THE FORESTS DIALOGUE

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THE FORESTS DIALOGUE
MALAYSIAN EXPERIENCE IN REGULATING TIMBER IMPORTS

• TFDs Dialogue on Illegal Logging
• 7-10 March 2005 (Conrad Hotel, Hong Kong)

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Ministry of Natural Resources and Environment
Ministry of Plantation Industries and Commodities
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Forestry Timber Agencies
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Forest Land Use in Malaysia (2004)

• Total Forested Land Area 19.52million ha
• Permanent Reserved Forest (PRF) 14.39million ha
  (73.7)
• Conversion Forest 2.98million ha (15.3)
• National Parks, Wildlife Bird Sanctuaries
  outside PRF 2.15million ha (11)

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World Bank / WWF Malaysia (2001)
Illegal felling amounts to less than 1 of timber
harvested in Malaysia, both in Peninsular
Malaysia and in Sabah and Sarawak (2 states on
the island of Borneo)
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American Forest Paper Association (2004)
Allegations of illegal domestic forest activity
in Malaysia likely overstated since regulations
for timber operators and companies appear
well-enforced
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Annual Coupe Scaled Down
5th Malaysia Plan (1986-1990) 6th Malaysia Plan
(1991-1995) 7th Malaysia Plan (1996-2000) 8th
Malaysia Plan (2001-2005)
- - - -
71,200 ha 52,250 ha 46,040 ha 42,870 ha
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Malaysian Timber Industry
YEAR 1991 1995 2000 2002
LOG PRODUCTION 39.72 million m3 31.53 million
m3 22.82 million m3 20.67 million m3
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Malaysias Export Earnings from Timber Industry
in 2003
Furniture Plywood Sawntimber Logs Moulding
Joinery MDF Others
30 25 14 12 9 6 5
Source Malaysian Timber Industry Board
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Malaysias Timber Production in 2003e
Logs 20.1 million m³ Sawn timber 4.7
million m³ Plywood 4.4 million m³ Veneer
0.8 million m³ Moulding 0.39 million m³
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Installed Capacity (mm3) in 2002
Peninsular Malaysia Sabah Sarawak TOTAL
12.4 6.5 7.6 26.5
Source Forestry Department Peninsular Malaysia
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Malaysia Exporter Importer
Other than Indonesia, Malaysia imports from Papua
New Guinea, Myanmar, New Zealand, Gabon, Solomon
Islands, USA, Canada and Russia
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Government of Malaysia has Implemented
Procedure for Ramin Logs and Sawntimber (CITES
Certificate / Permit) - 6 August 2001 Ban on the
Importation of Logs from Indonesia - 25 June
2002 Ban on the Importation of Squared Logs
(Large Scantlings and Squares) measuring more
than 60 square inches in size from Indonesia - 1
June 2003
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MALAYSIAN BAN ON IMPORT OF INDONESIAN LOGS
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MALAYSIAN ENFORCEMENT
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Total Seizures in Peninsular Malaysia after the
Ban on the Importation of Logs LSS from
Indonesia
NO. OF CASES 55 21
VOLUME 2,582m3 8,204m3
YEAR 2003 2004
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Timber detained and cases handled by STIDC,
Sarawak since 2000
Source Sarawak Timber Industry Development
Corporation (STIDC) statistics
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Free Zone
Under Section 2 of Customs Act 1967, Excise Act
1976, Sales Tax Act 1972, Service Tax Act 1975 -
the FTZ is deemed to be a place outside Malaysia
which is allowed to conduct direct transshipment,
consolidation, trading / resale distribution and
storage
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Transit / Transshipment
1. Article VII, CITES (Exemptions and other
special provisions relating to trade) -
Articles III, IV and V shall not apply to the
transit or transshipment of specimens through or
in the territory of a Party while the specimens
remain in Customs control 2. Resolution
Conference 9.7 - recommends parties to inspect,
to the extent possible under their national
legislation, specimens in transit. . . and that
Parties adopt legislation allowing them to seize
and confiscate in transit or being transshipped
without valid export documentation
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Malaysia acknowledges legal loopholes concerning
the Free Trade Zone (FTZ) Act that hampers the
Malaysian Timber Industry Board (MTIB) from
carrying out their duties fully. Administrative
arrangement with Ports now being implemented.
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MTIB Checks and Monitoring

