Country Risk Profiles

Timber

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List of risks by indicator

Risks are listed below and organised under the relevant indicator. Click on the risk below for details on the specifc risk, mitigation options and the related legal requirements.

Specified Risks
Low Risks
Not Applicable

Legal rights to harvest

1.1 Land tenure and management rights

Low risks concluded

1.2 Concession licenses

Corrupt practices, in particular bribes, are used in the allocation of logging titles such as agreements
Non-compliance with procedures for the allocation of forest agreements

1.3 Management and harvesting planning

Lack of forest management plan
Lack of consultation of local populations, civil society organisations and NGOs during the management plan development
Lack of 5-year management programme and/or annual operations plan
Failure to implement management prescriptions, in particular yearly rotation of UFP (Unités forestières de production)

1.4 Harvesting permits

Time frames for annual logging licences and/or completion licences and/or clearing licence are not respected
The applicable procedure for issuing the annual logging licence is not respected (incomplete applications, systematic tree counts not checked by the administration, etc.)
Annual logging licences/completion licences are not issued in compliance with the regulations (irregular validity periods, volumes and species not in compliance with management plan / agreement prescriptions, etc.)

Taxes and Fees

1.5 Payment of royalties and harvesting fees

Forestry taxes are not paid in due time
Fraudulent declarations (species and volumes) to lower the felling tax for forests under the concession regime
Irregular calculation of the area tax

1.6 Value-added taxes and other sales taxes

Low risks concluded

1.7 Income and profit taxes

Lack of payment of corporate taxes

Timber harvesting activities

1.8 Timber harvesting regulations

Harvesting in excess of the number of trees indicated in the logging licence
Harvesting outside of the specified perimeter
Site log books are not filled out in compliance with the regulations
Stumps and logs are not marked in compliance with the regulations
Logging under prescribed diameters
Irregular abandoning of wood
Lack of systematic tree count before felling or fraudulent count declarations
Harvesting of species other than those specified in the logging licence

1.9 Protected sites and species

Logging protected sites and species or lack of identification of sites and species to be protected (within forests not covered by a forest management plan)
The regulations on the fight against poaching in forests covered by an agreement are not respected

1.10 Environmental requirements

Hazardous waste is not disposed of properly in line with regulations
No environmental and social impact assessment is conducted, and/or no environmental and social management plan is implemented

1.11 Health and safety

The regulations on occupational health are not respected (no health and safety committee within the company, no personal protective equipment, non-compliant base camps, no health clinic, no occupational risk management, etc.)

1.12 Legal employment

The regulations on employment legality are not respected (no employment contracts for employees, unfair dismissals, employees not declared to social security, social security contributions not paid, no staff delegates, use of subcontracting where it does not fulfil legal employment conditions, etc.)

Third-party rights

1.13 Customary rights

User rights are affected by logging activities
The fee for the local development fund is not paid and the socio-economic commitments provided for in the agreement terms and conditions is not completed

1.14 Free prior and informed consent

FPIC is not implemented within lands classified within the state-owned permanent forest domain after July 2019 and for titles attributed after July 2019

1.15 Indigenous/traditional peoples rights

The indigenous populations’ spiritual and sacred sites are not identified or restitution/compensation is not provided in the event of depossession (administrative regions of Sangha, Likouala and Lekoumou)

Trade and transport

1.16 Classification of species, quantities, qualities

False declarations are made on the timber transport documents (waybills)
The markings on logs stored in break bulk yards are tampered with

1.17 Trade and transport

Failure to hand over field log books and waybills every quarter to the forest administration
Fake transport documents (waybills) are used by logging operators

1.18 Offshore trading and transfer pricing

Transfer prices are manipulated in order to reduce the amount of corporate income tax due in the Congo

1.19 Custom regulations

The amount of export tax due is calculated unlawfully (in line with species and harvesting areas) or the regulatory export procedure is violated, for instance through the issuance of exceptional embarkation permits (AETEX), skewing the amount of taxes and fees payable
Logs are exported without a valid log export permit being issued or log export quotas are not respected or log export quotas are transferred unlawfully (previous Forest Code)

1.20 CITES

Low risks concluded

Processing

1.23 Legal Registration of Business

Processing units are not registered with the Ministry of Industry

1.24 Environmental Requirements for Processing

Hazardous waste is not disposed of properly in line with regulations
No environmental and social impact assessment is conducted, and/or no environmental and social management plan is implemented

1.25 Processing Requirements

Logging operators do not respect their commitments in terms of investments into processing units
Failure to hand over production statements and annual statements to the forest administration

1.26 Health and Safety in the Timber Processing Sector

The regulations on occupational health are not respected (no health and safety committee within the company, no personal protective equipment, non-compliant base camps, no health clinic, no occupational risk management, etc.)

1.27 Legal Employment in The Timber Processing Sector

The regulations on employment legality are not respected (no employment contract for employees, unfair dismissals, employees not declared to social security, social security contributions not paid, no staff delegates, use of subcontracting where it does not fulfil legal employment conditions, etc.)

1.1 Land tenure and management rights

Last updated on 2021-12-01 Low risks concluded Low RISK

The respect of land rights in the Congo is ensured by the forest land classification procedure, through which the state incorporates the land into the state-owned private forest domain. No private companies have full land rights over the forest management units, which are the primary source of timber in the Congo. Due to the slow population growth in the Congo, there is no systematic conflict in relation to the allocation and zoning of forests in... VIEW MOREThe respect of land rights in the Congo is ensured by the forest land classification procedure, through which the state incorporates the land into the state-owned private forest domain. No private companies have full land rights over the forest management units, which are the primary source of timber in the Congo. Due to the slow population growth in the Congo, there is no systematic conflict in relation to the allocation and zoning of forests in the state-owned permanent forest domain (UFA).
There are no specified risks regarding the legal registration of companies that are granted management rights over state-owned forest land.

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Description of legal requirements

In order to become legally registered, logging companies must obtain a forest and timber professional accreditation, following which they can be issued with a professional identity card.

Legal registration

Forest and timber professional accreditation acknowledged by the Congolese state is considered jointly owned land (Art. 14, paragraph 1 of Law n°21-2018). However, this customary land must be registered and a land title created over it automatically grants the owners of the land full capacity as official landowners (Art. 15 of Law n°21-2018). All titles other than the land title are considered temporary (Art. 29 of Law n°21-2018).

Any land that does not constitute state-owned permanent forests, land registered by private parties or urban areas forms the state-owned non-permanent forest domain. Forests in the non-permanent forest domain fall under the state-owned public domain. They are also qualified as protected forests. Effectively, a large proportion of this land is occupied on a long-term basis by local populations, who do not however have any land titles over their land.

In order to become legally registered, logging companies must obtain a forest and timber professional accreditation, following which they can be issued with a professional identity card.

Legally required documents

Decree classifying the forest as state-owned permanent forest domain
Forest and timber professional accreditation
Land title

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°09-2004 of 26 March 2004 on the State Domain Code, 2004.
Law n°10-2004 of 26 March 2004, establishing the general principles to be applied to the state and land regimes, 2004.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Law n°5 of 25 February 2011 on the promotion and protection of indigenous populations, 2011.
Law No. 21-2018 of June 13 2018, laying down the rules of occupation and acquisition of field and land, 2018.
Order n°6509/MEF/MATD of 19 August 2009 establishing the procedures for classifying and declassifying forests, 2009.

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1.2 Concession licenses

Last updated on 2021-12-01 Corrupt practices, in particular bribes, are used in the allocation of logging titles such as agreements Specified RISK

There are no concrete cases or documents relating to the implementation of the new Forest Code (2020). The risk assessment below therefore concerns the allocation of concessions in relation to the regulations in force at the time of allocation. In view of the significance of the discrepancies reported, the findings still stand.CorruptionIn light of the Republic of the Congo’s corruption perceptions index (19/100 in 2018) and the documented case... VIEW MOREThere are no concrete cases or documents relating to the implementation of the new Forest Code (2020). The risk assessment below therefore concerns the allocation of concessions in relation to the regulations in force at the time of allocation. In view of the significance of the discrepancies reported, the findings still stand.
Corruption
In light of the Republic of the Congo’s corruption perceptions index (19/100 in 2018) and the documented cases of corruption within the concession allocation procedure, there is a high risk that forest concessions are allocated unlawfully.
A survey conducted by the EIA (2019) notably revealed instances of administrative managers receiving bribes from a major timber exporter in order to influence their decision regarding the allocation of at least one UFA following an invitation to tender.
Lawson also revealed in 2014 that the Congolese legislation on the allocation of concessions presented major flaws and that it was rarely observed. Concessions are supposed to be allocated in line with a competitive tender procedure, but according to Lawson, some logging contracts awarded at the time do not appear to have followed this process.

References

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The risk applies to the following source types

Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber promotion agreement

Risk mitigation options

Stakeholder consultation

Consult Civil society organisations

Consult interested parties to obtain information on the issuance of the concerned logging titles (Mandated independent observer (CAGDF, other civil society organisations);

Consult open sources and media sources

Consult open sources and media sources for any documented information on the concerned logging enterprise

Description of legal requirements

Logging titles including agreements shall be exempt from bribes and other corrupt practices

The Forest Code identifies three types of economic regimes and five types of logging titles. The economic regimes applicable to harvesting operations are as follows: (1) concessions (based on payment of an annual fee), (2) production sharing (based on the distribution of the production with the state) and (3) direct taxation (based on one-off payments of taxes and fees).
The logging titles that fall under the direct taxation system are: (1) domestic logging permits, (2) plantation timber logging permits and (3) special permits. The regulations for concession agreements are not applicable to these titles. See section 1.4 for details on these permits and how they are issued.
There are then two types of agreement that begin under the concession regime and must then be converted to the production sharing regime: (1) management and processing agreements (CAT) and plantation timber promotion agreements.
These agreements are initiated through tender procedures launched by order of the Ministry of Forests. The tender submission files are examined by a forest committee, which includes the main stakeholders. The socio-economic impact of the bidders’ activities, the securities presented by their financial situation and their equipment, as well as their commitment to implementing a forest management plan constitute the tender assessment criteria. The forest committee meeting must take place within two months of the tender submission deadline. The management and processing agreements and plantation timber promotion agreements are then negotiated with the Ministry of Forests, and subsequently approved by the Council of Ministers. They are drawn up for a maximum of 30 years for natural forests and 20 years for plantations.
Anyone may file a request to the administration to see these forest agreements. The agreement holders must own a marking axe. No logging activities can take place until the agreement has been signed. The logging agreements include two sets of terms and conditions: the general terms and conditions, which are bilateral and determine the rights and obligations of the parties, and the specific terms and conditions, which outline the beneficiary’s responsibilities and expand on the information provided in the general terms and conditions. The general terms and conditions are approved by decree. The special terms and conditions are negotiated between the forest administration, the concessionaire and the representatives of the local communities, the indigenous populations affected, and organisations from the local civil society. They are signed, made publicly available and forwarded to the leaders of the villages concerned.
Once the agreement has been signed, a concession contract is signed, followed later on by a partnership contract that establishes how the production is to be shared. These contracts are also negotiated by the Ministry of Forests, approved by the Council of Ministers and adopted by parliament. The concession regime is intended to be temporary and to be converted into a production sharing regime as soon as the necessary conditions have been met, within a maximum of 3 years from the signature of the agreement. After this point, the only way to continue managing a concession is through the production sharing regime.
All agreements and permits are strictly personal to the beneficiary and cannot be transferred or subcontracted, unless authorisation is obtained from the forest administration.
All logging titles in force on the date on which the new Forest Code was enacted (July 2020) in the state-owned forest domain must be adapted to respond to the requirements of the new Forest Code within 3 years for natural forests and one year for plantations. The following points are particularly important:
•   Management and processing agreements under the concession regime already existed before the Forest Code reform;
•   The production sharing scheme is a new concept that did not exist before;
•   The industrial processing agreements (CTI) that were previously allocated within the UFAs in application of the old Forest Code no longer exist under the current law.
Finally, it should be noted that in exceptional cases, companies can be allocated a concession through legal rather than administrative proceedings: for example, when a company takes over the assets of another company that has gone bankrupt. If the bankrupt company has a forest concession, the court may decide that this concession is part of the assets automatically transferred to the receiving company. Another example, based on a real-life case, is if a company takes legal action against the administration for breaching the tender procedure, and the court rules in favour of opposing the administration’s final award decision. These special circumstances require a thorough legal assessment on a case-by-case basis.

Legally required documents

Concession contract or partnership contract
Notification from the Director General of Forest Economy issuing the forest committee’s favourable opinion
Order approving the management and processing agreement (CAT) for the forest unit or the industrial processing agreement (CTI)
Order launching the tender procedure
Management and processing agreement (CAT) or the plantation timber promotion agreement

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1.2 Concession licenses

Last updated on 2021-12-01 Non-compliance with procedures for the allocation of forest agreements Specified RISK

Non-compliance with proceduresAside from corruption issues, concession applicants may submit incomplete files or follow procedures that do not fulfil the applicable transparency requirements, but still be allocated forest units.•   Incomplete files: IM-VPA FLEGT/CAGDF (2016) stated that “out of 18 forest unit allocation applications received by the DGEF on behalf of the forest committee, 12 applications were incomplete, contrary to Articl... VIEW MORENon-compliance with procedures
Aside from corruption issues, concession applicants may submit incomplete files or follow procedures that do not fulfil the applicable transparency requirements, but still be allocated forest units.
•   Incomplete files: IM-VPA FLEGT/CAGDF (2016) stated that “out of 18 forest unit allocation applications received by the DGEF on behalf of the forest committee, 12 applications were incomplete, contrary to Article 157 of Decree 2002-437 of 31 December 2002”;
•   Lack of tender procedure: Lawson (2014) and IM-FLEG/REM (2010) also underline the lack of compliance with allocation procedures for several agreements, where the concession has been abandoned by the initial concessionaire and reallocated to another operator without a tender procedure;
•   Non-compliance with the regulatory time frame for the tender procedure: CAGDF notably documented one case where the regulatory tender procedure time frame (three months) was not respected, and the award committee assessed the files submitted and deliberated before the deadline (IM-VPA FLEGT/CAGDF, 2016).

References

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The risk applies to the following source types

Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber promotion agreement

Risk mitigation options

Document verification

Verify Order launching the tender procedure

Verify Minutes of the award committee

Ensure it is mentioning the tender procedure and indicating that the winning bidder’s tender submission file is complete.

Verify Notification from the Director General of Forest Economy issuing the forest committee’s favourable opinion

Ensure it is not dated prior to the tender submission deadline.

Verify Order approving the management and processing agreement (CAT) for the forest unit or the industrial processing agreement (CTI)

CTIs must have been converted after August 2023 and will no longer be valid from this date.

Verify Management and processing agreement (CAT) or the plantation timber promotion agreement

Main part plus the general terms and conditions and specific terms and conditions. CTIs must have been converted after August 2023 and will no longer be valid from this date.

Verify Concession contract or partnership contract

Verify all relevant legal documents (documents regarding the dispute, court decision, etc.).

For concessions awarded through legal proceedings

Description of legal requirements

Agreements shall be allocated based on a tender process respecting the regulatory time frame and with a complete application file.

Legally required documents

Concession contract or partnership contract
Notification from the Director General of Forest Economy issuing the forest committee’s favourable opinion
Order approving the management and processing agreement (CAT) for the forest unit or the industrial processing agreement (CTI)
Order launching the tender procedure
Management and processing agreement (CAT) or the plantation timber promotion agreement

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Decree n°2009-303 of 31 August 2009 establishing the modalities for selecting bids for the allocation of logging titles, 2009.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.

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1.3 Management and harvesting planning

Last updated on 2021-12-01 Lack of forest management plan Specified RISK

Some concessions do not have a forest management plan. According to the wood sector state of play conducted by the ATIBT in 2019, out of a total area of 14,950,342 hectares of forest land allocated for harvesting, 5,589,275 hectares (i.e. 37%) was still unmanaged or under elaboration of the management plan (ATIBT, 2019). These unmanaged concessions either exceeded the legal three-year time frame stipulated by the relevant agreement to start the f... VIEW MORESome concessions do not have a forest management plan. According to the wood sector state of play conducted by the ATIBT in 2019, out of a total area of 14,950,342 hectares of forest land allocated for harvesting, 5,589,275 hectares (i.e. 37%) was still unmanaged or under elaboration of the management plan (ATIBT, 2019). These unmanaged concessions either exceeded the legal three-year time frame stipulated by the relevant agreement to start the forest management plan development process, or exceeded the time frames provided for by the memorandums of understanding signed with the forest administration in relation to the completion of these plans (IM-FLEG/REM, 2010 ; IM-VPA FLEGT/CAGDF n°12-2016, n°001-2017, 2017; AIS FLEGT/SOFRECO, 2018 and 2019).
Although the law on the Forest Code provides for penalties as serious as withdrawal of the agreement in the event that the clauses in the terms and conditions are not respected, no company has ever been subjected to the strict application of the penalties provided for by the regulations, despite the fact that several companies have failed to respect the time frames stipulated for the completion of their forest management plan (IM-FLEG/REM, 2009).
Furthermore, populations, civil societies and non-governmental organisations are generally poorly consulted or not consulted at all during the development of these forest management plans (Nkodia, 2013; Nkouka, 2013; Granier, 2012).

References

VIEW LESS

The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit

Risk mitigation options

Document verification

Verify Validation reports issued by the interministerial committee relating to the technical studies carried out (inventory, environmental study, dendrometric study, socio-economic study, etc.)

When the forest management plan is in place

Verify Forest management plan

Verify Forest management plan approval decree

Verify Management and processing agreement (CAT) or industrial processing agreement (CTI)

When the forest management plan is in the process of being drawn up. Ensure that the forest management plan deadline stipulated by the agreement and the memorandum of understanding has not been exceeded

Verify Memorandum of understanding defining the general management conditions

Description of legal requirements

The forest management plan shall be in place within mandatory deadlines.

