Barama Company Limited's FSC Certification in Guyana

The Company's Forest Stewardship Council's (FSC) certification has been suspended by SGS South Africa (Pty) Ltd (SGS), an independent assessor accredited by FSC following their recent surveillance audit in November 2006. We received the suspension notification from SGS on 9 January 2007. There are some corrective measures that we need to address before the suspension can be lifted. These corrective action requests (CARs) were primarily related to worker amenities, staff health and safety practices , monitoring of non-timber activities (such as mining activities conducted by third parties) within operational areas, maintenance of buildings and equipment, fire safety and signage as well as issues relating to road building (such as road maintenance, restoration of degraded sites and improvement to road planning by performing road profiling) and maintenance of a website to publish a summary of the forest management plan and monitoring results.

Barama Company Limited (Barama) regrets the decision of the independent assessor to suspend the company's FSC certification in Guyana. We take the independent assessor's decision seriously and are currently working to identify and resolve the CARs. In Barama, we adhere strictly to the Guyana Code of Practices for Timber Harvesting and in addition we have taken the further step over and above their requirements to obtain FSC forest certification.

The FSC forest certification is voluntary and Barama is the first and only company in Guyana to voluntarily undergo the very rigorous FSC-certification process. In this same regard, we are saddened that some issues inadvertently arose during the SGS surveillance causing this same certification to be suspended despite efforts to be compliant.

In the meantime, we will continue operating, producing and selling logs from our forest concession in Guyana, but such logs will not carry the FSC identification.

As a responsible and responsive company, we have assigned the resources to take the necessary actions to lift the suspension. These include: conducting the necessary tests, conducting refreshment training on first aid treatment, installing the necessary facilities at the camp sites within our concession, and procuring and upgrading the necessary equipment recommended by the independent assessor.

We welcome the kind assistance from World Wide Fund for Nature (WWF), Guyana Forestry Commission and the local forestry experts to address the CARs raised. We have and will continue to follow a transparent, time-bound action plan consistent with FSC certification.

Barama is committed to sustainable forest management and practices on the forest resource entrusted to the company to ensure that the resources shall continue to provide multiple functions for economic, environmental and social benefits for Guyana.

• Can Barama continue selling products after suspension?

  Forest certification is voluntary. Our sustainable forest management practices and the legality of the source of our logs are independent from the forest management certification of our forest concessions. We are eligible to sell our products, but the products will not carry the FSC certification during the suspension period. In the meantime, we will continue operating, producing and selling logs from our forest concession in Guyana.

• What shall customers who have bought the logs before FSC suspension do?

  We have informed customers to ensure that no incorrect claims about the certification status of the timber are made or appear on their products until further notice. Customers should contact us immediately if they have any questions with regards to this process.

• How long will the suspension last?

  As a responsible and responsive company, we are currently working with relevant parties, including the FSC, SGS, WWF, and the Guyana Forestry Commission to address the areas of concern, and have already taken steps to rectify the corrective action requests (CARs) identified by SGS.

  Upon close-out date (the proposed date for corrective action to be completed), SGS will assess the actions taken to rectify the CARs. If the visit or the document review shows that adequate action has been taken, then the CARs will be recorded as being completed and signed off, and suspension will be lifted when we receive an official notice from the assessor. We will inform our customers when such notice is received.

• When did Barama get the certificate?

  This needs to be put in perspective. We started our forest operation in Guyana in 1991, substantially before the FSC started certification in the country and we have always been required to adhere to the Guyana Forestry Commission Code of Practice for Timber Harvesting. Our forest concession, which we harvest from are continuously monitored by the Guyana Forestry Commission. Furthermore, we have voluntarily partnered with many organizations, including the Edinburgh Centre for Tropical Forests in Guyana from 1992 to 1999, to assist in the development of our sustainable forest management model. For more than a decade, we have been the benchmark in sustainable forest management in Guyana and the region. In 2006, we received the voluntary certification from FSC.

• Will there be any withdrawal of certificate?

  Forest certification is voluntary. We remain committed to sustainable forest management and practices on the forest resource entrusted to the company to ensure that the resources shall continue to provide multiple functions for economic, social and environmental benefits in the forests in which we operate.

• What are the reasons for suspension?

  The Certification Body may suspend a Certificate for a limited period if five major CARs are raised during a single surveillance visit.

• What is a CAR? How frequent is the surveillance audit?

  Periodic surveillance audits are carried out by independent assessors accredited by the FSC to ensure on-going compliance. Such surveillance audits are usually carried out on bi-annual basis, depending on the requirements of the relevant independent assessor. During the course of their reviews, areas of non-compliance with the strict guidelines may be identified and corrective action requests (CARs) are issued. The FSC will usually require the CARs to be addressed and complied with within a specified time frame, failing which it may lead to a temporary suspension or withdrawal of the certification. The length of time for correction or rectification of CARs will depend on both the nature of the shortcomings and the practicalities of addressing the problem. An extension of time may sometimes be granted for such correction. During the suspension period, logs may continue to be produced from the relevant forests but such logs will not carry the FSC identification.

FAQ

• Who issues the CARs?

  The corrective action requests (CARs) are issued by an independent assessor accredited by the FSC.

• What benefits are there in having an FSC certificate?

  Holders of an FSC forest management certificate are authorised to tag their products with the FSC trademark.

• Who is the FSC? What is an FSC certificate?

  The Forest Stewardship Council (FSC) is an international organization that brings people together to find solutions which promote responsible stewardship of the world's forests. Over the past 12 years, over 84 million hectares of different types of forest area in more than 82 countries have been certified according to FSC standards while several thousand products are produced using FSC certified wood and carrying the FSC trademark.

  Forest certification is the process of evaluating forests or woodlands to determine if they are being managed according to an agreed set of standards. FSC certification is carried out by FSC accredited certification bodies. FSC itself does not certify forest operations or manufacturers.

• Which other forests have FSC certified?

  The FSC certification scheme has been recognized as one of the international benchmarks that provide a system for different stakeholders interested in forest issues to work towards responsible forest management.

  As at December 2006, the FSC has issued forest management certificates covering approximately 84 million hectares of forest area worldwide. Recipients of FSC forest management certification include public governmental organizations as well as privately managed companies worldwide, and in respect of natural forests, tree plantations or semi-natural and mixed forests operated by such organizations.

  It is estimated that as of December 2006, there are approximately 8.2 million hectares of tropical natural and/or mixed forest area, or approximately 10% of the total forest area is certified by the FSC, through its forest management certification programme. The remaining 90% of the FSC-certified forest areas are made up of plantation, sub-tropical and temperate forests.

• What is the uniqueness of Barama FSC forest management certification?

  Barama is the first and only company in Guyana to have received FSC certification. It is a pioneer in obtaining FSC certificate on tropical forests that are worked on commercially. Barama was able to receive the certification as it complies with the very stringent FSC standards for extracting timber for commercial purposes in a sustainable way.

• Which of Barama's product are FSC certified?

  Log products produced from Barama's forest concession in Guyana which has received FSC forest management certification are FSC certified. However, before the FSC suspension is lifted, logs produced from the relevant forests will not carry the FSC identification.

• What is the total forest area of Barama certified by FSC?

  The total forest area of Barama certified by FSC was 570,000 hectares