Chain of Custody Certification

Dean Johnson

D.F. Johnson & Associates

How you achieve it and getting started § Background information on what is involved § Introduction to some new language § Provide you with information to help with your decision § To give you the “gist” of what’s ahead

Steps to Chain of Custody certification

§ Contact an accredited certifier § Submit an application § Prepare procedures and documents (yourself or CoC consultant) § Train staff on new procedures § Complete an on-site audit § Receive approval

Review of current operation to determine scope

§ What are you purchasing and where is it coming from §  Purchases- certified and non certified material § Certified can be “pure” or “mixed” § Non certified can be “controlled” (avoidance of controversial sources) § Non certified can also be uncontrolled ( high risk material ) § Determine which control system you should use for tracking §  Credit or percentage or physical separation § Do you outsource to contractors (Planing, drying, finishing ) § Trademark use ( on product, promotional )

Your current sales will determine “Product Groups”

These are examples of the volumes that you may be tracking

All will be specie specific, or product specific

Logs   Lumber   Residue  

Hardwood  plywood   Cabinets  

Procedures and record keeping

§ One person overall responsibility § Supplier lists required for certified and non. § Conversion factors for processing steps § Credit table or % tracking § Volume summaries for certified and non. § Bills of lading § Invoices

Purchasing

§ Person responsible § Bill of lading must accompany loads § Certification of supplier must be verified § Ensure vendor puts certificate # on BOL § Purchases may be pure, mixed or controlled ( non controversial ) § Must maintain a supplier list for both certified and non certified

Controlled wood / Avoidance of controversial § Is non certified material with known and acceptable origin § Material may be mixed with certified if verified as low risk § Risk assessment done by purchaser– (as described earlier) § Must maintain a list of suppliers § District of origin must be confirmed § Bills of lading to accompany loads § Uncontrolled wood must be kept separate

Receiving

§ Detail on bill of lading must be verified § Supplier lists must be kept § Delivery information is entered in ledgers. § Uncontrolled wood must be kept separate. § Volume is entered into credit table

Tracking with the credit table

§ Common system for primary manufacturers § Input monthly deliveries into credit table § Conversions from processing done in table § Input monthly sales into credit table §  Balance available for certified sales

Credit  tracking  for  product  group:  Cedar  lumber  

Conversion factor:   1.1  

Month   Certified Inputs MBF  

Controlled Wood Inputs

MBF  

Total Inputs MBF  

Input credits

MBF  

Sales, to

remove from credit MBF  

Calculated Credit MBF  

January-11       0   0     0  

Feb-11   6,000   12,000   18000   6600   1,000   5600  

March-11   4,000   17,000   21000   4400     10000  

April-11   2,000   5,000   7000   2200   7,000   5200  

Tracking with the percentage system

§ Common system for secondary manufactures § Example plywood – core and veneer § Components of product tracked by % of certified material § Must meet a minimum % to be certified material

Finished Product Thickness  

Volume “core” Certified Volume “veneer” Uncertified

% Certified  

Thickness   Volume ( cu in.)  

Thickness   Volume  (cu in.)  

1/2   7/16   2016   1/36   201   90.0%  

5/8   19/32   2736   1/36   201   92.7%  

11/16   5/8   2880   1/36   201   93.0%  

3/4   11/16   3168   1/36   201   93.7%  

1/2   7/16   2016   1/42   164   91.9%  

5/8   19/32   2736   1/42   164   94.0%  

11/16   5/8   2880   1/42   164   94.3%  

3/4   11/16   3168   1/42   164   94.8%  

Tracking with the percentage system – Hardwood Plywood

Sales and Delivery

§ Person responsible § Sales invoices and bills of lading include the certificate number § The invoice will be linked to the bill of lading § A bill of lading must accompany the truck § Sales volume entered into monthly sales ledger § Sales volume entered into the credit table

Trademark use

§ On product labelling needs approval § Procedures are required for applying label § Pure or mixed is identified § Promotional items also need approval

Outsourcing

§ Subcontractors for processing or handling § Agreement in place § Procedures and training must be in place § Labels can not be applied by the subcontractor § A bill of lading must travel with material with certificate number

Maintaining Certification (for annual audits)

§ Supplier lists – certified and controlled § District of origin for all material § Monthly volume summary’s – purchases and sales § Credit tables for purchases and sales § Bills of lading – (incoming and outgoing) and sales invoices § Certification number on all documentation § Annual audit reviews entire process to ensure that the “chain is not broken”

Cost

§ Will vary depending on the size and complexity § Preparation costs ( either internal or CoC consultant ) § Assessment and annual audit costs § Group certificate or single certificate

Thank-you

Questions?