Forest management plans (responsibility)
The decrees classifying forests in the permanent forest domain generally indicate the management objectives of said forests. The permanent forest domain is divided into forest management units (unités forestières d’aménagement, UFA), which constitute the basic units for the completion of management tasks. Each UFA is covered by a forest management plan, and the management of any UFA is conditional on this management plan being drawn up.
Average-sized UFAs are subject to a simplified management plan. A regulatory text is needed to define what is considered an average surface area (Regulatory text not yet adopted as of September 2020).
It is up to the water and forest administration to pay for the forest management plans to be drawn up, unless the areas are allocated to logging companies (Decree n°2002-437, Article 31).
This is therefore the case for management and processing agreements (CAT), for which the logging operator is responsible for drawing up the forest management plan and for carrying out the silvicultural works provided for by said plan and explicitly mentioned in their agreement. For forest agreements, the forest management plan acts as a contractual document.
Furthermore, the management and processing agreement generally stipulates that the operator must start drawing up the forest management plan within three years of acquiring the concession. A memorandum of understanding, signed between the logging operator that has obtained the concession and the Ministry of Forest Economy, establishes the conditions under which the forest management plan will be drawn up (conditions for monitoring by the administration, technical protocols to be implemented, time frames applicable to the different stages, etc.).
The forest administration management branches are responsible for drawing up the forest management plans of UFAs that are not subject to a processing-management agreement. In practice, the state does not yet have the resources necessary to develop forest management plans for forests that are not managed by a private operator.
Drawing up the forest management plan
For CATs, the forest management plan is drawn up in line with an approved framework and various obligatory studies. Before it is drawn up, several studies are conducted on an ecological, economic and sociological level (Art. 24, paragraph 3 of Decree n°2002-437). Forest concession forest management plans must factor in the environmental and social impact assessment conducted beforehand. During the forest management plan development process, the inventories and additional studies are validated by an interministerial committee.
The draft forest management plan for a UFA is drawn up in collaboration with the local authorities and the representatives of the populations living within and around the forest management unit, other departmental public services, non-governmental organisations and various other associations before it is submitted to the government for approval. The forest management plan is adopted by a participative committee established within the department concerned, and is then approved by a decree of the Council of Ministers. The modalities for revising the forest management plan are determined between the forest administration and the operator.
The forest management plan for any UFA includes a section for mapping information (plant formations, populations, water resources, plots of land, management series). It notably stipulates the marking out of production, conservation, protection, and community research and development series. The instructions for the sustainable management of natural forests are stipulated in an order and serve as a basis for drawing up forest management plans for forest concessions. The purpose of the various series, as well as the information that must be determined during the development of the forest management plan is also stipulated (for example determining the maximum annual volume, the rotation period, the minimum harvestable diameters and annual allowable cuts for production series.) A forest management plan framework has also been defined by way of an order and must be followed.
Harvesting schedule
In line with the forest management plan, harvesting operations may take place across all or part of the UFA (particularly where areas are reserved for specific purposes, notably conservation). The UFA production series is the series in which harvesting can take place.
The production series is generally divided into production forest units (unités forestières de production, UFP), which are valid for 4 to 5 years. A 25-year agreement can therefore be divided into 5 UFPs, each lasting 5 years. A management programme, outlining the forest management plan in detail, is then drawn up for each UFP. The UFPs are then themselves divided into annual felling areas, called “annual allowable cuts”, for which an annual operations plan is drawn up each year. They are approved by a joint committee of the forest administration and logging company (Art. 38 of Law n°33-2020).
In the absence of a forest management plan (for industrial processing agreements allocated under the old legislation), the initial harvesting schedule is decided on by the forest administration based on existing inventory data. Provisional volumes are therefore already identified in the concession invitation to tender and are reiterated in the agreement and in the annual licences. The annual logging areas are identified by the logging operator in their annual logging licence application, which must be validated by the administration.
Monitoring of forest management plan implementation
A quarterly report drawn up by the departmental directorate of water and forests on the execution of the management plans of all forest management units within the relevant department is submitted to the general directorate of water and forests and the general inspectorate of water and forests (Art. 37 and 82 of paragraph 4 of Decree n°2002-437). Based on this report, an annual forest management plan follow-up and evaluation report is produced by the central forest administration.
Poor execution of forest management plans by management and processing agreement holders is disclosed in a detailed report issued by the departmental directorate of water and forests to the general directorate of water and forests. This report suggests a series of measures, which can be as serious as the suspension or termination of the agreement (Article 39 of Decree n°2002-347).
Failure to comply with the forest management plan constitutes an offence provided for and punishable by law (Art. 232 and 233 of Law n°33-2020).
Management of community forests, private forests and domestic logging units
•   Domestic forest units are subjected to a simplified management programme. The regulations do not specify the modalities for the drafting and approval of simplified management programmes for domestic logging units.
•   Community forests are subjected to a simplified management programme. This simplified management programme is drawn up by the competent departments within the forest administration or a private organisation selected by the local communities and indigenous populations. It is then approved by decision of the departmental authorities of water and forests.
•   Owners of private natural forests spanning an area equal to or greater than 500 hectares must draw up and implement a forest management plan. Forest management plans for private natural forests notably include the relevant management objectives, the location of the infrastructure, the silvicultural treatments and their schedule, etc. They are then approved by the forest administration. A harvesting plan must also be drawn up and submitted to the forestry administration (regardless of the size of the forest).
•   Owners of private planted forests are obliged to draw up a management plan, which must be validated by the forestry administration.

Legally required documents

A report on the adoption of the forest management plan by the participative committee (departmental level) in the presence of the stakeholders (departmental authorities, relevant administrations - notably water and forests prefecture, local communities and indigenous peoples, NGOs, associations and the company concerned);
Annual operations plan
Decree classifying the forest as state-owned permanent forest domain
Forest management plan
Forest management plan approval decree
Memorandum of understanding defining the general management conditions
Report on the examination and validation of the management programme
Simplified management programme
Validation reports issued by the interministerial committee relating to the technical studies carried out (inventory, environmental study, dendrometric study, socio-economic study, etc.)

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
National Standards for Management Inventories of Forest Resources in the Republic of the Congo, dated December 2005 (defining the technical standards for forest management inventories, the technical standards for dendrometric analysis for the determination of “tarifs de cubage” and “coefficients de récolement” (timber scaling methods and samples for post-logging checks) and the technical standards for mapping studies, 2005.
Order n°2694 of 24 March 2006 establishing the average harvestable volumes of timber species, 2006.
Order n°5053 of 19 June 2007 defining the national guidelines for the sustainable management of forest concessions, 2007.

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1.3 Management and harvesting planning

Last updated on 2021-12-01 Lack of consultation of local populations, civil society organisations and NGOs during the management plan development Specified RISK

Populations, civil societies and non-governmental organisations are generally poorly consulted or not consulted at all during the development of these forest management plans (Nkodia, 2013; Nkouka, 2013; Granier, 2012).... VIEW MOREPopulations, civil societies and non-governmental organisations are generally poorly consulted or not consulted at all during the development of these forest management plans (Nkodia, 2013; Nkouka, 2013; Granier, 2012).

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit

Risk mitigation options

Document verificationStakeholder consultation

Verify Report of the consultation procedure carried out with the indigenous populations

Report on the adoption of the forest management plan by the participative committee (departmental level) in the presence of the stakeholders (departmental authorities, relevant administrations notably water and forests, prefecture, local communities and indigenous peoples, NGOs, associations and the company concerned).

Consult Local communities

Whether the forest management plan is being developed or is already in place: Consult with stakeholders on their implication in the management plan development process.

Consult Civil society organisations

Whether the forest management plan is being developed or is already in place: Consult with stakeholders on their implication in the management plan development process.

Description of legal requirements

The forest management plan shall be drawn up in collaboration with neighbouring populations and shall be approved by a participative committee.

Legally required documents

A report on the adoption of the forest management plan by the participative committee (departmental level) in the presence of the stakeholders (departmental authorities, relevant administrations - notably water and forests prefecture, local communities and indigenous peoples, NGOs, associations and the company concerned);
Annual operations plan
Decree classifying the forest as state-owned permanent forest domain
Forest management plan
Forest management plan approval decree
Memorandum of understanding defining the general management conditions
Report on the examination and validation of the management programme
Simplified management programme
Validation reports issued by the interministerial committee relating to the technical studies carried out (inventory, environmental study, dendrometric study, socio-economic study, etc.)

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
National Standards for Management Inventories of Forest Resources in the Republic of the Congo, dated December 2005 (defining the technical standards for forest management inventories, the technical standards for dendrometric analysis for the determination of “tarifs de cubage” and “coefficients de récolement” (timber scaling methods and samples for post-logging checks) and the technical standards for mapping studies, 2005.
Order n°2694 of 24 March 2006 establishing the average harvestable volumes of timber species, 2006.
Order n°5053 of 19 June 2007 defining the national guidelines for the sustainable management of forest concessions, 2007.

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1.3 Management and harvesting planning

Last updated on 2021-12-01 Lack of 5-year management programme and/or annual operations plan Specified RISK

For concessions with a validated forest management plan, there is a risk that the 5-year management programme and the annual operations plan are not drafted and approved and that harvesting activities are carried on (IM-VPA FLEGT/CAGDF, n°11-2015, n°003-2018 ; AIS FLEGT/SOFRECO, DGEF-2019 and Sangha-2019).The independent monitor also observed the opening of UFP before the year set up in the management plan IM-VPA FLEGT/CAGDF, n°14-2016).In gen... VIEW MOREFor concessions with a validated forest management plan, there is a risk that the 5-year management programme and the annual operations plan are not drafted and approved and that harvesting activities are carried on (IM-VPA FLEGT/CAGDF, n°11-2015, n°003-2018 ; AIS FLEGT/SOFRECO, DGEF-2019 and Sangha-2019).
The independent monitor also observed the opening of UFP before the year set up in the management plan IM-VPA FLEGT/CAGDF, n°14-2016).
In general, there is a risk of non-implementation of management prescriptions, mainly due to poor checks conducted by the forest administration to ensure their implementation. In reality, these checks are scarcely conducted (AIS FLEGT/SOFRECO, 2018, 2019; IM-VPA FLEGT/CAGDF, n°006-2019) and the penalties provided for in Articles 155 and 156 of the Forest Code are poorly imposed on companies who do not respect their forest management plans. Failure to implement forest management plans covers several different provisions (failure to respect the rules for operating within forest areas, absence of a local development fund, absence of dedicated management staff, etc.). (Expert consultation, 2019)

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit

Risk mitigation options

Document verification

Verify Report on the examination and validation of the management programme

Verify 5-year management programme

Verify Annual operations plan

When the forest management plan is in place

Verify Annual logging licence

When the forest management plan is in the process of being drawn up:
check that the annual logging areas and a volume schedule are indicated in the agreement and defined in the annual logging licence

Description of legal requirements

The 5-year management programme and the annual operations plan shall be in place and approved by the forest administration.

Legally required documents

A report on the adoption of the forest management plan by the participative committee (departmental level) in the presence of the stakeholders (departmental authorities, relevant administrations - notably water and forests prefecture, local communities and indigenous peoples, NGOs, associations and the company concerned);
Annual operations plan
Decree classifying the forest as state-owned permanent forest domain
Forest management plan
Forest management plan approval decree
Memorandum of understanding defining the general management conditions
Report on the examination and validation of the management programme
Simplified management programme
Validation reports issued by the interministerial committee relating to the technical studies carried out (inventory, environmental study, dendrometric study, socio-economic study, etc.)

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
National Standards for Management Inventories of Forest Resources in the Republic of the Congo, dated December 2005 (defining the technical standards for forest management inventories, the technical standards for dendrometric analysis for the determination of “tarifs de cubage” and “coefficients de récolement” (timber scaling methods and samples for post-logging checks) and the technical standards for mapping studies, 2005.
Order n°2694 of 24 March 2006 establishing the average harvestable volumes of timber species, 2006.
Order n°5053 of 19 June 2007 defining the national guidelines for the sustainable management of forest concessions, 2007.

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1.3 Management and harvesting planning

Last updated on 2021-12-01 Failure to implement management prescriptions, in particular yearly rotation of UFP (Unités forestières de production) Specified RISK

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit

Risk mitigation options

Document verificationField verification

Verify Forest management plan

Ensure that the yearly rotation of UFP set up in the management plan is complied with (information on the UFP logged can be found in the annual logging licence).

Verify Annual logging licence

Ensure that the yearly rotation of UFP set up in the management plan is complied with (information on the UFP logged can be found in the annual logging licence).

Verify Annual forest management plan follow-up and evaluation report

Report is produced by the central forest administration.

Visit Harvesting site

Ensure that the prescriptions of the forest management plan, which are specific to the forest and not covered in other legal categories, are being implemented. This might need onsite verification or consultations.

Description of legal requirements

The management prescriptions shall be complied with. In particular, the planned yearly rotation shall be complied with.

Legally required documents

A report on the adoption of the forest management plan by the participative committee (departmental level) in the presence of the stakeholders (departmental authorities, relevant administrations - notably water and forests prefecture, local communities and indigenous peoples, NGOs, associations and the company concerned);
Annual operations plan
Decree classifying the forest as state-owned permanent forest domain
Forest management plan
Forest management plan approval decree
Memorandum of understanding defining the general management conditions
Report on the examination and validation of the management programme
Simplified management programme
Validation reports issued by the interministerial committee relating to the technical studies carried out (inventory, environmental study, dendrometric study, socio-economic study, etc.)

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
National Standards for Management Inventories of Forest Resources in the Republic of the Congo, dated December 2005 (defining the technical standards for forest management inventories, the technical standards for dendrometric analysis for the determination of “tarifs de cubage” and “coefficients de récolement” (timber scaling methods and samples for post-logging checks) and the technical standards for mapping studies, 2005.
Order n°2694 of 24 March 2006 establishing the average harvestable volumes of timber species, 2006.
Order n°5053 of 19 June 2007 defining the national guidelines for the sustainable management of forest concessions, 2007.

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1.4 Harvesting permits

Last updated on 2021-12-01 Time frames for annual logging licences and/or completion licences and/or clearing licence are not respected Specified RISK

Forests covered by an agreement (CATs and CTIs)Non-compliance with the time frames and validity period of annual logging licences and/or completion licences. For instance, launching of harvesting activities before the issuance and validity of the authorisation (AIS FLEGT/SOFRECO, Cuvette Ouest-2019) and felling and evacuation of wood beyond the period provided for by these licences (IM-VPA FLEGT/CAGDF n°15-2017).... VIEW MOREForests covered by an agreement (CATs and CTIs)
Non-compliance with the time frames and validity period of annual logging licences and/or completion licences. For instance, launching of harvesting activities before the issuance and validity of the authorisation (AIS FLEGT/SOFRECO, Cuvette Ouest-2019) and felling and evacuation of wood beyond the period provided for by these licences (IM-VPA FLEGT/CAGDF n°15-2017).

References

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The risk applies to the following source types

Industrial processing agreement (CTI)
Management and processing agreement (CAT)

Risk mitigation options

Document verification

Verify Provisional logging licence

Collect the applicable licence depending on when the logging activities are conducted. Ensure that the time frames indicated in the licence(s) are respected.

Verify Annual logging licence

Collect the applicable licence depending on when the logging activities are conducted. Ensure that the time frames indicated in the licence(s) are respected.

Verify Clearing licence for timber felled

Collect the applicable licence depending on when the logging activities are conducted. Ensure that the time frames indicated in the licence(s) are respected.

Description of legal requirements

Time frames set up by licences shall be complied with.

Forests covered by a permit
Domestic logging permits are allocated in areas that are classified but that fall outside of forest management units. They are exclusively dedicated to supplying the domestic market. The timber from these permits is not authorised to be exported. Domestic logging permits are allocated following a tender procedure launched by the Ministry of Forests. The bidders’ tender submission files are assessed by a forest committee based on the bidders’ capacity to implement a simplified management programme, their financial securities, their available equipment and the socio-economic impacts of their activities. Only natural persons of Congolese nationality may acquire such permits. The issuance of domestic logging permits is conditional on the existence of an environmental and social impact notice and a simplified management programme. They are allocated for a maximum period of three years and specify the exact authorised harvestable volumes and species. They are issued by the Ministry of Forests.
Plantation timber logging permits are allocated following the sale of standing timber in forest plantations within the state-owned forest domain, through a public tender procedure. The sale may be concluded at the discretion of the state if the tender procedure fails (too few participants or low prices). The permit is issued by the Ministry of Forests for a precise quantity and a maximum duration of 6 months.
Special permits do not concern the production of timber, unless they are located in remote areas for sale in localities close to the harvesting areas. They are issued by the Director General of Water and Forests. They are reserved for natural persons of Congolese nationality, non-governmental organisations and associations established under Congolese law. They are valid for a maximum of one month and cover a maximum of 5 trees.
Private forests
Owners of private natural or planted forests are free to use the products of their forest stands in accordance with the management plan and the harvesting plan approved by the forest administration. They do not need to obtain permits in addition to these documents
Forests covered by an agreement (CATs and CTIs)
Agreement holders must obtain an annual logging licence (Art. 71 of Decree n°2002-437).
All agreement holders must submit an annual logging approval application by 30 September of each year (Article 69 and 71 of Decree n°2002-437). This application must include the following documents:
•   the results of the count, presented on a 1:20,000 scale map;
•   a 1:50,000 scale map or sketch;
•   an activity report for the first eight months of the year;
•   proof of payment of taxes or other fees payable;
•   all site log books from the year.
The annual logging licence reiterates the area where the harvesting shall take place for the year and limits the volume of harvestable timber by species (volume defined by harvestable trees). Within the annual allowable logging area, the tree species that are authorised to be sold by the operator are systematically counted and marked with paint. The maximum annual volume is defined based on the forest’s potential annual yield. The area covered by the annual logging licence must be bordered by a path. If the counts are found to be false, they must be retaken under the supervision of the forest administration and harvesting can only start in the areas subject to a new count, based on a provisional logging licence valid for a maximum of 3 months.
The annual logging licence is issued before 15 December for one calendar year. If the company has not exhausted its allowable cut by the end of the calendar year, the regulations authorise the forest administration to grant a completion licence by 2 January of the following year for a harvesting period not exceeding 6 months (Article 74 of Decree n°2002-437).
At the expiry of the agreement, a clearing licence may be granted to evacuate wood already felled. This licence shall not exceed 6 months (Article 101 of Decréé n°2002-437).
Plantation timber promotion agreement
As plantation timber promotion agreements were only introduced by the new Forest Code (2020), the law does not yet stipulate the modalities relating to obtaining potential additional permits, such as annual permits for the harvesting of forest resources.
Conversion wood (deforestation for the purpose of changing the allocation of land)
The wood circulating on the market (including the international market) may also come from lawfully conducted deforestation operations. The Forest Code allows companies other than logging companies (farming, mining, public works companies) without a forest agreement to harvest wood originating from potential deforestation operations carried out outside of classified forests for the purpose of their activities and projects, as long as they obtain a deforestation permit from the forest administration, pay the relevant taxes, and conduct the relevant social and economic impact assessments (Article 45 of Decree n°2002-437).

