) and (2) can be

implemented in terms of:

a. Management process for each location / site is the same;

b. There is a controlled management system as outlined in the

agreement document or AD / ART or group certificate of

incorporation; and

c. Auditee is able to provide management information and document

changes.

(4) Implementation of multisite certifications for the management rights

referred to in paragraph (1) can be implemented in terms of:

a. Management process for each location / site is the same and is

operated with the same methods and procedures;

b. Management system is centrally controlled and administered; and

c. Auditee is able to provide management information review,

document changes, internal audit plans as well as the evaluation

results.

(5) Implementation of multisite certifications is conducted by sampling.

(6) In the event any discrepancy is found in the multisite certified member

referred to in paragraph (1), the multisite certificate becomes invalid.

Article 6

(1) Private forest owner and permit holder may apply the group

(9)

(2) Private Forest Owners, including leasehold, Right to Use, Land of

Crooked, Titisara, Forest that belongs to the village, Traditional Forest,

and Graves may apply for a certification as a group in one district /

city.

(3) Holders of IUPHHK-HKm, IUPHHK-HTR, IUPHHK-HD, IUIPHHK with

production capacity of up to 6,000 (six thousand) cubic meters per

year, IUI with investment capital of less than Rp 500.000.000, - (five

hundred million rupiah) excluding land and building, TDI, IRT /

Craftsmen, and TPT may apply for certification as a group.

(4) In the case of group certification of forest rights referred to paragraph

(2) which grows naturally is able to use funding from the Government

with the minimum number of group members of 10 owners.

(5) In the case of group certification referred to in paragraph (3) using

funding from the Government on the basis of a proposal from the

Provincial Office.

(6) Private Forest Owners and holders of IUPHHK- HKm, IUPHHK-HTR,

IUPHHK-HD belonging to a group and has had S-LK, the cost of

inspection can be proposed to the Ministry as long as no production is

made yet.

(7) Implementation of the group certification is conducted by census.

(8) In the event that there is a discrepancy in one of the certification group

members referred to in paragraph (1), then the said group member is

removed from the group and the group certificate remains valid.

Article 7

(1) In the case holders of IUIPHHK, IUI, TDI, TPT, IRT / Craftsmen and

non-manufacturers exporter are using raw materials from the

industry suppliers or TPT that do not have S-LK or DKP, then VLBB

shall be done by LVLK on the cost of the auditee.

(10)

(3) Industry suppliers referred to in paragraph (1) is holders of IUIPHHK

with production capacity of up to 6,000 (six thousand) cubic meters

per year, TDI, and IUI with investments under Rp500,000,000, - (five

hundred million rupiah)

(4) The VLBB referred to in paragraph (1) shall be conducted at the time

of verification, surveillance and re-certification.

(5) LVLK in doing VLBB as referred to in paragraph (1) shall ensure that

the raw materials obtained from the suppliers is derived from a source

that has had S-PHPL, S-LK or DKP.

(6) Application deadline of VLBB implementation as referred to in

paragraph (1) is December 31, 2017, provided the volume of raw

materials used for VLBB mechanism up to December 31, 2016 is as

much 50%.

(7) Especially for IUIPHHK with production capacity of up to 6,000 (six

thousand) cubic meters per year, VLBB may only be applied until

December 31.

Article 8

(1) Raw materials derived from wood auction shall be separated and

equipped with document Auction Transport Certificate (SAL) or

auction forest products transport document, with the Minutes of

Auction attached.

(2) In the case auditees in the production process uses raw materials

derived from wood auction referred to in paragraph (1), then the

production made of timber auction shall be separated.

(3) Auditees are not allowed to use the V-legal mark and not be allowed to

apply for V-Legal Documents for the production made from auction

wood raw materials.

(4) LVLK is not allowed to publish V-Legal documents toward the

(11)

(5) In case the auditee receives wood from auction after the issuance of

S-LK, the auditee shall immediately report to LVLK to do a special audit.

Article 9

In case there is an indication or a third-party reports that the LP & VI

performs actions that are not in accordance with the provisions of the

legislation, the Director-General on behalf of the Minister may revoke the

appointment of LP & VI after proving the infringement.

