Malaysia is living up to her CITES Commitments

The Malaysian Timber Council (MTC) supports the Malaysian government's development of sustainable forest and forest-related resource use and management. There are new efforts at partnerships within the country involving the government, private sector and civil society to ensure that Malaysia's high quality forest products are produced from environmentally and socially sustainable forests.

Against this background, the MTC is concerned by the call by a neighbouring country for a worldwide ban on Malaysia timber, following a threat of action by a coalition of 8 US-based NGOs to petition the US government to take economic measures against the Malaysian government. What is regretful is that these attempts undermine the long-term commitment of the Malaysian government to the development of an environmentally sustainable forestry sector.

The problem of the illegal harvesting of timber, including Ramin, in the forests of Indonesia is a well-known issue and is a cause for concern for both the Indonesian and Malaysian governments. Both countries have on-going programmes aimed at strengthening forest governance and curbing illegal logging activities.

The fact that some illegally harvested timber in Kalimantan find their way to overseas markets through ports located in the country is not a new finding either. This is an ongoing enforcement challenge, given the rough tropical terrain and long border between Indonesia and Malaysia on the island of Borneo. Nonetheless, Sarawak has taken active steps to address the problem by restricting the entry of sawn timber to four designated/gazetted points at Tebedu, Lubok Antu, Batu Lintang and Semantan along the border. In addition Malaysia imposed a total ban on the import of Indonesian round logs in June 2002, and later expanded the ban to include square logs in June 2003. These bans have been coupled with strict enforcement.

Parties that call for trade sanctions and bans targetted only at Malaysia, when it is one of the few developing countries with a solid commitment to sustainable forestry, have to answer some questions about where their true motivations lie.

Partial Reservation on CITES Listing of Ramin parts and derivatives

Subsequent to the listing of Ramin on Appendix III of CITES by Indonesia in August 2001, Malaysia as a party to CITES agreed to abide by its commitments to enforce regulations on issuance of CITES Certificates of Origin for her own logs and sawn wood.

For trade of Ramin from Malaysia, exporters apply for the CITES Certificates of Origin for the purpose of export from the Malaysian Timber Industry Board (MTIB) for Peninsular Malaysia and Sabah, and the Sarawak Forestry Department for the state of Sarawak. Malaysia entered an official reservation on products of Ramin. What this means in essence is that Malaysia will enforce CITES regulations but not for downstream products.

The requirement for MTIB Certificate of Origin for parts and derivatives from Malaysian is however an optional arrangement subject to request by exporters or foreign buyers. Malaysia's rationale on entering this reservation is that its is difficult to enforce it for all parts and derivatives of Ramin. Furthermore if Indonesia's intentions were to enlist Malaysia's help in overcoming illegal logging and smuggling, it is reasonable to help in controlling logs since these can most probably be felled and smuggled from the forests directly out of the country. It is also possible for sawn wood to be processed in the forests (using chainsaws) without the knowledge of the Indonesian authorities and smuggled out of the country. However, for all other products like veneer, plywood, dowels, furniture and other finished products, their production requires more sophisticated machinery not easily installed without power supply and which cannot be easily moved about in the forests, such that these finished products can be produced and taken out without the knowledge of the authorities. Malaysia's intentions in entering the reservations have been misconstrued.

The MTC understands that similar problems of illegal felling and smuggling of Big Leaf Mahogany (Swietenia macrophylla) were also faced in South America. Countries in South and Central America (Costa Rica, Bolivia, Brazil, Colombia, Mexico and Peru) have gradually listed this species on Appendix III of CITES since the mid-1980's. Every one of these listings was only for "logs, sawn wood and veneer" and not any other parts and derivatives. Even when COP 12 of CITES in Santiago decided to list Big Leaf Mahogany on Appendix II of CITES from November 2003, it was still only for "logs, sawn timber, veneer sheets and plywood" and not for all parts and derivatives. So any country (especially more developed countries) can produce laminated MDF and laminated strand boards using mahogany veneer, or even finished products like doors laminated with mahogany veneers and furniture and export them without CITES requirements. Although the CITES Convention allows the party proposing the listing to determine the products to be listed, this should be regularised if the world community feels that the problems are similar in all regions facing such problems.

Ramin passing through Malaysia's Free Trade Zone (FTZ)

Article VII of the CITES Convention exempts transhipment cargoes from the requirements of the treaty. The status of CITES Resolution Conf. 9.7 RECOMMENDS that the Parties inspect, to the extent possible under their national legislation, specimens in transit ÉÓ and that "Parties adopt legislation allowing them to seize and confiscate specimens in transit or being transhipped without valid export documentation". Malaysia lives up to her various international commitments. Ramin listing is the first CITES case for a timber of substantial commercial interest to the country, where the Malaysian Management Authority (MA) is still on the learning curve. Where existing national legislations are inadequate for to carry out these obligations effectively, the MA's should be given time to address these legislative gaps. At present, under Section 2 of the Customs Act 1967, Excise Act 1976, Sales Tax Act 1972, Service Tax Act 1975, the FTZ is deemed to be a place outside Malaysia. Malaysia needs to look at her commitments to other international maritime legislation before pre-emptive measures can be undertaken.

Let the facts speak for themselves

There are existing projects in Malaysia aimed at strengthening conservation measures for peat swamps. A Malaysian government-UNDP-GEF funded project is being undertaken for Southeast Pahang in Peninsular Malaysia, Loagan Bunut in Sarawak and Klias Peninsula in Sabah. A bilateral project 'Sustainable Management of Peat Swamp Forest of Sarawak with Special Reference to Ramin is underway. The outputs of the project would include, amongst others, findings on the current enforcement of the management system and its impact on the regenerating capacity and future yield of Ramin. The data and facts generated from these projects will provide some scientific certainty on the conservation status of Ramin in Malaysia instead of dependence on the precautionary principle in the event of inadequate information.


Evidence of Malaysia's support of her neighbour

In 2003, 122 cases of illegal Indonesian log seizures have been made, which the Indonesian authorities have been notified about.

Confiscation of Logs from Indonesia by Malaysian Customs Authorities in Year 2003
(inclusive of Ramin Logs & Sawn timber without CITES certification)

Malaysian authorities involved in enforcement of the Indonesian log ban along the coasts will tell you of the desperation of the men who bring the illicit cargoes in barges, risking their lives on the high seas. When these barges are forbidden from berthing, and rather than taking the risk a second time of going back with a full cargo and being rammed by other vessels at sea, they would dump tens of tonnes of their cargo at sea. This is an obscene way to waste the forests in Indonesia and the MTC looks forward to both Malaysia and Indonesian governments undertaking joint programmes to cooperate to mutually resolve the long-standing issue. Most recently in January 2004, Prime Minister Dato' Seri Abdullah Ahmad Badawi of Malaysia and President Megawati of Indonesia issued a joint statement renewing their efforts to prevent smuggling, including the smuggling of timber.

 

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Last modified: April 14, 2004
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