Sabah TLAS Compliance Audit Checklist / Report Principles ... · Source of Material Sabah, Malaysia Species ... Background Information: ... Goodworld Industries Sdn. Bhd

GLOBAL FORESTRY SERVICES Registered Office: Palm Grove House, P.O. Box 438, Road Town, Tortola, British Virgin Islands.

Contact Address: C10-6E, Kiara 9, Jalan Kiara 3, Mont Kiara, 50480 Kuala Lumpur, Malaysia Tel: +6019 380 6778 / +6012 310 6007 Fax : +6089 227 857

Email: [email protected] Website: www.gfsinc.biz

LEGAL VERIFICATION SERVICES

Document Control Doc #: G162-002 Title: Sabah Standard P5-6 Checklist Report Issue: 02 Date: 12 February 2015

Sabah TLAS Compliance Audit Checklist / Report Principles 5 & 6

Organization Carl Ronnow Logistics Sdn. Bhd. (747774-P) Reference # G162-182 Contact Person Dick Anning (Environmental Manager) Report Date

Date close out 26/05/2016

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Office Address

Kg. Melawa, 14.5KM, Jalan Sepangar Bay, 88450 Menggatal, Locked Bag 20, 88990 Kota Kinabalu, Sabah, Malaysia.

Telephone +6088 483 888

+6088 483 881

Mill Address

Kg. Melawa, 14.5KM, Jalan Sepangar Bay, 88450 Menggatal, Locked Bag 20, 88990 Kota Kinabalu, Sabah, Malaysia.

Fax +6088 483 801

Email [email protected] Approved By Dr. Kevin Grace Statements GFS Audit Statement # GFS 073 WTP Issuance Date 1 June 2016 Expiration Date 31 May 2017 Assessment Details

Company Type Sawmill (for plantation logs) cum moulding mill, Kiln Dry Plant and Wood Preservation Plant

Scope of Assessment Carl Ronnow Logistics Sdn. Bhd.

Product Group Acacia sawn timber and sawn timber (Nature species)

Source of Material Sabah, Malaysia

Species

Drybalanops spp. (Kapur), Dipterocarp spp. (Keruing), Shorea inappendiculata (Selangan batu), Parashorea spp. (White seraya), Shorea spp. (Red seraya, Yellow seraya, Melapi), Shorea pauciflora (Oba suluk), Sapotaceae spp. (Nyatoh), Eusideroxylon zwageri (Belian), Acacia mangium (Acacia) and other species (OT)

GFS Lead Assessor Lai Jia Woei

GFS Assessor(s) Wong Bin Heang

FDS Staff John A. Gudin (EIS PPD Kota Kinabalu), RH Muznah Sabardin (EIS PPD Kota Kinabalu), Zaini Abdul Hamid (KPPM Kota Kinabalu)

Terms of Assessment The scope of the evaluation is to verify compliance of the Carl Ronnow Logistics Sdn. Bhd. to the criteria within the Sabah Timber Legality Assurance System (TLAS) Principle 5 - Mill Operations and Principle 6 -Trade and Customs standards. Compliance is defined when the organization demonstrates that there is no non-compliance to any applicable criteria. Non-compliance to the Sabah Legality Standard occurs when the organization does not comply with 1 or more criteria. Non-compliance must be formally addressed prior to certification or within 2 months following a surveillance assessment.






Limitations of Assessment The information presented in this report is based on documentation and other information presented by the client and observations made during the field verification under the assessment. GFS reporting of information presented by the client are taken as accurate, unless evaluated differently through the observations made during the assessment. All information presented in the report is accurate and complete to the best of knowledge of GFS.

Background Information: Carl Ronnow Logistics Sdn. Bhd. (Carl Ronnow Logistics)’s sawmill license and mill contractor license are leased to Prisma Forest Sdn. Bhd. (940915-W). Sawn timbers serviced (kiln dry, re-bundling, storage) by Carl Ronnow Logistics are to be exported globally. Acacia sawn timber produced by Prisma Forest are sold locally, whereas Acacia logs are to be exported through Prisma Forest’s its sister company’s named Tropical Timber & Trading (Sabah) Sdn. Bhd.. The rental agreement of Prisma Forest Sdn. Bhd. with Carl Ronnow Logistic ends in August 2015. Associated Organizations & Subcontractors:

Carl Ronnow Logistics does not engage other companies as subcontractors to provide or manufacture products. Carl Ronnow is associated with Carl Ronnow (M) Sdn. Bhd..

Description of the Supply Chain: In year 2015, Carl Ronnow Logistics purchased / received raw materials from suppliers as below:

Supplier License Raw Material Location Syt. Datuk J.A Angian Andulag Sdn. Bhd. (Wawasan Taat Sdn. Bhd.)