Article 10

(1) To proof the violation referred to in Article 9, the Director General may

form a Follow-Up Team.

(2) The follow-up team referred to in paragraph (1) is composed of

representatives from the Government and / or Independent

Monitoring.

(3) Implementation follow-up team costs as referred to in paragraph (1)

and (2) shall be charged to the government budget and / or other

parties which are not binding in accordance with the provisions of the

legislation.

Article 11

(1) Results proving infringement referred to in Article 10 shall be

submitted to the Director-General for consideration in the proposed

revocation of the appointed LP & VI by the Director General on behalf

of the Minister.

(2) In case based on the examination results by the Follow-Up Team, LP

(12)

provide a clarification on the false report indication as referred to in

Article 10.

(3) In case LP & VI is proven to have done any offense as referred to in

paragraph (1) then it is subject for appropriate sanctions in

accordance with the provisions of the legislation.

Article 12

(1) LP & VI revocation by the Director General on behalf of the Minister as

referred to in Article 11, is submitted to KAN for further consideration

of accreditation.

(2) LP & VI whose accreditation / appointment is revoked or its

accreditation is not renewed, then they are obligated to transfer the

certification and / or the V-Legal document publishing services to LP

& VI with a copy to the Director-General, in the following conditions:

a. In the case of revoked LP & VI accreditation / appointment, then

they shall inform the revocation to the auditee no later than three

(3) business days with a copy to the Director General.

b. In case LP & VI will not extend its accreditation, then they shall

inform that the accreditation will expire within 3 (three) months

prior to the expiration of accreditation to the auditee with a copy to

the Director General.

c. Any costs incurred as a result of the transfer of the certification

and / or the publishing services of V-Legal Documents shall be

charged to the LP & VI whose accreditation is revoked or will end in

accordance with the provisions of the legislation

(3) LVLK whose accreditation / appointment is revoked or not renewed, is

obligated to transfer the publishing service of V-Legal Documents to

another LVLK with a copy to the Director-General, in the following

(13)

a. In the event of V-Legal Document Publisher appointment is

revoked, the Director-General on behalf of the Minister will transfer

the issuance of V-Legal Documents to another V-Legal Documents

Pubhisher proposed by the auditee and determined by the Director

General on behalf of the Minister.

b. To avoid vacuum in the issuance of V-Legal Documents due to the

accreditation revocation of LVLK, the Director in charge of

processing and marketing the forest products on behalf of the

Director General may assign temporary V-Legal Documents

Publisher no later than 1 (one) working day.

Article 13

In the event of misuse and / or falsification of SPHPL / S-LK, V-Legal Signs,

V-Legal Documents and / or nonconformity declarations shall be penalized

in accordance with the provisions of the legislation.

Article 14

(1) In the event of any reports or information that the LPPHPL or LVLK

auditor performs actions that are not in accordance with the

provisions of laws and regulations, the statement or information shall

be used as a follow-up to the authorized agency in accordance with

the provisions of the legislation.

(2) The report referred to in paragraph (1) shall be submitted to the

Professional Certification Institute (LSP) and the LPPHPL and / or

LVLK concerned forwarded to the Director-General.

(3) Director General conducts follow-up evaluation of the report or

(14)

(4) In case the LPPHPL or LVLK auditor is proven to have done any offens

referred to in paragraph (1) then they are subject to appropriate

sanctions in accordace with the laws and regulations.

Article 15

(1) In case the auditee is given "NOT PASS", LPPHPL / LVLK shall

present the results of verification of the particular verifiers that

"DOES NOT MEET" accompanied by the facts found in the field to the

Director General in a soft copy on Compact Disc or any other

recording media for the auditees performance evaluation, If

necessary, a hard copy can be requested by the Ministry.

(2) The Director General shall inform the technical institution in the area

and / or UPT to follow up the results of the verification of the

particular verifiers that "DOES NOT MEET"

(3) The results of the implementation follow-up as referred to in

paragraph (2) shall be reported to the Director General with a copy to

the LPPHPL / LVLK.