Legally required documents

Agreement for land use change
Documents relating to the public tender procedure
Domestic logging permit
Environmental and social impact assessment report
Harvesting inventory approval notice
Invitation to tender
Plantation timber logging permit
Proof of payment of deforestation tax
Special permit
Valid deforestation permit
Provisional logging licence

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°2694 of 24 March 2006 establishing the average harvestable volumes of timber species, 2006.
Order n°5052 of 19 June 2007 determining the forests subjected to timber harvesting under special permits, 2007.

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1.4 Harvesting permits

Last updated on 2021-12-01 The applicable procedure for issuing the annual logging licence is not respected (incomplete applications, systematic tree counts not checked by the administration, etc.) Specified RISK

Forests covered by an agreement (CATs and CTIs)Significant cases of fraudulent logging constituting breaches to regulations sanctioned by the Forest Code have been documented by several bodies (IM-VPA, AIS-FLEGT, EIA, etc.):•   harvesting of species other than those specified in the logging licence. For example, in 2018 in Cuvette-Ouest, AIS-FLEGT reported that 4,300 Angueuk trees were harvested, despite the fact that the harvesting of this... VIEW MOREForests covered by an agreement (CATs and CTIs)
Significant cases of fraudulent logging constituting breaches to regulations sanctioned by the Forest Code have been documented by several bodies (IM-VPA, AIS-FLEGT, EIA, etc.):
•   harvesting of species other than those specified in the logging licence. For example, in 2018 in Cuvette-Ouest, AIS-FLEGT reported that 4,300 Angueuk trees were harvested, despite the fact that the harvesting of this species was not authorised by the logging permit (AIS FLEGT/SOFRECO, Cuvette Ouest-2019 – see also IM-FLEG/REM, 2009 and 2010);
•   harvesting in excess of the number of trees indicated in the logging licence (total number or per species). An EIA analysis estimated the excess volume illegally harvested by a major logging operator at around 85,000 m3 (accounting for more than 15,000 trees) (EIA, 2019 - see also IM-FLEG/REM, 2009 and 2010 ; IM-VPA FLEGT/CAGDF n°004-2018);
•   Non-compliance with the time frames and validity period of annual logging licences and/or completion licences. For instance, launching of harvesting activities before the issuance and validity of the authorisation (AIS FLEGT/SOFRECO, Cuvette Ouest-2019) and felling and evacuation of wood beyond the period provided for by these licences (IM-VPA FLEGT/CAGDF n°15-2017).
Inadequacy of the field checks carried out by the forest administration was identified as being one of the problems facilitating these illegal practices by logging companies (AIS FLEGT/SOFRECO, 2018, 2019).
Numerous other risks relating to the applicable process for issuing annual licences have also been identified and documented:
•   logging licences issued after the expiry of the agreement (IM-VPA FLEGT/CAGDF n°002-2018, n°006-2019, n°007-2019);
•   logging licences issued based on incomplete applications, which therefore do not comply with legislation (IM-VPA FLEGT/CAGDF n°11-2015, n°001-2017, n°004-2018, n°005-2018 ; AIS FLEGT/SOFRECO, Cuvette Ouest-2019);
•   logging licences issued for a volume higher than than the forest’s yield potential specified in the Management plan and the agreement (IM-VPA FLEGT/CAGDF n°15-2017, n°004-2018, n°006-2019, 2017);
•   logging licences issued without carrying out a check of the systematic counts and the company’s harvesting capacity (IM-VPA FLEGT/CAGDF n°15-2017, n°006-2019);
•   completion licences issued for a number of trees higher than the remaining authorised amount (IM-VPA FLEGT/CAGDF);
•   logging licences granted in breach of the provisions of the forest management plan (for example, containing species prohibited by the forest management plan) (IM-VPA FLEGT/CAGDF);
•   logging licences issued with a validity that exceeds the regulatory time frame (IM-VPA FLEGT/CAGDF n°006-2019).
Other permits
•   The independent monitor also reported several instances of authorisations not specified within the applicable regulations being irregularly issued (IM-VPA FLEGT/CAGDF n°6-2014, n°15-2017, n°008-2019).
•   Special permits are also susceptible to be awarded despite incomplete requests (IM-VPA FLEGT/CAGDF n°15-2017, n°005-2018).
Deforestation permits
The risks associated with deforestation permits are as follows (IM-VPA FLEGT/CAGDF, n°13-2016):
•   deforestation permits are issued based on fraudulent (not real) plans to develop an activity justifying said deforestation;
•   deforestation permits are issued without an environmental and social impact assessment being carried out on the area to be subjected to the deforestation;
•   deforestation permits are issued for forest areas in the permanent forest domain where they have not been declassified beforehand;
•   clearance licences for the wood felled in the deforestation areas are issued (not provided for by the regulations).

References

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The risk applies to the following source types

Domestic logging permit
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify Harvesting inventory approval notice

Verify Annual operations plan

It must be dated prior to the logging licence

Verify Annual logging licence

Description of legal requirements

The applicable procedure for issuing logging licences shall be complied with. In particular, it shall be based on (1) systematic tree counts and (2) complete application files, which include the annual operations plan.

Legally required documents

Agreement for land use change
Documents relating to the public tender procedure
Domestic logging permit
Environmental and social impact assessment report
Harvesting inventory approval notice
Invitation to tender
Plantation timber logging permit
Proof of payment of deforestation tax
Special permit
Valid deforestation permit
Provisional logging licence

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°2694 of 24 March 2006 establishing the average harvestable volumes of timber species, 2006.
Order n°5052 of 19 June 2007 determining the forests subjected to timber harvesting under special permits, 2007.

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1.4 Harvesting permits

Last updated on 2021-12-01 Annual logging licences/completion licences are not issued in compliance with the regulations (irregular validity periods, volumes and species not in compliance with management plan / agreement prescriptions, etc.) Specified RISK

References

VIEW LESS

The risk applies to the following source types

Domestic logging permit
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify Annual logging licence

Ensure that the annual logging licence has been issued before 15th of December of the previous year. Ensure that species listed in the logging licence are provided for by the forest management plan. Ensure that volumes indicated in the logging licence are not higher than the volumes provided for in the agreement

Verify Completion logging licence

If applicable, ensure that the completion logging licence has been issued by the 2nd of January and for a harvesting period not exceeding 6 months. Ensure that species listed in the logging licence are provided for by the forest management plan. Ensure that volumes indicated in the logging licence are not higher than the volumes provided for in the agreement

Verify Forest management plan

Ensure that species listed in the logging licence are provided for by the forest management plan. Ensure that volumes indicated in the logging licence are not higher than the volumes provided for in the agreement

Description of legal requirements

The logging licence shall comply with applicable regulations. In particular, it shall comply with regulatory validity periods and it shall be in compliance with management and agreement prescriptions.

Legally required documents

Agreement for land use change
Documents relating to the public tender procedure
Domestic logging permit
Environmental and social impact assessment report
Harvesting inventory approval notice
Invitation to tender
Plantation timber logging permit
Proof of payment of deforestation tax
Special permit
Valid deforestation permit
Provisional logging licence

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°2694 of 24 March 2006 establishing the average harvestable volumes of timber species, 2006.
Order n°5052 of 19 June 2007 determining the forests subjected to timber harvesting under special permits, 2007.

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1.5 Payment of royalties and harvesting fees

Last updated on 2021-12-01 Forestry taxes are not paid in due time Specified RISK

The independent monitor and independent auditor have regularly described the importance of unpaid forestry taxes (IM-FLEG/REM, 2010 ; IM-VPA FLEGT/CAGDF, reports n°1 to n°009; AIS FLEGT/SOFRECO Sangha-2019, Cuvette Ouest-2019, Lekoumou-2019). Data collected by the independent monitor demonstrates that the collection rate for felling tax (around 71%) is better than the collection rate for area tax (around 46%) and deforestation tax (around 44%).... VIEW MOREThe independent monitor and independent auditor have regularly described the importance of unpaid forestry taxes (IM-FLEG/REM, 2010 ; IM-VPA FLEGT/CAGDF, reports n°1 to n°009; AIS FLEGT/SOFRECO Sangha-2019, Cuvette Ouest-2019, Lekoumou-2019). Data collected by the independent monitor demonstrates that the collection rate for felling tax (around 71%) is better than the collection rate for area tax (around 46%) and deforestation tax (around 44%).
The strategy employed by the Republic of the Congo to monitor the collection of taxes and intercept corruption along the logistical supply chain is still ineffective. On top of that, the country also lacks the skills and equipment required to properly carry out the necessary checks and collect the amounts due (Wafwana and Matschinga, 2013).
If companies fail to pay their area and felling taxes, the forest administration often unlawfully gives them the option to offset the amounts through the construction of infrastructure and other works. As such, the independent monitor indicates that the MEF had works completed totalling 405,590,000 CFA francs (€618,318) at the expense of a company, to offset the taxes this company owed to the state (IM-VPA FLEGT/CAGDF, n°11-2016). The risk is therefore that companies do not pay their taxes to the tax collector, i.e. the public purse, and complete construction works instead. Furthermore, in the event that a company has outstanding payments, the late penalty charges imposed by the applicable regulations are not added to the amounts due under this tax offset system. In fact, these tax offset measures are the equivalent of debt laundering.

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify Proof of payment of the portion of area tax designated to local communities and indigenous populations

Verify Waybills

For forests under the concession regime: ensure that the company’s waybills and site log books (recording both the quantity and quality of the logs harvested on each site) have been submitted to the forest administration within the time frames indicated (quarterly)

Verify Site log books

Verify Proof of payment into the local development fund (FDL)

For forests under the concession regime and under the production sharing regime: if applicable, proof of payment into the local development fund (FDL) in line with the conditions established by the order for the creation of the fund and the concessionaire’s specific terms and conditions.

Verify Proof of payment of the portion of area tax designated to local communities and indigenous populations

Description of legal requirements

The felling tax, the area tax and the contribution to the local development fund (FDL) shall be paid in due time.

The law stipulates three logging regimes, each subject to a set of taxes:
•   The concession regime, which is transitory and cannot exceed 3 years from the date on which the agreement is signed. The applicable taxes are the annual area tax and the felling tax.
•   The production sharing regime applicable to harvested logs: in this instance, the operator is exempt from all taxes relating to logging operations that are not earmarked for local authorities, local communities and indigenous populations. The only applicable payment is therefore a proportion of the area tax (share for local authorities, local communities and indigenous populations).
•   The direct tax regime applicable to holders of domestic logging permits and special permits. The applicable tax is the felling tax.
The 2020 Forest Code also provides for a state-owned domain occupancy tax, however does not specify to whom and under what conditions it applies (regulatory texts not yet adopted).
Felling tax
The felling tax is determined based on the actual amount of wood produced and declared to the forest administration, in line with the FOB (Free on Board) and FOT (Free on Truck) values established by the regulations in force in accordance with the area from which the wood originates (the further away from the port used for the export, the lower the tax in order to compensate for the additional costs related to transporting the wood from remote areas). The volume used for the calculation is the number declared by the logging operator based on its site log books and production reports summarising the volumes produced. The site log books and production reports must be communicated to the forest administration every month. The volume declared must correspond to the volume of the entire tree felled, from the end of the buttress roots to the first main branch, even if the wood cannot be marketed, presents imperfections and/or is not evacuated from the forest. The felling tax has been fixed at between 5% and 7% since 2017 (rate determined by administrative circulars).
Area tax
The area tax is collected annually by the forest administration from the agreement holder. To do this, the administration jointly establishes with the agreement holder a payment plan of instalments staggered across each year. For managed concessions, the area tax is calculated based on the production series. For non-managed concessions, this tax is calculated based on the total concession area. The area tax varies from 250 to 500 CFA francs per hectare, depending on how far the concession is from the port of shipment.
Responsibilities stipulated by the terms and conditions
The terms and conditions of the agreements signed by the companies include a list of social responsibilities, often in the form of works or infrastructure (drilling of wells, restoration of roads, construction or restoration of schools and health centres, supply of medication, etc.), that the signatory company must fulfil over a given number of years. In general, these activities and infrastructure are financed by a local development fund (FDL) maintained by the forest concessionaire. The standard amount paid by companies into the FDL is 200 CFA/m3 of marketable timber. It could therefore be considered a form of indirect taxation. Is it worthy of note that the orders for the creation and running of the development funds for managed concessions stipulate that the issuance of the annual logging licence is conditional on payment of 50% of the FDL payment for that year.
Deforestation tax
Logging companies must pay deforestation tax on deforestation activities conducted for the purpose of constructing roads, timber yards, quarries and base camps. The deforestation tax is calculated based on the deforested areas and the type of activity (Order n°6380 of 31 December 2002). Issuance of the deforestation permit is conditional on payment of this tax.

Legally required documents

Order for the creation of the local development fund (FDL)
Specific terms and conditions of the agreement

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°14-2009 of 30 December 2009, modifying some provisions of Law 16-2000, 2009.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°19570/MEFDD/CAB of 10 November 2014 determining the categories of wood products in the Congo, 2014.
Order n°19571/MEFDD/CAB of 10 November 2014 determining the wood production tax areas for the application of the Free on Truck (FOT) values, 2014.
Order n°22717/MEFPPPI/MEFDD/ of 19 December 2014 establishing the Free On Board (FOB) values for the determination of the FOT values, and for the calculation of the felling tax for logs and the wood export tax, 2014.
Order n°22719/MEFPPPI/MEFDD/ of 19 December 2014 establishing the rates for the felling tax applicable to logs from natural forests, 2014.
Order n°23444/MEFPPPI/MEFDD of 31 December 2014 establishing the FOT values for the calculation of the felling tax and wood export tax, 2014.
Order n°6380 of 31 December 2002 establishing the natural forest deforestation tax, 2002.

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1.5 Payment of royalties and harvesting fees

Last updated on 2021-12-01 Fraudulent declarations (species and volumes) to lower the felling tax for forests under the concession regime Specified RISK

References

VIEW LESS

The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Field verification

Visit Harvesting site

Realise sample checks between physical logs (species and volumes) and matching declarations logged in field logbooks and/or waybills.

Description of legal requirements

Declarations made on documents used for the calculation of the felling tax shall be accurate

Legally required documents

Order for the creation of the local development fund (FDL)
Specific terms and conditions of the agreement

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°14-2009 of 30 December 2009, modifying some provisions of Law 16-2000, 2009.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°19570/MEFDD/CAB of 10 November 2014 determining the categories of wood products in the Congo, 2014.
Order n°19571/MEFDD/CAB of 10 November 2014 determining the wood production tax areas for the application of the Free on Truck (FOT) values, 2014.
Order n°22717/MEFPPPI/MEFDD/ of 19 December 2014 establishing the Free On Board (FOB) values for the determination of the FOT values, and for the calculation of the felling tax for logs and the wood export tax, 2014.
Order n°22719/MEFPPPI/MEFDD/ of 19 December 2014 establishing the rates for the felling tax applicable to logs from natural forests, 2014.
Order n°23444/MEFPPPI/MEFDD of 31 December 2014 establishing the FOT values for the calculation of the felling tax and wood export tax, 2014.
Order n°6380 of 31 December 2002 establishing the natural forest deforestation tax, 2002.

VIEW LESS

1.5 Payment of royalties and harvesting fees

Last updated on 2021-12-01 Irregular calculation of the area tax Specified RISK

References

VIEW LESS

The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify most recent Finance Laws

Consult the most recent Finance Laws to determine the applicable prescriptions relative to the area tax. A prescription can be valid for successive years until a revised version is adopted in an annual Finance Law. Ensure that such applicable prescriptions are implemented to determine the amount of the area tax.

Description of legal requirements

The area taken into account for the calculation of the area tax shall comply with legal prescriptions.

Legally required documents

Order for the creation of the local development fund (FDL)
Specific terms and conditions of the agreement

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°14-2009 of 30 December 2009, modifying some provisions of Law 16-2000, 2009.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°19570/MEFDD/CAB of 10 November 2014 determining the categories of wood products in the Congo, 2014.
Order n°19571/MEFDD/CAB of 10 November 2014 determining the wood production tax areas for the application of the Free on Truck (FOT) values, 2014.
Order n°22717/MEFPPPI/MEFDD/ of 19 December 2014 establishing the Free On Board (FOB) values for the determination of the FOT values, and for the calculation of the felling tax for logs and the wood export tax, 2014.
Order n°22719/MEFPPPI/MEFDD/ of 19 December 2014 establishing the rates for the felling tax applicable to logs from natural forests, 2014.
Order n°23444/MEFPPPI/MEFDD of 31 December 2014 establishing the FOT values for the calculation of the felling tax and wood export tax, 2014.
Order n°6380 of 31 December 2002 establishing the natural forest deforestation tax, 2002.