JP(N) SO 054/00 (B01) R

Sawn timber

Sook

Sangkil Makmur Sdn. Bhd. (Karya Mekar Sdn. Bhd.)

JP(T) TW 001/14(X20) Sawn timber Tawau

Ho Lian Sawmill Sdn. Bhd. (PPY Success Sdn. Bhd.)

JP(N) KG 002/07 (X04) Sawn timber Keningau

Irama Ramai Sdn. Bhd. JP(N) KG 001/12 (X04) Sawn timber, wood waste

Keningau

Hap Seng Property Investment Sdn. Bhd.

JP(T) TW 002/05 (B01) Sawn timber Tawau

Apeca Sdn. Bhd. (Produksi Gemilang Keningau Sdn. Bhd.)

JP(N) KG 019/00 (X04) R

Sawn timber

Keningau

Samisun Timber Sdn. Bhd. (Suria Dimaju Sdn. Bhd.)

JP(N) SO 001/14 (B01) Sawn timber Sook

Dragon Most Sdn. Bhd. JP(N) SO 001/07 (X17) Sawn timber Sook Goodworld Industries Sdn. Bhd.

JP(N) SO 001/12 (B01) Sawn timber Sook

Syt. Pensiangan Jaya Sdn. JP(N) SO 001/14 (X62) Sawn timber Sook






Bhd. (Ultrasmart Capital Sdn. Bhd.) Sentorama Sdn. Bhd. JP(N) SO 007/06 (B01) Sawn timber Sook Perusahaan Perabot Ranau JP(K) RN 001/13 (X59) Sawn timber Ranau Sherwood Timber Processing Sdn. Bhd. (Megah Jadi Sdn. Bhd.)

JP(T) TW 00/04 (X02) R

Sawn timber

Tawau

Gold Rank Sdn. Bhd. JP(T) TW 001/10 (X04) Sawn timber Tawau Mastergroup Enterprise Sdn. Bhd.

JP(T) TW 001/04(X37) R Sawn timber Tawau

San Ngok & Sons Sdn. Bhd. (Ribuan Mashyur Sdn. Bhd.)

JP(S) TG 001/03 (X46) Sawn timber Tongod

Timberwell Berhad (Yung Fah Trading)

JP(D) KM 004/12 (B01) Sawn timber Paitan

Sri Jomatsu Sdn. Bhd. (WMing Corporation Sdn. Bhd.)

JP(N) NN 014/07 (B01)

Sawn timber

Nabawan

Cargo Timber Sdn. Bhd. JP(N) KG 031/00 (X04) R Sawn timber Keningau Hoong Yap Manufacturer Sdn. Bhd. (MT Trading)

JP(N) KG 001/11 (X23)

Sawn timber

Keningau

Pengkalan Bakat Sdn. Bhd. (WMing Corporation Sdn. Bhd.)

JP(N) SO 0021/13 (B01)

Sawn timber

Sook

Rakyat Berjaya Sdn. Bhd. (Ganda Deras Sdn. Bhd.)

JP(T) KA 004/07 (B01) Sawn timber Kalabakan

Vamco Timber Company RTAM 819515 Sawn timber Sipitang Sabah Forest Industries Sdn. Bhd. (ITC)

JP(KSG) 107/96 (CO) Sawn timber Sipitang

Jayaramai Sdn. Bhd. (ML Sabah Trading)

JP(N) SO 055/00 (B0I) R Sawn timber Sook

Kilang Papan Andus JP(K) KK 041/14 (B01) Sawn timber Kota Kinabalu Selera Indah Sdn. Bhd. JP(T) TW 001/00 (X50) R Sawn timber Tawau Java Timber Sdn. Bhd. JP(N) KG 002/09 (X40) Sawn timber Keningau Siang Kuan Enterprise (M) Sdn. Bhd. (T.K.L Timber Sdn. Bhd.)

JP(T) TW 002/05 (X04)

Sawn timber

Tawau

Timbers Chapter Sdn. Bhd. (Pantas Megajaya Sdn. Bhd.)

JP (N) SO 001/11 (X42) Sawn timber Sook

Lawas Lumber Wood Processing Sdn. Bhd.

81920 Sawn timber Sipitang

Seratim Sdn. Bhd. JP(PT) 021/00 R Sawn timber Kota Kinabalu Makmuran Sawmill Sdn. Bhd. JP(N) TM 001/03 (B01) Sawn timber Tenom Glowson Sdn. Bhd. JP(N) SO 001/15 (B01) Sawn Timber Sook Tropical Wood Plantation Sdn. Bhd.