(4) LPPHPL / LVLK shall publish the S-PHPL / S-LK and the assessment

resume, verification, inspection, and re-certification on the LPPHPL /

LVLK website and the website of the Ministry

(http://silk.dephut.go.id) no later than 7 (seven) calendar days after

the decision.

Article 16

(1) In the event the Government inform any indication that the auditee

that has got the S-PHPL/S-LK no longer comply with the

requirements of PHPL and / or LK requirements according to the

prevailing standards, the Government may transmit the information

(15)

(2) LPPPHPL / LVLK is required to conduct a special audit to follow up

on the information as referred to in paragraph (1).

(3) LPPHPL / LVLK is obliged to report the result of the special audit as

referred to in paragraph (2) to the reporting Government.

Article 17

In the event of changes in the scope of certification of the auditee,

re-certification and / or inspection shall be conducted in accordance with the

scope of the new certification.

Article 18

With the enactment of this regulation, the Director General of Forestry

Enterprises regulation No. P.14/VIBPPHH/2014 as amended by No.

P.1/VI-BPPHH/2015 concerning Standard and Guidelines on Performance

Assessment of Sustainable Forest Management (PHPL) and Verification

Wood Legality (VLK), as well as other provisions that conflict with this

regulation shall be revoked and declared invalid

Article 19

This Regulation shall come into force thirty (30) days from the date of

enactment

Stipulated in: Jakarta

On 29th_{April 2016}

Director General

(16)

Signature

IDA BAGUS PUTERA PARTHAMA

Copies of the Regulation are submitted to:

1. Minister of Environment and Forestry;

2. Echelon I Officer within Ministry of Environment and Forestry;

3. Echelon II Officer within Directorate General for Sustainable Production

Forest Management;

4. The Head of the Provincial Agency that is responsible in the field of

forestry in Indonesia; and

5. Head of the Forest Production Management Area I - XIV

Copy according to the original

Head of Legal and Technical Cooperation

Bambang Wiyono, SH, MH.

(17)

Appendix 7.The Director General of Sustainable Forest Production Management Regulation

Number : P.14/PHPL/SET/4/2016 P.14/VI-BPPHH/2014

Date : 29 April 2016 29 December 2014

Concerning : Standard and Guideline of Performance Assessment Implementation of

Sustainable Production Forest Management and Timber Legality

Verification

ISSUANCE GUIDELINE OF V-LEGAL DOCUMENT

A. SCOPE

This guideline includes reference, definition, application procedure, issuance, renewal,

replacement and cancellation as well as publication and reporting of V-Legal

documents issuance (Producer exporter and non-producer exporter); general

requirement, form specification, submitting signature specimen and stamp, form

template and guidance on completing the form.

The unit which manages the request, issuance, renewal,

replacement and cancellation as well as the publication and reporting the issuance of

V-Legal Document is a unit that manages information verification

timber legality (license information unit / LIU).

B. REFERENCES

Regulation of the Ministry of Enviornment and Forestry Number

P.30/Menlhk/Setjen/PHPL.3/3/2016 concerning Performance Assessment of

Sustainable Production Forest Management and Timber Legality Verification on

Licence Holder or Private Forest (State Gazette of the Republic of Indonesia Year 2016

No. 368).

C. PROCEDURES OF V-LEGAL DOCUMENT ISSUANCE FOR FOREST PRODUCT INDUSTRY

EXPORTER THAT HAS HAD S-LK AND ALL ITS SUPPLIERS THAT HAS HAD S-PHPL OR

(18)

1. Application Verification

a. Exporters of forest industry products is to register an officer who is responsible

for submitting/signing the application for issuing V-legal document to LVLK,

which can be proofed by an approval letter or an authorisation letter by the

company’s director that is stated in notary deed.

b. Exporters of forest industry products is to submit an application of V-Legal

document issuance to LVLK the issuer of respective S-LK by completing the

V-Legal Document Issuance application form and attach a copy of the invoice

and/or packing list of the exported goods.