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1.6 Value-added taxes and other sales taxes

Last updated on 2021-12-01 Low risks concluded Low RISK

Not applicable... VIEW MORENot applicable VIEW LESS

The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Description of legal requirements

Not applicable

Given that property rights over timber are rarely transferred before export, the VAT regulations in the Republic of the Congo are not applicable to the forestry sector. In fact, there is currently almost no national timber trade between separate legal entities. A logging operator is any entity conducting felling activities, and in theory the initial processing and export operations. VIEW LESS

1.7 Income and profit taxes

Last updated on 2021-12-01 Lack of payment of corporate taxes Specified RISK

The large companies active in the Congolese timber industry primarily constitute upstream producers and downstream exporters of almost all wood and cut timber produced in the Congo.High risks of tax evasion through manipulation of the transfer prices between the exporter located in the Congo and the subsidiaries established in countries with low income tax rates have been highlighted and documented by the EIA (2019). Intermediate partiesAnother ... VIEW MOREThe large companies active in the Congolese timber industry primarily constitute upstream producers and downstream exporters of almost all wood and cut timber produced in the Congo.
High risks of tax evasion through manipulation of the transfer prices between the exporter located in the Congo and the subsidiaries established in countries with low income tax rates have been highlighted and documented by the EIA (2019).
Intermediate parties
Another source of risk is that no checks are conducted on the intermediate parties between the small and medium-sized operators that do not have direct access to the international market and the intermediaries (international brokers, forwarding agents and merchants) selling the wood in the foreign markets. The declaration and payment of corporate income tax is poorly managed, as are the responsibilities of the state actors in charge of monitoring this (AIS FLEGT, 2017).

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify Certificat de moralité fiscale (certificate of “taxpayer morality”) for a yearly duration or attestation de moralité fiscale (declaration of “taxpayer morality”) for a quarterly duration, issued if the company is up to date with all their tax payments

Ensure that all direct and indirect taxes due have been paid

Verify Acknowledgement of receipt of statistical and tax declarations

Collect the acknowledgement of receipt of statistical and tax declarations or balance sheet for the year underway before 15 May

Verify Declaration of the existence of the company to the Labour Inspectorate

Description of legal requirements

Applicable corporate taxes shall be paid.

Any individual liable for tax on their income or profits is required to submit a declaration of existence to the divisional inspectorate of direct and indirect contributions (inspection divisionnaire des contributions directes et indirectes) (2012 General Tax Code, Art. 46).
A certificate or declaration of “taxpayer morality” that demonstrates that the company is up to date with all taxes due is issued to all natural and legal persons domiciled or habitually resident in the Republic of the Congo, valid for one year (General Tax Code). Once it has been stamped by the public purse, this certificate is issued by the competent tax administration authority of the district in which the company's headquarters or principle place of business, or the taxpayer’s residence is located. In order to obtain this certificate, the logging company must provide their tax declarations or balance sheet.
Taxes applicable to the forest sector
All companies that generate income from their activities conducted in the Congo, including logging companies, are notably liable for payment of corporate income tax (impôt sur les bénéfices des societies, IS), which is fixed at 33% in the Congo. Corporate income tax is only applicable to income that has not been injected into the company’s capital but distributed to its shareholders. Nevertheless, eligible companies under the Investment Charter may benefit from tax breaks, such as exemption or a 50% reduction of the total amount (Wafwana and Matschinga, 2013).
Some types of companies (sociétés anonymes, sociétés à responsabilité limitée, sociétés en commandite par actions, sociétés civiles in the form of sociétés par actions or sociétés à responsabilité limitée, etc.) must also pay a yearly special company tax (taxe spéciale sur les sociétés) (Art. 168 of the 2012 Tax Code). This special company tax (TSS) is fixed at 1% of total turnover VAT included and all other income and profits. It is increased to 3% for companies that make a loss for two consecutive years.
The General Tax Code (Book 3, Ch. 1, Section 1, Art. 1) also stipulates a tax on income from securities (Impôt sur le Revenu des Valeurs Mobilières, IRVM), which applies when profits that have not been reinjected into the company’s capital but have been distributed amongst its shareholders.
All natural and legal persons who carry out a commercial activity, industrial activity, or any other professional activity not included in the exemptions determined by the Tax Code are liable for payment of a business tax (patente) calculated pro-rata to the company’s turnover (Art. 277 of the 2012 General Tax Code). This business tax is collected for decentralised communities (communes, regions, districts).

Legally required documents

Business tax (patente) certificate
Certificat de moralité fiscale (certificate of “taxpayer morality”) for a yearly duration or attestation de moralité fiscale (declaration of “taxpayer morality”) for a quarterly duration, issued if the company is up to date with all their tax payments
Payment receipts issued by the administration

Applicable legislation

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1.8 Timber harvesting regulations

Last updated on 2021-12-01 Harvesting in excess of the number of trees indicated in the logging licence Specified RISK

Due to the absence or inadequacy of forest-based checks conducted on companies’ activities by DDEFs, compliance with harvesting regulations is still extremely poor in the Congo (AIS FLEGT/SOFRECO, 2018, 2019). Forest concessions that are not yet managed, as well as those that are managed but not certified, are not subjected to rigorous and regular checks by the administration.The poor checks conducted by the competent administration and the lev... VIEW MOREDue to the absence or inadequacy of forest-based checks conducted on companies’ activities by DDEFs, compliance with harvesting regulations is still extremely poor in the Congo (AIS FLEGT/SOFRECO, 2018, 2019). Forest concessions that are not yet managed, as well as those that are managed but not certified, are not subjected to rigorous and regular checks by the administration.
The poor checks conducted by the competent administration and the level of corruption within the process mean that companies do not carry out an accurate identification or count (systematic count) before felling the species they intend to harvest. Logging operators may make false count declarations, which are not reported or penalised by the forest administration officers (IM-VPA FLEGT/CAGDF n°15-2017, n°006-2019).
There is also a high risk that unauthorised species are harvested, that wood is harvested beyond the allocated quantities, or that wood is harvested outside of the allocated perimeter (EIA, 2019 ; AIS FLEGT/SOFRECO, Cuvette Ouest-2019 ; IM FLEG/REM, 2009 et 2010 ; IM-VPA FLEGT/CAGDF n°11-2015, n°14-2016, n°001-2017, n°004-2018, n°008-2019). For example, in 2018 in Cuvette-Ouest, AIS-FLEGT reported that a logging company had harvested 4,300 Angueuk trees, despite the fact that its logging permit did not authorise the harvesting of this species (AIS FLEGT/SOFRECO, 2019).
Furthermore, the site documents (site log books and waybills) are sometimes not filled out correctly or in line with the applicable regulations (erasures, overloading, available information not recorded), which means that some felled trees are lost track of. In the forests, stumps are sometimes not numbered, which can lead to numbers being duplicated or unauthorised harvesting being concealed (IM-VPA FLEGT/CAGDF, n°006-2019, n°009-2020).
Absent or incorrect markings on stumps and logs are indeed regularly reported on (IM FLEG/REM, 2009; IM-VPA FLEGT/CAGDF, n°14-2017, n°15-2017, n°004-2018, n°005-2018, n°009-2020; AIS FLEGT/SOFRECO, Lekoumou-2019), as well as logging under prescribed diameters (IM FLEG/REM, 2009; IM-VPA FLEGT/CAGDF, 2017) and irregular abandoning of wood (IM FLEG/REM, 2009; IM-VPA FLEGT/CAGDF, n°14-2017).

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verificationField verification

Verify Site log books

Ensure that no logging activity is conducted outside the prescribed areas.

Verify Field check reports by the relevant departmental directorate of water and forests

Description of legal requirements

Maximum volumes per species stipulated by the logging licence shall be complied with.

Forests covered by an agreement
Harvesting can only be permitted on plots of land that have been subject to a systematic count, also referred to as a harvesting inventory (Art. 73 and 76 of Decree n°2002-437). The area covered by the annual logging licence must be bordered by a path. The logging operator is only authorised to harvest the species and quantities defined in the annual logging licence. If the counts are found to be false, they must be retaken under the supervision of the forest administration and harvesting can only start in the areas subject to a new count, based on a provisional logging licence valid for a maximum of 3 months.
All forests
The regulations stipulate certain rules on diameters, felling damage, markings, etc. These regulations are applicable to all logging operators, including for private natural forests and domestic and special logging permits.
Felling is only permitted for trees of a certain minimum diameter established by the regulations for concessions whose management plan is in the process of being drawn up, or in compliance with the provisions of the forest management plan and in a way that results in as little damage as possible (Art. 91 and 92 of Decree n°2002-437).
Once it has been felled, the wood must be marked on the stump with the logger’s axe and with a serial number, respecting an uninterrupted series from 1 to 99,999. The number is repeated on the various logs produced from the felled tree with a denominator indicating the log block number, starting from the stump (Art. 86 of Decree n°2002-437). The felled trees are then recorded in a site log book (Art. 87 of Decree n°2002-437), containing pre-defined fields established by the regulations. Log books must be stamped by the administration and include several carbon copies for the various departments concerned.
The logging operator must respect the reduced impact logging standards, which are to be defined by the applicable regulations (text not yet adopted). The felling operations must result in as little damage as possible to the neighbouring trees. All trees broken or discarded during the felling operations, as well as all trees used for the construction of bridges and other infrastructure must be mentioned in the site log book.
The construction of service roads must be compliant with the national standards, which stipulate that the width of the main road must not exceed 33 metres (Art. 99 of Decree n°2002-437).
In order to ensure that the logging operator respects the logging standards, as well as the provisions stipulated in their logging licence and forest management plan, the departmental directorate of water and forests (DDEF) must conduct a quarterly production check based on the site log books and road maps used to evacuate the wood (Art. 88 of Decree n°2002-437) and the site visits (Art. 81 and 113 of Decree n°2002-437).

Legally required documents

Annual logging license (Autorisation de coupe annuelle

Autorisation portant sur l’ouverture de la 2e année d’exploitation et sur le stock fûts de fin d’année de l’assiette annuelle de coupe (autorisation d’achèvement))
Annual operations plan
Harvesting inventory data
Site log books

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°6515 of 18 June 2020 defining the standards for reduced impact logging in the Republic of the Congo, 2020.

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1.8 Timber harvesting regulations

Last updated on 2021-12-01 Harvesting outside of the specified perimeter Specified RISK

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Visit Harvesting site

Ensure that no logging activity is conducted outside the prescribed areas.

Description of legal requirements

Logging activities shall only be conducted within the specified perimeter.

Legally required documents

Annual logging license (Autorisation de coupe annuelle

Autorisation portant sur l’ouverture de la 2e année d’exploitation et sur le stock fûts de fin d’année de l’assiette annuelle de coupe (autorisation d’achèvement))
Annual operations plan
Harvesting inventory data
Site log books

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°6515 of 18 June 2020 defining the standards for reduced impact logging in the Republic of the Congo, 2020.

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1.8 Timber harvesting regulations

Last updated on 2021-12-01 Site log books are not filled out in compliance with the regulations Specified RISK

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify Site log books

Ensure that site log books and clearly and completely filled

Verify Field check reports by the relevant departmental directorate of water and forests

Description of legal requirements

Site log books shall be filled properly and accurately

Legally required documents

Annual logging license (Autorisation de coupe annuelle

Autorisation portant sur l’ouverture de la 2e année d’exploitation et sur le stock fûts de fin d’année de l’assiette annuelle de coupe (autorisation d’achèvement))
Annual operations plan
Harvesting inventory data
Site log books

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°6515 of 18 June 2020 defining the standards for reduced impact logging in the Republic of the Congo, 2020.

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1.8 Timber harvesting regulations

Last updated on 2021-12-01 Stumps and logs are not marked in compliance with the regulations Specified RISK

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verificationField verification

Visit Harvesting site

Ensure that stumps and logs are properly marked

Verify Field check reports by the relevant departmental directorate of water and forests

Description of legal requirements

Stumps and logs shalled be marked properly

Legally required documents

Annual logging license (Autorisation de coupe annuelle

Autorisation portant sur l’ouverture de la 2e année d’exploitation et sur le stock fûts de fin d’année de l’assiette annuelle de coupe (autorisation d’achèvement))
Annual operations plan
Harvesting inventory data
Site log books

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°6515 of 18 June 2020 defining the standards for reduced impact logging in the Republic of the Congo, 2020.

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1.8 Timber harvesting regulations

Last updated on 2021-12-01 Logging under prescribed diameters Specified RISK

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verificationField verification

Visit Harvesting site

Ensure that prescribed diameters are complied with

Verify Field check reports by the relevant departmental directorate of water and forests

Description of legal requirements

Prescribed diameters shall be complied with

Legally required documents

Annual logging license (Autorisation de coupe annuelle

Autorisation portant sur l’ouverture de la 2e année d’exploitation et sur le stock fûts de fin d’année de l’assiette annuelle de coupe (autorisation d’achèvement))
Annual operations plan
Harvesting inventory data
Site log books

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°6515 of 18 June 2020 defining the standards for reduced impact logging in the Republic of the Congo, 2020.

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1.8 Timber harvesting regulations

Last updated on 2021-12-01 Irregular abandoning of wood Specified RISK

References

VIEW LESS

The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verificationField verification

Visit Harvesting site

Ensure that wood is not abandoned in the forest

Verify Field check reports by the relevant departmental directorate of water and forests

Description of legal requirements

Wood shall not be abandoned in the forest.

Legally required documents

Annual logging license (Autorisation de coupe annuelle

Autorisation portant sur l’ouverture de la 2e année d’exploitation et sur le stock fûts de fin d’année de l’assiette annuelle de coupe (autorisation d’achèvement))
Annual operations plan
Harvesting inventory data
Site log books

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°6515 of 18 June 2020 defining the standards for reduced impact logging in the Republic of the Congo, 2020.

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1.8 Timber harvesting regulations

Last updated on 2021-12-01 Lack of systematic tree count before felling or fraudulent count declarations Specified RISK

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify Harvesting inventory approval notice

Description of legal requirements

Accurate systematic tree count shall be conducted in the annual area before logging.

Legally required documents

Annual logging license (Autorisation de coupe annuelle

Autorisation portant sur l’ouverture de la 2e année d’exploitation et sur le stock fûts de fin d’année de l’assiette annuelle de coupe (autorisation d’achèvement))
Annual operations plan
Harvesting inventory data
Site log books

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°6515 of 18 June 2020 defining the standards for reduced impact logging in the Republic of the Congo, 2020.

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1.8 Timber harvesting regulations

Last updated on 2021-12-01 Harvesting of species other than those specified in the logging licence Specified RISK

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify Site log books

Ensure that species registered in field log books, waybills and trade documents are indeed provided for in the logging licence

Verify Waybills

Ensure that species registered in field log books, waybills and trade documents are indeed provided for in the logging licence

Verify Field check reports by the relevant departmental directorate of water and forests

Collect field check reports by the relevant departmental directorate of water and forests

Description of legal requirements

Species not specified in the logging licence shall not be logged.

Legally required documents

Annual logging license (Autorisation de coupe annuelle

Autorisation portant sur l’ouverture de la 2e année d’exploitation et sur le stock fûts de fin d’année de l’assiette annuelle de coupe (autorisation d’achèvement))
Annual operations plan
Harvesting inventory data
Site log books

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°6515 of 18 June 2020 defining the standards for reduced impact logging in the Republic of the Congo, 2020.

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1.9 Protected sites and species

Last updated on 2021-12-01 Logging protected sites and species or lack of identification of sites and species to be protected (within forests not covered by a forest management plan) Specified RISK

Illegal wood harvesting for export in protected areas is very low in the Congo. It is primarily conducted by local populations for domestic use.Forests covered by an agreement (CTIs and CATs)Some UFAs are not yet managed and do not possess management documents (forest management plan, five-year management programme and annual operations plan). The absence of these documents governing the sustainable management of forest resources is a legal issue... VIEW MOREIllegal wood harvesting for export in protected areas is very low in the Congo. It is primarily conducted by local populations for domestic use.
Forests covered by an agreement (CTIs and CATs)
Some UFAs are not yet managed and do not possess management documents (forest management plan, five-year management programme and annual operations plan). The absence of these documents governing the sustainable management of forest resources is a legal issue in itself, but also leads to sites and species that would otherwise be identified as protected, either because they are rare or cannot be easily replenished, not being protected.
The harvesting of protected species not permitted by annual logging licences represents a high risk, which has been documented in several reports by the Independent Monitor and reiterated in the EIA report (2019).
Regarding the fight against poaching, companies do not always respect the commitments they make in the agreements they sign with the Congolese government. Indeed, some companies operate within their concessions without a surveillance and anti-poaching unit (USLAB) to manage hunting and illegal poaching activities, of which there is a significant amount (IM-VPA FLEGT/CAGDF, n°14-2016; AIS FLEGT/SOFRECO, Niari-2018, Cuvette Ouest-2019, Lekoumou-2019).

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verificationField verificationStakeholder consultation

Verify Forest management plan

Ensure that species prohibited from being harvested at forest level (forest management plan and annual logging licence) are not being felled and sold (cross-check with site log books, waybills and trade documents).

Verify Annual logging licence

Verify Site log books

Verify Waybills

Visit Harvesting site

Ensure that no logging activity is conducted within the protection/conservation series or buffer zones bordering a park or a reserve

Consult Local communities

Ensure that important sites and resources for local communities are not affected by potential logging activities conducted

Description of legal requirements

Protected sites and species shall not be logged.

Wood harvesting in protected areas (national parks) is strictly prohibited in the Republic of the Congo. All forms of exploitation of the soil, sub-soil and natural resources, as well as all works and constructions are prohibited inside national parks, with the exception of those provided for by the instrument establishing the park or the park’s management plan, and those necessary for its management and surveillance (Art. 12 to 14 of Law n°37-2008).
The decrees implementing certain national parks, such as the Nouabalé Ndoki park, provide for the establishment of a buffer zone (5km for the Conkouati-Douli) by order of the Ministry of Water and Forests, and prohibit the allocation of all forms of logging titles within these parks. When a park is adjacent to a forest concession, the buffer zone is established within the concession.
There are no bans on harvesting specific forest species at a national level.
Within UFAs covered by an agreement, the sites to be respected and the rare or endangered species to be protected are identified by the ecological studies conducted during the forest management plan development phase. These sites and species are included in the forest management plan and must be subjected to specific measures whenever the company is working in the forest.
The forest management plan determines the measures that the company is required to take in order to respect the protected sites and species. It notably identifies protection and conservation series. Harvesting operations are banned within conservation series. The forest management plan also identifies the species that are poorly represented within the forest and that must not be harvested.
Furthermore, the concession agreements require the concession holders to establish surveillance and anti-poaching units (USLAB). These anti-poaching units are responsible, amongst other things, for preventing the development of illegal hunting by company workers and populations in the areas within and around the concession.

