DLH is the first company worldwide, able to offer its customers VLO Merbau from Indonesia which has been legally verified by Rainforest Alliance.

This means that the timber has been independently verified by Rainforest Alliance to be in compliance with the Smartwood Verified Legal Origin (VLO) standard. The standard documents that the timber was legally harvested and that all relevant taxes and royalties has been paid.

The verification also includes a chain of custody to ensure the integrity of the system thru the entire supply chain. The verification registration code of this VLO certificate is SW-VLO-004034.

”It is our hope that this VLO certificate will prove that verifying the legal origin of Merbau is possible and that this DLH initiative leads to more certification in the region.” – says CSR and Environment Manager of DLH Peter K. Kristensen.

Achieving the VLO certificate was made possible by financial support of DLH and a committed effort from the supplier and the NGO - Tropical Forest Foundation (TFF) who did the on-the-ground training of all involved parties.

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INFORMATION SHEET

An important first step in obtaining a certificate of legality and chain-of-custody under the DLH Nordisk Verification of Legal Origin (VLO) program, is base-line assessmewnt, which will be conducted by the TFF.

The purpose of this visit is to evaluate the readiness of the forest concession company for a legality and CoC audit and to advise on any preparatory actions, which need to be taken.

The following is a check list, of what TFF will want to see and do during the visit to the concession. TFF will also visit the collaborating industries to assess CoC requirements.

• Verify the existence of a valid concession license (SK IUPHHK) and concession operating license.
• Verify the existence of a valid RKT
• Verify the existence of LHC and LHP documentation and relevant tree distribution maps.
• Examine a map of the forest concession and a map of current and recent RKT’s
• Review evidence concerning the payment of relevant royalties and taxes (PSDH, DR, NPWP, PBB, PPN)
• Visit the active and/or recent logging area.
• Visit the log pond or TPK.
• Examine recent log transportation documents (SKSKB, DKB)

The concession visit can normally be completed in one day (plus travel time).

The company can facilitate this visit by putting in place adequate transportation and logistical arrangements and by having the indicated documentation available for viewing.

TFF will prepare a report for the company which will documents the current situation with respect to the DLH “Verification of Legal Origin” standard and basic requirements for a credible CoC system. The report will contain specific recommendations to help the concession company prepare for a third party audit against the legality and the CoC standard.

TFF’s report will be confidential and will be made available only to the participating company and to DLH.

Any questions regarding the proposed field visit should be addressed directly to Art Klassen or Hasbillah at TFF.