2. Verification of V-Legal Document Issuance for Producer Exporter

a. Producer exporter is to send the copies of LMK document or stock report,

document/list of product order, transportation document and S-PHPL document

or S-LK or DKP from supplier related to the exported timber and timber

products, and if necessary sample of exported product is to be verified by LVLK.

b. LMK document or stock report is sent to LVLK every month. LMK or stock report

that is sent the first time is to be recorded as the initial stock of the timber

balance and the following months report are used for adjustment of timber stock

balance after undertaking cross check with copies of the transportation

document and S-PHPL document or S-LK or DKP from supplier. In case there is

any discrepancies between the data on LMK or inventory report with the copy of

the transportation document and copies of S-PHPL or S-LK or DKP document

from the suppliers, then LVLK will request a clarification and if it is necessary to

carry our physical check by sampling.

c. The recapitulation of receiving transportation document from supplier is to be

sent to LVLK regularly to renew supply data of timber stock balance. That

recapitulation has to include information concerning timber type/species and

number of S-PHPL or S-LK or DKP from supplier.

d. If it is necessary, LVLK may request the original copy of the transportation

document and S-PHPL document or S-LK or DKP from the supplier.

(19)

letter/Memo from the Regency/City office in charge for forestry or from

village/sub-district officer is a DKP and for that processed product can be

proposed for V-Legal document issuance.

f. In terms of producer exporters receives processed timber from Private Forest

that is equipped with S-LK or DKP, for that processed product can be proposed

for V-Legal Document Issuance.

g. In undertaking V-Legal Document issuance verification, LVLK may conduct

physical check by sampling against exported product.

h. LVLK develops a timber balance stock that contains sufficient volume of supply

and consumption of raw materials by taking into account the yield factor in the

production process. Balance stock of timber is used as primary data for

verification of V-Legal Document issuance.

3. Verification of V-Legal Document Issuance for Non-producer exporter

a. Non-producer exporter sends a copy of the LMK or stock report of all its supplier

industries every month to LVLK.

b. Non-producer exporter sends a copy of the Transportation Memo/Permit of the

product purchased from its supplier industry accompanied with the copy of S-LK

or DKP from the supplier to LVLK.

c. Non-producer exporter sends the product stock report on a monthly basis.

Product stock report that was sent the first time is recorded as the initial stock

balance of product and the following months are used for adjustments of product

balance sheet after cross-checking it with the Transport Memo / travel permit of

purchased product.

d. In undertaking V-Legal Document issuance verification, LVLK may conduct

physical check by sampling against exported product.

e. LVLK develops a product stock balance which includes sufficient volume of supply

and product release. Balance stock of product is used as primary data for

verification of V-Legal Document issuance.

(20)

a. For forest industry product producer exporter with verification result of

V-Legal Document issuance stated "COMPLIANCE", LVLK shall issue V-V-Legal

Documents no later than three (3) days after receiving the application and the

requirements are fully met.

b. In terms verification result of V-legal document issuance is declared

"INCOMPLIANCE", LVLK does not issue V-legal document and LVLK shall

prepare an incompliance report to be submitted to the product industry

exporter and to the Director of General.

c. LVLK submits incompliance report to the Director of General through the

Information Unit of Timber Legality Verification no later than 24 (twenty four)

hours after the decision is made.

d. Product industry exporter is to submit a copy of PEB no later than 30 (thirty)

calendar days from the date of issuance of V-Legal Documents.

e. V-legal documents that its used uncertainly within 30 (thirty) calendar days

from the date of its issuance due to not sending a copy of PEB, proofed by

sending copy of PEB to LVLK, then the service for issuing the subsequent

V-Legal Document is postponed until the forest product industry exporter

submits the required PEB report.

f. PEB report has been submitted to LVLK is required to report Recapitulation of

PEB report no later than the 10th_{date of each month to the Information Unit of}

Timber Legality Verification.