Legally required documents

Annual logging license (Autorisation de coupe annuelle

Autorisation portant sur l’ouverture de la 2e année d’exploitation et sur le stock fûts de fin d’année de l’assiette annuelle de coupe (autorisation d’achèvement))
Annual operations plan
Forest management plan
Simplified management programme

Applicable legislation

Law n°003/91 of 23 April 1991 on environmental protection, 1991.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Law n°37-2008 of 28 November 2008 on protected fauna and areas, 2008.

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1.9 Protected sites and species

Last updated on 2021-12-01 The regulations on the fight against poaching in forests covered by an agreement are not respected Specified RISK

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify Document relating to the logging operator’s internal procedures regarding the waste management system

Description of legal requirements

Regulations and commitments on anit-poaching measures shall be implemented.

Legally required documents

Annual logging license (Autorisation de coupe annuelle

Autorisation portant sur l’ouverture de la 2e année d’exploitation et sur le stock fûts de fin d’année de l’assiette annuelle de coupe (autorisation d’achèvement))
Annual operations plan
Forest management plan
Simplified management programme

Applicable legislation

Law n°003/91 of 23 April 1991 on environmental protection, 1991.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Law n°37-2008 of 28 November 2008 on protected fauna and areas, 2008.

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1.10 Environmental requirements

Last updated on 2021-12-01 Hazardous waste is not disposed of properly in line with regulations Specified RISK

Appropriate waste processing During its legal conformity on-site audits in 2018 and 2019, the independent auditor (AIS) reported that non-certified logging companies were managing their dangerous waste (used batteries, engine oil following oil changes, used tyres, etc.) in ways that were not compliant with the applicable regulations. It reported oil being changed on the ground, streaming into nearby waterways, and used tires being piled up, posi... VIEW MOREAppropriate waste processing
During its legal conformity on-site audits in 2018 and 2019, the independent auditor (AIS) reported that non-certified logging companies were managing their dangerous waste (used batteries, engine oil following oil changes, used tyres, etc.) in ways that were not compliant with the applicable regulations. It reported oil being changed on the ground, streaming into nearby waterways, and used tires being piled up, posing a clear fire hazard. (AIS FLEGT/SOFRECO, 2018, 2019)
The risk of illegality in terms of suitable waste processing is higher amongst logging companies that are not part of a forest management certification system, which reinforces the likelihood that operators have implemented suitable waste management methods, factoring in collection, sorting, storage, transport and processing, and even transit to processing centres approved by the Ministry of the Environment.
Environmental and social impact assessments
Impact assessments are not widespread in the forest sector, neither amongst managed nor non-managed concessions, due to a historic lack of clarity in the legal framework. In fact, the requirement for companies to carry out an impact assessment was not initially clearly formulated as being applicable to logging companies. The 2018 ministerial circular and the new Forest Code recently confirmed that logging operators must indeed conduct an environmental and social impact assessment when drawing up their forest management plan. The independant auditor (AIS) has raised within its report the issue of absence of impact assessment and the lack of control and sanction from the forest administration on this issue (AIS FLEGT/SOFRECO, Sangha-2019, Cuvette Ouest-2019).

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify Document relating to the logging operator’s internal procedures regarding the waste management system

Description of legal requirements

Hazardous waste shall be disposed in compliance with regulations.

Environmental and social impact assessments
All activities within the forest domain must be subjected to a preliminary environmental and social impact assessment. The environmental and social impact assessment notably includes an analysis of the site’s initial state, a detailed description of the planned activities, a prospective analysis of likely incidents, particularly involving the site’s natural resources, an indication of any uncertainties and knowledge gaps, as well as a presentation of the environmental, social and health management plan, specifying the measures provided for to eliminate, reduce and offset the consequences of the project.
The impact assessment procedure starts with outlining a framework and obtaining the relevant permit to carry out the assessment. A public inquiry is then carried out and the assessment report is drawn up so that it can be validated by the environment administration. This validation process is split into two phases: a public hearing or consultation and a technical analysis. The assessment must be carried out by a specialist consultant, a non-governmental organisation or an association, and this body must be approved by the Minister of Environment. The assessment must be extensive, selective, comparative and objective. A standard outline for an impact assessment report is provided by the regulations.
Forest management plans must take into account the environmental and social impact assessment. Once the agreement has been signed, the initiation of any activities for the construction of infrastructure by logging operators is conditional on them obtaining an environmental conformity certificate (also called an “environmental feasibility notice”) following validation of the environmental and social impact assessment report. An implementing text (not yet adopted), will likely stipulate the specific measures related to environmental assessments in the forest sector.
Authorisations and declarations
According to the applicable regulations (annex of Order n°3196), forest tracks (roads and tracks used for skidding operations) are classified as category 1 installations and are therefore subject to authorisation from the environment administration (Order n°1450/MIME/DGE). The regulations specify which documents must be attached to the request for authorisation. Timber yards are classified as category 2 installations and are subject to a declaration to the environment administration (Order n°1450/MIME/DGE).
The construction of dykes in harvesting areas is conditional on a notice from the forest administration, and must respect best industry practices.
Other environmental protection measures
The construction of industrial sites, base camps and roads within forest concessions is subject to the logging operator obtaining an installation licence once the agreement comes into force for a maximum period of 2 years (Art. 172 of Decree n°2002-437). Based on this licence, the operator may conduct felling operations within the limit of 10% of the maximum annual volume during the first year, 20% during the second year, and 30% during the third year. The specific conditions for these felling operations will be specified in the licence.
The main evacuation roads must not exceed 33 metres in width, including 8 metres of carriageway (Art. 99 of Decree n°2002-437).
The boundaries between two forest management units (UFAs) and between the different series within the UFAs are established in line with the process outlined by the applicable regulations (man-made boundaries in the form of paths, numbering of trees or posts along the edge, painting different colours on each side, etc.) (Art. 83 of Decree n°2002-437).
The environmental protection measures imposed on logging companies by Law n°003/91 concern the protection of fauna and flora, the atmosphere, water and the soil.
Furthermore, the law notably requires anyone who produces or possesses waste to dispose of it appropriately so as not to endanger human health or the environment (Art. 49 of Law n°003/91). All dangerous industrial waste or similar must be disposed of accordingly at sites or facilities approved by the Environment Administration (Art. 54 of Law n°003/91). Circular n°613 lists all waste deemed dangerous in annex 1.
Dumping, draining or releasing substances that could damage the quality of the water is prohibited.
The use of pesticides is subject to authorisation from the Ministry of Environment (the list of substances concerned is established by the administration). Releasing any polluting substances or substances that present a danger to human health into the water (or into the soil in such a way that could affect the composition of the surface or ground water) is subject to a prior administrative authorisation or declaration.
Lighting a fire or abandoning a fire that has not been extinguished in the national forest domain is prohibited (Art. 57 of Law n°33-2020).
Finally, other provisions relating to the identification and protection of environmental resources may be included in the general terms and conditions of the forest concessionaire’s agreement.

Legally required documents

A licence for the creation of industrial sites, base camps and roads upon the opening of the concession area
Contract with a processing centre approved by the Ministry of the Environment for the processing of dangerous waste
Declarations relating to the creation of timber yards
Environmental and social impact assessment report
Environmental and social management plan
Licences for the creation of forest tracks
Public inquiry report relating to the environmental and social impact assessment
Terms of reference (TOR) of the environmental and social impact assessment

Applicable legislation

Circular letter n°332/MEF/DGEF/DF of 13 March 2009, 2009.
Circular n°301 of 13 February 2018 for the attention of managing directors of logging companies, 2018.
Circular n°613 of 24 April 2017 establishing the conditions for managing all types of waste within national territory, 2017.
Decree n°2002-437 establishing the conditions for the management and use of forests.
Decree n°2009-415 of 20 November 2009 establishing the field of application, the content and the procedures for the environmental and social impact assessment and notice, 2009.
Law n°003/91 of 23 April 1991 on environmental protection, 1991.
Law n°13-2003 of 10 April 2003 on the water code (, 2003.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°1450 MIME DGE of 1999 on the application of certain provisions on the installations classified by Law n°003-91 on environmental protection, 1999.
Order n°3196 of 14 July 2008 providing a nomenclature of the installations classified by Law n°003-91 of 23 April 1991 on environmental protection, 2008.

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1.10 Environmental requirements

Last updated on 2021-12-01 No environmental and social impact assessment is conducted, and/or no environmental and social management plan is implemented Specified RISK

References

VIEW LESS

The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify Environmental and social impact assessment report

Collect the environmental and social impact assessment report, accompanied by an environmental and social management plan.

Collect reports or documents relating to the implementation of the environmental and social management plan.

Verify Environmental and social management plan

Collect the environmental and social impact assessment report, accompanied by an environmental and social management plan

Description of legal requirements

Environmental and social impact assessments shall be conducted and lead to a plan that is impremented.

Legally required documents

A licence for the creation of industrial sites, base camps and roads upon the opening of the concession area
Contract with a processing centre approved by the Ministry of the Environment for the processing of dangerous waste
Declarations relating to the creation of timber yards
Environmental and social impact assessment report
Environmental and social management plan
Licences for the creation of forest tracks
Public inquiry report relating to the environmental and social impact assessment
Terms of reference (TOR) of the environmental and social impact assessment

Applicable legislation

Circular letter n°332/MEF/DGEF/DF of 13 March 2009, 2009.
Circular n°301 of 13 February 2018 for the attention of managing directors of logging companies, 2018.
Circular n°613 of 24 April 2017 establishing the conditions for managing all types of waste within national territory, 2017.
Decree n°2002-437 establishing the conditions for the management and use of forests.
Decree n°2009-415 of 20 November 2009 establishing the field of application, the content and the procedures for the environmental and social impact assessment and notice, 2009.
Law n°003/91 of 23 April 1991 on environmental protection, 1991.
Law n°13-2003 of 10 April 2003 on the water code (, 2003.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°1450 MIME DGE of 1999 on the application of certain provisions on the installations classified by Law n°003-91 on environmental protection, 1999.
Order n°3196 of 14 July 2008 providing a nomenclature of the installations classified by Law n°003-91 of 23 April 1991 on environmental protection, 2008.

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1.11 Health and safety

Last updated on 2021-12-01 The regulations on occupational health are not respected (no health and safety committee within the company, no personal protective equipment, non-compliant base camps, no health clinic, no occupational risk management, etc.) Specified RISK

Companies whose concessions are not managed or certified generally show poor attention to their employees’ health and safety. Few adopt an occupational risk prevention policy. The base camps established in the forests are obligations from the agreements signed by operators. They are often missing or are severely dilapidated (IM-VPA FLEGT/CAGDF, n°1-2014, n°6-2014, n°002-2018, n°007-2019; AIS FLEGT/SOFRECO Cuvette Ouest-2019). The wearing... VIEW MORECompanies whose concessions are not managed or certified generally show poor attention to their employees’ health and safety. Few adopt an occupational risk prevention policy.
The base camps established in the forests are obligations from the agreements signed by operators. They are often missing or are severely dilapidated (IM-VPA FLEGT/CAGDF, n°1-2014, n°6-2014, n°002-2018, n°007-2019; AIS FLEGT/SOFRECO Cuvette Ouest-2019).
The wearing of personal protective equipment is often poorly respected on-site and the safety instructions for each workstation are not clearly displayed, contrary to the applicable regulations (AIS FLEGT/SOFRECO Cuvette Ouest-2019, Sangha-2019).
Clinics are often non-existent, led by unqualified staff or have no equipment (AIS FLEGT/SOFRECO Cuvette Ouest-2019). The checks carried out by the labour administration are also often not compliant with the applicable regulations (Nkodia, 2013; AIS FLEGT/SOFRECO DGEF-2019).
Only certified companies better apply safety measures for felling and transport, establish protection zones around their operating sites, and impose safety requirements for machinery.

References

VIEW LESS

The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verificationField verification

Verify Document relating to the creation and running of the health and safety committee

Verify Instructions relating to the prevention of occupational risks for each workstation

Visit Harvesting site

Verify that the health and safety committee is fully operational. Ensure that the employees have been provided with personal protective equipment and are using it. Ensure that the employees are familiar with the instructions relating to the prevention of occupational risks.

Description of legal requirements

All regulations on occupational health shall be respected.

The legal requirements in terms of health and safety regarding forest operations are as follows:
•   the creation of company health and safety committees, the composition and size of which is dependent on the company’s workforce (Art. 1 and 2 of Order n°9030);
•   the implementation of general hygiene measures (Chapter 1 of Order n°9036);
•   the prevention of occupational accidents and illnesses, notably by setting up an occupational health service (Chapter 2 of Order n°9036) and displaying instructions for each workstation (Art. 132.4 of Law n°6-69);
•   the implementation of fire prevention measures (Chapter 3 of Order n°9036);
•   the keeping of records of all accidents at work, occupational illnesses and illnesses of an occupational nature, as well as a safety record (Art. 141-2 of new Law n°6-96);
•   the provision of personal protective equipment for workstations that require it (Art. 87 of the collective bargaining agreement for the forestry industry of 5 June 2014), including hearing protection (Art. 13 to 17 of Order n°9036).

Legally required documents

Documents relating to health and safety at work within the company
Instructions relating to the prevention of occupational risks for each workstation
Record of accidents at work, occupational illnesses and illnesses of an occupational nature

Applicable legislation

Collective bargaining agreement for the forestry industry dated 5 June 2014, 2014.
Law n°6-96 of 6 March 1996 amending and supplementing some provisions of Law n°45/75 of 15 March 1975 establishing a Labour Code for the People's Republic of the Congo, 1996.
Order n°9030/MTERFPPS/ DGT/DSSHST of 10 December 1986, establishing company health and safety committees, 1986.
Order n°9036/MTERFPPS/ DGT/DSSHST of 10 December 1986 on the general health and safety measures applicable within industrial, commercial, agricultural and forestry companies and similar administrative bodies, 1986.

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1.12 Legal employment

Last updated on 2021-12-01 The regulations on employment legality are not respected (no employment contracts for employees, unfair dismissals, employees not declared to social security, social security contributions not paid, no staff delegates, use of subcontracting where it does not fulfil legal employment conditions, etc.) Specified RISK

Logging companies often resort to cheap labour by hiring “temporary” workers. Some do not have employment contracts and are paid below the minimum wage. Unfair dismissals are common in the forestry sector. It is common for companies to not pay their social security contributions and the employees are therefore not protected in the event of illness, accidents, death or retirement (Experts consultation, 2019).Forest operators often fail to impl... VIEW MORELogging companies often resort to cheap labour by hiring “temporary” workers. Some do not have employment contracts and are paid below the minimum wage. Unfair dismissals are common in the forestry sector. It is common for companies to not pay their social security contributions and the employees are therefore not protected in the event of illness, accidents, death or retirement (Experts consultation, 2019).
Forest operators often fail to implement training programs for their workers, as they should based on the obligations contained in their logging agreement (IM-FLEGT/CAGDF, n°12-2016, n°001-2017, n°002-2018, n°007-2019).
Not all companies have staff delegates elected by the workers (AIS FLEGT/SOFRECO, 2018, 2019).
Some companies outsource work to companies that do not fulfil the legal employment conditions (IM FLEG/REM-CAGDF, 2011).
The level of monitoring by the competent authorities over the implementation of the regulations in relation to labour rights is fairly weak, primarily due to the distance between the production sites and the authorities’ lack of capacity (AIS FLEGT/SOFRECO, 2018, 2019).

References

VIEW LESS

The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verificationField verification

Verify Declaration of the existence of the company to the Labour Inspectorate

Verify Certificate of registration with the national social security fund (CNSS)

Verify Employment contracts

Verify Payslips

Verify Documents relating to staff delegates (for companies with more than 7 employees).

Visit Harvesting site

Verify that there are no non-declared employees and/or employees below the age of 16 and/or forced labour; Ensure that the company is complying with the minimum wage (SMIG), statutory annual working hours, paid leave and weekly rest periods; Ensure that the company is respecting the free exercise of trade union activities

Verify Record of accidents at work, occupational illnesses and illnesses of an occupational nature

Collect the record of accidents at work, occupational illnesses and illnesses of an occupational nature

Description of legal requirements

All regulations on employment legality shall be respected.

Forced or obligatory labour is strictly prohibited and children below the age of 16 are prohibited from being employed, even as apprentices.
The legal requirements for the employment of staff and the working conditions for staff involved in forest activities are as follows:
•   a declaration of the existence of the company must be made to the Labour and Social Laws Inspectorate or the competent labour inspection office (Art. 181 of Law n° 6-96);
•   a certificate must be obtained attesting that the company has been registered with the General Directorate of the national social security fund (CNSS) (Art 172 of Law n°004-86);
•   the company must keep an up-to-date record at the logging site entitled “registre d’employeur” (employer’s log) (Art. 182 of Law n°6-96);
•   individual employment contracts must be drawn up (Art. 26 of Law n°6-96);
•   the guaranteed interprofessional minimum wage (SMIG) must be respected (50,400 CFA francs per month since 2008) (Decree n°2008-942);
•   statutory working time must be respected (2,400 hours a year for logging companies);
•   weekly rest periods and paid leave must be respected;
•   staff delegate elections must be held for companies with more than 7 employees (Art. 173 of Law n°6-96);
•   trade unions must be able to exercise their activities freely (Art. 184 to 210 of Law n°6-96), which includes the employer providing the trade union representatives and staff delegates with a shared space (Art. 50 of the collective agreement);
•   workers relocated from their place of origin to areas where there is not easy access to food must be provided with support (provision of housing or compensatory allowance, establishment of a store, etc.);
•   priority must be given to the employment of Congolese staff (Art. 152 of Law n°33-2020);
•   training and promotion programmes must be set up (Art. 152 of Law n°33-2020).