• Regular visits and inspection to ports and
  private jetties
• Common entry points for Indonesian logs /
  sawntimber Kuala Linggi and Sungai Rambai in
  Melaka Muar and Batu Pahat in Johor and a few
  private jetties in Port Klang
• Main species Bintangor, Nyatoh, Kempas,
  Meranti Merah and Ramin

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Steps Towards Effective Enforcement

• Enhance enforcement / regular checks and
  monitoring at ports / jetties
• Enhance cooperation / collaboration with other
  enforcement agencies, customs, port authorities,
  jetty operators

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Steps Towards Effective Enforcement

• Imports of Logs, LSS, parts and derivatives of
  Ramin to be under Part 1 of Fourth Schedule,
  Import Prohibition Order (Conditional prohibition
  except in the provided manner) Customs Act 1967
• Review / amend MTIB Act - include clause giving
  MTIB power / authority to act on import
  consignment / activities

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Confiscated Logs
Kuala Linggi, Melaka 25 October 2004
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Confiscated Logs
Custom Jetty in Batu Pahat, Johor 23 December 2002
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62 boats seized at Batu Pahat, Johor 27 January
2003
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Video Clip on Confiscation of Ramin Logs
1.
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Video Clip on Confiscation of Ramin Logs
2.
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Effective 3 July 2000, STIDC has taken over the
functions of FOREST DEPARTMENT in controlling
and monitoring the import of timber products from
overseas, including Indonesia following
amendments to STIDC Ordinance Sarawak Timber
Industry Development Corporation (Amendment)
Ordinance, 1999
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SARAWAK / KALIMANTAN BORDER
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Designated Entry Points
Since 1996
To facilitate and control the movement of
timber products and to safeguard national
security, the Sarawak Government has decided
that the entry of these timber products is only
allowed through the Authorised entry
points. Entry of timber products through any
other entry points is considered
illegal/smuggling and the timber is subject to
seizure and detention.
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Setting up of Harwood Depot
Appointment as an Agency, Harwood Timber Sdn Bhd,
set up timber Depots at the authorised entry
points to facilitate the handling of timber
products from Indonesia into the state
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Functions of Harwood Timber at Depot

• Received timber products after declared with
  
• Customs Department, Sarawak.
• Carry out inspection and arrange unloading/
• loading of timber products.
• Tally bundling.
• Tagging of Harwood tag.
• Issuance of DESPATCH NOTE

HANDLING FEES ARE CHARGED FOR RENDERING ABOVE
SERVICES
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STIDC Hammer Mark
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STIDC Removal Pass
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STIDC Tag
SEMATAN
LUBOK ANTU
TEBEDU
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STEPS TO CONTROL BORDER TIMBER TRADE
Ramin sawn timber seized by SFC in Lubok Antu,
Sarawak - November 2003
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Regional Bilateral discussions
(1) MALINDO Bilateral Meetings
Jakarta - 10 January 2004 Kuala Lumpur
- 23 March 2004 (2) Tri-National Task Force on
Ramin Trade First Meeting
(Indonesia-Singapore- Malaysia) - 7-8
September 2004
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Asia Forest Partnership (AFP)
( launched in Johannesburg, August 2002 )

• Malaysia has been involved in AFP meetings
• since November 2002 in Tokyo, Japan
• Malaysia supports all international efforts to
• promote legal and sustainable use of the
• worlds forest resources

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EU Action Plan for Forest Law Enforcement,
Governance and Trade (FLEGT)

• Malaysia recognises it as a positive and
• constructive effort to close the EU market to
• illegally harvested timber
• Agrees to cooperate with the EU to explore
• partnership

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Other Initiatives Under Consideration

• MTC partnership with European private sector on
  European Timber Trade Action Plan (ETTAP) on
  sourcing of legal timber
• Certificates / Stamps of Legality
• MTCC Guidelines for System to Verify / Assess
  Legality of Timber

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ITTO-Funded Report on Forest Law Enforcement and
Governance in Malaysia

• Recommends
• Country-wide strategy to manage the industry
• Balance, coordinate and support various efforts
  from enforcement, research, policy, data
  gathering
• Coordination of key tracking tools to enhance
  effectiveness of timber tagging and removal pass

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Thank you