2. The mechanism of Issuance of V-Legal Document manually

a. In terms of Timber Legality Information System does not work due to force

majeure, LVLK may issue V-Legal Document manually.

b. Force majeure condition as mentioned on point (a) can be in the form of:

1) Natural disasters such as floods, earthquakes, landslides, other disasters

that occur naturally, and/or

2) Fires, power outages and theft of equipment, and/or

(21)

c. Force majeure such as natural disasters as referred to in letter (b) point (1)

shall be declared by the competent authority, while the fire and the damage

referred to in point (2) b and c, is declared through circulars by the Director of

Processing and Marketing of forests product and submitted to LVLK, Inatrade,

INSW and competent authority in the country of destination.

d. Issuance of V-Legal Document as referred to in point (a) is conducted by

completing the V-Legal Document intended for issuance manually (marked with

the "MANUAL" stamp in the upper right).

e. Completing the document can be done by hand writing, typewriter or by other

electronic means. V-Legal document signed by competent authority authorised

by LVLK and with LVLK stamp on it. That authorised person is the person which

the signature specimen has been submitted to LIU.

f. Manual V-Legal Document that has been issued by LVLK is submitted to LIU,

Inatrade and INSW.

g. In the circumstances of force majeure conditions has ended that is conveyed

through circulars and/or electronic notification by the competent authority,

then the issuance of V-legal documents manually is no longer valid.

h. Once SILK is back on-line then LVLK is responsible for doing entry of V-Legal

Document issued manually.

3. V-legal document shall not to be issued for production derived from auction timber.

E. V-LEGAL DOCUMENT EXTENSION

1. In the event of force majeure or other legitimate causes beyond the control of

forest product industry exporter that occur after the product has pass Indonesia

customs, LVLK can extend the validity period of the V-Legal Documents for 2 (two)

months.

2. The forest product industry exporter submits an application letter for extending

V-legal document that contain the reason for the extension by attaching page 5 of the

V-Legal Documents.

(22)

4. After verification, LVLK extend the validity period of the V-Legal Documents no later

than three (3) days after receiving the application and the reason of force majeure

or other legitimate causes and it is reported to LIU.

5. The extension time of V-legal document must contain the same information and

references to the extended V-Legal Document, and marked "Validated On" in box 18

and reported to LIU.

6. In terms of the verification results of the truth of the reason is unacceptable, then

LVLK will not extend the validity period of the V-Legal Documents.

F. REPLACEMENT V-LEGAL DOCUMENT DUE TO LOST OR DAMAGED

1. In the event of damage or loss of Sheet-1 and/or sheet-2 of V-Legal Document, forest

product industry exporter or its official representative can apply for replacement of

V-legal document by preparing replacement application letter of V-Legal Documents

contain reason for replacement by attaching sheet-5 of the V-Legal Document.

2. LVLK verifying the truth of the reasons for that replacement.

3. After conducting verification and the reason of its replacement is acceptable, then

LVLK issue a replacement of V-Legal Document no later than 24 (twenty four)

hours of receiving the replacement application and report to LIU .

4. V-Legal Documents replacement must contain the same information and references

to the V-Legal Documents that are replaced, and marked "Replacement License" in

box 18 and reported to LIU.

5. By issuing the replacement of V-Legal Documents, then the lost/damaged V-Legal

documents is declared invalid.

6. In terms of the verification results of the truth of that replacement reason is

unacceptable, then LVLK will not replace V-Legal Documents.

G. CANCELLATION OF V-LEGAL DOCUMENT

1. In the event of export failure, forest product industry exporter must immediately

report to LVLK to cancel the V-legal document by stating the reasons for the

(23)

2. In the case of exported goods is lost or damaged prior reaching the destination

country, then the V-Legal Document Sheet 1, 2, 3 and 5 are returned to LVLK.

3. LVLK verify the truth of export failure.

4. In case of verification result declared of export failure, then LVLK cancel the V-Legal

Documents no later than three (3) days after receiving cancellation report and

report it to LIU and Indonesian customs authorities.

5. In case of verification result is declared no export failure, then LVLK will not cancel

the V-Legal Documents.

H. THE COST OF ISSUANCE OF V-LEGAL DOCUMENT

The cost for issuing of V-Legal Documents through verification is charged to the forest

product industry exporter.