Legally required documents

Certificate of registration with the national social security fund (CNSS) (Avis d’affiliation à la Caisse Nationale de Sécurité Sociale (CNSS))
Declaration of the existence of the company to the Labour Inspectorate
Employer’s log
Employment contracts
Payslips

Applicable legislation

Collective bargaining agreement for the forestry industry dated 5 June 2014, 2014.
Decree n°2008/942 of 31 December 2008 establishing the guaranteed interprofessional minimum wage (SMIG), 2008.
Law n°004-86 of 25 February 1986 establishing the social security code in the People’s Republic of the Congo, 1986.
Law n°22-88 of 17 September 1988 modifying Law n°01/86 of 22 February 1986 replacing and supplementing Law n°03-85 of 14 February 1985 on the creation of the ONEMO Law n°3-2000 of 1 February 2000 defining the notion of subcontracting and establishing the conditions for the exercise thereof, 1988.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Law n°6-96 of 6 March 1996 amending and supplementing some provisions of Law n°45/75 of 15 March 1975 establishing a Labour Code for the People's Republic of the Congo, 1996.

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1.13 Customary rights

Last updated on 2021-12-01 User rights are affected by logging activities Specified RISK

Forests covered by an agreement (CTIs and CATs):Certified companies present the lowest risk in terms of local populations’ rights and social clauses not being respected, systematically drawing up participative maps of harvesting areas that identify and protect local populations’ sites of socio-cultural interest. (Experts consultation, 2019)Managed concessions also offer more guarantees in terms of respecting customary rights, notably with the... VIEW MORE

Forests covered by an agreement (CTIs and CATs):

Certified companies present the lowest risk in terms of local populations’ rights and social clauses not being respected, systematically drawing up participative maps of harvesting areas that identify and protect local populations’ sites of socio-cultural interest. (Experts consultation, 2019)

Managed concessions also offer more guarantees in terms of respecting customary rights, notably with the establishment of community development series (CDS) assigned to these customary uses. (Experts consultation, 2019)

In contrast, for non-managed concessions (forest management plan not drawn up or in the process of being drawn up) or concessions not subject to a management requirement (former industrial processing agreements valid until August 2023 at the latest), the risk of customary rights not being respected is higher, due to the lack of prior identification of important sites and resources for the exercise of user rights. Companies with non-managed concessions have neither the teams nor the staff to identify and protect local populations’ socio-cultural sites, nor do they have the dialogue mechanisms in place to involve local communities in the management of the forest resources within their concessions. (Experts consultation, 2019)

Furthermore, even when they do have a forest management plan, some companies:

• do not respect the obligations stipulated by the terms and conditions of the agreements in favour of the local communities (IM FLEG/REM, 2010, IM-VPA FLEGT/CAGDF, n°11-2015, n°14-2016, n°15-2017, n°001-2017, n°002-2018, n°005-2018, n°006-2019, n°008-2019, n°009-2020 ; AIS FLEGT/SOFRECO, 2018, 2019). The independent auditor even reported a case where obligations toward populations were not implemented on the field but had been recorded as implemented by the forest administration (AIS FLEGT/SOFRECO, Lekoumou-2019). Operators also sometimes entrust the relevant funds with the local authorities, who keep these amounts and do not actually use them for their intended purpose, with no follow-up on the part of the logging operator;

• do not pay into the local development fund, either because the order creating said fund has not yet been published, or because the penalties provided for by the regulations if they do not contribute to the fund are not applied by the forest administration (IM-VPA FLEGT/CAGDF, n°11-2015, n°005-2018 ; AIS FLEGT/SOFRECO, Niari-2018, Lekoumou-2019, DGEF-2019).

References

VIEW LESS

The risk applies to the following source types

Domestic logging permit
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Stakeholder consultation

Consult Local communities

Ensure that the user rights provided for by the regulations, the forest management plan and the decree classifying the forest are freely exercised and that sites and resources of special interest to local communities are not affected by logging.

Description of legal requirements

User rights shall be respected.

User rights
The regulations govern the exercising of user rights in protected forests and classified forests subject to industrial concessions. In protected forests, the local populations enjoy the user rights listed in the Forest Code (collection of wood, hunting, fishing, establishing crops, etc.). These rights may be limited or governed (place, time, quantities or methods) by the Ministry of Forests. In classified forests, the classification decrees and forest management plans detail the acknowledged user rights and the terms under which these rights may be exercised. User rights may only be exercised to satisfy the personal needs of their beneficiaries. These rights are free to exercise. The products arising from the exercise of these rights may be sold on the local retail market.
During the classification procedure, an assessment report is drawn up for the forest to be classified, outlining the rights and duties of the populations, the traditional uses of the forest by the populations, and the impact of the classification on their living conditions. The representatives of the populations and the forest administration identify any potential sacred sites and trees. The classification committee reports the absence or existence of user rights over the forest, and can decide to fully maintain them or confine them to a specific area.
Community development series in UFAs and community forests
Within these managed classified forests, several series may also be defined by the forest management plan, normally including a community development series, dedicated to meeting the needs of local populations in terms of forest products and improving their income. The guidelines for community development series are outlined by the regulations in force, and include, for example, management programmes for wildlife, fish and forestry resources, raising awareness amongst stakeholders and training populations, organising local series management structures, scheduling micro-projects, determining schemes for using the profits, etc.
Forests located in community development series are considered community forests. Three other types of forest form part of the community forest category: plantations located on land owned by a local community or indigenous population, forests created and managed by a local community, and classified forests dedicated to local communities and indigenous populations. Community forests must have a simplified management programme approved by the forest administration. The implementation of this management programme is monitored by an organisation under the authority of the president of the departmental or municipal council concerned, and the stakeholders (civil society organisations, representatives of local authorities, local communities, indigenous populations, administrative departments). An order shall lay down the modalities for allocating the community forest and for creating, organising and running the monitoring body (text not yet adopted as of September 2020). Harvesting wood on a for-profit basis from community forests is conditional on the issuance of a special permit or plantation timber logging permit (subject to the exercise of user rights).
Profit sharing and socio-economic development
In the Congo, the effects of customary rights also extend to requirements regarding the sharing of profits from logging activities and financial contribution to the local development fund.
Profit sharing requirements are established by the agreements that the logging companies sign with the Congolese government. In its specific terms and conditions, each agreement includes an obligation to contribute to the socio-economic development of the department (Article 168 of Decree n°2002-437 and Article 137 of Law n°33-2020). These contributions are often translated into the completion of works or projects by the logging operator for the benefit of the department or communities.
Furthermore, the concession forest management plan, approved by a decree of the Council of Ministers, requires the logging company to pay an amount into the local development fund (FDL), in application of the Forest Code (Art. 116 of Law n°33-2020). The individual orders creating each FDL specify the applicable regulations for this. They normally stipulate a standard amount of 200 CFA francs per m3 of marketable harvested wood, allocated to the communities located around each concession.

Legally required documents

Agreement and notably the related specific terms and conditions
Classification decree
Forest management plan
Order for the creation of the local development fund (FDL)

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°10-2004 of 26 March 2004, establishing the general principles to be applied to the state and land regimes, 2004.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Law n°5 of 25 February 2011 on the promotion and protection of indigenous populations, 2011.
Law No. 21-2018 of June 13 2018, laying down the rules of occupation and acquisition of field and land, 2018.
Order n°5053 of 19 June 2007 defining the national guidelines for the sustainable management of forest concessions, 2007.
Order n°6509/MEF/MATD of 19 August 2009 establishing the procedures for classifying and declassifying forests, 2009.

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1.13 Customary rights

Last updated on 2021-12-01 The fee for the local development fund is not paid and the socio-economic commitments provided for in the agreement terms and conditions is not completed Specified RISK

Forests covered by an agreement (CTIs and CATs):

Furthermore, even when they do have a forest management plan, some companies:

References

VIEW LESS

The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify Agreement outlining the socio-economic obligations to be respected for the benefit of the local populations

Verify Documents relating to the implementation and running of the anti-poaching unit (USLAB).

Verify Order for the creation of the local development fund (FDL)

If applicable

Description of legal requirements

The logging company shall implement its socio-economic commitments and pay the appropriate fee to the local development fund.

Legally required documents

Agreement and notably the related specific terms and conditions
Classification decree
Forest management plan
Order for the creation of the local development fund (FDL)

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°10-2004 of 26 March 2004, establishing the general principles to be applied to the state and land regimes, 2004.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Law n°5 of 25 February 2011 on the promotion and protection of indigenous populations, 2011.
Law No. 21-2018 of June 13 2018, laying down the rules of occupation and acquisition of field and land, 2018.
Order n°5053 of 19 June 2007 defining the national guidelines for the sustainable management of forest concessions, 2007.
Order n°6509/MEF/MATD of 19 August 2009 establishing the procedures for classifying and declassifying forests, 2009.

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1.14 Free prior and informed consent

Last updated on 2021-12-01 FPIC is not implemented within lands classified within the state-owned permanent forest domain after July 2019 and for titles attributed after July 2019 Specified RISK

The legal framework governing the procedure for obtaining the local population’s consent to the allocation of the land and resources within the state-owned permanent forest domain is still very new (texts adopted in 2019 and 2020) and incomplete (implementing texts anticipated but not yet adopted). Consequently, no cases of illegality have been detected or documented. In view of the complexity of effectively implementing the principles of FPIC ... VIEW MOREThe legal framework governing the procedure for obtaining the local population’s consent to the allocation of the land and resources within the state-owned permanent forest domain is still very new (texts adopted in 2019 and 2020) and incomplete (implementing texts anticipated but not yet adopted). Consequently, no cases of illegality have been detected or documented. In view of the complexity of effectively implementing the principles of FPIC and the poor forest governance in the Congo, a precautionary approach will be adopted for all classified land within the state-owned permanent forest domain, as well as for forest title granted after July 2019.

References

Client Earth (2014). Droit à la participation des communautés locales et populations autochtones à la prise de décisions (République du Congo).

VIEW LESS

The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verificationStakeholder consultation

Verify Map of the land and resources of the indigenous populations concerned

Verify Report of the consultation procedure carried out with the indigenous populations

Consult Civil society organisations

Consult the civil society players involved in the protection of the rights of the local communities and indigenous populations on the consent obtainment procedure implemented

Description of legal requirements

FPIC shall be implemented for recently classified lands / recently awarded titles.

In its definition of joint and participative management, the Forest Code includes the principle of Free, Prior and Informed Consent (FPIC). The forest administration is required to make adequate provisions to ensure participative management of the forests.
In general, local authorities, local communities and indigenous populations must express their free, prior and informed consent to the development, implementation and monitoring of any actions or decisions that affect them in terms of the exploitation and sustainable management of forest resources. In particular, forests can only be classified if consent from the populations concerned is obtained. The modalities for exercising this consent must be detailed by decree of the Council of Ministers (text not yet adopted as of September 2020). The drawing up of forest management plans must also obey the principles of participative management, which therefore includes the notion of FPIC.
Furthermore, the 2011 law on the protection of indigenous populations stipulates that indigenous populations must be properly consulted and that an implementing decree must establish the applicable modalities for consulting and involving said indigenous populations.
This decree was adopted in 2019 and stipulates that indigenous populations must be consulted with a view to obtaining their free and prior consent (Art. 6), led by a consultation committee established by the Ministry of Human Rights for all programmes and projects that could affect the quality of life of the indigenous populations. The decree stipulates the modalities for such consultation (Art. 7 to 9), as well as its various stages, including the creation of a map of all land and resources by the relevant governmental technical departments (Art. 12). The consultation procedure is validated by way of a report signed by all stakeholders, including the representatives of the indigenous populations (Art. 14).

Legally required documents

Map of the land and resources of the indigenous populations concerned
Report of the consultation procedure carried out with the indigenous populations

Applicable legislation

Decree n°2019-201 of 12 July 2019 establishing the procedures for the consultation and participation of indigenous populations in socio-economic development projects and programmes, 2019.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Law n°5 of 25 February 2011 on the promotion and protection of indigenous populations, 2011.
Order n°6509/MEF/MATD of 19 August 2009 establishing the procedures for classifying and declassifying forests, 2009.

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1.15 Indigenous/traditional peoples rights

Last updated on 2021-12-01 The indigenous populations’ spiritual and sacred sites are not identified or restitution/compensation is not provided in the event of depossession (administrative regions of Sangha, Likouala and Lekoumou) Specified RISK

Regarding indigenous populations’ consent to the classification and incorporation of the land they use into the state-owned permanent forest domain, there has only been a risk of illegality since the adoption of Decree n°201-2019. Indigenous populations’ user rights are guaranteed by the law in the same way as local communities’ user rights are. The risk that customarily used sites and resources are not identified and preserved is particu... VIEW MORERegarding indigenous populations’ consent to the classification and incorporation of the land they use into the state-owned permanent forest domain, there has only been a risk of illegality since the adoption of Decree n°201-2019.
Indigenous populations’ user rights are guaranteed by the law in the same way as local communities’ user rights are. The risk that customarily used sites and resources are not identified and preserved is particularly high for unmanaged UFAs (no forest management plan or forest management plan in the process of being drawn up). The environmental and social impact assessments are also often not carried out, making identification of the land and resources mobilised through the exercise of user rights even weaker. This risk has been even higher since the adoption of Decree n°200-2019, which reinforces the obligation for logging companies to identify indigenous populations’ sacred and spiritual sites in order to protect them. The regulations appear to have already stipulated measures to provide depossessed indigenous populations with some form of restitution or compensation prior to the adoption of this decree. In view of the sensitivity and complex nature of implementing such measures, and the poor level of forest governance in the Congo, a precautionary approach is adopted for the protection of spiritual and sacred sites and restitution or compensation in the event of depossession.

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verificationStakeholder consultation

Consult Indigenous populations

Consult the indigenous populations affected on how their spiritual and sacred sites have been respected

Verify Documents and attestations regarding restitution or compensation received for depossession

If applicable

Verify Map of the sacred and spiritual sites of the indigenous populations concerned

Consult Indigenous populations

Consult the indigenous populations affected on how their spiritual and sacred sites have been respected by the logging operator

Description of legal requirements

Spiritual and sacred indigenous sites shall be identified. Restitution or reparation shall occur in the event of dispossession.

The Forest Code gives indigenous populations the same level of protection as local communities affected by the management of forests, notably in their right to manage community forests, exercise their user rights, and to take part in land classification and forest management plan drafting procedures, etc.
However, Law n°5-2011 on the promotion and protection of indigenous populations stipulates that the formulation or implementation of legislative or administrative measures, or development programmes/plans that could directly or indirectly affect them require the indigenous populations to be consulted (Art. 3). Their customs and traditional institutions are guaranteed (Art. 13), as are their intellectual property rights over their traditional knowledge (Art. 15). Indigenous populations may exercise their customary rights and claim compensation for any damages related to the violation of their rights over the land and natural resources (Art. 42). They have a collective and individual right to the ownership, possession, access and use of the land or natural resources that they traditionally occupy or use (Art. 31).
The state facilitates the marking of indigenous peoples’ land on the basis of their customary land rights, in order to ensure everyone is aware of it. In the absence of land titles, the indigenous populations retain their pre-existing customary land rights. The indigenous populations’ rights over their land are imprescriptible and inalienable, unless they are expropriated in the public interest (Art. 32). In this way, they have the right to define their priorities and strategies for developing, using and controlling their land and other resources (Art. 36).
The indigenous populations must be consulted before any project that has an impact on their land and the resources they traditionally own or use is rolled out (Art. 38). This was translated in July 2019 by the obligation to consult indigenous populations with a view to obtaining their free, informed and prior consent to any project or programme that could affect them (Decree n°2019-201)
Furthermore, all projects involving the exploration, exploitation or conservation of the natural resources on their traditional land must be subjected to a prior socio-economic and environmental impact assessment (Art. 35).
Another decree adopted in July 2019 determines the modalities for the protection of the cultural assets and sacred and spiritual sites of indigenous populations (Decree n°2019-200). This decree stipulates that activities involving the exploitation of ecosystems must respect indigenous populations’ rights to exercise their rites and customs and to enter their sacred and spiritual sites (Art. 6). After obtaining the indigenous peoples’ free, informed and prior consent, companies must put together a map of their spiritual and sacred sites (Art. 7).
Measures to provide dispossessed indigenous populations with some form of restitution or compensation are provided for and must be respected by the competent authorities.
It is important to note that indigenous populations are present in the following administrative regions in the Republic of the Congo: Sangha, Likouala and Lekoumou.

Legally required documents

Forest management plan
Map of the sacred and spiritual sites of the indigenous populations concerned

Applicable legislation

Decree n° 2019-200 of 12 July 2019 determining the modalities for protecting the cultural assets, sacred sites and spiritual sites of indigenous populations., 2019.
Decree n°2019-201 of 12 July 2019 establishing the procedures for the consultation and participation of indigenous populations in socio-economic development projects and programmes, 2019.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Law n°5 of 25 February 2011 on the promotion and protection of indigenous populations, 2011.
Law No. 21-2018 of June 13 2018, laying down the rules of occupation and acquisition of field and land, 2018.