JP(D) PS 002/12 (B04) Waste wood Pitas

Wan Ah Timber Trading DBKK 1080944 M Sawn timber Kota Kinabalu Jayakuik Sdn. Bhd. JP(S) SS 001/05 (X04) Melamine

board Sandakan






Common species used include Drybalanops spp. (Kapur), Dipterocarp spp. (Keruing), Shorea inappendiculata (Selangan batu), Parashorea spp. (White seraya), Shorea spp. (Red seraya, Yellow seraya, Melapi), Shorea pauciflora (Oba suluk), Sapotaceae spp. (Nyatoh), Eusideroxylon zwageri (Belian) and Acacia mangium (Acacia) and other species (OT). Export of sawn timber by Carl Ronnow Logistics includes Bahrain and United Kingdom.

Summary results: (Major gap = 0, Minor gap = 0, Observation = 0)

GAPs: 2016 GAP # Type Checklist # Description

- - - - *Major = Non-Compliance Status of Outstanding GAPs: 2015 GAP # Type Checklist Status Description

001/2015 Minor 5.1.2 Closed

a. The company keeps the sawn timber arrival records within the facility. However it was made to understand that the total received volume documented in the arrival records was inaccurate due to the incorrect information in the Removal Passes (e.g: A Removal Pass issued for multiple destinations). Carl Ronnow Logistic recorded total bundle and volume written on the removal pass instead of actual received bundle and volume.

b. One heavy machinery (excavator) used within Prisma Forest’s production area was not registered with Forestry Department of Sabah as stipulated in the sawmill (for plantation logs) cum moulding mill license’s – Section R “Vehicle such as pay loaders used in the sawmill compound are to be registered with the Forestry Department”.

26th May 2016: a. Carl Ronnow Logistics started to consolidate the

information starting August 2015 when forestry circular FD.20/2015 take place with effective.

b. Prisma Forest Sdn. Bhd. rental agreement with Carl Ronnow Logistic ends in August 2015.

002/2015 Minor 5.3.1 Closed

A total of 9 workers were randomly sampled during the field visit (5 from Carl Ronnow Logistic and 4 from Prisma Forest). All 5 Carl Ronnow Logistic’s direct workers possess CI. However 4 workers from Prisma Forest do not have CI, as stipulated in the sawmill (for plantation logs) cum moulding mill license’s – Section M “All workers must be registered with the Forestry Department for the issuance of a Certificate of Identity”.






26th May 2016: Prisma Forest Sdn. Bhd. rental agreement with Carl Ronnow Logistic ends in August 2015. 10 Carl Ronnow Logistics workers sampled during the mill visit are registered under COI and covered under SOCSO or insurance policy as required.

003/2015 Minor 6.1.1, 6.1.5 Closed

5 out of 6 export consignments sampled, copies of FDS documents – Borang EIS 1/2000, JHP 1, JHP 2 were not made available during the document review. 26th May 2016: The copies of FDS documents (Borang EIS 1/2000, JHP 1, JHP 2) for 2 out of 3 export consignments sampled (November & December 2015) were made available during the document review. Note: One set of FDS documents sampled (January 2015) was not available as Carl Ronnow Logistics started to consolidate the document after the issuance of Forestry Circular FD.20/2015 effective in August 2015.

004/2015 Minor 6.1.4, 6.1.6 Closed

a. 5 out of 6 export consignments sampled, copies of Removal Pass were not made available during the document review.

b. The transportation of exports consignments (by container) from Carl Ronnow Logistics’s mill to Sepangar Bay Kota Kinabalu was observed without Removal Pass for year 2014.

27th May 2016: a. The copies of Removal Pass for 3 export

consignments sampled, 2 were made available after the closing meeting and 1 export sale in January 2015 was not available as Carl Ronnow Logistics started to consolidate the document after the issuance of Forestry Circular FD.20/2015 effective in August 2015.

b. The transportation of exports consignments (by container) from Carl Ronnow Logistics’s mill to Sepangar Bay Kota Kinabalu was observed with Removal Pass from August 2015 onwards.

Observations: 2016 OBS # Checklist # Description

- - - Highlights of close-out visit (if applicable) Date Not applicable.






Recommendations Carl Ronnow Logistics Sdn. Bhd. has demonstrated compliance to the Sabah Standard Principles 5-6 for Chain of Custody and is recommended to receive a GFS Audit Statement and Sabah STCC by SFD. The next surveillance visit is scheduled in May 2017.

End of Summary Report

Documents

Sabah TLAS Compliance Audit Checklist / Report Principles ... · Source of Material Sabah, Malaysia Species ... Background Information: ... Goodworld Industries Sdn. Bhd