I. GENERAL REQUIREMENTS OF V-LEGAL DOCUMENT

1. V-legal documents and attachments of V-Legal Document is in paper and/or in

electronic form.

2. Completing of V-Legal Document shall be in English, all in capital letters except for

writing the scientific name of species, by filling the entire section (tamper proof) as

such it is not possible to re-do them except by LVLK and there should not be

changes include: edited or cross out .

3. The guidance for completing V-Legal Document is attached.

4. V-legal document is signed (may take the form of electronic signatures) by

appointed LVLK officer and affixed LVLK stamp using ordinary stamp or embossed

stamp or perforation stamp.

5. In the case of the column for completing exported products is not sufficient in

column 9 until column 16, then V-legal documents shall be equipped with

attachment containing details and information of product which includes the

commercial description, HS Code, common and scientific names, country of

harvest, ISO code of the country of harvest, volume (m3), nett weight (kg), and

(24)

6. Attachment document is an integral part of the V-Legal Document with the same

specification as the V-Legal Document, signed and stamped as V-Legal Documents.

7. V- Legal document is valid for four (4) months from the date of issuance.

8. V- Legal documents in electronic form is sent by LVLK to Online SILK to be

forwarded to (a) INATRADE system in the Ministry of Trade, (b) Indonesia

customs authorities through the Indonesian National Single Window system

(INSW) and if necessary, to (c) the competent authority of export destinations

country.

J. SPECIFICATION OF V-LEGAL FORM

1. V- Legal forms and V-Legal Document attachment forms using standard A4 size

paper, it is printed using the format in accordance to attachment Q with V-Legal

Signs emboss and have a watermark.

2. V-Legal document in paper form is made in 7 copies to be addressed as follow:

a. Sheet-1 (white) for competent authority of designated country

b. Sheet-2 (yellow) for customs of designated country

c. Sheet-3 (white) for importer

d. Sheet-4 (white) for LVLK

e. Sheet-5 (white) for exporter

f. Sheet-6 (white) for Information Unit of Timber Legality Verification

g. Sheet-7 (white), for Indonesia Customs

3. The V-Legal Document Sheet-1 and 2 are submitted by forest product industry

exporter to the importers in destination country of the port of discharge, along

with other documents related to the shipping/export-import.

K. SUBMITTING SIGNATURE SPECIMEN AND STAMP

1. LVLK submit a list of V-Legal Document signatory officers, signature specimen and

sample of V- Legal document issuer stamp to LIU within 7 (seven) calendar days

since stipulated as the Issuer as V-Legal documents, and submit a copy to the

(25)

2. Legality Information Unit of Timber Verification (LIU) can provide information on

the list of officers who signed the V-legal documents, along with the officer's

signature specimen and LVLK stamp to the Directorate General of Customs of

Ministry of Finance and the competent authority of the export destination country

when requested.

I. SPECIAL TREATMENT / COORPORATION SCHEME

In terms of the agreement between Indonesia and the European Union through

the FLEGT-VPA has entered into force therefore the V-Legal Documents will prevail

as the FLEGT license for export to the country of destination in the European Union.

DIRECTOR GENERAL OF SUSTAINABLE FOREST

PRODUCTION MANAGEMENT,

Sign

IDA BAGUS PUTERA PARTHAMA

Copies of the original

Head of Legal and Technical Cooperation

Stamp & Signature

Bambang Wiyono, SH, MH.

(26)

FORMAT OF V-LEGAL DOCUMENT ISSUANCE APPLICATION

<Letter head>

Regarding : Application of V-Legal Document Issuance

To,

<Name of LVLK> in ...