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1.16 Classification of species, quantities, qualities

Last updated on 2021-12-01 False declarations are made on the timber transport documents (waybills) Specified RISK

The risk of false declarations being made on waybills (concerning the origin of the wood, the species or the diameters and volumes) is high (IM-VPA FLEGT/CAGDF, n°14-2016, n°15-2017, n°004-2018, n°005-2018, n°008-2019, n°009-2019). The volumes produced and the area from which the wood originates has an effect on the felling tax: the smaller the volume and the further away the logging site, the lower the tax. Failure to respect the forest m... VIEW MOREThe risk of false declarations being made on waybills (concerning the origin of the wood, the species or the diameters and volumes) is high (IM-VPA FLEGT/CAGDF, n°14-2016, n°15-2017, n°004-2018, n°005-2018, n°008-2019, n°009-2019).
The volumes produced and the area from which the wood originates has an effect on the felling tax: the smaller the volume and the further away the logging site, the lower the tax. Failure to respect the forest management plan and the annual logging licence may also be concealed by false declarations made on the wood transportation documents (notably concerning species). The risk is particularly high for some species such as Padauk, Iroko, Ebiara, Doussié, Sifou-Sifou and Essia, etc. (Experts consultation, 2019)
This risk is also linked to the lack of coordination between the various services established along the route that the timber takes from where it is harvested to the export location. The Congolese administration is indeed decentralised, but its departments are still compartmentalised. The wood can pass through several regions whose authorities do not have real-time access to all the data collected by the departments in which the wood has been felled. In other words, if the wood is felled fraudulently or not declared to the local department where it was felled (to avoid paying tax, for example), no other department along the route will be able to discover this information instantly. Furthermore, during its field mission, the Independent Monitor noted the absence of on-site logging company checks conducted by the Ministry of Forest Economy officers due to a lack of resources (IM-VPA FLEGT/CAGDF).
In addition to making false declarations on their wood transport documents, companies have also been found to make alterations to the markings made on the transported logs, notably when the wood is unloaded and stored in break bulk yards located along the trade route. For example, when exporting timber, a company could claim that wood harvested in a forest unit in Lékoumou comes from a different logging zone located in Niari by falsifying the marks of one of its axes and the tax area marked on the logs in order to pay less felling tax (IM-FLEG/REM-CAGDF, n°10-2013).

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify Site log books

Ensure information on other transport documents align

Verify Waybills

Ensure information on other transport documents align

Verify Specification sheets stamped by the forest administration

Ensure information on other transport documents align

Verify Production reports

Ensure information on other transport documents align

Description of legal requirements

Accurate declarations shall be made on timber transport documents.

The annual logging licence specifies the species and provisional volume that a logging operator has the right to harvest (for example, 5 Okoumé trees at a volume of 5m3 per tree, i.e. 25m3 in total) (Decree n°2002-437, Art. 69). For each allowable cut, the logger records the information for each tree felled in a site log book, including the name of the species and its dimensions (Decree n°2002-437, Art. 87). The volume of each log produced from the tree is calculated, to ensure that the authorised quantities are respected (Decree n°2002-437, Art. 69).
When the wood is transported from the logging area to the processing unit or export location, it is accompanied by a waybill that contains information on: number of logs, species, volumes and quality of the products. The waybill must have no deletions or alterations, and must be finalised and signed by the shipper of the products (Art. 121). It also mentions: the logging title details, the origin and destination of the products, the shipping date, the names and surnames of the driver, the details of the vehicle, and the nature, numbers, species, unit volumes and quality of the products.
The logging operator is obliged to provide the departmental directorate of the district in which the concession is located with a monthly production statement for the month just ended, and, at the end of the year (before 15 January), an annual summary statement, indicating the volume of boles, the volume of logs, the volume of stock and the volume delivered for each species, in line with its destination (processing plant or export) (Decree n°2002-437, Art. 90).
Forest plantation owners must also submit a monthly report of harvested products to the forest administration, in line with the form provided for by the applicable regulations.
Furthermore, wood processing companies must also keep records of wood coming into the plant, as well as the volumes produced and in stock. They must produce monthly and annual summaries, which are sent to the administration.
Finally, the regulations define three categories of wood - heavy, medium and light - in line with the species and its green wood density. These categories are referred to when calculating felling and export taxes.

Legally required documents

Annual logging license (Autorisation de coupe annuelle

Autorisation portant sur l’ouverture de la 2e année d’exploitation et sur le stock fûts de fin d’année de l’assiette annuelle de coupe (autorisation d’achèvement))
Monthly and annual production reports
Site log books
Waybills

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Order n°19570/MEFDD/CAB of 10 November 2014 determining the categories of wood products in the Congo, 2014.

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1.16 Classification of species, quantities, qualities

Last updated on 2021-12-01 The markings on logs stored in break bulk yards are tampered with Specified RISK

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Field verification

Visit harvesting site

Verify that all logs produced from one single tree are correctly marked; Verify that the markings have not been altered during transport.

Description of legal requirements

Markings on logs shall not be tampered with.

Legally required documents

Annual logging license (Autorisation de coupe annuelle

Autorisation portant sur l’ouverture de la 2e année d’exploitation et sur le stock fûts de fin d’année de l’assiette annuelle de coupe (autorisation d’achèvement))
Monthly and annual production reports
Site log books
Waybills

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Order n°19570/MEFDD/CAB of 10 November 2014 determining the categories of wood products in the Congo, 2014.

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1.17 Trade and transport

Last updated on 2021-12-01 Failure to hand over field log books and waybills every quarter to the forest administration Specified RISK

The Independent Monitor has regularly reported on inadequate keeping of field logbooks (IM FLEG/REM, 2009 ; IM-VPA FLEGT/CAGDF, n°14-2016, n°15-2017, n°001-2017, n°003-2018, n°004-2018) as well as on the failure to hand over field logbooks and waybills to the forest administration in time every quarter (IM FLEG/REM, 2009 ; IM-VPA FLEGT/CAGDF, n°006-2019, n°007-2019, n°008-2019, n°009-2020 ; AIS FLEGT/SOFRECO Lekoumou-2019).There is also ... VIEW MOREThe Independent Monitor has regularly reported on inadequate keeping of field logbooks (IM FLEG/REM, 2009 ; IM-VPA FLEGT/CAGDF, n°14-2016, n°15-2017, n°001-2017, n°003-2018, n°004-2018) as well as on the failure to hand over field logbooks and waybills to the forest administration in time every quarter (IM FLEG/REM, 2009 ; IM-VPA FLEGT/CAGDF, n°006-2019, n°007-2019, n°008-2019, n°009-2020 ; AIS FLEGT/SOFRECO Lekoumou-2019).
There is also a risk that logging companies use irregular waybills or transport timber without waybills (IM FLEG/REM, 2009).
Very few data analyses are conducted on the waybills after they have been used. This is caused in particular by persistent weaknesses in the process used by companies to hand over waybills to the administration, as well as by archiving issues when waybills are effectively handed over to the administration (IM FLEG/REM-CAGDF, 2013).

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify Any document (letter, email, receipt…) showing that production statements and annual statements are handed over to the forest administration

Description of legal requirements

Field log books and waybills shall be handed out every quarter to the forest administration.

In natural forests, the operators keep a field logbook which must contain information on each tree felled, the date of felling, the number, the species and the dimensions. In addition, stumps and logs are also marked with the operator's hammer.
Every movement of forest products (including plantation timber) is accompanied by a numbered waybill produced in four copies. The waybill must not contain any erasures or overwriting and must be signed by the sender. The waybill must be presented to the station or port master for any transport by rail or waterway. Night transport of logs and sawn timber by road is prohibited. For special permits, however, the allocation decision is used instead of the waybill: it is used to record information on the back about the transport of forest products.
The field logbooks and the stubs of the waybill books are submitted to the forest administration at the end of each quarter for verification.
Every operator must provide, each month, a production statement for the past month indicating by species the volume of trees felled, the volume of logs, stocks and volumes delivered, indicating their destination. At the end of the year, an annual summary is provided. Forest plantation owners must also submit a monthly statement of harvested products to the forestry administration, in accordance with the form provided for in the regulations. In addition, wood processing companies also keep records of factory inputs and volumes produced and in stock. They produce monthly and annual summaries, which are transmitted to the administration.
In addition, the Forest Code provides for the implementation of a system to verify the legality of forest operators and forest products to ensure compliance with forest legality and the monitoring of timber and forest product supply chains from the forest to the point of export, as well as compliance with procedures for issuing and issuing permits. This system includes a computerised component to track timber from its origin of harvest to its export or sale at national level. Also, every forest product is recorded at each stage of its control in the computerised legality verification system.
Finally, anyone purchasing wood must ensure that their supplier has a valid logging title. They may be declared jointly and severally liable in the event that the timber is discovered to have been harvested fraudulently.

Legally required documents

Waybills

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°011/-2020 of 8 July 2020 on the Forest Code, 2020.

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1.17 Trade and transport

Last updated on 2021-12-01 Fake transport documents (waybills) are used by logging operators Specified RISK

References

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The risk applies to the following source types

Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verificationStakeholder consultation

Verify Waybills

Consult Forest administration

Ensure authenticity of the waybills with the forest administration.

Description of legal requirements

Logging operators shall use official waybills.

Legally required documents

Waybills

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°011/-2020 of 8 July 2020 on the Forest Code, 2020.

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1.18 Offshore trading and transfer pricing

Last updated on 2021-12-01 Transfer prices are manipulated in order to reduce the amount of corporate income tax due in the Congo Specified RISK

The vast majority of logging companies in the Congo are foreign-owned, which exacerbates the risk of tax evasion.A major case of transfer price manipulation (or mispricing) was highlighted in 2019 by NGO EIA on transactions completed between 2013 and 2016 by one timber exporter (EIA, 2019). The procedure involves Congolese companies under-billing the value of the wood and derived products that they sell to subsidiaries located abroad, particular... VIEW MOREThe vast majority of logging companies in the Congo are foreign-owned, which exacerbates the risk of tax evasion.
A major case of transfer price manipulation (or mispricing) was highlighted in 2019 by NGO EIA on transactions completed between 2013 and 2016 by one timber exporter (EIA, 2019).
The procedure involves Congolese companies under-billing the value of the wood and derived products that they sell to subsidiaries located abroad, particularly in countries with low corporate tax rates (in the case of the investigation conducted by EIA, the offshore subsidiaries were located in Hong Kong). This leads to a seemingly low sales price and therefore low profits, and consequently lower corporate tax in the Congo (where corporate income tax stands at 30%). The subsidiaries then resell the same products to the end consumers at the market price. The majority of apparent profits are therefore generated by subsidiaries located abroad, despite these companies only acting as a transactional intermediary, since products are generally shipped directly from the Congo Basin to the end customer.
Through this financial operation, a large proportion of the company's profits are therefore diverted away from its home tax jurisdiction, and the amount of tax that it would have had to pay in this country is fraudulently expatriated. EAI estimated the loss for Congolese and Gabonese governments at between 3 and 6.7 million dollars between 2013 and 2016, and this only takes into consideration the case on which it conducted an in-depth investigation.

References

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The risk applies to the following source types

Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Collect Certificat de moralité fiscale (declaration of “taxpayer morality”) issued by the tax administration. Check the precise identity of the entity declared as the exporter of the wood coming from the Congo (the entity must actually be registered in the Congo). Check the geographical location of the first importer of the wood coming from the Congo (special attention should be paid to countries that are considered tax havens or that have very low income tax rates), as well as whether it is a subsidiary of the exporter

Verify Invoice issued between the exporter and importer

Check the prices stated on the invoice issued between the exporter and importer (they must correspond to market prices).

Description of legal requirements

There shall be no manipulation of transfer prices.

Corporate income tax in the Congo stands at 30%.
All profits indirectly transferred by increasing or decreasing the purchase or sale price must be taken into consideration in the company’s balance sheet for the purpose of calculating corporate income tax for companies controlled by other companies located outside of the Congo, that own companies outside of the Congo, or that are controlled by a group that owns other companies abroad. The law provides precise details of all actions that constitute “abnormal management” or actes anormaux de gestion: the amounts corresponding to these actions must be factored into the company’s corporate income tax calculation.
Where the transfer is conducted with companies established in a territory that offers preferential tax treatment or in a country that is non-cooperative on a tax level, the above applies even if there is no relationship of dependency or control. Benefits or support allocated to companies belonging to the same group are only deemed to fall under “normal management” if the company granting them demonstrates that doing so is in its own interest. The general interest of the group is not sufficient by itself to justify such practices.

Legally required documents

Record of financial transactions

Applicable legislation

Interministerial Order n°461 of 19 February 2003 on the use of the national monitoring system for forest products for export, 2003.
Law n°6-2003 of 18 January 2003 on the investment charter, 2003.
Ordinance-Law n°69/009 of 10 February 1969 on schedular taxes on income as amended by subsequent texts, 1969.
Regulation n°02/18/CEMAC/UMAC/CM on exchange control in the CEMAC.

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1.19 Custom regulations

Last updated on 2021-12-01 The amount of export tax due is calculated unlawfully (in line with species and harvesting areas) or the regulatory export procedure is violated, for instance through the issuance of exceptional embarkation permits (AETEX), skewing the amount of taxes and fees payable Specified RISK

Export procedures and taxesPoor application of FOB and FOT values in the calculation of export taxes and fees is a risk (IM-VPA FLEGT/CAGDF, 2017). Indeed, in line with the species and tax areas established by the applicable regulations, poor indexation of FOB and FOT values can lead to a shortfall in the collection of payable taxes and fees.Furthermore, for various different reasons, the customs authority may authorise embarkation in exceptional... VIEW MOREExport procedures and taxes
Poor application of FOB and FOT values in the calculation of export taxes and fees is a risk (IM-VPA FLEGT/CAGDF, 2017). Indeed, in line with the species and tax areas established by the applicable regulations, poor indexation of FOB and FOT values can lead to a shortfall in the collection of payable taxes and fees.
Furthermore, for various different reasons, the customs authority may authorise embarkation in exceptional circumstances (Autorisation d'Enlèvement à titre Exceptionnel, AETEX) without the regulatory procedure in terms of the applicable formalities for exporting forest products having been respected. The actual taxes and fees payable are therefore skewed. Some companies also obtain waivers from the customs authorities for payment of forest product export taxes. These waivers are illegal, unless they are stipulated in advance in the establishing agreements between said companies and the Ministry of Finance, which may provide these benefits in order to facilitate the establishment of companies in the Congo. (Experts consultation, 2019)
Exporting wood in logs
The Independent Monitor has reported on several occasions on (IM-VPA FLEGT/CAGDF, 2016, 2017):
-   the issuance of log export permits by the Director General of Water and Forests, despite the fact that the law stipulates that only the Ministry is authorised to issue them;
-   cases of AVEs being issued without a log export permit having been issued;
-   the issuance of log export permits with a higher volume than the actual yearly production capacity.
Furthermore, numerous cases of illegality have been documented in terms of lack of compliance with the former regulations on log export quotas (IM-VPA FLEGT/CAGDF, 2016).
The 2019 EIA survey notably revealed that several companies part of a major group have exported more than 100,000 logs from the Republic of the Congo, exceeding their log export quota by 80 million dollars between 2013 and 2016. These companies almost inverted the processing quota, exporting almost 90% of their production in the form of logs, firstly benefiting from a waiver from the Ministry of Water and Forests on up to 40% of their production (the legality of which is questionable), and also likely benefiting from special favours from the customs authorities and the forest administration (including the SCPFE, which is responsible for ensuring that the log export quotas are respected).
The new system, which is no longer based on processing quotas, but on a distinction between whether the machinery required to carry out the initial processing of the wood is located in the Congo or not, has not yet been proven or documented. In view of the gravity of the illegality documented in relation to the old regulation, a cautious approach will be adopted.

References

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The risk applies to the following source types

Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify Logger, forest industry company or exporter professional accreditation

Verify Specification sheets stamped by the forest administration

Ensure that the FOB and FOT values indicated in the specifications are compliant with those in the export verification declaration (AVE). Ensure that the characteristics of the forest products stated on the export declarations are coherent with those stated in the specifications, AVEs and sales documents

Verify Export verification declaration

Verify Document certifying payment of export taxes

Verify Certificate of origin

Verify Phytosanitary certificate

Verify Export declaration

Description of legal requirements

The regulatory export procedure shall be complied with. The amount of export tax due shall be calculated lawfully.

Exporter accreditation
To conduct activities as an exporter and/or importer of wood and derived products and other forest products, all natural or legal persons must first obtain an accreditation from the Ministry of Trade, subject to approval from the Ministry of Forest Economy. Note: forest concessionaires are automatically registered as exporters (Decree n°2002-437, Art. 127).
Export procedure
In general, all export operations must be declared and monitored by the competent departments. The single window for cross-border operations is the public institution responsible for facilitating all administrative, commercial and customs procedures.
The exporter initially prepares a specification sheet detailing the product references, the name of the permit holder and their tax category (Decree n°2002-437, Art. 135). This is stamped by the decentralised administration of water and forests, and is then submitted to the SCPFE, which reports to the Ministry of Forests.
The SCPFE conducts physical checks on the products for export and compares them with the information on the specification sheet, the relevant logging title, the FOB prices, and the quantities of wood produced by the logging operator (notably for wood exported in logs). Based on these checks, the SCPFE issues the export verification declaration (attestation de vérification à l’export, AVE). This document is mandatory (Order n°461, Art. 2 and 12) and also determines the amount of export tax due.
At the same time, the exporter must obtain a certificate of origin from the chamber of commerce and industry and a phytosanitary certificate from the agriculture administration.
The freight forwarder, which must be approved by the CEMAC, then provides the customs authorities with a set of documents, notably including the specification sheet, the AVE, the certificate of origin, the phytosanitary certificate and the commercial invoice. Proof that the customs taxes have been safely received by a banking institution must also be provided. A clearance document (bon à enlever or bon à embarquer) is then issued by the customs authority.
At the end of the procedure, the foreign trade administration issues a certificate of conformity that authorises the wood for embarkation (Law n°40-2018, Art. 42).

Legally required documents

Export verification declaration (Attestation de vérification d’export)
Bon à enlever or bon à embarquer (clearance document)
Document certifying payment of export taxes
Export declaration
Logger, forest industry company or exporter professional accreditation
Phytosanitary certificate
Specification sheets stamped by the forest administration
Certificate of origin (Certificat d’origine)

Applicable legislation

CEMAC Code.
Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°16-2013 on the creation of a single window for transborder transactions.
Law n°3-2007 of 24 January 2007 regulating imports, exports and re-exports, 2007.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°23444/MEFPPPI/MEFDD of 31 December 2014 establishing the FOT values for the calculation of the felling tax and wood export tax, 2014.
Order n°5845 of 4 August 2010 introducing a verification declaration for forest product exports, 2010.
Ordinance-Law n°10/002 of 20 August 2010 on the Customs Code, 2010.

