This decision is based on the outcomes of the Amazon Timber investigation that FSC and Assurance Services International (ASI) started in 2019. This investigation focused on the supply chains of FSC-certified Cumaru, Ipe, and Jatoba timber species from the Amazon rainforests.

The blocked and suspended certificate holders (along with their certificate numbers) are:

• Maderera Rio Yaverija SAC (MADERYJA) (NC-FM/COC-002175)
• Maderera Rio Yaverija SAC (CU-COC-810564)
• Maderera Industrial Isabelita SAC (EMINI) (CU-COC-858403)

Maderera Rio Yaverija SAC (MADERYJA) (NC-FM/COC-002175) and Maderera Rio Yaverija SAC (CU-COC-810564) were also unable to justify the volume mismatches and false claims detected over the course of this investigation.

This investigation has also resulted in the termination of the FSC certificates of Nordisk Timber EIRELI (IMA-COC-000547). Hence, they can no longer claim FSC certification on their products. However, FSC has not blocked the company, therefore they may seek recertification with a different certification body. For more details about the certification status of these companies, please visit the FSC Certification Search tool.

When ASI finds evidence of false claims, fraud or any other major non-conformity in the trading patterns of an FSC-certified company, the concerned certification body is advised to either suspend or terminate that company’s FSC certificate. Additionally, ASI may recommend FSC to block this company from the FSC system to safeguard the supply chain and FSC’s brand credibility. When FSC blocks a company, it cannot seek recertification, in addition to not being allowed to claim FSC certification on its products because their trademark license agreement with FSC is revoked.

For more details about false claims and blockage from the FSC system, please refer to the FSC Advice Note 18 on False Claims (available on page 24 of this document).

The Amazon Timber transaction verification loop was launched in 2019, in which 121 certificate holders of FSC-certified Cumaru, Ipe, and Jatoba wood, from Brazil and Peru, were requested to report their transactions for 2018.

FSC and ASI decided to investigate these supply chains because of a number of incidents reported to ASI, which highlighted a potential integrity risk for FSC. Brazil and Peru account for more than 80 per cent of certificate holders selling Cumaru, Ipe, and Jatoba species of timber into the global market; hence the investigation focused on these two countries. These three species of wood have a high commercial value and face a risk of overharvesting.

Source: FSC News 26 April 2022

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According to FSC’s normative procedure on TV loops and the FSC Advice Note 18, all certificate holders are mandated to respond to requests for data and documentation made by their certification bodies (who act on requests from ASI). Failure to respond to these requests is a violation of certification requirements, and certificate holders who do not comply will face serious consequences.

Califórnia Biomassa was a part of the ongoing TV loop on FSC-certified charcoal that is being conducted by ASI on behalf of FSC. During the first phase of this TV loop, ASI found potential volume mismatches in Califórnia Biomassa’s 2019 transactions of FSC-certified charcoal.

Despite repeated requests issued by Imaflora (the concerned certification body), Califórnia Biomassa failed to respond to a request for supporting invoice documentation to support their volume declarations. As a result of Califórnia Biomassa’s non-compliance, its FSC certificate was suspended by Imaflora in September 2021.

Volume mismatch is a serious integrity concern for FSC, and when a certificate holder does not provide clarifications, FSC considers such a non-compliance to be indicative of a deliberate action. Thus, FSC used the data provided by this company during the first phase of the TV loop and determined that there is evidence of false claims, thereby blocking the company from the FSC system.

Based on this assessment, FSC has blocked Califórnia Biomassa from its system for 30 months.

Any company that is blocked by FSC cannot seek recertification and it can no longer make an FSC claim on its products or use the FSC trademark. For more details about the meaning and implications of blockage due to false claims, please refer to FSC Advice Note 18, in pages 25 – 39 of this document.

The ongoing TV loop on FSC-certified charcoal will be completed by the end of 2022, and the final results will be shared in the first quarter of 2023.

Source: FSC News, 26 Jan 2022

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