Herewith we would like to apply for V-Legal Document issuance for:

Company Name : ... Country of designation : <county code> - <county name>………. Loading Port : <port code> - <port name>……… Discharge Port : <port code> - <port name>………. Transportation Means : <land/sea/air transportation>……… Total Unit : ... unit

Harvest Country 4) _{: .. ... <country code> - <country name>} Unit : ... unit

This application of V-Legal Document Issuance Letter is submitted with the truth information. <Place, Date>

<Signature of Responsible person and company stamp>

1. to be completed in accordance to attachment 7 of V-Legal document issuance

2. value to be filled in fob

3. shall be prepared in accordance to the number of exported good description

(27)

INCOMFORMITY REPORT FORMAT

INCONFORMITY REPORT

VERIFICATION RESULT OF V-LEGAL DOCUMENT ISSUANCE (Inconformity Report Number)

f. Verification Responsibility :

2. Producer exporter or non-producer exporter Identity :

a. License Holder Name : inconformity against forest product on invoice ... as follows:

... ... ... ...

Responsibility :

(Name of Responsible person) NIP

Date:

Number of inconformity report shall be filled in accordance to numbering guidance of V-Legal document

(28)

PUBLIC SUMMARY FORMAT

PUBLIC SUMMARY OF V-LEGAL DOCUMENT ISSUANCE AND INCONFORMITY REPORT

MONTH ... YEAR ....

(Public summary report number)

1. LVLK Identity :

a. Name of Agency :

b. Number of Accreditaion :

c. Address :

d. Phone/Fax No. :

e. E-mail :

f. Person responsible for instituion :

2. Summary of V-Legal document issuance and inconformity report:

No. Auditee

Number of V-Legal Document application

Verification result Number of

compliance

Number of incompliance

Total Auditee :

Total Number of Application :

Total number of V-Legal document issued :

Total incompliance report issued :

(29)

V-LEGAL FORM FORMAT

3. V-legal/ License number

1.

8 Licensee Name

Address

1.

1 Issuing authority

Name

Country of destination and ISO Code

Port of loading Port of discharge Value (USD)

5 Country of export

6 ISO Code

7 Means of transport

ETPIK Number: N. A.

Tax Payer Number

9 Commercial descriptions of the timber products 10 HS-Heading

11 Common and Scientific Names

14 Volume (m3)

17 Distinguishing marks

18 Signature and stamp of issuing authority

Name

12 Countries of harvest 13 ISO Codes

(30)

2.

8 Licensee Name

Address

2.

1 Issuing authority

Name

Port of loading Port of discharge

Value (USD)

5 Country of export

6 ISO Code

ETPIK Number: N. A.

Tax Payer Number

14 Volume (m3)

Name

(31)

3.

8 Licensee Name

Address

3.

1 Issuing authority

Name

Port of loading Port of discharge

Value (USD)

5 Country of export

6 ISO Code

ETPIK Number: N. A.

Tax Payer Number

14 Volume (m3)

Name

Place and date

(32)

4.

8 Licensee Name

Address

4.

1 Issuing authority

Name

5 Country of export

6 ISO Code

ETPIK Number: N. A.

Tax Payer Number

14 Volume (m3)

Name

Place and date

(33)

5.

8 Licensee Name

Address

5.

1 Issuing authority

Name

5 Country of export

6 ISO Code

ETPIK Number: N. A.

Tax Payer Number

14 Volume (m3)

Name

Place and date

(34)

6.

8 Licensee Name

Address

6.

1 Issuing authority

Name

5 Country of export

6 ISO Code

ETPIK Number: N. A.

Tax Payer Number

14 Volume (m3)

Name

Place and date

(35)

7.

8 Licensee Name

Address

7.

1 Issuing authority

Name

5 Country of export

6 ISO Code

ETPIK Number: N. A.

Tax Payer Number

14 Volume (m3)

Name

Place and date

(36)

(37)

(38)

(39)

(40)

(41)

(42)

(43)

GUIDANCE FOR FILLING V-LEGAL FORM

Post A : Countries of Export Destination. In term of countries of export destination is

a member of European Union, then filled with EUROPEAN UNION.

Post B : Cooperation Scheme. To be filled with cooperation scheme with importer

countries (countries of export destination) or ignore in terms of no

cooperation scheme. In term of countries of export destination is a member

of the European Union, then filled with FLEGT during the time of the

agreement between Indonesia and the European Union has entred into force,

where the dates will be set by JIC (Joint Implementation Committee) between

Indonesia and European Union.