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1.19 Custom regulations

Last updated on 2021-12-01 Logs are exported without a valid log export permit being issued or log export quotas are not respected or log export quotas are transferred unlawfully (previous Forest Code) Specified RISK

References

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The risk applies to the following source types

Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verificationField verification

Visit Harvesting site

Ensure that the exported logs are heavy hardwood species that require specific technology to be machined

Consult Forest administration

Check with the forest administration that current log export requirements are complied with

Description of legal requirements

Log export requirements shall be complied with.

Legally required documents

Export verification declaration (Attestation de vérification d’export)
Bon à enlever or bon à embarquer (clearance document)
Document certifying payment of export taxes
Export declaration
Logger, forest industry company or exporter professional accreditation
Phytosanitary certificate
Specification sheets stamped by the forest administration
Certificate of origin (Certificat d’origine)

Applicable legislation

CEMAC Code.
Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°16-2013 on the creation of a single window for transborder transactions.
Law n°3-2007 of 24 January 2007 regulating imports, exports and re-exports, 2007.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°23444/MEFPPPI/MEFDD of 31 December 2014 establishing the FOT values for the calculation of the felling tax and wood export tax, 2014.
Order n°5845 of 4 August 2010 introducing a verification declaration for forest product exports, 2010.
Ordinance-Law n°10/002 of 20 August 2010 on the Customs Code, 2010.

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1.20 CITES

Last updated on 2021-12-01 Low risks concluded Low RISK

Two timber species in the Congo are included in the CITES annexes: •   Pericopsis elata (commonly known as Yellow Satinwood, African teak, Assamela or Afromosia), which has been severely over-harvested (Annex II, containing a list of all products including sawn wood, veneer sheets, plywood and extracts);•   Prunus africana (African plum, red stinkwood or kanda stick) (Annex II).The Independent Monitor has reported on Afrormosia loggi... VIEW MORETwo timber species in the Congo are included in the CITES annexes:
•   Pericopsis elata (commonly known as Yellow Satinwood, African teak, Assamela or Afromosia), which has been severely over-harvested (Annex II, containing a list of all products including sawn wood, veneer sheets, plywood and extracts);
•   Prunus africana (African plum, red stinkwood or kanda stick) (Annex II).
The Independent Monitor has reported on Afrormosia logging when the species was not mentioned on the logging licence (IM-VPA FLEGT/CAGDF, n°001-2017).
However, experts agree to consider that illegal trade in plant species included in the CITES annexes is rare since the export control body (SCPFE) possesses the annual logging licences of all companies. Any CITES species that does not have a permit and/or is declared under another name would be easily recognised (Experts consultation, 2019).

References

Forest Legality Initiative (2014). Risk Tool - Republic of Congo.

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Description of legal requirements

The Congo is a party to the CITES Convention. The Forest Code stipulates that products for export must comply with the CITES standards in force.
The harvesting of CITES species is not prohibited in itself. However, like for all felled species, they must be defined as harvestable in the forest management plan and must be stated on the annual logging licence drawn up in line with the harvesting inventory data.
On the other hand, Law n°3-2007 of 24 January 2007 regulating imports, exports and re-exports stipulates that goods and services subject to a duly substantiated restriction must obtain a special export permit (Art. 15 of Law n°3-2007).
The regulations do not provide any more details on the procedure for obtaining the CITES export permit from the management body, as the Convention so requires (these procedures only exist at an administrative level).

Legally required documents

Annual logging license (Autorisation de coupe annuelle

Autorisation portant sur l’ouverture de la 2e année d’exploitation et sur le stock fûts de fin d’année de l’assiette annuelle de coupe (autorisation d’achèvement))
CITES export permit
Forest management plan

Applicable legislation

Law n°3-2007 of 24 January 2007 regulating imports, exports and re-exports, 2007.
Law n°34-82 of 7 July 1982 authorising the ratification of the Convention on International Trade in Endangered Species of Wild Fauna and Flora, 1982.

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1.23 Legal Registration of Business

Last updated on 2021-12-01 Processing units are not registered with the Ministry of Industry Specified RISK

The level of monitoring exercised by the industry administration over the processing units is weak, primarily due to the distance between the processing sites and the authorities’ lack of capacity. The risk is that logging companies set up their processing units without obtaining the necessary licences from the Ministry of Industry. The Independent Auditor (AIS) notably mentioned a report from the forest administration not mentioning significa... VIEW MOREThe level of monitoring exercised by the industry administration over the processing units is weak, primarily due to the distance between the processing sites and the authorities’ lack of capacity.
The risk is that logging companies set up their processing units without obtaining the necessary licences from the Ministry of Industry. The Independent Auditor (AIS) notably mentioned a report from the forest administration not mentioning significant recent installations (AIS FLEGT/SOFRECO, DGEF-2019).

References

AIS FLEGT/SOFRECO (2019). Rapports d'audit de la DGEF et des départements de Niari, Cuvette Ouest et Sangha. Audits indépendants du système de vérification de la légalité du système FLEGT en République du Congo.

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify Licence to carry out industrial activities

Licence to carry out industrial activities issued by the Ministry of Industry or an approved written declaration, depending on the case.

Description of legal requirements

Processing units shall be registered with the Ministry of Industry.

Wood processing installations are subject to the legislation on industrial units and the legislation regulating forestry professions.
The conditions under which a wood processing plant is set up must be compliant with the regulatory provisions on industrial activities. As such, plants and workshops that may present dangers or disadvantages to health and safety are split into two categories: category 1 installations, which present serious dangers or disadvantages and are subject to an installation licence, issued only if measures to prevent such dangers or disadvantages are taken (the licence may establish special requirements relating to the management and exploitation of the installation), and category 2 installations, which do not present any serious dangers or disadvantages and are subject to a written declaration approved by the Ministry of Environment.
Installations in the forest sector that fall under category 1 are:
•   wood peeling plants;
•   industrial joineries;
•   pulp manufacturing units;
•   sawmills.
Installations that fall under category 2 are:
•   wood charcoal production units;
•   wood impregnation plants;
•   mechanical joineries;
•   timber yards;
•   warehouses storing planks and other sawn wood products.
In contrast, setting up a timber processing industry that is not integrated into forestry practice requires prior approval from the Ministry of Forest Economy (Art. 114 and 115 of Decree n°2002-437).

Legally required documents

An accreditation from the Ministry of Forest Economy
Industrial operator professional identity card
Licence to carry out industrial activities

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°003/91 of 23 April 1991 on environmental protection, 1991.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Law n°9-2015 of 18 July 2015 on the organisation of industrial activities, 2015.
Order n°1450 MIME DGE of 1999 on the application of certain provisions on the installations classified by Law n°003-91 on environmental protection, 1999.

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1.24 Environmental Requirements for Processing

Last updated on 2021-12-01 Hazardous waste is not disposed of properly in line with regulations Specified RISK

Waste managementThe Independent Auditor (AIS) reported poor implementation of the regulatory requirements regarding waste management by companies in the forestry sector (AIS FLEGT/SOFRECO, 2018, 2019). Environmental and social impact assessmentsFor timber peeling units and those with powerful thermal power stations, there is a risk that the obligatory environmental and social impact assessment is not conducted (Experts consultation, 2019).For ot... VIEW MOREWaste management
The Independent Auditor (AIS) reported poor implementation of the regulatory requirements regarding waste management by companies in the forestry sector (AIS FLEGT/SOFRECO, 2018, 2019).
Environmental and social impact assessments
For timber peeling units and those with powerful thermal power stations, there is a risk that the obligatory environmental and social impact assessment is not conducted (Experts consultation, 2019).
For other processing units, the risk lies in the lack of clarity of the applicable legal texts.

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verificationField verification

Verify Document relating to the logging operator’s internal procedures regarding the waste management system

Visit Processing site

Ensure that the logging operator is effectively implementing a waste management system (collection, sorting, storage, transport, processing).

Description of legal requirements

Hazardous waste shall be disposed in compliance with regulations.

Wood processing plants must respect the environmental protection measures imposed by Law n°003/91, which concern the protection of fauna and flora (Art. 11-20), the atmosphere (Art. 21-27), water (Art. 28-33) and soil (Art. 34-38).
Law n°003/91 notably requires anyone who produces or possesses waste under conditions that could harm human health or the environment to dispose of such waste (Art. 49). All dangerous industrial waste or similar must be disposed of accordingly at sites or facilities approved by the environment administration (Art. 54). Circular n°613 lists all waste deemed dangerous in annex 1.
Furthermore, all economic development projects in the Republic of the Congo are subjected to an environmental impact assessment (Art. 2 of Law n°003/91), which gives rise to an environmental and social management plan. Decree n°2009-415 of 20 November 2009 establishes the scope of application (Art. 7-9), the content (Art. 10-13) and the procedures for the environmental and social impact assessment (Art. 14-22). It notably divides activities into three categories (A, B and C), each subject to a different regime, and subjects the reports and notices produced to validation by a technical committee established by Order of the Ministry of Environment (Art. 39). The environmental and social management plan is followed up during the environment administration’s inspections, or by a competent department enlisted by said administration (Art. 44-46). For category A installations, the impact assessment is preceded by a public inquiry (Art. 16).
Industrial peeling installations and installations that include a thermal power plant (for example to dry out the wood) with a capacity greater than 32.5 MW are explicitly listed in the annex of Order n°3190 as category A installations. They are therefore subjected to an environmental and social impact assessment. However, there is a legal grey area in terms of the obligations of sawmills, mechanical workshops, dryers, etc. that are not explicitly listed.
Circular note n°301 issued by the Ministry of Forest Economy in February 2019 reminds managing directors of logging companies of the need for installations in the process of being established to be subjected to an environmental and social impact assessment or notice, and for those that are already up and running to be subjected to an environmental audit. However, this note does not explicitly state which operations are subject to this requirement.

Legally required documents

Environmental and social impact assessment report
Environmental and social management plan

Applicable legislation

Circular n°301 of 13 February 2018 for the attention of managing directors of logging companies, 2018.
Circular n°613 of 24 April 2017 establishing the conditions for managing all types of waste within national territory, 2017.
Decree n°2009-415 of 20 November 2009 establishing the field of application, the content and the procedures for the environmental and social impact assessment and notice, 2009.
Law n°003/91 of 23 April 1991 on environmental protection, 1991.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°3196 of 14 July 2008 providing a nomenclature of the installations classified by Law n°003-91 of 23 April 1991 on environmental protection, 2008.
Order n°835/MIME/DGE of 6 September 1999 establishing the accreditation conditions for the performance of environmental impact assessments or evaluations in the Republic of the Congo, 1999.

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1.24 Environmental Requirements for Processing

Last updated on 2021-12-01 No environmental and social impact assessment is conducted, and/or no environmental and social management plan is implemented Specified RISK

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verificationField verification

Verify Environmental and social impact assessment report

For peeling units and units that contain wood kilns

Verify Environmental and social management plan

For peeling units and units that contain wood kilns

Visit Processing site

If applicable, verify that the environmental and social management plan is being implemented

Description of legal requirements

Environmental and social impact assessments shall be conducted and lead to a plan that is impremented.

Legally required documents

Environmental and social impact assessment report
Environmental and social management plan

Applicable legislation

Circular n°301 of 13 February 2018 for the attention of managing directors of logging companies, 2018.
Circular n°613 of 24 April 2017 establishing the conditions for managing all types of waste within national territory, 2017.
Decree n°2009-415 of 20 November 2009 establishing the field of application, the content and the procedures for the environmental and social impact assessment and notice, 2009.
Law n°003/91 of 23 April 1991 on environmental protection, 1991.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Order n°3196 of 14 July 2008 providing a nomenclature of the installations classified by Law n°003-91 of 23 April 1991 on environmental protection, 2008.
Order n°835/MIME/DGE of 6 September 1999 establishing the accreditation conditions for the performance of environmental impact assessments or evaluations in the Republic of the Congo, 1999.

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1.25 Processing Requirements

Last updated on 2021-12-01 Logging operators do not respect their commitments in terms of investments into processing units Specified RISK

Processing unit investment requirementsThere is a high risk that the companies do not respect their commitments regarding the processing unit investments stipulated by the law and by their respective agreements. The Independent Monitor and Independent Auditor (AIS) notably documented failure to meet obligations of industrial transformation units by forest operators and the lack of monitoring of these questions by the forest administration (IM-VPA... VIEW MOREProcessing unit investment requirements
There is a high risk that the companies do not respect their commitments regarding the processing unit investments stipulated by the law and by their respective agreements. The Independent Monitor and Independent Auditor (AIS) notably documented failure to meet obligations of industrial transformation units by forest operators and the lack of monitoring of these questions by the forest administration (IM-VPA FLEGT/CAGDF, n°007-2019 ; AIS FLEGT/SOFRECO, Niari-2019).
On the other hand, there is also a systematic failure to send summaries of production statements and annual statements to the forestry administration (IM FLEG/REM, 2009, IM-VPA FLEGT/CAGDF, n°005-2017, AIS FLEGT/SOFRECO DGEF-2019).

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verificationField verification

Verify Management and processing agreement (CAT) or industrial processing agreement (CTI)

Verify Documents relating to the concessionaire’s processing unit

Visit Processing site

Compare the contractual obligations presented in the agreement and their actual implementation on the ground

Description of legal requirements

Logging operators shall respect their commitments in terms of investments into processing units.

The 2020 Forest Code stipulates that forest products originating from natural or planted forests are predominantly processed within national territory. Only heavy hardwood that requires specific technology to be machined may be exported.
Logging titles therefore cover both the felling and processing of the wood produced (management and processing agreement). Logging companies are required to set up a processing unit within a maximum of 3 years from the adoption of the Forest Code (i.e. by 2023) or following their creation. During this period, the logs shall be processed at their on-site sawmills or sold to local timber processing companies. The plants carrying out the initial processing of the wood must be located as close to the logging site as possible, and the wood processing units must be set up for both horizontal and vertical use. Companies must keep records of all wood entering the plants, alongside production records in accordance with the templates provided for by the applicable regulations. They must draw up monthly and annual summaries. Logging companies must optimise their wood processing processes and recycle wood residue, and the categories and volumes of residue must be communicated to the forest administration.
These requirements are stipulated in the terms and conditions of the agreements concluded between the operators and the state and approved by ministerial orders, which describe in detail the investments that the company must make, including into the processing units.

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.

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1.25 Processing Requirements

Last updated on 2021-12-01 Failure to hand over production statements and annual statements to the forest administration Specified RISK

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verification

Verify Any document (letter, email, receipt…) showing that production statements and annual statements are handed over to the forest administration

Description of legal requirements

Production statements and annual statements shall be handed out to the forest administration.

Applicable legislation

Decree n°2002-437 establishing the conditions for the management and use of forests.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.

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1.26 Health and Safety in the Timber Processing Sector

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verificationField verification

Verify Document relating to the creation and running of the health and safety committee

Verify Instructions relating to the prevention of occupational risks for each workstation

Visit Harvesting site

Description of legal requirements

All regulations on occupational health shall be respected.

Legally required documents

Documents relating to health and safety at work within the company
Instructions relating to the prevention of occupational risks for each workstation
Record of accidents at work, occupational illnesses and illnesses of an occupational nature

Applicable legislation

Collective bargaining agreement for the forestry industry dated 5 June 2014, 2014.
Law n°6-96 of 6 March 1996 amending and supplementing some provisions of Law n°45/75 of 15 March 1975 establishing a Labour Code for the People's Republic of the Congo, 1996.
Order n°9030/MTERFPPS/ DGT/DSSHST of 10 December 1986, establishing company health and safety committees, 1986.
Order n°9036/MTERFPPS/ DGT/DSSHST of 10 December 1986 on the general health and safety measures applicable within industrial, commercial, agricultural and forestry companies and similar administrative bodies, 1986.

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1.27 Legal Employment in The Timber Processing Sector

Last updated on 2021-12-01 The regulations on employment legality are not respected (no employment contract for employees, unfair dismissals, employees not declared to social security, social security contributions not paid, no staff delegates, use of subcontracting where it does not fulfil legal employment conditions, etc.) Specified RISK

References

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The risk applies to the following source types

Domestic logging permit
Industrial processing agreement (CTI)
Management and processing agreement (CAT)
Plantation timber logging permit
Plantation timber promotion agreement
Private land title
Special permit
Wood from deforestation operations

Risk mitigation options

Document verificationField verification

Verify Declaration of the existence of the company to the Labour Inspectorate

Verify Certificate of registration with the national social security fund (CNSS)

Verify Employment contracts

Verify Payslips

Verify Documents relating to staff delegates (for companies with more than 7 employees).

Visit Harvesting site

Description of legal requirements

All regulations on employment legality shall be respected.

Legally required documents

Certificate of registration with the national social security fund (CNSS) (Avis d’affiliation à la Caisse Nationale de Sécurité Sociale (CNSS))
Declaration of the existence of the company to the Labour Inspectorate
Employer’s log
Employment contracts
Payslips

Applicable legislation

Decree n°2008/942 of 31 December 2008 establishing the guaranteed interprofessional minimum wage (SMIG), 2008.
Law n°004-86 of 25 February 1986 establishing the social security code in the People’s Republic of the Congo, 1986.
Law n°22-88 of 17 September 1988 modifying Law n°01/86 of 22 February 1986 replacing and supplementing Law n°03-85 of 14 February 1985 on the creation of the ONEMO Law n°3-2000 of 1 February 2000 defining the notion of subcontracting and establishing the conditions for the exercise thereof, 1988.
Law n°33-2020 of 8 July 2020 on the Forest Code, 2020.
Law n°6-96 of 6 March 1996 amending and supplementing some provisions of Law n°45/75 of 15 March 1975 establishing a Labour Code for the People's Republic of the Congo, 1996.

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