Column 1 : Issuer Authority. To be filled with Name, Address, and LVLK accreditation

number.

Column 2 : Importer. To be filled with name and address of importer, name and 3166-2

ISO code for export destination countries, port of loading and discharge, and

export value. For sheets 1, 2 and 3 of V-Legal document do not stated export

value.

Column 3 : V-Legal Document Number (License number). To be filled with sample of

numbering as follows:

00.00001-00001.001-ID-GB

Details

00 : Year of Issuance (2 last digits)

00001 : Serial number of documents issued for those who have had

S-LK (five digits), starting from 00001

00001.001 : S-LK Number (five digits) and LVLK accreditation number (3

digits)

ID : ISO 3166-2 code is for Indonesia (two letters)

GB : ISO 3166-2 code is for export destination countries (two

(44)

Column 4 : Expiry date of Licence Validity, to be filled with two digits of date, two digits

of month, and four digits of year.

Column 5 : Export countries, to be filled with INDONESIA.

Column 6 : ISO code for export countries, to be filled with 'ID' as the 3166-2 ISO code for

Indonesia.

Column 7 : Means of Transportation, to be filled in with information of means of

transportation at export point.

Column 8 : Exporter. To be filled in with name and address of exporter, include TDP

Number and Tax Payer ID (NPWP). The TDP and the Tax Payer ID refers to

the data associated with the Customs Office Identification Number (NIK).

Column 9 : Commercial description, to be filled with timber product commercial

description. Description has to be details to allow for classification into HS. In

the event of more than one wood product, use a separate line as a separator.

Column 10 : HS Code, to be filled with 10 (ten) digits of commodity code based on

Harmonised and System Coding (HS Code) of commodity description stated

in Indonesian Customs tariff booklet. In term there is a cooperation scheme

with countries of export destination, HS Code for V-Legal Document for

sheets 1, 2 and 3 to be filled in accordance with the cooperation scheme

provisions. In the event of more than one wood product, use a separate line

as a separator in wood products order in accordance with column 9.

NOTE: a sample of the format will be given.

Product Type / HS

Species NAP Volume/Net

Weight/Numbers

(45)

species for one product, use semicolon (;) as a separator. For composite

product or components that has more than 3 (three) species, simply write the

names of the dominant species.

Column 12 : Countries of harvest to be filled in with a country where the species referred

to in column 11 were harvested, including all sources of timber used in the

composite product.

In terms there is more than one species for one product, use a semicolon (;)

as a separator in accordance with the order of the stuffing of column 11.

In case there is more than one product, use a separate line as a separator in

accordance with the order of the stuffing of column 9.

Column 13 : ISO code for the country Harvest. Fill with ISO 3166-2 codes for the countries

referred to in Box 12.

In case there is more than one species for one product, use a semicolon (;) as

a separator in accordance with the order of the stuffing of column 11.

In case there is more than one product, use a separate line as a separator in

accordance with the order of the stuffing of column 9.

Column 14 : Volume (m3) to be filled with maximum limit on overall volume in cubic

meters (four decimal digits).

For V-Legal Documents consisting of several types of HS, it shall be described

the volume of each HS, sequentially in accordance with column 9. The volume

of real export can be tolerated in the range of 90% -100% of the volume

recorded in the V-Legal Documents

Column 15 : Nett weight (kg), to be filled with overall weight of the shipment at the time

of measurement in kilograms (two decimal digits). It is defined as the net

weight of timber products without immediate containers or any packaging,

other than bearers, spacers, stickers etc. The real export weight can be

tolerated in the range of 90% -100% of the weight recorded in the V-Legal

Documents.

(46)

Column 16 : Number of Unit. To be filled with the number of units which is the best form

of measurement for a product. This can be ignored.

the number of unit of each HS, sequentially in accordance with column 9.

Column 17 : Marked. To be filled with security code and can be added with other

information as appropriate. Invoice Number to be filled in this column.

Column 18 : Signature and stamp. Signature and stamp of authorized personnel in

accordance with provisions. To be filled with complete name of officer and